FINANCIAL PLANNING - THE BIBLICAL WAY

What is Financial Planning?

·         Financial Planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life; it's not just about buying products like pension and insurance.

·         A financial plan is a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Most individuals work in conjunction with a financial planner and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing financial plans. These metrics are used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.

Many people live under Financial Distress because they fail to plan their finances. It is very critical for any sane human being to have a workable financial road map (plan/blueprint).

The bible gives the model and basics of financial planning. It also emphasizes on the importance of having a Financial plan.

If you ignore God’s law on Finances, you will live in debt and in distress so you better learn to manage your money.

The bible gives us five critical financial management rules/laws.

THE SIX BIBLICAL LAWS OF FINANCIAL PLANNING.

1.       The law of Ownership

2.       The law of Tithing

3.       The law of Saving

4.       The law of Accounting

5.       The law of Budgeting

6.       The law of Contentment.

1. The law of ownership:

·         Always remember that God is the source.

If you forget this, you will live with financial tension. It was not yours before you were born and it will not be yours after you die.

Rom 11:36 For from Him and through Him and to Him are all things. To Him be the glory forever. Amen.

Deut 8:17 You may say to yourself, ‘My power and my own ability have gained this wealth for me,’

·         Your salary or savings are not your security or source of supply because you can lose them both at once.

Deut 8:18 but remember that the LORD your God gives you the power to gain wealth, in order to confirm His covenant He swore to your fathers, as it is today.

·         God wants us to be financially productive.

Gen 1:28 God blessed them, and God said to them, “Be fruitful, multiply, fill the earth, and subdue it. Rule the fish of the sea, the birds of the sky, and every creature that crawls on the earth.”

2. The law of Tithing:

If you want God to bless you finances you should honor Him first by Tithing faithfully.

 The Principles of Tithing

•       Promise of Tithing

Prov 3:9 Honor the LORD with your possessions and with the first produce of your entire harvest; 10 then your barns will be completely filled, and your vats will overflow with new wine.

•       Purpose of Tithing

Deut 14:23 You are to eat a tenth of your grain, new wine, and oil, and the firstborn of your herd and flock, in the presence of Yahweh your God at the place where He chooses to have His name dwell, so that you will always learn to fear the LORD your God.

•       Place of Tithing

Mal 3:10 Bring the full tenth into the storehouse so that there may be food in My house. Test Me in this way,” says the LORD of Hosts. “See if I will not open the floodgates of heaven and pour out a blessing for you without measure.

•       What to do during Tithing

-You give proportionately to what you get

-You set it aside ie. You plan for it. It should not be emotional giving.

1Cor 16:2 On the first day of the week, each of you is to set something aside and save in keeping with how he prospers, so that no collections will need to be made when I come.

3. The law of Saving:

•       God commands that we save money.

•       You need to save a portion of your money as it works for you.

•       Don’t overspend your income. Pay God first(tithe) then yourself(save) and then spend the rest(pay bills/debts, Invest, Give to the poor etc)

Prov 21:20 Precious treasure and oil are in the dwelling of a wise person, but a foolish man consumes them.(saving is a measure of your IQ)

Prov 24:27 Complete your outdoor work, and prepare your field; afterward, build your house.(don’t do things to impress others)

Eccl 11:2 ​​​​​​​Divide your merchandise among seven or even eight investments, ​​​​​​for you do not know what calamity may happen on earth.(Diversify your investments-Portfolio Theory)

Matt 25:27 then you should have deposited my money with the bankers. And when I returned I would have received my money back with interest.

Prov 13:11 ​​​​​​​Wealth gained quickly will dwindle away, ​​​​​​but the one who gathers it little by little will become rich.(Consistency in saving is key and is the key to becoming rich)

4. The law of Accounting:

•       Keep good records of your income and expenses to avoid stress/debt.

•       Watch your money and always know where it is coming from or going

•       You need to know what you own, what you owe, what you earn and where it goes.

•       Pay your Taxes.

•       Get out of DEBT. Debt=Enslavement and slaves have no option.

Prov 21:5 The plans of the diligent certainly lead to profit, but anyone who is reckless certainly becomes poor.

Prov 27:23 Know well the condition of your flock, and pay attention to your herds,24 for wealth is not forever; not even a crown lasts for all time.

Prov 22:7 The rich rule over the poor, and the borrower is a slave to the lender.

5. The law of Budgeting:

•       It is very important to have planned spending.

•       Avoid impulse/emotional buying ie. Acting too quickly

•       Stop buying things that you don’t need with money that you don’t have to impress people who don’t care or who don’t like.

•       You need a budget to ensure planned spending

•       The bible teaches us to plan our spending.

Three things that involve planning:

q  Living on a budget

Prov 21:20 There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.

Prov 21:5 The plans of the diligent certainly lead to profit, but anyone who is reckless certainly becomes poor.

q  Set up a Debt Repayment Plan

-You didn’t get into debt overnight and so will be the coming out.

-You need to pay all you debt and it is very vital to have a plan for it.

Prov 3:27 When it is in your power, don’t withhold good from the one it belongs to.

Rom 13:8 Do not owe anyone anything, except to love one another, for the one who loves another has fulfilled the law.

Prov 22:7 The rich rule over the poor, and the borrower is a slave to the lender.

q  Make a Will

-You need a will. You need to decide what happens to your wealth once you die.

-If you don’t have a will, the government will decide where your money goes.

6. The law of Contentment:

•       Simply enjoy what you have.

•       Never buy what you can’t afford.

•       You need to be content with what you have. We can be so busy getting more and fail to enjoy what we have.

Heb 13:5 Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.”

•       Happiness is a positive response to what we have.

Eccl 5:19 God has also given riches and wealth to every man, and He has allowed him to enjoy them, take his reward, and rejoice in his labor. This is a gift of God,

Luke 16:10  “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.11 If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches?12 And if you have not been faithful in that which is another's, who will give you that which is your own?

TRANSFORMATION OF THE MINDSET.

The mind of a human being.

What is Transformation?

To become different. : To make (someone or something) different. : To become something else.

To make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone.

To give a completely different form or appearance to; transform

           

What is Mindset?

Mindsets are beliefs—beliefs about yourself and your most basic qualities. Think about your intelligence, your talents and your personality.

Mindset is a set of ideas and attitudes that shape the way someone thinks about themselves and the world. Someone’s mindset will determine the way they behave, their outlook on life and their attitude towards everything that’s going on around them.

Here are some additional definitions to help us understand what Mindset is.

-          A fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations. (The Free Dictionary)

-          A mental inclination, tendency, or habit. (Merriam-Webster.com – Medical Dictionary)

-          A person’s usual attitude or mental state is his or her mindset. (Vocabulary.com)

-          A person’s way of thinking and their opinions. (Cambridge Dictionary)

-          An attitude, disposition, or mood. (Dictionary.com)

-          The ideas and attitudes with which a person approaches a situation, esp when these are seen as being difficult to alter. (World English Dictionary.)

-          The established set of attitudes held by someone. (Oxford Dictionary)

Therefore, Change of mindset is the change/renewal of our fixed mental attitude, usual habit, the way of thinking, mood, ideas and approaches towards situations.

Why do we need to Change/Transform our Minds?

Rom 12:2 ‘’Do not be conformed to this age, but be transformed by the renewing of your mind, so that you may discern what is the good, pleasing, and perfect will of God.’’

We need to change our mindset because:

·         Thoughts control my life:

If you don’t think it, you don’t do it.  Our lives are not shaped by our feelings but by our thoughts and beliefs.

Proverbs 4:23 ‘’Guard your heart above all else, for it is the source of life.’’

·         Our mind is the Battleground for Sin:

All Temptations take place in our minds. It is in our minds that we battle with temptation. If we manage our mind we Temptations and therefore manage sin.

Romans 7:22-23  For in my inner self I joyfully agree with God’s law. 23 But I see a different law in the parts of my body, waging war against the law of my mind and taking me prisoner to the law of sin in the parts of my body.

·         Our mind is the key to Peace, Happiness and Life.

Unmanaged mind leads to tension, tranquility, pressure, conflict and chaos. But a managed mind leads to peace, Joy, order, life and happiness.

Romans 8:6 For the mind-set of the flesh is death, but the mind-set of the Spirit is life and peace. 7 For the mind-set of the flesh is hostile to God because it does not submit itself to God’s law, for it is unable to do so. 8 Those who are in the flesh cannot please God

Philippians 1:9 And I pray this: that your love will keep on growing in knowledge and every kind of discernment,

The Three CHOICES to make every day to CHANGE our MIND.

Feed our mind with Truth.

Free our mind from Destructive Thoughts.

Focus our mind on the Right Things.

1.     Feed our mind with Truth.

Good nutrition leads to a healthy life. What you feed your mind is exactly what it believes and does.

Matthew 4:4 But He answered, “It is written: Man must not live on bread alone but on every word that comes from the mouth of God.”

We should have the best information to make the best decisions and live the best life. The best information is the word of God. We should feed from the word of God all the time and memorize the word of God by meditating upon it day and night.

Psalms 1:1-3 How happy is the man who does not follow the advice of the wicked or take the path of sinners or join a group of mockers! 2 Instead, his delight is in the LORD’s instruction, and he meditates on it day and night. 3 He is like a tree planted beside streams of water that bears its fruit in season and whose leaf does not wither. Whatever he does prospers.

Psalms 119:147 I rise before dawn and cry out for help; I put my hope in Your word.

Psalms 119:97 How I love Your instruction! It is my meditation all day long.

Psalms 16:7 ​​​​​​​I will praise the LORD who guides me; ​​​​​​yes, during the night I reflect and learn.

Psalms 119:95 ​​​​​​​The wicked prepare to kill me, ​​​​​​yet I concentrate on your rules.

2.     Free our mind from Destructive Thoughts.

We are prisoners of our thoughts and we need to deliver/free our thoughts. Some of us may have been told that we are stupid but it’s happening because we believed in our minds.

The forces that make us NOT to do all the Great and Good Things that we plan to do:

(i)              My old nature:

We knowingly take part in self-defeating behaviors by doing the very things that we know we should not do.

Romans 7:23-24 But I see a different law in my members waging war against the law of my mind and making me captive to the law of sin that is in my members. 24 Wretched man that I am! Who will rescue me from this body of death?

Romans 8:5 For those who live according to the flesh have their outlook shaped by the things of the flesh, but those who live according to the Spirit have their outlook shaped by the things of the Spirit.

(ii)               Satan :

Satan wants to control our mind always. Satan cannot control our minds but he always tries to do so. He can’t make us do anything but he uses other objects, ideas and people to change your thoughts or thinking. Therefore do not believe everything you think. When the devil gives you a thought we call it TEMPTATION but a thought from God is called INSPIRATION.

2Corinthians 2:11 so that we may not be exploited by Satan (for we are not ignorant of his schemes).

(iii)             The World’s Value System (World Values):

The values of the world are advocated for by promotions, movies, songs, Reality shows, books, media and Celebrities etc. No value of the World promotes Self Discipline.

1 John 2:15-16 Do not love the world or the things in the world. If anyone loves the world, the love of the Father is not in him. 16 For all that is in the world the desires of the flesh and the desires of the eyes and pride of life is not from the Father but is from the world

The values of the world are not encouraging you to be better but the exact opposite. Behind every sin is a lie that we believe in. When we want to ponder, our minds want to wander - to go aimlessly, indirectly, or casually; meander.

2Corinthians 10:3-5 For though we walk in the flesh, we do not war after the flesh: 4 (For the weapons of our warfare are not carnal, but mighty through God to the pulling down of strong holds;) 5 Casting down imaginations, and every high thing that exalts itself against the knowledge of God, and bringing into captivity every thought to the obedience of Christ;

A stronghold is a Spiritual lie that we believe. Like

-          I know better than God what makes make me happy.

-          God really doesn’t love me

-          All that matters is money, success, sex and power.

-          I’m never gonna forgive that person.

-          I should do whatever I want to do.

How Temptation Works.

Desire – Doubt – Deception – Disobedience and – Defeat.

James 1:14-15 But each one is tempted when he is lured and enticed by his own desires. 15 Then when desire conceives, it gives birth to sin, and when sin is full grown, it gives birth to death.

(a)   Desire:

You can never be tested by/with what you don’t desire. Desire is internal. Temptations turns a routine desire into a runaway desire. The desire gets out of control and this leads doubt and then disaster.

(b)   Doubt:

You start doubting God’s word. You begin to doubt that God loves you and that HE knows best…. ‘’Did God really say…’’

(c)    Deception:

Satan replaces God’s truth (word) with a lie.

To be able to catch more fish it depends with the bait the fishermen use. The more shinny and attractive the bait the more the fish will be attracted to it. The devil uses the same principle.

What is the bait that the devil uses in your life?

1John 1:8 If we say we do not bear the guilt of sin, we are deceiving ourselves and the truth is not in us.

(d)   Disobedience and Defeat:

What we flirt with we fall for.

We are free to make choices but we are not free from the consequences of our choices/sin.

The best time to win the battle against temptation is before it actually begins.

Psalms 119:112 ​​​​​​​I am determined to obey your statutes ​​​​​​at all times, to the very end.

John 14:15 “If you love me, you will obey my commandments.’’

Luke 6:46 “Why do you call me ‘Lord, Lord,’ and don’t do what I tell you?’’

3.     Focus our mind on the Right things.

We need to make a choice to focus on the right Things. To focus on the word of God and to meditate upon it all the time. We should base our thinking and actions to the word of God.

Three things to make a difference in our mental Strength.

·         Think about Jesus:

Garbage in garbage out principle. As you think so you are. We can’t plant maize and want to reap beans.  So when we think about Jesus and focus on Him our ideas and our actions will be a reflection of Jesus and God’s word. The opposite is also true.

2Timothy 2:8 Remember Jesus Christ, raised from the dead, a descendant of David; such is my gospel,

Proverbs 15:14 ​The heart of him who has understanding seeks knowledge, but the mouths of fools feed on folly.

Hebrews 12:3 Consider him who endured from sinners such hostility against himself, so that you may not grow weary or fainthearted.

·         Think about others:

We need to teach our mind that it is not all about us but about God and others. We should love and care about others all the time.

Hebrews 10:24 And let us consider how to stir up one another to love and good works,

Galatians 5:14 For the whole law is fulfilled in one word: “You shall love your neighbor as yourself.”

Matthew 22:37-39 And he said to him, “You shall love the Lord your God with all your heart and with all your soul and with all your mind. 38 This is the great and first commandment. 39 And a second is like it: You shall love your neighbor as yourself. 40  On these two commandments depend all the Law and the Prophets.”

·         Think about Eternity:

It is very important to think about our life outside this earth. We need to invest for our eternity in accordance to the word of God.

This will always keep us focused on the right things.

Matthew 6:21 For where your treasure is, there your heart will be also.

Luke 12:34  For where your treasure is, there will your heart be also.

Matthew 16:26 ‘’For what will it profit a man if he gains the whole world and forfeits his soul? Or what shall a man give in return for his soul?’’

Colossians 3:2 Set your minds on things that are above, not on things that are on earth.

1Corinthians 2:9 But, as it is written, “What no eye has seen, nor ear heard, nor the heart of man imagined, what God has prepared for those who love him”