3 Principles for Financial Peace

What comes to mind when you think about money? If stress comes to mind, you’re not alone. A new CreditWise survey found that finances are the number one cause of stress for Americans. The good news is the Bible has a lot to say about managing money. By following God’s practical wisdom, we can begin a pathway toward financial peace. 

1. Live Below Your Means

The world's way is to spend, spend, spend—even if you have to put it on credit. Dave Ramsey says, “We buy things we don't need with money we don't have to impress people we don't like.” It’s time to stop chasing the world’s way and start putting timeless wisdom into practice. Proverbs 30:24-25 tells us, “Four things on earth are small, yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer.” We can take wisdom from the ants and store what we could consume—but it’s only possible if we aren’t maxed out every month. Find ways to reduce your outgoing expenses so that you can live with more margin and more financial peace. 

2. Save

Proverbs 21:20 says, “The wise store up choice food and olive oil, but fools gulp theirs down.” In other words, foolish people spend all they have, wise people save. So don’t wait to see if you have money left over at the end of the month to save. Instead, put at least 10% of your income into a savings account the moment you get your paycheck. Start with an emergency savings fund and build from there. 

3. Budget

A budget is a written plan for your money—a plan for what’s coming in and going out. John Maxwell describes it this way, “A budget is telling your money where to go instead of wondering where it went.” The Bible speaks about the importance of creating a plan in Luke 14:28-30, “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? Otherwise, when he has laid a foundation and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish.’” 

Don’t know where to start? Financial Peace University gives you a step-by-step plan to create a budget.

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