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Friday, December 4, 2015

A Simple Principle to Manage Money Well

In review of Proverbs 21:20 it says, “The wise man saves for the future, but the foolish man spends whatever he gets.” (TLB)

Bottom Line:
The wise person saves for the future, but one who is foolish spends whatever he gets.

What this means to me:
It is wise for me to save and store up for the future. It would be foolish for me to waste or spend whatever I get.

I read an interesting statistic that said, 54 percent of the divorces in the U.S. were related to financial pressures or debt.

What I read in God’s Word and what I have personally experienced makes it easy for me to understanding that it’s just plain foolishness for me to not manage my money well. And a dose of foolishness never ends well. Proverbs 21:20 says, “The wise man saves for the future, but the foolish man spends whatever he gets.” (TLB)

A common theme in our culture is to buy now and pay later. Another interesting statistic shows that an average American puts $1,300 on his credit card for every $1,000 he makes. That leads straight to debt, and God calls that foolish!

From my personal experience no one just drifts into debt, or out of it, either. Deciding to build a financial future on the commitment to be responsible starts with intentionality. After making that important commitment, a plan is required to get there.

I have learned an 10-10-80 principle over the past years. It’s a great way to become intentional about your financial decisions.

Give 10 percent back to God. God blesses whatever you put him first in.
Keep 10 percent for yourself. Commit to saving money every time you make money.
Live on 80 percent. Only fools spend everything they get.

God will use my money to test me. He tests my responsibility. When he looks at my financial decisions in Heaven, God’s going to say, “Were you responsible with what I gave you on Earth?”

How will you answer that question? Give 10 percent of what you make back to God. Save 10 percent. Live on the rest.

In summary, it is wise for me to save and store up for the future. Only a fool would waste or spend whatever he gets.  Now that I am settled into our new home it would be wise for me to re-evaluate my spending and re-evaluate/adjust to the 10-10-80 principle.

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