Developing a Financial Plan
Luke 16:1-13
A pastor shared a letter from one that one of his parishioners sent him concerning his personal money management issues: “Of all the experiences in my life, I have yet to find one to compare to the sheer devastation of financial indebtedness. I suffered wounds in Viet Nam which made me deal with my own possible death, as well as those of the young men around me. At the age of 16, my father suddenly died. I loved him very much and there is a finality in death. I have survived auto accidents, leaving people to wonder how I could have survived. I have experienced the agony of the decentigration of a marriage and family through divorce. But recently, I suffered through the humiliation of bankruptcy. Nothing compares to that. You see, financial bondage strips us of the very thing God wants us to know about ourselves: that we matter to Him. Through the abysmal pressure of debt, self worth begins to deteriorate and feelings of remorse, self-pity and rejection come to be a normal part of daily existence. Family, church and friends tend to no longer play an important role in life because one becomes totally consumed with plans to escape death. Once the inner spirit has severely deteriorated to that condition, we become ineffective whimpering shells, feeling sorry for ourselves and wondering what we could have done to deserve such a fate. Ahead of me lies the continuous battle for economic solvency. It may be that I will continue to be plagued with the results of my poor judgment in the past for quite some time; however, I am taking stride to identify and resolve the situation. I know this is what God would want me to do.” Sobering words from a Christ follower who is seeking now to live the life that God intended for us.
Now compare that scenario to one told by financial advisor, Ron Blue. An 80 year old pastor, who had always served rural churches and never earned more than $8000 a year, requested a meeting with Ron to see if his savings would be enough to support him in his retirement. Ron feared the worst. When they began to talk, Ron asked, “Do you have any debt? “No, I never have. I could never afford to buy things on credit because I couldn't afford the interest.” That’s one positive, Ron thought. What do you have saved? “$250,000 in cash, mutual funds and CD’s, $350,000 in low risk investments.” Ron was amazed. That was $600,000 saved by a man who never made more than $8000 a year. Ron said, “Pastor, you don't need me or my advice. What you’re doing is working, so just stick with the plan cause I can’t give you one better than that.”
Two stories: one filled with regret, agony and despair and the other with victory and triumph. One is a story of bondage, the other of freedom. Today, I want to talk to you about financial freedom and how you can achieve it no matter how you’ve handled your money in the past. God wants all of us to experience financial freedom from debt, where you are liberated from the anxiety that one unexpected cost could sink you financially. It’s a financial freedom that comes from knowing that God is pleased with how you have managed what He has entrusted to you. But that kind of financial freedom cannot be attained without a financial plan. If you plan to fail, you fail to plan. Proverbs 21:5 says, “Plan carefully and you will have plenty.” Most people earn a fortune in their life. If they average $45,000 a year, they will have earned over 2 million dollars in their lifetime. The point is that with rare exception, the problem isn’t with earnings but with managing what you do make. One author said, we must concentrate less on what we earn and more on what we keep to achieve financial freedom. If all you do with your paycheck is pay your bills, financial freedom will be just a dream. So how can we receive the financial freedom God wants to experience? Three steps:
First, pay God. Proverbs 3:9 says, “Honor the Lord with your wealth, with the first fruits of all your crops.” The Bible calls us to not only tithe or give 10% but to give the first 10% of what you earn back to God. Many people never understand that the tithe is packed with promise. Through the tithe, you have a tangible way to show that God is first in your life. You get to experience the joy of handling your money the way God wants you to and not just be a good steward but an obedient steward. Third, when we honor God first, God says he will supernaturally intervene in your financial affairs and will bless you. Put another way, your tithe invites God to be involved in your personal financial situation and opens the door for God to do His work in your life; work that He is not able to do if you don’t open the door by honoring Him and showing your trust in Him through the tithe. So if you want God involved in your every area of your life, including your finances, and you want to experience His blessings, then pay God first with the tithe.
Second, pay yourself. You say, I thought my paycheck had my name on it. It does but where does it go? Most likely, it goes to everyone else but you. It’s ironic that you can work hard all of your life and pay everyone else but you never get around to paying yourself and ensuring your future. Ecclesiastes 1:3 says, “What do people gain from all their labors at which they toil under the sun?” Eighty-five percent of all Americans have less than $250 in savings when they reach age 65. That means they are paying themselves an annual salary of $5. Roughly a third of American adults don't have any emergency savings, meaning that over 72 million people have no cushion to fall back on if they lose a job or have to deal with another crisis. People in their 40s with a 401(k), haven’t saved anywhere near enough for retirement. Their median savings are $50,000. That’s good for a little more than a single year of retirement, based on the current median income. Studies show you will need 75% of your current income times the number of years you expect to live into retirement to be able to maintain your current standard of living. Even bleaker: 40-to-49-year-olds without a 401(k) have median savings of just $10,000. Every single time you receive a paycheck, pay yourself. How much? Ideally, Americans should be setting aside 15-20% of their gross income to prepare for emergencies, as well as for retirement and other goals, according to financial experts. Proverbs 6:6-8 says, “Go to the ant, you sluggard; consider its ways and be wise!...it stores its provisions in summer and gathers its food at harvest.” You need to pay yourself putting money away in a rainy day emergency fund and for retirement. God says, Honor me with your wages first, then honor yourself with your wages and if you store it up and earn enough interest, you will experience financial freedom over time and into retirement.
But money management will require you enrolling in the graduate school of character. Why? Because getting rich quick takes no character. Proverbs 16:8 says, “It is better to have a little money honestly earned than to have a large income dishonestly gained.” God doesn’t want us to get rich at the expense of our faith and our character. Good money management requires such character traits as wisdom, discipline, perseverance, courage, conviction, willpower and delayed gratification. There is something in all of us which says, “I want it, and I want it NOW!” And that often can come at the expense of our financial future and our character. God says, “That’s not the way I plan to have you achieve financial freedom.” If you give a portion back to God and pay yourself regularly, allowing wise investments, compound interest and wise spending habits exhibiting your faith and your character, then you will attain financial freedom. But to do so requires character, perseverance, discipline and wisdom. But it’s the lure of the latest electronics, the newest fashions, the new model of cars and larger homes which beckon us to spend at the sacrifice of paying God and paying yourself for the future. And when we do, we stop honoring God with our income which removes His involvement in that area of our lives and we decide to go it alone. And if that’s not enough, we often mortgage our future for the present because we stop paying ourselves in favor of today. When we do, we live above our means, spending more than we earn and that path always leads to indebtedness, bondage, guilt, stress and despair. Those are not the words Jesus used to describe the kingdom of God or the life He wants you to have because he said, “I want you to have life and have it abundantly.” God paid an enormous price to set you free spiritually from sin and guilt but He also wants you to be free relationally and financially.
Some of you are hearing God’s call upon your financial life and are wanting to make that commitment to handle your finances God’s way. But to do so, you also realize that it would only sink you further into debt due to your other financial commitments. If this is the case, then the first step needs to be concentrating on getting out of debt. If that means only giving 3-5% back to God for a short time, no longer than 3 years, then do it! When that debt is paid off, then you can begin to tithe. But let me tell, it first takes a plan. You need to sit down and look honestly at your financial situation and decide what it will take to get you out of debt, including the sacrifices you will need to make. Set a budget with specific debt retirement payments, limit your spending and then set a target date to pay of your debt. Start with the smallest debt first and then work you way up, building momentum each time you pay off a debt. And celebrate each debt paid off.
And that lead us to our third step which is to live within you means. That means you pay God first, pay yourself and then live on the rest. If you use these three guidelines, you will be on the road to financial freedom. Luke 16:11 says, “If you are not faithful in money management, who will entrust riches to you?” Faithful obedient money management is a prerequisite to being trusted to an even greater responsibility in the kingdom. Put another way, your financial matters are a litmus test God gives us to see if we are ready for God’s true riches: his people. When your faith priorities are reflected in the life and decisions you make each day, then you begin to live the life God so desires for you, an abundant life filled with freedom. When, not if, when you give the first 10% back to God and the service of others, God will bless your life in ways never imagined.
There’s the story of a missionary who was sitting in her second floor window reading a letter from home. In it was a crisp $10 bill. She was pleasantly surprised but as she read the letter, her eyes were distracted by the movement of a shabbily dressed man down below, leaning against a post in front of her building. She couldn't get him off her mind. Thinking that he might be in greater need than herself, she penned the words, “Don’t despair” on an envelope and threw it out the window with a $10 in it. The stranger below picked it up, read the note, tipped his hat in gratitude and then walked away. The next day, she was about to leave the house when there was a knock at the door. The same man from yesterday handed her a role of bills. She asked what they were for and he replied, “That’s $100 you won lady. ‘Don’t Despair’ paid 5 to 1!”
I like that. Obviously, an act of love, service and giving doesn't always have a 5 to 1 payoff. Sometimes it’s much more. Why not take the next step in your life to receive the financial freedom God wants for you and see how God will bless you in your life and what greater opportunities in his kingdom he will entrust to you. Amen.
