SYSTEM OF ADVANTAGE 4
MASTERING YOUR FINANCES
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Eccl. 9:16 (NLT)
Even though wisdom is better than strength, those who are wise would be despised if they are poor.
Eccl. 9:16 (CEV)
So I decided that wisdom is better than strength.
Yet if you are poor, no one pays any attention to you, No matter how smart you are.
Prov. 29:2
When the righteous prosper, the Nations rejoice.
3 Jn. 1:2
May you prosper in all you do, and be in good health, just as your soul prospers.
Implication
It is not the intention of God for Christians to experience financial stagnation.
Hos. 4:6
My people perish for lack of knowledge.
Implication: Most of the financial problems Christians go through are caused by lack of proper financial knowledge. 
Lk. 16:10
Whoever can be trusted with very little can also be trusted with a lot.
Prov. 21:5 (GNT)
Plan carefully and you will have plenty; if you act too quickly, you will never have enough.
Implications
To be free from financial problems, we must be intentional about how we spend our money in the New Year.
How to Manage Your Money Better
● Make a budget
● Track your expenses
● Build an emergency fund (savings)
Two Systems of Financial Management
● 50-30-10-10
50% -Expenses
30% -Savings (Emergency Fund)
10% -Investment
10% -Charity
● 50-30-20
50%-Bills, Rent, Utilities, Fees, Food
30%-Entertainment, charity, Investment, self-care, etc
20%-Savings (Emergency Fund)
i.e one must have some money kept (saved) for emergency each month no matter how small you're earning!!!
Eccl. 11:2
Invest your money in seven or eight places, for you do not know what disaster will befall the land.
Tips on Diversifying Your Income
● Venture only into what you understand.
● Be Patient (Very often, quick wealth is fraudulent and unclean).
Prov. 13:11
Wealth gained hastily will fade away; but whoever gathers little by little will increase it.
Summary
● To become financially prosperous in this New Year, we must be intentional about how we earn and spend our money.
Watch and see: Here
Mastering your finances involves managing your money effectively, making smart financial decisions, and achieving long-term financial stability and security. Here are some key aspects to focus on:
Budgeting
1. Track your income and expenses to understand where your money is going.
2. Create a budget that allocates your income into categories (housing, food, transportation, etc.).
3. Prioritize needs over wants and adjust your spending accordingly.
Saving
1. Set financial goals, such as building an emergency fund, saving for retirement, or paying off debt.
2. Allocate a portion of your income to savings and investments.
3. Consider automating your savings through payroll deductions or automatic transfers.
Debt Management
1. List all your debts, including credit cards, loans, and mortgages.
2. Prioritize debts with high interest rates or urgent deadlines.
3. Develop a plan to pay off debts, such as the snowball method or debt consolidation.
Investing
1. Understand your risk tolerance and financial goals.
2. Explore investment options, such as stocks, bonds, ETFs, or mutual funds.
3. Diversify your portfolio to minimize risk and maximize returns.
Financial Planning
1. Develop a long-term financial plan, including retirement savings and estate planning.
2. Consider consulting a financial advisor for personalized guidance.
3. Regularly review and adjust your financial plan to stay on track.
Money Mindset
1. Cultivate a positive relationship with money, avoiding stress and anxiety.
2. Practice financial self-care, such as avoiding impulse purchases or taking breaks from spending.
3. Focus on what you can control, rather than worrying about market fluctuations or economic uncertainty.
Education and Resources
1. Continuously learn about personal finance, investing, and money management.
2. Utilize online resources, such as budgeting apps, financial blogs, or podcasts.
3. Join a community or find an accountability partner to support your financial journey.
By mastering these aspects, you'll be well on your way to achieving financial stability, security, and success.
Here are more details relating to the Bible on mastering your finances:
BIBLICAL PRINCIPLES
1. *Stewardship*: God entrusts us with resources; we're accountable for managing them wisely (Matthew 25:14-30, Luke 12:42-48).
2. *Contentment*: Focus on what's truly important, not material wealth (1 Timothy 6:6-10, Hebrews 13:5).
3. *Generosity*: Share with others, especially those in need (Proverbs 19:17, 2 Corinthians 9:6-7).
4. *Debt*: Avoid debt, but if necessary, prioritize paying it off (Proverbs 22:7, Romans 13:8).
5. *Saving*: Set aside for the future, but trust in God's provision (Proverbs 21:20, Matthew 6:19-21).
BIBLICAL WISDOM
1. *Avoid greed*: Wealth can be a snare; prioritize spiritual riches (Luke 12:15, 1 Timothy 6:10).
2. *Live simply*: Avoid unnecessary expenses; focus on what's truly important (1 John 2:15-17, Matthew 6:19-21).
3. *Invest wisely*: Use your resources to further God's kingdom (Matthew 25:14-30, Luke 19:11-27).
4. *Give cheerfully*: Share with others, not grudgingly, but with a willing heart (2 Corinthians 9:6-7).
5. *Trust in God*: Ultimately, trust in God's provision, not your own financial security (Matthew 6:25-34, Philippians 4:19).
BIBLICAL EXAMPLES
1. *Joseph*: Managed resources wisely, saved for the future, and trusted in God's provision (Genesis 41:35-36, 47:13-26).
2. *The Widow of Zarephath*: Shared what little she had, trusting in God's provision (1 Kings 17:8-16).
3. *The Rich Fool*: Failed to prioritize spiritual riches, lost everything (Luke 12:13-21).
PRACTICAL APPLICATIONS
1. *Create a budget*: Manage your resources wisely, prioritize needs over wants.
2. *Save and invest*: Set aside for the future, invest in eternal things.
3. *Give generously*: Share with others, support ministries and charities.
4. *Avoid debt*: Prioritize paying off debt, avoid unnecessary expenses.
5. *Trust in God*: Ultimately, trust in God's provision, not your own financial security.
By applying these biblical principles, wisdom, and examples, you'll be better equipped to master your finances and honor God with your resources.
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