Biblical Tips for Wise Financial Decisions

Ten Biblical Tips to Eliminate Unnecessary Spending

Living in a consumer-driven society, it is easy to get caught up in unnecessary spending. However, as believers, we are called to be good stewards of the resources God has entrusted to us. By seeking counsel from God and following biblical principles, we can eliminate wasteful spending and make wise financial decisions.

Here are ten biblical tips to help you spend wisely:

1. Budget Wisely, Track Diligently: Create a budget that allocates funds for essential expenses and discretionary spending categories. This is the easiest way to see what is coming and in and out of your household from a visual view. I’m a visual learner and this helps me each month to see and grasp the effects of my decisions. Proverbs 21:5 reminds us that "The plans of the diligent lead to profit as surely as haste leads to poverty."

2. Distinguish Needs from Wants: Differentiate between essential needs and non-essential wants to prioritize spending. Needs to me are basic clothing, shelter and food. We could go on down many rabbit holes to justify within this category of wants/needs. I try to keep it simple and look at the first bullet point and understand that if I cannot afford, I don’t need to spend on it. A target bag holds same goods as a Louis Vuitton. Luke 12:15 cautions us, "Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions."

3. Cancel Unused Subscriptions, Save and Invest Evaluate and cancel non-essential subscriptions and memberships to save money. Sometimes this can happen easily when we sign up for free trials and forgot to cancel particular when we use a card that has a lot of other expenses on it. When doing subscriptions, I recommend using one card for all of them for easy tracking. Proverbs 22:7 warns us that "The rich rule over the poor, and the borrower is slave to the lender."

4. Plan Meals, Shop Purposefully: Plan meals in advance and make a grocery list to avoid impulse purchases. This is the easiest and most helpful for me. When going to the store you do not limit yourself with a list and plan but freeing yourself up from unnecessary time and impulse buying. Proverbs 21:20 advises us that "Precious treasure remains in the house of the wise, but the fool devours it."

5. Compare Prices, Seek Discounts: Compare prices and look for discounts or deals before making purchases. Proverbs 14:15 reminds us that "The simple believe anything, but the prudent give thought to their steps."

6. Delay Non-Essential Purchases: Delay purchases of non-essential items until you can afford them without going into debt. Proverbs 21:5 encourages us that "The plans of the diligent lead to profit."

7. Set Clear Savings Goals, Prioritize: Set specific savings goals and allocate funds towards achieving them. Proverbs 21:20 emphasizes that "Precious treasure remains in the house of the wise."

8. Avoid Lifestyle Inflation: Resist the temptation to increase spending as your income rises to avoid lifestyle inflation. This trap is very easy because we tell ourselves we deserve it and owe it to ourselves for the hard work we have done. Now treating yourself in itself is not wrong but making decisions around taking on additional debt that is not needed should be thought out carefully. Getting a promotion doesn't justify the BMW when your Honda runs just fine. Luke 16:10 reminds us that "Whoever can be trusted with very little can also be trusted with much."

9. Cook at Home, Eat Out Less: Prepare meals at home and limit dining out to save money. Proverbs 15:17 reminds us that "Better a small serving of vegetables with love than a fattened calf with hatred."

10. Limit Impulse Buys, Save Money: Refrain from making impulse purchases and prioritize saving for the future. Ecclesiastes 5:5 advises us, "It is better not to make a vow than to make one and not fulfill it."

By incorporating these biblical principles and practical strategies into your financial management routine, you can eliminate unnecessary spending, achieve financial stability, and experience greater peace of mind in your financial journey. Remember, wise stewardship of resources honors God and leads to blessings for yourself and others.