Spend Wisely

Excerpts from Chapter 3 of the Financial SALT workbook.

“The wise have wealth and luxury, but fools spend whatever they get.” Proverbs 21:20 (NLT)

Financial freedom does not require great wealth. Rather, it requires the proper management of whatever assets and funds one possesses. That is financial faithfulness.

Have you noticed how some people who don’t earn much money end up, over time, becoming financially free? While others who have large salaries end up with very little or nothing to show for it? How does this happen?

Starts Out Easy
To go from having much to having little, starts out easy. It is easy to spend money on things you don’t really need.

Q1. Do you spend money on things you don’t need?

Believing money is yours to use as you please leads to foolish spending. The diagram below illustrates how foolish spending is like a wide gate. There are many people who go down this path because it is easy to get started on it. However, as you will see, it is a dangerous path.

“…Wide is the gate and broad is the way that leads to destruction, and there are many who go in by it.” Matthew 7:13 (NKJ)

Q2. Have you experienced any negative emotions (depression, anxiety, and worry) due to your finances? Explain.

Gets Hard
Foolish or unwise spending is the main cause of financial hardship. Notice how the path becomes hard and difficult.

“But don’t begin until you count the cost. For who would begin construction of a building without first getting estimates and then checking to see if there is enough money to pay the bills?” Luke 14:28 (NLT)

Slavery
The way that once was easy, over time, gets harder and ends in slavery.

“The rich rules over the poor, and the borrower {becomes} the lender’s slave.” Proverbs 22:7 (NASB)

Q3. In what ways have you been foolish in your spending?

Q4. Do you think the consequences of foolish spending will catch up with you? When?

“But if the servant thinks, ‘My master won’t be back for a while,’…The master will return unannounced and unexpected. He will tear the servant apart and banish him with the unfaithful. The servant will be severely punished, for though he knew his duty, he refused to do it.” Luke 12:45–47 (NLT)

God Uses It
God can use your financial slavery to help you make a decision to stop doing things your way. He wants you to go His way because when you obey Him, you will be blessed.

“If troubles come upon them and they are enslaved and afflicted, he [God] takes the trouble to show them the reason. He shows them their sins, for they have behaved proudly. He gets their attention and says they must turn away from evil. If they listen and obey God, then they will be blessed with prosperity throughout their lives. All their years will be pleasant.” Job 36:8–11 (NLT)

Q5. How has God been using what you are going through to get your attention?

Q6. Are you ready to give up foolish spending and do things God’s way?

The Bible calls people who manage their money God’s way, good stewards. A good steward is someone that uses money wisely and desires to please God. As a good steward, you need to be faithful whether God has given you much or little to manage.

“Unless you are faithful in small matters, you won’t be faithful in large ones. If you cheat even a little, you won’t be honest with greater responsibilities. And if you are untrustworthy about worldly wealth, who will trust you with the true riches of heaven? And if you are not faithful with other people’s money, why should you be trusted with money of your own?” Luke 16:10–12 (NLT)

In the next diagram, notice the gate to wise spending is narrow. It is reached through a commitment to doing things God’s way.

“…Narrow is the gate and difficult is the way which leads to life, and there are few who find it.” Matthew 7:14 (NKJ)

Starts Out Hard
Wise spending might seem hard at first because you are more familiar with doing things your own way instead of God’s way. New things always start out difficult and awkward. Secondly, it takes time to make a plan or budget. Finally, it’s difficult because you will be putting off immediate gratification as you spend wisely.

Even though doing things God’s way may start out hard, financial slavery is much worse.

Q7. Are you using your money the way God desires? Why or why not?

Gets Easier
Although the path of wise spending starts out hard, it does become easier as you consistently follow God’s patterns. The benefits of wise spending will be that your needs will be met and you will have extra to give and eventually invest.

“So don’t get tired of doing what is good. Don’t get discouraged and give up, for we will reap a harvest of blessing at the appropriate time.” Galatians 6:9 (NLT)

Freedom
As you continue on the path of wise spending, not only will it become easier, you ultimately will experience financial freedom.

“God has led you away from danger, giving you freedom. You have prospered in a wide and pleasant valley.” Job 36:16 (NLT)

Freedom doesn’t come from doing what you want but from doing what God wants.

Deny Yourself
The power to change from foolish spending to wise spending comes from Jesus. On the next diagram, the cross illustrates Christ’s obedience and your need to deny yourself and follow Him.

“And He was saying to them all, ‘If anyone wishes to come after Me, he must deny himself, and take up his cross daily and follow Me.’” Luke 9:23 (NASB)

Q8. What would denying yourself look like in the financial area?

Personal Application

Make a plan or budget to accomplish financial freedom. Planning is an issue of faithfulness. It is up to us to make our plans, but up to God to allow us to carry out our plans.

Ask God to help you make a budget and give up whatever is necessary to enter the narrow gate.

“And the Lord replied, ‘I’m talking to any faithful, sensible servant to whom the master gives the responsibility of managing his household and feeding his family. If the master returns and finds that the servant has done a good job, there will be a reward. I assure you, the master will put that servant in charge of all he owns.’” Luke 12:42–44 (NLT)

With the excess that wise spending creates, you will have money for investing, saving, and debt reduction.

Read the rest of the Financial book to learn more about God's plan for your finances. The financial area teaches that there are only four things you can do with your money: earn, give, spend, and invest. You will experience financial freedom when you learn to do these four things God's way.

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