Creating a Cycle of Positive, Lasting Financial Change
For far too many people, money is a source of stress or frustration.
Consider these findings from a Federal Reserve survey:
- About 46% of U.S. adults said they would be unable to cover a $400 emergency expense without selling something or borrowing the money.
- About 31% of non-retired adults reported having no pension or retirement savings at all.
- Among respondents with a 401(k) or IRA, 48% said they were either “not confident” or only “slightly confident” about their ability to make the right investment decisions.
- Two-thirds of people who bought a vehicle last year took out a loan to do so, and 12% of those borrowed for a term longer than the amount of time they plan to keep the car.
If you see yourself in any of those stats, or if you’re dealing with some other lingering financial frustration, maybe you’ve been looking for answers in all the wrong places.
More than knowledge
There’s a common myth that managing money well is simply a matter of knowledge and behavior. Just learn what you need to know, and then go do it.
At best, that advice is incomplete. I mean, think about it. Today, there’s no end to the amount of readily, freely available financial knowledge. If you have any question about money, you can find answers—sometimes even credible answers—with a quick Internet search.
And yet, there’s also no end to the number of people who struggle with some aspect of money.
Don’t get me wrong. We need knowledge. We need to understand the difference between a Roth and a traditional IRA, for example, and which one is best for us. But knowledge alone is not enough.
Nor is it enough to follow a set of step-by-step instructions as if building a financial life that works is as simple as building a model airplane.
The ultimate source of wisdom
In order to bring about financial change, it’s natural to want to know what to do differently and how. The identity/attitude/wisdom part can feel intangible and too time consuming. But it’s essential, which is why reading and memorizing God’s Word is what starts the cycle of financial life change moving in the right direction.
Keep this Book of the Law always on your lips; meditate on it day and night, so that you may be careful to do everything written in it. Then you will be prosperous and successful. – Joshua 1:8
If you want to get out of debt, there are important things to know and steps to take. But first, memorize and meditate on God’s cautions (“The borrower is servant to the lender.” – Proverbs 22:7) and God’s reminders (“You were bought at a price; do not become slaves of men.” – 1 Corinthians 7:23).
If you want to build savings, there are important things to know and steps to take. But first, memorize and meditate on God’s teaching to maintain a reserve (“In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” – Proverbs 21:20) and God’s warning to not hoard (“You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?” – Luke 12:13-21).
Gain the knowledge, take the steps, but first write God’s Word on your heart.
What about you?
If you could improve one aspect of your financial life, what would it be? What comes most quickly to mind? Now consider: Do you have the knowledge you need? Do you know what steps to take? But first—above all else—have you discovered what God’s Word has to say on the topic? And are you writing it on your heart through Scripture memory?
If you’re not sure what the Bible says about a certain financial topic, send me an email at jwiebe@mbfoundation.com, let me know what you’re working on and I’ll be happy to suggest some verses.