Harvest Pointe Christian Church, Milford Ohio is a non-denominational Christian Church (Church of Christ) on the Eastside of Cincinnati OH

Making the Most of What You Have | Series: Money Wise | 01-17-10

Making the Most of What You Have
Series: Money Wise
Various Proverbs

Six Basic Lessons on Budgeting from Solomon (Proverbs 17:16)

Lesson #1:  Establish a realistic budget. (Proverbs 27:23-24, Luke 14:28-30)

Lesson #2:  Give to God first. (Proverbs 3:9-10, I Corinthians 16:2, II Corinthians 9:7)

Lesson #3:  Live on less than you make. (Proverbs 13:7)

    1. Be realistic.
    2. Be disciplined. (Proverbs 13:18, Proverbs 23:4)
    3. Be humble. (Proverbs 14:30, I Timothy 6:6-8)

Lesson #4:  Get out of debt as quickly as possible. (Proverbs 22:7, Romans 13:8)

Lesson #5:  Save at least a little bit regularly. (Proverbs 21:20)

Lesson #6:  Invest wisely in the long-term. (Proverbs 13:11, Hebrews 13:5)

Full Text 

One evening Marsha and I were visiting another young couple about our age.  They lived in a small apartment.  As we talked, we learned that this couple was really struggling to keep the creditors away.  They told us what he was making.  To our surprise it was conservatively 4 times what we were making.  Our only debt was a new brick ranch.  But they also each had a brand new car.  They had a brand new loaded pick-up.  The pick-up was to pull the brand new large boat.  The furniture was all new.  The TV was new.  And everything was either rented or being paid for on time.

Now, probably everyone here could point to a couple that doesn't make all that much, but they pay their bills and can get a pizza on Friday night.  And we also know a couple that makes twice as much, but are always struggling just to pay the bills.  They have serious financial stress.  They think it's because they don't make enough money. They think that if they just made 10% more they'd be okay. But the truth is, in many cases, financial stability has little to do with income.  It has almost everything to do with how you manage what you have.

Our topic today is "Making the Most of What You Have."  We're going to touch on budgeting.  I want to emphasize the word "touch".  This sermon will not even come close to what those in the Financial Peace University will come away with.  In FPU people will be guided as they establish a budget that will make life much better in the future.  We are simply going to look at some principles that we find in the Bible, which are the same principles that Financial Peace is based upon.  These principles have carried many into a very comfortable retirement.

Remember, in this sermon series we are gleaning some principles from King Solomon, the wisest man who ever lived and definitely one of the wealthiest.  He wrote many of the Proverbs and the book of Ecclesiastes.  These principles never change.

I hope that everybody learns from these very basic but often neglected principles.  But I especially want to talk with young people, and especially young couples.  You can avoid the debt trap.  You can form a financial base now that you will love more and more as you get older.  If you get in debt now, you're going to experience a financial burden that could last all of your life.

Proverbs 17:16 reads, "Of what use is money in the hand of a fool, since he has no desire to get wisdom?"  Please desire the wisdom of Solomon.  It will make a long-term difference in whether you have little or much.

Ok. Let's see Six Basic Lessons on Budgeting from Solomon.  These will help you make the most of what you have.

Lesson #I:  Establish a realistic budget.

Proverbs 27:23-24 reads, "23 Be sure you know the condition of your flocks, give careful attention to your herds;  24 for riches do not endure forever, and a crown is not secure for all generations.  Solomon tells us to know the condition of your flocks.  The Living Bible paraphrases that, "Watch your business interests closely."  That means you keep pretty careful records.  You know how much is coming in and you know where it is going.  Based on your income you have a plan of what you will do with your money.

If you just haphazardly spend the money that is coming in, according to the bills that pop up, you have little control of your resources and you're probably not making the most of what you have and one day it will probably catch up with you and you will be wondering how you will make ends meet. 

The only way you're going to know the condition of your flocks is to have a realistic budget.  It doesn't have to be complicated, but it does have to be realistic and understandable.  Just spend a month writing down every penny you spend.  Then make a list of your expected income.  Do not count on over-time and bonuses.  They can come and go with the economy.

Now, the simplest and most effective system is the envelope method. You deposit enough in the bank to pay for your house, car, insurance and utility payments whatever your expenses are.  Then you take the rest in cash and you stuff it in envelopes.  You mark the envelopes gas, food, entertainment, clothes and whatever.

So, if you are invited to the movies by another couple, and you look in the envelope marked entertainment and you've only got $5 in it, you do not steal from another envelope.  You just frankly say, "I'm sorry. We can't go tonight. It's not in our budget."

I'll never forget a man in Michigan who was fairly well off.  One day, while he and I were talking, someone came up and invited him and his wife to go out to eat with them that night at a nice restaurant.  He pulled out his planner and simply stated, "I'm sorry, but last week we went out and we are going out again next week.  Next week will tap out our budget for the month.  Maybe next month."  Now, this was coming from a man who was a political mover and shaker and was high in management.  There is no shame in saying, "I'm sorry, but it's not in our budget."  Doing this pays huge benefits in the future.  Know the condition of your flocks.

Now, there are some people who object to having a budget.  They say, "I don't know how much I'm going to make. Therefore a budget is impractical for me."  Well, take the minimum that you're going to make or last year's income and make a budget for this year.  Then if you make more, get rid of any debt and use the rest to build a nice retirement.  You can always make adjustments the next year.

Others object saying that if you have a budget, it shows a lack of faith in God.  If we just trust God, we shouldn't be worried about those details."  But Jesus said in Luke 14:28-30, "28Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? 29For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him, 30saying, 'This fellow began to build and was not able to finish.'"  And you are building a tower for retirement.  A budget is not a lack of faith.  It's being wise and practical.

Another objection is, "I make enough that I don't need a budget.  I'm getting along fine without it."  But as we've already seen, Solomon said riches do not endure forever. You have no guarantee that you're going to do as well in the future as you do now.  If you discipline yourself now with a budget, you will never regret it and one day you will probably be very glad you did.  Also, you will be able to make more use of what has been given to you.  You can be more generous.  You can be more confident and secure.  Solomon was one of the wealthiest people who ever lived, but he knew the condition of his flocks.  And we should, too.

Lesson #2:  Give to God first.

Proverbs 3:9-10 says, "9 Honor the LORD with your wealth, with the firstfruits of all your crops; 10 then your barns will be filled to overflowing, and your vats will brim over with new wine."

Now, quite frankly, most Christians do not give to God first.  Even if they do have a budget, most Christians subtract their bills from their income to decide how much is left over.  Then they determine what they can give to the Lord's work out of what's left over.

Throughout history, people gave God a tenth of their income.  This is called a "tithe". For example, we find Abraham, hundreds of years before God gave Moses the Old Testament Law, giving a tithe, or a tenth.  In the Old Testament Law God demanded a tenth, plus other offerings.

There are those who say that we are no longer under the law, but under grace.  Therefore they do not need to give God that much.  I Corinthians 16:2.  "On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up, so that when I come no collections will have to be made."  "In keeping with his income" means it is proportionate.  The proportion God has always expected is 10%.

Just because we are under grace and not under law does not mean we should give less.  The best illustration comes from Atlanta Georgia.  Several years ago there was a husband and wife who worked different shifts.  There was a two hour period in the morning while the kids were asleep that neither parent was home. 

One morning the oldest child woke up, smelling smoke.  He jumped out of bed, grabbed the baby out of the crib, ran outside and laid the baby on the lawn.  He rushed back into the house, now filled with smoke and some flames, grabbed the next youngest child and carried her outside.  By this time the firemen had arrived.  A neighbor had seen the smoke and called the fire department.  The firemen had to physically restrain the boy from going back in for the last child, even though it would have meant certain death because the house was filling with flames.

The law would not have condemned that boy if he had simply run out of the house when he smelled smoke and saved himself.  But love and grace demanded more.  Personally, we give more than the tenth.

At one church we had reached a family and the man had a very good job.  They owned a large new house, two new cars, a boat--anything they wanted.  But it was all purchased on time.  And even though he made very good money, there was no way they could give the church a tenth and meet all their obligations.  They struggled with what to do.

So we sat down and talked about how Christians are also to pay their debts.  So they went on a budget and began knocking off the smaller debts first.  Then they used that freed up money to tackle the larger debts.  Within one year they were tithing to God and well on their way to 0 debt and financial freedom.

Another family started out giving only 1% a year to God.  But each year they upped the percentage as they got their affairs in order and in a few years they were excited that they could give God the full 10%.  You can't do that without a budget, which is what the Financial Peace University is all about.  Giving brings joy and satisfaction.  It draws us to God.  II Corinthians 9:7 tells us, "Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver."

Lesson #3:  Live on less than you make.

Proverbs 13:7 reads, "One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

One financial analyst said that the average American lives on 112% of his income.  We're spending more every year than we earn.  So often I've seen young couples wanting to start at the top.  They want to begin with everything their parents took years to put together.  We're so accustomed to having nice things.  We can't imagine life without cable TV, a Blue Ray player, a Wii, a laptop, an extra car, voicemail and a Droid.  And if we can't afford them, we just go ahead and buy them on the installment plan thinking we'll pay for them later.  And we want to live in a house as nice as the one we grew up in.

Then children come along and we love our children so much that we want to give them as much as the other kids have regardless of the cost.  And the only way we can do that is to use the credit card that charges 18% to 20% interest.  And it's very common for couples to have 3 or 4 credit cards with thousands of dollars on each one.  They get further and further into debt every year.  And they simply shrug their shoulders in disappointment and say, "We have no other option.  We're just providing the necessities for our family.  We're just not earning enough to make it."

But here is a basic rule that we must subscribe to.  Each year you live on less than you make.  It's as simple as that.  Now for that to occur, you have to have three qualities that are different than the world.

First, you've got to
1. Be realistic.

Make a distinction between necessities and luxuries.  Most of the time the latest gadget is not a necessity.

Secondly, you must
2. Be disciplined.

Be disciplined enough to say "no" to some desires.  Proverbs 13:18 says, "He who ignores discipline comes to poverty and shame, but whoever heeds correction is honored."  Folks, remember this truth:  The pain of the payments always exceeds the pleasure of the purchase.  Proverbs 23:4.  "Do not wear yourself out to get rich; have the wisdom to show restraint."

The third, distinctive quality is humility.
3. Be humble.

To live on less than you make requires that you swallow your pride and you don't pretend to be something that you're not.  Proverbs 14:30 says, "A heart at peace gives life to the body, but envy rots the bones."

We must be humble enough to refuse to get caught up in that materialistic competition.  We've got to remind ourselves that relationships are more important than things.  That our ambition in life is not to accumulate things here but rather to go to Heaven when we die and take as many people with us as we can.  We must hold on to the fact that a person's life is not measured by the abundance of the things that they possess. 

When Marsha an I were first married, the extent of our furniture was a bedroom suite, four TV trays and two lawn chairs.  (The TV trays and lawn chairs were wedding presents.)  For about a year, any group numbering more than two that visited us sat on the floor or on the steps.  We did not even own a TV!  But we had fun!

Let me tell you a secret.  People have a lot more respect for the person who lives within their means than the person deeply in debt.  Cut out the things you can't afford.  Somebody said, "Maturity is the ability to postpone pleasure. Immaturity is demanding you have what you want right now even though you can't afford it." 

As a Christian, learn to be content with what God has given.  I Timothy 6:6-8 says, "6But godliness with contentment is great gain. 7For we brought nothing into the world, and we can take nothing out of it. 8But if we have food and clothing, we will be content with that."

Lesson #4:  Get out of debt as quickly as possible.

Proverbs 22:7: "The rich rule over the poor, and the borrower is servant to the lender."

Young couples today go so quickly into debt without understanding the negative consequences.  If they would figure it out, on credit, that $200 Wii is going to easily cost them $400.  And it will take them many years to pay it off. 

That is the danger of credit cards.  Credit cards are good if you pay them off each month.  They are not good if you rack up the balance.  They can kill you financially.  They can send your stress level through the roof trying keep the creditors off your back.

A bank did a review of 125 applications for a home loan.  It revealed that 90% of all applicants had a minimum of 4 credit cards.  Three of the four credit cards were at the maximum allowable limit. 82% of them had two car payments. The average car payment was $326 for 48 months.  70% of all applicants showed some late payments on their credit report, and 32% of the young adults applying for a home loan had overdrawn their checking account 90 days before the appointment.  And those are people wanting to buy a house.  Pay off those debts and get out from under them.

Romans 13:8 reads, "Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law."  Folks, Christian people ought to have the very best credit rating in the world.  If we don't pay our bills when they are due, we embarrass the kingdom of God.  If you have trouble handling your credit cards, cut them up and pay them off.  Yes, you can live without them.  In fact, you will live better without them.

Lesson #5:  Save at least a little bit regularly.

Somebody said the problem when it comes to saving is that most people will stop at nothing.  Proverbs 21:20 says, "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has."  The Good News Bible paraphrases that, "Stupid people spend it as fast as they can get it."

According to the Social Security Department, 85% of the American people have less than $250 saved when they retire. 

When my parents were first married, they would have fit right in with today's culture.  My Dad made big bucks at Newport Steel and my Mom made good money working for some lawyers.  They bought everything on time and could hardly make ends meet.

Then suddenly, I was on the way.  Back then, when you became a mother, you were out of the work force.  So they lost Mom's income.  Then Newport Steel went under and they lost Dad's income.  Dad wound up at Cincinnati Bell bringing home $35 a WEEK as a janitor.  They thought the world had ended.

But at Bell, my Dad met a very wise older man that became my Dad's best friend.  He gave my Dad some financial advice.  My parents got on a budget, using the envelop system, and they worked themselves out of debt.

But another thing he talked my Dad into doing was to save a little bit out of each pay check.  Even if it was only $5 or $10.  Let it grow and compound.  As hard as it was at first, they did it and now they are comfortably retired and buy what they want.

The old rule of thumb was to work yourself into a position where you can give the first 10% to God, put the second 10% in savings and live off the rest.  I have never met a person who did that who ever regretted it.

Also I'd like to say, you need to accumulate at least $1000 for an emergency fund.  Unexpected things happen.  The refrigerator dies.

Lesson #6:  Invest wisely in the long-term.

Proverbs 13:11 says, "Dishonest money dwindles away,
but he who gathers money little by little makes it grow."

In my first ministry there was a widower in a nursing home that was a little ways off.  The first time I went to see him, he was bright and cordial as I walked up to him but as soon as I told him I was the new preacher, he became distant and acted like he didn't want me there.  I was just about to make it a very short visit when he asked me, "Why are you here?"  I said, "I came to see you."  After a long pause he said, "OK. How much do you want?"  I told him I didn't want anything.  I had just come to visit him.

He was pretty suspicious of me for a little bit and then he opened up.  In the years he had been in the nursing home, no one from the Church had come to visit him.  At least, that's what he said.  People in nursing homes often feel more neglected than they really are.  But he said that the only contact he ever had with the Church was whoever was the preacher at the time.  And the preacher only came when the church had a financial emergency and he would bail them out.  Before I left he wrote the church a check for his tithe, which was quite large.  He had a big smile on his face.  He was now giving because he wanted to. 

But one day he told me why he could be so generous.  When he was sixteen he went to work driving a truck for a newer company in the area called Shell.  From his first paycheck he bought all the stock he was allowed to buy.  When the prices were discounted for employees or the stock purchased was matched by Shell, he did very well.  There were times his stock split.  But little by little he purchased all the stock he could through the company.  One day he showed me his dividends for the year.  After over forty years of buying stock, his dividends alone were a lot more than I made.  Save something every week and one day you will enjoy it.

Hebrews 13:5: "Keep your lives free from the love of money and be content with what you have, because God has said, 'Never will I leave you; never will I forsake you.'"  It doesn't have much to do with what we make.  It has everything to do with how we manage it.  We're more likely to be content with what we have if we manage it well because we're confident that God's taking care of us.

But the way that God takes care of us the best is through His Son Jesus Christ.  He made a great sacrifice because you mattered more to him than the riches of eternity. He went to the cross and died to save you from your sins.

If you haven't accepted Him as Savior, if you've not known His riches, if you've not surrendered to Him as the Lord and the Manager of your life-we offer the invitation for you to do that.  Just walk forward and we'll guide you as you confess His name, give Him your life and are baptized into Him.

Or maybe you've already done that and would like to place your membership with our loving congregation.  Come forward as we stand and sing.

Based on a 1/21/2001 sermon by Bob Russell of South East Christian Church, Louisville, Kentucky