Insights from the Bible on the Redistribution of Wealth

redistribution of wealthThere are, it seems, two sides to this question:

  1. what is the responsibility of the individual, and
  2. what is the responsibility of the state?

I don’t think anyone would argue the idea that, as individuals, we have a responsibility to take care of the less fortunateâ”the Bible, both Old and New Testamentsâ”make it clear that we do. Strictly speaking though, this is about sharing wealth, not about redistributing it according to some formula. So let’s say that the question of redistribution of wealth as an individual responsibility is a moot point. We’re required to provide for the less fortunate, but it isn’t redistribution in any sense of the term.

That leaves us with one open question: does the Bible call us to engage in the redistribution of wealth through the apparatus of the state?

This is actually a more complex question than it seems at first glance, and I’ll tip my hand up front and make the following assertions:

  1. There is no directive in the Bible for the state to engage in redistribution of wealth (other than, loosely, the titheâ”which we’ll get to shortly), BUT
  2. We are required to do what the authorities (a.k.a., the state) command of us.

This makes the answer yes AND noâ”but mostly yes. Why do I feel this way?

Let’s tackle the no❠portion of my assumption, just to get it out of the way.

 

Biblical directives to Israel were for Israel, not the modern nation-state

There’s a wide division among Christians on this point. Some believe that the commands God gave to Biblical Israel are immutable for all nations for all times, while othersâ”like meâ”don’t believe this to be true.

Biblical Israel was established by God to eventually carry out his plan of salvation for all the world through Jesus Christ. This gave Biblical Israel a special status, but not a universal one. Israel was not only a nation, but it also functioned as a theocracy where there was no separation between the clergy (Levites) and the political class. That hardly describes modern, pluralistic nations such as the United States or Canada.

In any event, the closest we come to redistribution of wealth by the state❠is the Old Testament tithe. In Leviticus, Numbers and Deuteronomy, we have the tithe established by God to fund three purposes: an income for the clergy, funding for religious festivals and for â¦the foreigner, the fatherless and the widow, so that they may eat in your towns and be satisfied.ââ”Deuteronomy 26:12.

We can take that last part and say that it justifies redistribution of wealth by the state, but that’s a real stretch. The tithe was commanded for the purpose of glorifying God, and it was food-the most basic provisionâ”that was to be provided to the foreigner, the fatherless and the widow❠who were in the midst of the people of God. This is vastly different than the modern welfare state that redistributes wealth in the form of direct cash (to be spent at the discretion of the recipient).

Also, consider that the political-type redistribution of today is facilitated by modern states which go to some length to separate themselves from God. In case there’s any question as to the transferability of the things of God to the secular state, Jesus provides a clear separation:

âRender therefore unto Caesar the things which be Caesar’s, and unto God the things which be God’s.ââ”Luke 20:25

There’s no conclusive Biblical support for redistribution of wealth as it’s practiced by modern governments that are divorced from God.

But that’s not the end of the story; here’s where we clarify the ambiguous, but all-important, no, but yes❠part of the equationâ¦

 

We are SPECIFICALLY directed to obey the civil authorities

Take another look at Luke 20:25 above. Note that Jesus doesn’t tell us to do one and neglect the other-he tells us to render to both God and Caesar what is due each! Thus we have a personal, God-given responsibility to the less fortunate, PLUS that which is required by the civil authorities.

Want more proof?

Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by Godâ¦Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also as a matter of conscience.ââ”Romans 13:1 & 5

Peter gives even more specific guidance.

Submit yourselves for the Lord’s sake to every human authority: whether to the emperor, as the supreme authority, or to governors, who are sent by him to punish those who do wrong and to commend those who do right.ââ”1 Peter 2:13-14

If we’re looking for Biblical permission to resist the governing authorities, we’re not going to find it, not at least as it relates to redistribution of wealth.

Government has largely taken over what we might loosely call charity❠and turned it into the wholesale redistribution of wealth, no argument there. But this is a civil, social, philosophical, legal and political debate for sureâ”but it isn’t a faith based argument. If it is to be changed, that must happen at the voting booth, through the legislative process or through the courts, and until that happens we’re commanded to comply.

 

Personal observations and thoughtsâ¦

Technically speaking, any transfer of money from productive populations to non-productive ones is redistribution of wealth. The argument then should also extend to Social Security, Medicare, corporate welfare, industry subsidies, tax breaks, foreign aidâ”virtually anywhere money is taken from one person or entity and given to others. It’s clear that current government redistribution has moved well beyond caring for widows and orphans❠and shows unmistakable signs of political preference.

We can try to bring about change through the political and legal systems we have, but as for looking to Biblical justification to say that participating somehow puts us at odds with Biblical laws or doctrines isn’t supported.

For what it’s worth, I haven’t arrived at this conclusion lightly. I confess to being a Libertarian, and the whole idea of redistribution of wealth runs against everything I believe from a non-faith perspective. However, everything we believeâ”our personal preferences, our behavior and even our politicsâ”must be subject to our faith and not the other way around. Any time we try to wrap the faith around our preferred doctrines, we’re in danger of following a false gospel.

What are your thoughts? What do you think the Bible says about redistribution of wealth? Can you find Scripture that supports a different conclusion?

Root of Riches Review With Book + $350 Giveaway!

root of richesRoot of Riches. Pretty catchy title isn’t it? I know it caught my attention!

A couple weeks ago, I had the opportunity to interview Chuck Bentley, the author of Root of Riches. Chuck is also the CEO of Crown Financial Ministries, an organization with a mission to touch people’s lives through the combination of personal finance and Biblical principles.

Before we get too deep into this review, I just want to say how big of an impact Root of Riches made on my life. It has transformed the way I look at finances and has shed some much needed light on scripture related to money. Because of this book, I know see the world differently and see money differently.

If you’re looking for a way to get involved with Crown, they have an awesome blog as well as Facebook community. I highly encourage you to check Crown Financial ministries out and get plugged into their resources.

 

Book Give-Away and Free Budgeting Credits!

I support what Crown is doing so much that I’m willing to give away a brand new copy of the book with over $350 worth of Mvelope budgeting credits! I hope this goes to someone that could use the help with a great budgeting resource. OK, so how do you enter? You have four options!

-Subscribe to my email list by going here (you will get my free 7 day e-course on how to retire a millionaire!)

-Become a fan on my Facebook page

-Follow me on Twitter

-Join my Linkedin group “Personal Finance For Everyone”

 

Remember, whatever you do, make sure you comment below this article and let me now what you did! Each action will get you one point for a maximum of 4 points! Good luck and may the best reader win!

 

Now the review!

(FYI, I was not compensated for this review.)

Boy, was I challenged reading Root of Riches! Chuck doesn’t hold back in this book and I felt as if he was sitting next to me asking me if I was going to apply what I just learned! It’s especially convicting when Chuck’s words are grounded in scripture. It’s so easy to write someone off if they are only talking from experiences in their life. Chuck sticks to the Bible and does not go on a detour.

At the core, Root of Riches is about just that: roots! Chuck has created this fantastic visual of a tree and the roots below in the soil. He goes on to explain how there are two types of tress with two very different types of roots. One is the “me tree” and other is a “he tree.”

 

Me Tree, He Tree

Chuck’s definition of a “me tree”:

-Focus is on earthly treasures

-Roots have not been redeemed

-Worldly belief system void of Jesus

-Selfish and out for itself

 

Chuck’s definition of a “he tree”:

-Redeemed through Christ

-Has a heavenly worldview

-Outpouring of good fruit

-Jesus is at its core

 

Complete Transformation

Yes, did you know that God compares us to trees in the Bible? It goes back all the way to the garden of Eden. There was the tree of life and the tree of knowledge of good and evil. One was amazing and pure, while the other brought despair and destruction. Jesus later compares us to trees again and tells his disciples that they need to be producing good fruit. The two trees share a bodily similarity but are extremely different at the core.

It doesn’t stop there though. Chuck keeps going and encourages the reader to dig deeper, down to the “roots.” Chuck explains that we should be completely transformed by God, seeing the world through a brand new set of eyes. No longer should our desire be to get rich, but it should be to help others instead. Chuck also talks about how “true riches” are not the fancy cars and big houses. True riches are things like worshiping the Lord, serving in the church, sharing the gospel, and the blessings of family. With Jesus at the core, it doesn’t matter how big your bank account is!

 

Non-Negotiable Pillars

To sum up his writing and not write a 2,000+ page book, Chuck introduces the reader to three non-negotiable points that every human needs to live by.

 

1. I accept that both the cause and the solution to my money problems lie within my own heart.

Chuck brings up a great point about 1 Timothy 6:10, “the love of money is the root of all kinds of evil.” Chuck explains that that verse is centered around the word love, not money. This is an interesting take-away. We should have transformed hearts and tackle money problems at the heart level. If we are in love with these things of this world, we will never be truly rich in the Lord’s eyes. This is huge and ground breaking for me personally. I take scripture at face value sometimes and don’t dig deep enough.

 

2. I must align my beliefs with God’s Word to produce behaviors that will make me truly rich.

It call comes down to our belief system. We can have positive behavioral change according to Chuck but true transformation can’t happen unless our fundamental belief system changes. Oftentimes you may wonder how other Christians are cheerful givers. Chuck encourages you to look deep inside your heart and do some introspective meditation. Cheerful gives really believe God’s word and it becomes something they “get” to do. Once you align your beliefs with God’s Word, generous giving and generous living ill start to flow naturally. Chuck drives home this message.

 

3. I must act upon and apply spiritual truth in order to receive true riches.

Chuck brings up a great verse for this non-negotiable, “Now that you know these things, blessed are you if you do them” from John 13:17. Chuck encourages everyone to stop treating the Word like a self-help book and more of a heart changer. Chuck goes on to say that the more we act on spiritual truth, God will reveal himself more and more. Yet, this does not mean financial riches specifically. Again, remember, true riches might not be physical. We should shift our focus toward heavenly riches and know that any type of financial pain here on Earth is nothing to worry about and that we have so much more to look forward to in the Lord’s presence in Heaven.

After reading Root of Riches, I came away with one overarching theme: our life is destined for ruin if we live it for ourselves. God wants us to recognize that we need Him first and need Him far more than earthly riches. This will stick with me for the remaining of my life and is just one example of how this book has changed the way I look at finances.

To end this book review, I’d like to showcase an info graphic from Crown Ministries that I found to be very interesting. Check it out!

 

Hit up Amazon here to grab your copy today! If you have read Root of Riches already, please comment below with your thoughts, I wanna hear from you!

How the Financial Meltdown has Changed all the Rulesâ”or Should Have

But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.ââ”1 Timothy 6:7-10 (Emphasis added)

Four years after it began, we still find ourselves mired in some level of the Financial Meltdown. We’re all sitting around waiting for politicians, economists and industry leaders to fix what’s broken in the economy, but have you noticed that doesn’t seem to be working? Maybe it’s time for us to get busy. And since we have the handbookââ”the Bibleâ”perhaps as Christians we need to take the lead.

Part of the reason that our leaders have been unable to fix the economy is purely because of the enormity of the problem. As much as we want to pin the blame for the mess on politicians, in truth the causes are so deeply rooted in our culture that fixing them defies easy solutions.

So where do we start?

 

It starts with money

I believe that we need to change our views and opinions of money, and align them with what we read in the Bible. Most of us are unaware that the traditional role of money has changed completely in just the past few decades.

In its essence, money is a medium of exchange. It’s used to facilitate trade between people and businesses and because it carries a standard value, it’s more efficient than barter. So far, so good.

But here’s the problem⦠In today’s economy, money is no longer just a medium of exchangeâ”it’s become an asset unto itself. We still use it to trade, but it’s become something much more. Success is now defined as earning, acquiring, preserving and growing as much money as possible. The end game is no longer to produce as much food, fish, minerals, shoes or widgets as possible, but to earn as much money as possible!

That’s a game changer, and it has a lot to do with the mess we’re in. Money manipulation has become more important than building a better mousetrap!

 

Money as wealthâ

What is it you think about when you see or hear the word wealth� From Biblical times up until about the end of the 19th Century this might have invoked visions of vast acres of rich farmland, a forest full of timber waiting to be cut, large catches of fish, coal mines or perhaps a thriving family business.

Do you notice something about each of these? They all refer to something tangible, something that’s being produced. Wealth was measured by what you added to the economy and community.

How do we see wealth today? Stocks, bonds, certificates of deposit, money markets, cash. Notice something about these? None of them are tangibleâ”they’re all paper. Stocks represent a share of ownership; they’re the way we own- and trade ownership in- the means of production, but are not means of production in themselves. All the rest are debt securities, which is to say that they represent a promise to pay, but nothing tangible.

The one possible wealth exception we have today, the one that actually represents something tangible, is real estate. But in the modern world there’s a caveat even with this. So much real estate has been purchased with debt (mortgagesâ) that’s often so large that the owner has little or no equity. Many property owners today are even in negative equity situations, owing more on their mortgages than their property is worth.

Wealth today is measured not in units of production as in days of old, but by the accumulation of pieces of paper.

 

Detaching money from the real economy

Here’s where we get to the root of the problem. Back when people grew, built, fixed or produced things for a living, there was a clear connection between being productive and earning a living. With the rise of money as a commodity in itselfâ”as the end game everyone now chasesâ”we’re now detached from actual production. Think about how many people work in money-related businesses, as compared to farming, manufacturing or the skilled trades.

The financial meltdown that started in 2007 has been commonly called the Financial Meltdownâ, but have you noticed that no one refers to it as the Economic Meltdownâ? That’s because the failure of what we loosely call the economy❠has been driven almost exclusively by financial factors. Could that possibly have something to do with the fact that in today’s world moneyâ”and all things closely related to itâ”have come to dominate all things economic?

When the ultimate economic goal becomes the creation of ever larger amounts of money, should we be surprised by the explosion of debt, the disappearance of real jobs, and the many Ponzi schemes that have flourished in recent years?

Those who work their land will have abundant food, but those who chase fantasies will have their fill of poverty. A faithful person will be richly blessed, but one eager to get rich will not go unpunished.ââ”Proverbs 28:19-20

 

How should Christians react to the financial meltdown?

I believe the time has come for Christians to realign our goals and set our sights on what is lasting. How do we do that? By changing our attitudes toward wealth and what it truly is.

Work. In the financial thinking of today, when we go out to look for a better job❠what we really mean is a better paying job, don’t we? That’s a pure play on money.

But perhaps if instead we sought work that we find fulfilling at a deeper level, money would become less important. Shouldn’t we be seeking our life’s callingâ”the work we’re meant to doâ”rather than just a higher paycheck? Maybe we should be asking ourselves, where can I be most productive?❠That needs to come back into the equation before work can be anything more than another component of the paper chase.

Investing. When we turn our money over to othersâ”mutual funds, investment managers, financial plannersâ”we’re asking them to get us a good return. Do we ever concern ourselves with what it is the money is invested in? We should.

We even seem content to have the money invested in exotic vehicles that we know little about, as if complication and complexity increase our chance at making a killing (they don’t). We need to invest only in what we do understand. How about investing in ourselves, investing in our own business, in the stock of companies that are either producing something tangible or providing a necessary service, in people (charity), or in our churches? Think of it as investing locally, in ventures we’re already familiar with.

Debt. If we could pick one cause to the financial meltdown that stands above all the rest, it’s debt! Culturally, we’ve come to believe that debt is benign, and once we reached that point the end result was inevitable. That needs to change. We don’t need to be borrowing to pay for entertainment, travel and consumer goods. And for those where we do need to borrow, we need to do so more conservatively.

We may need to borrow to buy houses and cars, but when we do we should 1) only buy well within our means, 2) make the largest down payment possible and, 3) take the shortest term we can afford. Paying off a loan (as opposed to rolling into a consolidation loan at a later date) should be a priority, otherwise we lock ourselves on a debt treadmill.

Family, community and church. It’s sad that we no longer think of these as wealthâ, but that’s exactly what they are. It’s equally disturbing that these very institutions that are so critical to basic life have degenerated in the great money chase of the past 50 years.

Family, community and church are the very foundations of civilized life and if we can’t invest our time, effort and money in them, then the quest to earn and amass more money will condemn us to chase that which we will never find.

What do you think that we as Christians should be doing to move the economy in a positive direction? Should we be doing anything at all? Scripture calls us to come out and be differentâ”does this also apply to economic and financial matters?

Save Big with an Entertainment Book!

Since everyone loves convenience and saving money, it only makes sense to put the two together. This is what you get in an entertainment book. It gives you easy access to a multitude of valuable coupons that you don’t have to tear the house apart looking for every time you want to go out. But in order to know how to save thousands with an entertainment book, you have to plan ahead.

 

Rule #1:

The first rule to saving: keep the book in your car. That way, if you decide at the last minute to go somewhere, you’ll always have it with you.

 

Rule #2:

Books are available each year as of November 1st. But if you can hold out for a month or so you can get one at a reduced price. Saving money before you begin saving.

 

Rule #3:

Take some time to plan your trips. If you don’t plan ahead of time you won’t realize that you have a coupon for somewhere until after you leave. If you have a trip planned somewhere, take the time to scan the book before you leave.

 

Rule #4:

The travel savings are unbelievable. Taking advantage of these deals can easily allow you to pocket some serious cash. The retailers who advertise these deals in the entertainment book are able to offer such savings for one reason: they are counting on the likelihood that most people aren’t going to utilize these coupons. Prove them wrong!

 

Rule #5:

Read the coupons carefully. Each coupon has specific rules attached to it’s use. Read them to make sure that you meet the guidelines before you leave. This avoids the embarrassment and disappointment of finding out you don’t qualify when it’s time to pay.

 

Rule #6:

Categorize the coupons. Put all of the meal coupons together. That goes the same for clothing, sporting events, etc. This eliminates the possibility of overlooking the one coupon that you need out of the entire book.

 

Rule #7:

Don’t throw any coupons away. Many people will go through their book and pull out coupons that they think they won’t need as a way of thinning the herd. They believe that this makes it easier to locate what they really do use. As soon as you throw away a coupon you’ll inevitably find yourself in need of that very one.

 

Rule #8:

Online coupons. This book allows you access to additional online coupons that will save you even more money. These are coupons that you otherwise wouldn’t have.

 

Rule #9:

Let the book make the decisions. Instead of dreading through the same monotonous evening over and over again, let the book decide something new and refreshing. It introduces you to things in your area that you might not have considered before.

 

Rule #10:

Each book comes with a coupon for a discount on next year’s addition, including free shipping.

 

Rule #11:

Buy two books. Sounds crazy, but you’ll find that the extra coupons that you can utilize in the second book more than pays for it’s cost.

 

Take these tips and go use your Coupon book efficiently and start saving. The way most people use them is a waste of money. The more you use them, the more you will be saving! One word of caution though. If owning an entertainment book is something that will tempt you to go out more and spend money you don’t have, you should avoid buying one of these coupon books. For the rest of us, these books are a common sense way of saving hundreds each month on things we typically spend money on anyways!

photo by camkage

Controlling Expenses From the Top Down

top downIn an attempt to get control over finances, we’ll usually start with an assault on the smallest expenses; because they’re the smallest, cutting them will produce the least amount of disruption in our lifestyles. But it’s equally true that cutting small expenses also produces the lowest savings. No amount of coupon clipping, turning out unused lights or canceling subscriptions will offset a crippling house payment or an outsized car payment.

If we’re serious about controlling our financesâ”and I mean really serious-nothing will have greater impact than lowering expenses from the top down, meaning the Big Stuff. I’m talking about four expenses in particularâ”housing, cars, health insurance and entertainment.

Let’s consider each and the impact it has on our finances. At the end, we’ll discuss why this is even more important for a Christian.

Housing

Many or even most other expenses in your budget will be determined by how much you spend on housing. A house is the single biggest driver of lifestyle inflation! Where you live and the size of the home affects what you pay for utilities, repairs and maintenance, furniture, insurance and even entertainment and the car you park in your driveway. It’s never just about being able to afford a particular house payment-bigger houses seem to demand higher outlays for everything else.

For this reason it’s critical to be conservative in your choice of housing. For decades we were told to buy the biggest house we could afford, and our finances would grow into it; do we believe that anymore? Should we?

Here’s something else: once you close on your home and sign the mortgage papers there’s no way to lower your monthly house payment should it become necessary! This is especially true today since the ability to refinance is no longer assured. And while the principal and interest portion of your payment will be stable for the life of your loan (on a fixed rate), taxes and insurance can and usually do rise over time.

Consider these facts when buying a home, or even if you’re currently struggling to maintain your payment. It’s better to buy beneath your means when it comes to housing.

Cars

High car expense isn’t nearly as long term in scope as housing, but it can still do a lot of damage in the short run. Much like housing, other expenses tend to rise the more you pay for a car. Like housing, there’s a strong argument for buying less car than you can afford.

If you’re struggling with an uncomfortably high house payment you may want to consider buying no more car than you can afford to pay cash for. A car payment on top of a large house payment can be the tripwire into financial oblivionâ”most of us can afford to carry some debt but we can’t have it coming at us from all directions.

Health insurance

There’s a strong case to be made that this is quite possibly the most important expense we have in the modern world, but even if that’s true it still has limits. Many people want their health insurance plan to cover as much as possibleâ”the fewer checks they have to write the better. The problem with this goal, from a financial standpoint, is that it’s also very expensive.

A substantial part of the cost of health insurance is coverage over first dollar expenses. What this means is that the lower your co-payments, deductibles and co-insurance provisions, the more you’ll pay for your premiums.

If you’re in generally good health, it can be more cost effective to trade higher co-payments, deductibles and coinsurance provisions for lower monthly premiums. You can also offset these by maintaining an emergency fund balance large enough to cover your maximum deductible and coinsurance provision in any one year. You’ll be covered in the event the worst happens, and if it doesn’t you’ll be ahead through lower monthly premiums.

Entertainment

Not so long ago entertainment was a fringe expense, something we paid for with what was left after all the bills were paid and some money was socked away in the bank. No longer. Today entertainment has a far stronger claim on our first fruits, so much so that many go into debt to be able to afford it.

The problem with this lifestyle is that it’s expensive! Theme parks, travel, restaurant meals and professional sporting events are expensive, and even old stand-by’s, like movie theaters, are no longer cheap. If you’re entertaining yourself with these on a regular basis it’s a solid bet that entertainment is eating up a much larger slice of your finances than you might assume.

I have a theoryâ”stay with me for a momentâ”I think formal entertainment has grown with the decline of families and communities. The less interaction we have with people, the more we’re willing to pay to find recreation and contentment in more formal venues.

Spend more time with peopleâ”they’re more fun than formal entertainment, and a lot less expensive. Be purposeful about getting together with family and friends on simple activities like potluck suppers, outings or at home movie nights.

If boredom is an issue, try volunteering to help the less fortunate, exercising to improve your health or starting a side business to earn extra money.

What’s the payoff?

I’m of the opinion that as Christians we need to travel light❠in life. That starts with keeping control of the biggest expenses. By doing so we have more money free for other purposes; some examples:

Mobility. God sometimes calls us to stop what we’re doing and to go in a different direction. Mission work is an example; a career or geographic move are a couple of others. It’s not so easy to heed such a call when we’re weighed down with expensive possessions, large debts or a high cost lifestyle. We need to be ready because we can never know when such a call might come.

Peace of mind. Possessions have a way of controlling our thinking. The more possessions we have, and the more money we have tied up in them, the more we obsess on them. While we’re obsessing, we’re stressing, to at least some degree, and almost certainly neglecting other pursuits we’re charged with, including prayer and Bible study, fellowship and volunteering.

Liquidity. I believe that as Christians, we have an implied command to stay liquidâ”that is to have money, time and resources to contribute to our churches and to help others. Having income available and at least some discretionary savings will enable us to either deal with a personal crisis, or to help others with theirs. None of that can happen if our income and savings are maxed out in possessions or a lifestyle that’s at or just beyond our reach.

Giving. The less money we spend on our basic cost of livingâ”in other words, the money we spend on usâ”the more we’ll have to store up treasures in heaven❠( Matthew 6:20) by helping others.

Time. It’s become almost axiomatic in our culture that we never have enough time; how much of this owes to the fact that we strive to acquire and maintain a certain lifestyle? Time is probably a more valuable commodity than money because it represents our very lives, and not just our money. The more of it that we have that’s free, the more we have to do everything else we should be doing as followers of Jesus Christ. Our witnesses are driven more by how we use our time than by how we use our money. But in the Catch-22 that life can be, how we use our money has a major effect on how we use our time as well.

We can free up both our money and time for Kingdom purposes by controlling all kinds of expenses. But by tackling the biggest onesâ”by controlling our expenses from the top downâ”we can do even more!

Biblical View on Paying with Cash to Get Out of Debt

How many times do you hear or read that Credit Card A pays X-percent on their rebate program, or Chevyotassan Motors is offering zero percent financing on their 2011 model Q cars? How about 90 days financing as good as cash?❠Or the favorite of all credit offers-buy now and pay NO interest until January 2013?

You can’t blame businesses for trying to grease the wheels of their sales by offering too-good-to-pass-up financing deals. And maybe these packages are even all that they say they are. Does that mean you should jump and buy if they are?

Not if you’re already in debt. In fact your plunge into debt may have started with just such an offer. You get into one easy payment planâ, which is followed by another and still more. Before too long you’re on a debt treadmill that you aren’t sure you can get off of.

Getting into debt is always easier than getting out of it. There are different ways to get out of debt once you have too much of it, but the foundation of it all is changing your financial behaviorâ”and learning to pay with cash. And by cash, I mean debit cards, checks, automatic debits and the Federal Reserve Notes in your wallet that most of us refer to as moneyâ.

 

Getting out of debt starts with not using credit anymore

Part of the problem with debt is that it’s cumulativeâ”if you’re adding new debt before you’ve paid off old debt, the pile is only getting bigger. The first, best way to get out of debt then is to stop taking on new debt, and the way to do that is to put away your credit cards, ignore the come-on loan offers and pay cash on the barrel.

Cash is the only way to guarantee that you’re living within your means. People get caught up in favorable terms, like low interest rates or zero interest rates or no payments for six monthsâ, ignoring the basic fact that even if you have no interest to pay, you still have a debt to be serviced. Worse, you’re still paying with money you don’t have.

 

Use of debt is a form of voluntary bondageâ”at first

The rich rule over the poor, and the borrower is slave to the lender.ââ”Proverbs 22:7

Slave is a heavy word, and in a world that’s been running on easy credit for several generations, it isn’t one we normally associate with borrowing. Yet if you’re in debt to anyone, you have entered into an arrangement that approaches slavery on some level. For example, you are legally bound to pay the loan according to the terms of the loan agreement, which is to say that you’ve given at least partial control of your incomeâ”and even you’re assetsâ”to the lender.

No matter what soft or emotionally comforting labels you may place on your debt, your freedom of action will be limited by the loan. If you have several loans, the servitude will be even greater. Bankruptcy and foreclosure occur when lenders have control over more of your resources than you do.

Even if your debt situation doesn’t require bankruptcy or foreclosure, it will still restrict your life. You may not be able to change jobs, do mission work or make a geographic move because of your debt obligations.

You’ll free yourself of those limits when you come to equate cash with freedom, and debt with bondage.

 

Debt says I can❠when reality screams I can’t!â

Credit has become something like a financial drive-through window; its purpose for existing is mostly to keep the economy running. Don’t have any money? No problemâ”drive up to the credit window, get a loan, then pick up you’re merchandise at the front desk.

We’re paying a steep price for that convenience. Credit gives us the option to buy what we know we can’t afford, and sooner or later you’ll use that option even when the little voice inside❠is telling you otherwise.

Even if you pay your credit card balances in full each month, you’re still living on a floatââ”paying this months bills with next months income. If next month has a major expense surprise, or if your income is disrupted, this month’s bills might not be paid next month, but carried into the following month where it becomes permanent debt. That can’t happen if you pay for this month’s expenses in cash. Everything you buy is paid for so there’s never any debt being carried forward.

 

Like anything else that isn’t good for us, debt is mostly a bad habit

One of the problems with debt is that today we have a benign view of it. It’s less of a thing or event than it is a lifestyle. You generally see people who are either debt adverse, and therefore debt free, or those who see debt as a convenient enabler to get them from where they are to where they want to be. For people in the latter category, credit becomes a habit, a way of doing business. What’s so bad about that?

And lead us not into temptationâ¦ââ”Matthew 6:13

Is it a sin borrow money? Probably not. But it’s pretty safe to say that it IS a temptationâ”one that draws us to spend money we don’t have, to buy things we often don’t need and to extend ourselves into bondage. How well are we able to resist temptation when we put ourselves so close to it?

If we can put some distance between ourselves and creditâ”maybe not to see it as a sin, but not to view it as holy eitherâ”we take ourselves out of harms way. Cash is the best way to do this.

 

The simplicity of cash to the rescue

You’ll enjoy the following benefits if you begin paying cash for all of your purchases:

  1. You’ll never spend more money than you actually have
  2. You’ll never get stuck paying last months bills this month
  3. You won’t live in fear that you might have charged too much
  4. Your debts will stop growing, and as you pay them, they’ll eventually disappear
  5. As your debts fall, you’ll have even more cash either to spend or to save
  6. If you choose to save your extra cash, your savings will eventually replace credit as your preferred source of extra money
  7. As your savings grow, you can pay cash even for major purchases, like repairs, furniture and even cars
  8. When every thing you own is owned free and clear, YOU’LL be free and clear!

So simple, yet so powerful. Pay cash from now on, pay your debts faithfully and even if you do nothing else, in a few years, you’ll be debt free.

The Trouble with Tithing

As Christians we’re called upon in scripture to be generous both to our churches and to those in need. That giving is often codified into the tithe, generally interpreted to mean 10% of your income. There are many open questions in regard to tithing, including should you tithe based on gross or net income or whether or not the contribution should extend to include an equal portion of unearned income, such as capital gains.

We can spend as much time as we like debating the finer points of tithing, but perhaps the bigger question is the tithe itselfâ”are we truly required to tithe and what troubles might be involved if that’s how we believe we need to handle our giving? Troubles? What kind of troubles?

Misinterpretations, first and foremost. That we’re to be generous in our giving is beyond questionâ”the issue is whether or not that giving takes the form of a legal requirement with very specific guidelines, as the tithe is thought to represent. From that we can and often do open the door to even greater misinterpretations that take us still farther from God’s intended purpose for our giving.

What are some of the tithing misinterpretations and what troubles may they bring?

 

Tithing is NOT a requirement for salvation

Notice that the issue of tithing doesn’t appear in the Ten Commandments, nor does Jesus make mention of it in the Sermon on the Mount. In fact, in the New Testament, where lessons on money and giving abound, there is no command to tithe. Where tithe❠appears, it’s usually incidental to another teaching. For example, in Luke 18:10-14, Jesus seems to be taking us in quite a different direction:

Two men went up to the temple to pray, one a Pharisee and the other a tax collector. The Pharisee stood by himself and prayed: â˜God, I thank you that I am not like other peopleâ”robbers, evildoers, adulterersâ”or even like this tax collector. I fast twice a week and give a tenth of all I get.’ But the tax collector stood at a distance. He would not even look up to heaven, but beat his breast and said, â˜God, have mercy on me, a sinner.’ I tell you that this man, rather than the other, went home justified before God. For all those who exalt themselves will be humbled, and those who humble themselves will be exalted.â

Clearly Jesus is telling us here that tithingâ”among other ritual actsâ”is not the key to salvation. The implication in the parable is that the tax collector didn’t titheâ”he didn’t do anything except throw himself on God’s mercyâ”and yet he went home justified before God.

 

We should never measure our standing before God by our giving

In prosperous cultures, there’s often a tendency to belief that money is the highest good, that we can gain access to what ever we need simply by writing a check for the proper❠amount. To a large degree that may be how things work in the world, but clearly the Kingdom of God works on different rules. From an eternal perspective it could be dangerous to assume that we’re walking with God mainly on the strength of a faithfully given tithe.

In Matthew 9:13, Jesus tells the Pharisees:

But go and learn what this means: â˜I desire mercy, not sacrifice.’ For I have not come to call the righteous, but sinners.â

Tithing is a form of sacrifice (giving something we value to God), but Jesus is making it clear that at a minimum, mercy is more important. This doesn’t mean that giving has no place in the life of the believerâ”it is stressed elsewhereâ”but it does mean that we have to be careful not to elevate it just because it holds a special place in the human realm.

 

10% may not be the right amount for everyone to give

It’s generally believed that tithing is the giving of 10% of ones income to the Church and to other Kingdom activities. But is this percentage set in Eternal concrete? For many poor and even working class people, giving 10% of their income may be an unsustainable burden. Conversely, for many of the wealthy, giving 10% would hardly qualify as sacrificial.

We have an example of this in Mark 12:41-44:

Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a few cents. Calling his disciples to him, Jesus said, â˜Truly I tell you, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everythingâ”all she had to live on.’ â

There’s an imbalance here that Jesus highlights as a message to his disciples and to us.

 

The corollary: Tithing is not some sort of God Taxâ

If we come to believe that the giving of a titheâ”of 10% of our incomeâ”is a Christian obligation, then we have effectively created a tax. Now in the Old Testament, that’s exactly what the tithe was, a tax to support the clergy and even other societal functions. However that was a time when mankind was under law, not grace, and acts of obedience and obligation were part of what defined the people of God. Is that still true post-Calvary?

The problem with elevating the tithe to a tax is that no one likes to pay taxes! If we see the tithe as a requirement, then we’re unlikely to be cheerful givers❠(2 Corinthians 9:7). Is this how the God who looks at the heart (1 Samuel 16:7) wants us to give?

 

We will not become prosperous because we tithe

There too many hints that prosperity can be had as a result of tithing. The danger here is that we might be tempted to tithe primarily for the purpose of personal gainâ”and we know that can’t be right. The scriptural basis for the prosperity interpretation comes from Malachi 3:10:

Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,❠says the LORD Almighty, and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.â

Now if we take that verse as a standalone declaration from God, the connection between tithing and prosperity is possible, but that’s not exactly what’s happeningâ”in fact that isn’t remotely what’s happening.

There are two obvious facts missing from the popular interpretation of Malachi 3:10. The first is that the verse itself is part of a chapter that deals not with the individual, but with the entire nation of Israel. As we know from the Old Testament, God is constantly trying to draw a renegade Israel back to Himself. He points out their sins and shortcomings (in this case a lack of generosity) and offers promises if they’ll repent and come back to Him. I believe that is the central teaching of Malachi 3, not any sort of promises or guarantees of personal prosperity if only we tithe according to Old Testament law.

The other point of contention is the promise, and what is it that God promises? Blessing. There’s no mention of riches! Blessings can be all kinds of things, including health, long life, large families and even favorable weather! In fact, in the very next verse, God defines some of those blessings as keeping away pests and vines that will not drop their fruit until it’s ripe.❠Now we can interpret that to mean prosperity in an agricultural society and perhaps it is, but nowhere are riches of any sort even implied.

 

We should never judge others by how much they give

If we consider tithing to be a command from on high, we can easily find ourselves sitting in the judgment seat, feeling superior to others who are less generous than we are. Conversely, if we aren’t able to give as much as others, we might be judged by them or even feel inferior to them.

In a twisted way, this is a process of elevating money to a higher position than it deservesâ”which itself is a form of idolatry. We have a commandâ”many of them throughout scriptureâ”to give and be generous, but when we assign a percentage benchmark we’re also creating a fixed standard by which to judge ourselves and others.

 

Giving can also be in the form of time and effort

Giving can be done in ways that don’t involve the transfer of money. In fact in biblical times people often had no money at all! We can give of our time and talents, and that can be even more sacrificial than writing a monthly check to the church. In Matthew 9:37 Jesus tells his disciples, “The harvest is plentiful but the workers are few.❠Jesus wasn’t calling for moneyâ”he was calling for workers!

That’s time and talent, and anyone can give those. There is no hierarchy establishing money as the preferred way to give, and by giving directly of our time and talent we can come that much closer to fulfilling a true command that is beyond interpretation:

Therefore go and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you. And surely I am with you always, to the very end of the age.ââ”Matthew 28:19-20, The Great Commissionâ

What do you think about tithing 10% of your income? Was it an Old Testament law that no longer applies? Does it still apply today? What are your thoughtsâ”I could be all wrong about this!

5 Wise Ways to Save Money

ways to save moneyWe’d all like a few more dollars in our pocket every month. But making cutbacks in your budget doesn’t have to be as difficult as you might think - and it could make all the difference to the shape of your finances.

Here are five wise ways you could save money:

 

Consider ‘couponing’â¦

Savvy shoppers know that getting their hands on the best cost-cutting coupons can knock more than a few dollars off their grocery bill. It’s even become something of a ‘craze’ for some dedicated bargain hunters! Check out specialist online voucher websites, such as Groupon deals, and approach all newspapers and magazines with a pair of scissors at the ready: you could get your hands on discounts on everything from toiletries to restaurant meals!

 

Ditch the designer labels

Most of us really can’t justify paying hundreds of dollars on clothes just because something’s got a top designer’s name sewn inside - especially if we end up wearing it just a handful of times. Try looking online or at the local mall for discounts on designer clothing, or for similar items at a fraction of the price. You might find the difference between ‘designer’ and ‘mall-bought’ is smaller than you thinkâ¦

 

Thinking of redecorating? DIY!

Redecorating can be costly - particularly if it’s a room with a lot of detail to consider, such as the lounge or the kids’ bedrooms. However, rather than calling out the professionals, why not approach things more economically?

See if you - or any friends and family - have any old paint you could use rather than buying it brand new, and if you know anyone who’s handy with a paintbrush and can spare a few hours at the weekend, why not see if they could help out?

Your local college may even offer night classes on things like plumbing - and remember that the long-term gains could outweigh the cost of the course fees.

 

Have car-free days

Leaving your car in the garage a few times every month, and walking or cycling to work instead, could save you a fair amount on fuel bills. Not only that, but you’ll also be doing the environment a bit of good - and getting an extra bit of exercise into the bargain too!

 

Try cutting back on ‘small spends’

Think about the smaller purchases you make on a daily basis that could be having a big impact on your finances.

Do you get a coffee from an expensive coffee shop before work every day? Why not take your own instant brand? If you use the subway, why not get off a few stops before the one you need and walk to save on travel costs? You may be surprised at what a big difference such little changes could make to your budget.

 

These tips could help if you’re generally managing your money well. If you’re having real problems with your finances and have fallen into debt, you might need to do more than cut back on your spending - and the debt section of the Think Money website could help you.

Investment Wisdom From Proverbs

I love to read through the book of Proverbs and rediscover the wisdom shared in the verses. I’ve been reading some books recently about investing and wanted to remind myself what the book of Proverbs says about investing. If we use the wisdom from God’s word and always look for ways to expand our knowledge in business and investing, we put ourselves in a good position to become better stewards of the resources we have been given.

Proverbs About Investing

As I looked through the verses in Proverbs, I saw 8 verses that we can use to remind us of how to approach our investments. Whether we’re investing in the stock market, a business, or other investments, these principles can really apply almost everywhere.

Invest In What You Know and Understand

Proverbs 15:22
Without consultation, plans are frustrated, but with many counselors they succeed.

Proverbs 24:27
Prepare your work outside and make it ready for yourself in the field; afterwards, then, build your house.

Warren Buffet and Peter Lynch are famous investors who were known for investing in what they knew. It’s no surprise that these two verses would instruct us to â˜prepare your work’ and to obtain consultation before investing. Buffet and Lynch weren’t born as investment geniuses (though some would say that). No, they surrounded themselves with smart people (wise counselors) and took the time to understand each investment in detail before making a decision to invest.

Don’t Get Lazy With Investing

Proverbs 27:23, 24
Know the state of your flocks, and put your heart into caring for your herds, for riches don’t last forever, and the crown might not be passed to the next generation.

Yes, being a long-term investor and not jumping in and out of investments because of fear is a wise piece of advice to follow. BUT, it’s just as important to continue to review your investments. To put it bluntly, investing is no place to use the â˜ignorant’ card. We have to avoid the temptation of laziness in our investing and truly understand what we’re invested in and to continually watch our â˜flocks.’

Don’t Be Fooled!

Proverbs 28:22
Greedy people try to get rich quick but don’t realize they’re headed for poverty.

Proverbs 10:16
The earnings of the godly enhance their lives, but evil people squander their money on sin.

If we needed any reminder of what not to do with our investments, these two verses sum it up nicely. Be careful not to jump in with the crowd regarding certain investments hype. As an investor, you’ll be approached with investments that seem like a â˜no-lose’ or a â˜sure-win.’ If it’s too good to be true, then it’s probably not a good idea.

There’s a difference between a â˜hot investment’ and a successful business. One is built on fear; the other is built on hard work. I know which one I want to be a part of, do you?

Always Remind Yourself Why You Invest

Proverbs 23:4
Do not wear yourself to gain wealth, cease from your consideration of it.

Proverbs 13:22
Good people leave an inheritance to their grandchildren, but the sinner’s wealth passes to the godly.

Financial freedom is a fantastic goal to have â“ but it’s not the only thing in life. I’ve heard it said that your money is your life spent a second time around. Think about it. We spend our lives earning a dollar only to spend it on something in the future.

These verses aren’t telling us not to invest or gain wealth â“ they warn us not to wear ourselves out trying to gain it. I think it’s good to remind ourselves why we invest our money and to remember that it’s not our most valuable asset.

What’s the best investment advice/wisdom you’ve heard?

(This is a guest post by Tim who writes at Faith and Finance. Be sure to visit his blog or subscribe to his articles here.)

Proud Member of Christian Financial Alliance

 

Today is a big day! Free Money Wisdom is the newest member of the Christian Financial Alliance. I have joined other Christ centered personal finance bloggers in the quest to spread Godly, Biblical, and wise personal finance information and guidance. As a member of the Christian Financial Alliance, I am committing to adhere to 20 core principles. These 20 core principles will guide the path of this blog. Please hold me accountable to stay in line with these principles. I take these to heart and consider them to be the foundation of Free Money Wisdom.

  1. I believe Jesus is the way, the truth, and the life, and no one comes to the Father except through Him (John 14:6). My heart, soul, mind, and strength seek to glorify God through the pursuit of Christ, and it is my hope that my life and financial management will reflect this fundamental purpose (Luke 10:27).
  2. I believe the Bible is the supreme authority and source of truth and instruction for Christians; therefore, I seek to root my financial teaching in the truth of God’s word (2 Tim. 3:14-17).
  3. I believe stewardship does not equal salvation (Acts 8:20). We are saved by grace alone through faith alone (Eph. 2:8-9). No financial action can save a soul (Matt 16:24-26).
  4. I believe God owns everything (Ps. 89:11) and I am merely a steward of His resources for His purposes (Luke 12:42).
  5. I believe the heart is the focus of the New Testament’s instruction regarding money (2 Cor. 9:7). This does not make obedience contingent upon our feelings, but calls our attention to focus on the intentions of our heart (Prov. 21:2).
  6. I strive to be rich towards God (Luke 12:21) and not place my hope or trust in riches (Rev. 3:17-19).
  7. I seek to serve God as my master, not money (Matt. 6:24).
  8. I believe how we spend our money reveals what our heart treasures; therefore, if God’s kingdom has its rightful place in our hearts, it should show up in our budget (Matt. 6:21).
  9. I believe prosperity is not the purpose of Christianity (John 6:29). It is a gift that God may or may not choose to give (1 Sam. 2:7), and should be handled with generosity and humility recognizing that to whom much is given, much is required (Luke 12:48).
  10. I believe Christians are called to be content in all circumstances (Phil. 4:11) because God has given us everything we need in Christ (2 Pet. 1:3).
  11. I believe we are called to be wise stewards of resources (Luke 12:42) but not consumed with a love of money (1 Tim. 6:10).
  12. I believe stewardship, generosity, and contentment are fruits of a deeper walk with Christ, not ends in themselves (1 John 5:21). I seek first His kingdom and wait for the rest to be added. (Matt. 6:33)
  13. I believe the Bible does not speak highly of the bondage caused by debt (Prov. 22:7); therefore, it should-if nothing else-be approached with extreme caution (Prov. 22:26-27).
  14. I believe Christians are called to be generous (Acts 20:35) to their family (1 Tim. 5:8), God’s kingdom (1 Cor. 9:14), and those in need (1 John 3:17). After these things, we are free to spend money on ourselves (Prov. 10:22).
  15. I believe heavenly reward awaits those who choose to invest in God’s kingdom (Luke 12:33), and whether or not God chooses to bestow earthly reward is up to Him (Job 1:21).
  16. I believe integrity is more important than financial gain (Prov. 10:2).
  17. I believe money can be a blessing and a curse depending on the heart of its holder (Luke 6:44-45).
  18. I believe that the way we handle our money should be a testimony of our devotion to God not a distraction from Him. (Col. 3:17)
  19. I believe there are many things in life that are more important than money. (Prov. 23:4-5)
  20. I believe true riches are found in Christ alone. (Eph. 3:8)

I’m excited to join a group of like-minded personal finance bloggers. It’s encouraging to have a group around you who have a mission greater than just “saving money.” Here is a list of the other members. I highly recommend you check them out. Subscribe to them and keep coming back for more, you won’t regret it.

Bible Money Matters

Faith and Finance

Free Money Finance

Matt About Money

Money Managers for Our Master

One Money Design

Provident Planning

Rich Christian Poor Christian

 

 

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