In this fast-paced world we live in, it’s easy to get caught up in the hullabaloo and forget to give Bible teachings their due respect, especially when it comes to finances. Remember that God was not in the habit of offering wishy-washy advice we have the option to take or leave. Neither was King Solomon, and it would be good to remember that the Solomon Proverbs and, indeed, all the Bible, are COMMANDS – not suggestions.
The question to ask yourself is whether or not you are handling your personal finances in a way that would make God happy? Or is he shaking his head sadly, wondering, “When are they ever gonna learn?” Unfortunately, too many of us have proven ourselves slow learners. Our spending habits are too rich for our income. We have too few assets and too many liabilities. We have no emergency fund, no investments and no solid plans to acquire either. As Captain Picard aboard Star Trek’s Next Generation Enterprise would say, “Make it so.”
Maybe the following exercise can get you back on the road to following the Solomon Proverbs. To ignore them is to ignore the wisdom of the ages, and that’s not smart. What you need is a balance sheet. This simple accounting concept lists all your assets and liabilities to provide a snapshot of where you stand financially. Write down everything you own (assets) and everything you owe (liabilities). Subtract liabilities from assets and the result is your net worth. If this is not a positive number, you have some work to do but don’t lose hope.
If more than 35% of your income is being spent servicing debt, that’s too much, according to Solomon Portfolio author, Robert Katz, and adjustments need to be made. What you need to do is simple. Increase income and/or decrease expenses in order to pay it off. Note we didn’t say it would be easy, just that it was simple. Next you must build an emergency fund. One thousand dollars is a good start but you really should plan for three to six months of living expenses in case you lose your job.
Finally – save for retirement! Stay tuned to this website’s blogs and podcasts for a continuing education on exactly how to accomplish that. In the meantime, remember that the Solomon Proverbs are more than just a pretty good idea. They are essential to your success.
The Solomon Success Team
Flickr / @jbtaylor
Tags: Solomon proverbs