FOUNDATION FOR A FINANCIALLY PROSPEROUS LIFE
Our interactions with finances will last a lifetime. For this reason, building a financially prosperous life that withstands economic uncertainties and upheavals to finish well calls for a solid foundation. The image below is of the only house left standing in its neighborhood in Galveston, Texas after hurricane Ike in September 2008.
Why did it remain standing? The house was constructed to withstand such a hurricane.
Everyone’s financial capital is tested during difficult times such as the imminent economic recession that we are facing. The good times, give the illusion that all is well and it is only when winds start blowing and the rains start beating that the foundation and the construction is tested. Putting up a strong foundation takes time, effort and money yet all the work happens below the surface where it is not visible. This may seem like a waste of time and resources. Similarly, with finances, we must build a strong foundation that will not be visible to others before we do things that are visible to others. Before you eat out in expensive restaurants, buy expensive clothes, furniture, cars and houses it is important that you set a solid foundation that will not fail you during the storms of life.
In my opinion, there is a fundamental question that you must answer first and how you answer, determine how you build your financial capital. The question is ‘Who own the money?’
Who really owns the money?
While you make money through your job or business, your ability to make money is a God-given gift in the form of life, intellect, personality, networks, skills and opportunities to mention just a few. For this reason then, is it right to say that the money belongs to God and He has entrusted it to you to manage it for His purposes? If true, then, it is necessary to consult Him on what He would want you to do with His money. You lay your foundation for your financial capital on this bedrock.
Once the foundation is in place, you will need to build a solid house that will stand the test of time. The following principles of money management will ensure you achieve that goal. These are:
- Spend less than you earn. It is the only way to build and accumulate wealth.
- Create and maintain liquidity to meet the unexpected needs because there will be emergencies.
- Avoid the use of debt. We already covered the dangers of debt in an earlier article.
- Set long-term goals along with short-term goals to bring a long-term perspective to issues leading to better decisions.
- Share what you have by giving generously.
The scriptures are a manual for our life and they provide the above principles to guide us in our financial life. Below are some scriptures that relate to each one of them.
- Psalms 24:1 (NIV) The earth is the Lord’s, and everything in it. The world and all its people belong to him.
- Proverbs 21:20 (ESV) Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.
- Proverbs 22:7 (ESV) The rich rules over the poor, and the borrower is the slave of the lender.
- Proverbs 27:12 (ESV) The prudent sees danger and hides himself, but the simple go on and suffer for it.
- Luke 14:28 (ESV) For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?
- Proverbs 11:25 (NLT) The generous will prosper; those who refresh others will themselves be refreshed.
In our subsequent articles, we will look at each of them starting with the principle of spending less than you earn.