Understanding Financial Freedom
You are 100% financially free if you can support yourself without having to actively do anything to earn an income for the rest of your life.
DEFINITIONS
Different people have a different understanding of what financial freedom really is and define financial freedom as follows:
* Having money in abundance and being able to buy any luxury imagined
* Being completely debt free (including house payments) and never receiving any bills
* Never needing to worry about money
* Freedom from hunger
* Income exceeds expenditure
* Being able to keep whatever income you earn without someone else taking it away from you
* Freedom to invest or spend money in any way you want to
* The right to keep and use what is rightfully yours without anyone having a valid claim
* Earning a decent salary
* Being able to easily cover all expenses and still have enough to enjoy good vacations while also being able to handle most emergency situations without putting a strain on the budget
* Having enough money to retire for the rest of your life
* Not having to work for a boss
* Not having to work at all and being able to pursue interests and hobbies
* Having an extra income in addition to present income to supplement financial status
* Not having to work for money anymore
* Being able to spend money freely without any restrictions
* Not under the control or power of another
* Having sufficient financial resources and assets to live the lifestyle of your choice
* Having enough financial resources to enjoy the time spent with your family
BE IN CONTROL
If we are to become financially free we are required to live within the principles of good financial practices. This will involve tithing, saving, spending wisely, investing, etc. There are so many people who desire to live in abundance, but not all are willing to abide by the spiritual principles involved.
In order to achieve financial freedom we must take control of our life rather than allow life to control us.
Either you will control life or life will control you.
Either you will control life or life will control you. Once we are able to take control of our lives we can then control our spiritual, social, relational, and financial destiny.
The difference between rich people and poor people is not intelligence or education, it is about money management. It simply means that rich people manage their money well and poor people do not. As with all areas of your life, financial freedom is a choice.
Living in financial freedom allows you to do bigger and better things. We are called to fulfill our divine destiny, and to achieve that, we will invariably need finances. Choose well.
SOURCES OF INCOME
The three primary ways that a Christian acquires money are:
1. Working
This means earning a salary or receiving monetary reward for work done. This could be your regular occupational job, part-time job, running your own business, cutting grass on weekends, ministry, etc.
There is no substitute for hard work. There is no easy money. To earn an income from whatever source takes an effort.
Proverbs 24:33-34 - A little sleep, a little slumber, a little folding of the hands to rest; So shall your poverty come like a prowler, and your need like an armed man.
2 Thessalonians 3:10 - For even when we were with you, we commanded you this: If anyone will not work, neither shall he eat.
2. Investments
Earning money from contracting out your labor either to someone else’s business or your own business is not an investment return.
Always use wisdom and remember to seek God's direction before committing your money to any investment opportunity. The greatest investment that you can have is an investment in Kingdom building including your local church.
Investing your money means investing in the stock market, a business, your home, the Kingdom of God, etc.
If your life is drifting by aimlessly, something is wrong.
3. Harvesting
A farmer who does not sow seed cannot expect to reap a harvest.
Harvesting is the process of receiving from the seeds that you have sown. This process is basically the manifestation of the blessing for being obedient to God. This manifestation occurs in many different forms. It could be a phenomenal growth in your business, a major promotion on your job, gifts, etc. If you have not been a giver then you cannot expect a harvest.
EQUITY
The simple meaning of equity is “value”. In reality, when you apply time to any investment, the result should be a future value which is greater than the initial investment. This is also known as equity. For example, if you purchased a property 40 years ago, the value would in all likelihood have increased significantly, adding value to your financial portfolio.
The same can apply to other investments as well, such as relationships, talents, spiritual gifts, profession, etc.
It takes time and effort to build something that lasts. It does not happen overnight. God gives us a few decades on earth and we should use that time producing value. We should use that time wisely and build equity, especially for the Kingdom of God.
I find it so sad when I meet people in their fifties or sixties who have not used their time on earth to build anything of value. There are so many retired people who risk all their hard-earned equity and start gambling.
When that money is gone, they could begin building up their equity again, but they will probably not have much time left to see any significant increase. Also, the chances are that their health will not allow them to put in the energy required to start over again.
Use your time to plan and set goals for yourself so that you can ensure that you are on track with your life. Set financial goals for yourself and start investing and saving money.
When you apply interest to your savings over one year, your earnings are insignificant. But when you apply the same rate compounded over 40 years, the amount can be staggering, even though you started out with a small amount initially.
Do not waste the years God has given you on earth. Exercise your spiritual gift and become skilled in the anointing. That could take you many years.
If your life is drifting by aimlessly, something is wrong. The devil is a time thief and will catch you unawares and when you come to your senses, it will be too late to build anything of value, because your time would have run out.
This is explained so well by Jesus.
Matthew 25:14-19 - For the kingdom of heaven is like a man traveling to a far country, who called his own servants and delivered his goods to them. And to one he gave five talents, to another two, and to another one, to each according to his own ability; and immediately he went on a journey. Then he who had received the five talents went and traded with them, and made another five talents. And likewise he who had received two gained two more also. But he who had received one went and dug in the ground, and hid his lord's money. After a long time the lord of those servants came and settled accounts with them.
The Lord expects us to build equity and has harsh words for those who do not. He teaches us about investments that bring a good return, but expects us, at the very least, to earn interest on our money. Notice in this passage that those who received their initial investments were given a long time before having to give an account. One day we will give an account for the time we spent on earth and we will be tested whether we used it profitably.
Remember, financial freedom does not occur overnight. It may take five, ten, twenty, or even thirty years to achieve. Use your time wisely and build equity in every aspect of your life.
BUSINESS AND MINISTRY
To become financially free takes good planning, discipline, financial management, and sound investment practices. Be aware that this may take several years to accomplish. So start now!
Many years ago, our church purchased 4 houses that were situated next to our church. I did not have money to buy the properties, but the owners were desperate to move out. I told them I would take over the upkeep of the properties as long as I could pay them within 10 years at a price we fixed on the day they moved out.
The value of those properties increased steadily and when the time came for us to pay for those houses after ten years, inflation made the initial price very affordable and we were able to settle the outstanding amounts on all the properties.
Over these many years, the income from those properties has financed many of our projects and today they are still a valuable source of income into our ministry. Many people criticized me for investing in these properties, but these were mostly people who did not tithe or support the ministry in any way.
I encourage pastors and Christian leaders to invest in businesses that can bring an income into their ministry as long as it becomes a passive income that does not require too much attention.
Try and establish a number of income streams that can help sustain your vision. Our church owns several properties and we continue to purchase additional ones on a regular basis. We also have a school which also provides financial resources into the ministry.
