Financial Independence

Working toward financial independence should be the goal of every Christian. That means that you will one day be able to live without debt and even make money with money. The first step toward financial independence is to learn to live within your means. It is a simple principle but very hard for many people. My father came home from the drugstore with a new watch he bought on credit when he was ten years old. My grandmother made him take it back, but she set aside a jar where he could save his money. When he had enough he paid cash for the watch. He said that was the best lesson he ever had in money management. One of the traps that keep people in debt is credit cards. A credit card should only be used if paid off at the end of the month. If you can’t do that then get rid of the credit cards.

There are two reasons to borrow money: one is good, and the other is not. First, we borrow to invest such as buying a house or a car. The house grows in value and the vehicle is necessary for a job. The second reason to borrow is to consume. This means buying what you cannot afford with your regular income, and as a result, you incur debt. In so doing, you have committed your time and future to pay back that debt. You will also have to pay outrageous interest charges.

Good money management includes planning for emergencies. Everyone should save money in an emergency fund to buy a new hot water heater or repair their car when needed. Then, beyond that, we should determine what are our financial goals. Such as paying off the car and the house sooner than scheduled because that frees up income. Secondly, we save for vacations so we don’t have to put them on the credit card. We save for the kid’s college fund, for retirement, and beyond that, for investments. Make sure you set aside an allotment to your savings each month. This is how you make time work for you. Someone said, “The best time to plant a tree is 20 years ago and the second best is now.” Having some life insurance is wise, so those you leave behind are financially prepared to carry on.

Making money with money means investing in low-risk opportunities, such as CDs, Bonds, Mutual funds, and Money Markets, so we are paid interest instead of paying others interest.

Good money management begins with putting God first and giving the Lord his portion. Then the rest is yours to manage with prudence and discipline. Financial independence is a choice just as indebtedness is a choice. As servants of the Lord, we view our resources as belonging to him and manage them for Him.