About I AM PREPARED
MONEY
“Prepare your work outside; get everything ready for yourself in the field, and after that build your house.”
— Proverbs 24:27 (ESV) This verse emphasizes the importance of preparation and planning before undertaking major tasks. Using a budget, and preparing your financial groundwork, ensuring that everything is in order before making larger financial commitments.
A Biblical Perspective on Money
The Bible offers extensive guidance on how to manage money, providing principles that reflect wisdom, responsibility, and integrity. Its teachings on finances extend beyond mere economic transactions, touching on broader themes of stewardship, generosity, and contentment. At the heart of biblical financial wisdom is the principle of stewardship. The Bible emphasizes that all resources ultimately belong to God, and humans are entrusted with managing them responsibly.
DIVINE RESPONSIBILITY
In Psalm 24:1, it is stated, “The earth is the Lord's and the fullness thereof, the world and those who dwell therein.” This foundational idea reinforces that managing money is not merely about personal gain but about fulfilling a divine responsibility. Another significant aspect of biblical financial advice is the call to live within one’s means.
PATIENCE AND PLANNING
Proverbs 21:5 teaches, “The plans of the diligent lead to profit as surely as haste leads to poverty.” This highlights the importance of planning and budgeting to avoid financial instability. The Bible encourages careful management and foresight, suggesting that a well-thought-out financial plan helps ensure stability and prevent pitfalls associated with reckless spending. Debt is a recurring theme in biblical finance. The Bible cautions against excessive borrowing and emphasizes the importance of avoiding high-interest loans.
BE CAREFUL OF DEBT
Proverbs 22:7 states, “The rich rule over the poor, and the borrower is servant to the lender.”This verse underlines the financial and personal implications of debt, advocating for a lifestyle free from the burdens of financial servitude. The Bible also teaches the importance of saving and preparing for future needs.
SAVING AND GIVING
Proverbs 21:20 advises, “The wise store up choice food and olive oil, but fools gulp theirs down.”This reflects the value of setting aside resources for times of need, reinforcing the concept of an emergency fund as a wise practice. Generosity is a central theme in biblical finance. The Bible consistently encourages believers to give generously and support those in need.
2 Corinthians 9:6-7 elaborates, “Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”This passage underscores that generosity should come from the heart and reflects a broader view of wealth as a tool for blessing others. Contentment is another key principle in the Bible’s financial teachings.
CONTENTMENT AND SIMPLE LIVING
1 Timothy 6:6-8 asserts, “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.” This perspective encourages a focus on what truly matters, promoting a sense of satisfaction with one’s circumstances and reducing the desire for material excess. Overall, the Bible’s teachings on money encompass a holistic approach to financial management. It advocates for responsible stewardship, prudent planning, the avoidance of debt, the importance of saving, generosity, and contentment. These principles reflect a view of money not just as a means of personal success but as a tool for fulfilling a greater purpose, contributing to the well-being of oneself and others, and honoring God.
GETTING OUT OF DEBT: LIVING WISELY
Top 10 Financial Principles for the Struggling and Overwhelmed
- Start Small, Live Within Your Means
When money is tight, every dollar counts. The first step is learning to spend less than you have, even if it feels like you don’t have enough. It might mean making tough choices about what to cut back on, but this is a crucial habit for getting control over your situation. - Pay Yourself First, Even If It’s Just a Little
Saving even a tiny amount can be a game-changer. If you can put away a few dollars each week, you’re already building toward a more secure future. Start small—just saving $1 can help build the habit and show yourself that you’re worth investing in. - Use a Simple Budget
You don’t need a complicated budget to take control of your money. Start by tracking where your money is going—food, bills, rent—and then see where you might be able to cut back. It’s about understanding your financial picture so you can make better decisions. - Prepare for Emergencies—Even a Small Fund Helps
Life is unpredictable, and having even a small emergency fund can make a huge difference. It might be just $20 tucked away for an unexpected bill, but it’s a start. You’ll feel more secure knowing you have something to fall back on. - Reduce or Eliminate Debt, One Step at a Time
Debt can feel overwhelming, especially if it’s piled up. Focus on paying off the smallest debt first or the one with the highest interest. Every payment is progress. If you can reduce the burden of debt, you’ll free up money to spend on things that really matter to you. - Think Long-Term, But Start with What You Have
Investing might seem out of reach, but you can build a more secure future with small, steady efforts. Whether it’s learning about savings accounts or putting a few dollars aside, the key is to think ahead and make progress, even if it's slow. - Educate Yourself, One Step at a Time
Knowledge is power. Learning about finances doesn’t have to be intimidating—start with simple things like understanding your paycheck or how credit works. The more you know, the better choices you’ll make, and this knowledge can help you avoid mistakes that cost you later. - Set Goals that Matter to You
Your financial goals don’t have to be big or fancy. Maybe it’s paying off a bill, saving for a bike, or just getting through the month. The key is to set a goal that’s important to you and take small, daily steps to get there. - Diversify Your Resources, Not Just Your Investments
If you’re struggling, it’s important to think about diversifying your support—whether it’s financial, emotional, or social. Reach out to community services, support groups, or even friends and family who can help you in different ways. You don’t have to face financial struggles alone. - Be Patient with Yourself and Consistent in Your Efforts
Recovery—whether from financial hardship or addiction—is a long road. Don’t get discouraged if progress seems slow. Focus on making small, positive changes day by day. Each step forward, no matter how small, brings you closer to stability and growth.
Financial Principles and the 8 Essential Building Blocks: Checklist
Budgeting
☐ Review your current spending over the past month.
☐ Categorize your expenses into essential and non-essential.
☐ Identify one area where you can cut back and redirect the money to savings or debt.
☐ Set a budget for the next month.
Setting Financial Goals
☐ Set a specific financial goal for the next 6 months.
☐ Break the goal into smaller steps (weekly or monthly targets).
☐ Identify one small action you can take today.
☐ Track your progress weekly to stay accountable.
Financial Literacy
☐ Choose one financial term to research (e.g., interest, credit score).
☐ Find 3 trusted sources of information (website, podcast, or book).
☐ Write down 1-2 ways this new knowledge can help improve your finances.
10 Financial Principles with Bible Verses
- Seek Out Financial Assistance and Support
- “Share with the Lord’s people who are in need. Practice hospitality.”
— Romans 12:13 (NIV)
Seeking and accepting help, and offering it to others, is part of being a supportive community. - Track Your Spending to Understand Your Habits
“The plans of the diligent lead to profit as surely as haste leads to poverty.”
— Proverbs 21:5 (NIV)
Careful planning and tracking can lead to financial success, while haste and lack of planning lead to problems. - Find Ways to Increase Your Income, Even Slightly
“In all toil there is profit, but mere talk tends only to poverty.”
— Proverbs 14:23 (ESV)
Diligent work and effort to increase income can lead to financial benefit. Just talking about it can make you feel as if you're making progress, when no real progress is actually being made. Be careful of self-deception. - Set Up Automatic Savings, No Matter How Small
“Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.”
— Proverbs 6:6-8 (NIV)
Even small, automatic savings can accumulate over time, much like the ant’s preparation. - Avoid High-Cost Loans and Quick-Fix Solutions
“The borrower is slave to the lender.”
— Proverbs 22:7 (NIV)
Avoiding high-cost loans and quick fixes helps prevent becoming enslaved by debt. - Prioritize Your Basic Needs First
“But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever.”
— 1 Timothy 5:8 (ESV)
Ensuring that basic needs are met for yourself and your family is a key responsibility. - Create a Simple Financial Plan for Major Expenses
“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?”
— Luke 14:28 (ESV)
Planning ahead for significant expenses is wise and necessary. - Build Healthy Financial Habits Gradually
“Do not despise these small beginnings, for the Lord rejoices to see the work begin.”
— Zechariah 4:10 (NLT)
Building good habits slowly and consistently is valued and leads to long-term success. - Stay Connected with Support Networks
“Two are better than one, because they have a good return for their labor: If either of them falls down, one can help the other up.”
— Ecclesiastes 4:9-10 (NIV)
Support networks are crucial for mutual help and encouragement in financial and personal challenges. - Celebrate Small Victories and Progress
“Rejoice in the Lord always. I will say it again: Rejoice!”
— Philippians 4:4 (NIV)
Celebrating progress and victories, no matter how small, brings joy and motivation.
LEVEL 2 Financial Principles and the 8 Essential Building Blocks Worksheet
1. Budgeting Question:
"What does your current budget look like? If you don’t have one, what categories could you start with?"
Suggestion: If budgeting feels overwhelming, start by tracking your essential expenses (like rent, food, and transportation). Once you know where your money goes, you can adjust as needed.
Follow-up:
"How can you adjust your spending to better align with your financial priorities?"
2. Setting Financial Goals Question:
"What is one financial goal you'd like to reach in the next 6 months?"
Suggestion:Goals could be as simple as saving $100 or paying off a credit card. Break your big goals into small, actionable steps.
Follow-up:
"What’s a small step you can take this week to move closer to your goal?"
3. Financial Literacy Question:
"How confident do you feel about understanding financial terms and concepts?"
Suggestion:If you’re unsure, start with learning the basics. Pick one term (like interest, credit score, or compound interest) and research it. Financial literacy builds slowly over time.
Follow-up:
"What’s one financial concept you'd like to understand better? How can you start learning about it today?"
4. Needs vs. Wants Question:
"When you look at your spending, how much is going toward needs and how much is going toward wants?"
Suggestion: Try dividing your expenses into 'needs' (housing, groceries) and 'wants' (eating out, entertainment). Seeing the breakdown can help you refocus on what really matters.
Follow-up:
"Is there a 'want' that you could cut back on temporarily to help you meet a financial goal?"
5. Accountability in Finances Question:
"Do you have someone you trust who can help keep you accountable in your financial journey?"
Suggestion: Having a financial accountability partner or someone to talk things over with can keep you on track. It doesn’t have to be formal—just someone who understands your goals.
Follow-up:
"What’s one thing you can do to involve someone else in your financial plans (like sharing your progress or asking for advice)?"
6. Emergency Funds Question:
"Do you have an emergency fund in place? If not, how much do you think you can set aside to start one?"
Suggestion: Even a small emergency fund of $100 can make a difference in a crisis. Set a realistic goal for your first emergency fund milestone.
Follow-up:
"What steps can you take to save up for your emergency fund without stressing your budget too much?"
7. Excellence in Financial Growth Question:
"How are you working to improve your financial situation over time? Are you making small, steady progress?"
Suggestion: Excellence doesn’t mean perfection—it’s about consistent improvement. Whether it’s increasing your savings rate or learning more about investing, every small step counts.
Follow-up:
"What’s one area of your finances where you could aim for improvement this month?"
8. Long-term Financial Planning Question:
"Do you have a long-term financial plan? What does retirement or future financial stability look like for you?"
Suggestion: It’s never too early to start thinking about the long-term. Even if retirement feels far away, planning now can help you avoid stress later on. Follow-up:
"What’s one step you can take today to work toward your long-term financial goals (like opening a retirement account or talking to a financial advisor)?"
THE TOP TEN PRINCIPLES from leading financial books
Here’s a summary of the top ten principles that the best financial books often emphasize:
- Live Below Your Means
Spend less than you earn. The key to building wealth is keeping your expenses lower than your income and avoiding lifestyle inflation as your earnings grow. - Pay Yourself First
Prioritize saving a portion of your income before you pay for other expenses. Setting aside money for savings or investments first ensures you are building your financial future consistently. - Create a Budget and Stick to It
Having a clear plan for where your money goes each month allows you to allocate funds toward your priorities and avoid overspending. Budgets help track spending, control debt, and ensure financial goals are met. - Establish an Emergency Fund
Having 3-6 months of living expenses set aside for unexpected situations provides financial security and peace of mind in case of job loss, medical expenses, or other unforeseen circumstances. - Eliminate Debt, Especially High-Interest Debt
Debt, particularly high-interest debt like credit card debt, can quickly snowball and prevent financial progress. Focus on paying off these liabilities as a priority. - Invest for the Long Term
Successful financial plans involve putting money into investments (stocks, bonds, retirement funds) that grow over time. Compounding interest plays a huge role in building wealth. - Increase Your Financial Literacy
Knowledge is power. Continuously learning about personal finance, taxes, investment strategies, and the economic landscape allows for better financial decisions and fewer costly mistakes. - Set Clear Financial Goals
Whether it’s saving for a house, retirement, or a vacation, having specific, measurable, and time-bound financial goals helps guide spending and savings decisions. - Diversify Your Investments
Spreading your investments across different asset classes (stocks, bonds, real estate) reduces risk and helps protect your portfolio from market volatility. - Be Patient and Consistent
Wealth-building takes time. Consistently following good financial habits and maintaining discipline even when progress seems slow is crucial. Avoid get-rich-quick schemes and embrace the long-term mindset.
These principles form the foundation of almost all successful financial strategies discussed in the top financial books.