Good Debt vs. Bad Debt

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Get out of Debt…

A debt is the money that a person is obliged to pay another a certain amount. The debts can take with family and friends, credit cards, bank loans, loans or mortgages on the property.

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

The Bible calls us “slaves” when we are in debt. Borrowing is not a sin (if it had been, God would never have allowed the Israel paid at each other in Deuteronomy 15). However, the Lord wants his children to be free of debt to serve Him, and not to be servants of the lenders.

 

God also tells us through the Old Testament scripture that being in debt was a consequence of disobedience, while being free of debt was a reward.

Deuteronomy 28: 15          However, if you do not obey the Lord your God and do not carefully follow all his commands and decrees I am giving you today, all these curses will come on you and overtake you…

Deuteronomy 28: 43-44         The foreigners who reside among you will rise above you higher and higher, but you will sink lower and lower. They will lend to you, but you will not lend to them. They will be the head, but you will be the tail

Deuteronomy 28:1-2         If you fully obey the Lord your God and carefully follow all his commands I give you today, the Lord your God will set you high above all the nations on earth. All these blessings will come on you and accompany you if you obey the Lord your God:

Deuteronomy 28:12          The Lord will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none.  

The word of God is very clear and discourage us into debt in the New Testament:

Romans 13:7-8          Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.

The word forbids us to do “presumption of the future”.

Proverbs 27: 1          Do not boast about tomorrow, for you do not know what a day may bring.

We presume the future when we make a present debt based on future earnings (e.g., buying a machine, assuming, which the production we get from the machine, we will pay the debt). The Bible discourages presumption that way.

James 4: 13-15          Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.”

5 Best Budget Templates (download)

Many of us are in trouble when handling our money is involved. Also, we do not know how to arrange our information about expenses, incomes, savings and everything related to money.

That’s why I want to share these five spreadsheets that I’m sure they will help you out!

  •  Personal Budget

Template 1

  • Financial Snapshot

Template 2

  • Simple Budgeting

Template 3

  • Deluxe Budget

Template 4

  • Period Budget

Template 5

 

6 Keys to spend wisely according to God

  1. Be content

Over time, consumerism has become a key element in economic systems, and even more in the daily lives of people.

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Philippians 4:11-13

However, God speaks to us through His Word about living content in the economic place where He has placed us.

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.”

This is not to live in poverty or wealth, it is faith in every situation. For God did not forsake us.

  1. Reject greed

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Exodus 20:17

Covet means to yearn to possess what someone else has and the Bible forbid it. In other words, we should not covet what belongs to someone else.

 

  1. Learning to live a simple life

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1 Thessalonians 4:11-12

Some things require much attention, time or money that harm our relationship with the Lord and our loved ones. The Bible encourages us to live a quiet and simple life.

 

  1. Providing the needy

The early church was an example on the issue of meeting the needs. There are many people in our churches who do not get enough money from their work to support themselves or their families, especially single mothers or widows. Every church should have a Ministry of Compassion to help the needy and so people have more resources to help those who have less.

2 Corinthians 8:13-15

 

  1. Resist the influence of advertising

Many of us are exposed to the effects of advertising that causes us unhappy with what we have. Often the misleading message tells us that if we buy something we will be happy. However, the purpose of advertising is to create a willingness to spend money. Seek the Lord’s guidance when it comes to making decisions regarding expenditures. If you feel that any purchase does not please God, then do not buy it.

 

  1. Develop a spending plan (budget)

Proverbs 27:23-24          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.

God encourages us to know exactly how much money we have and how we’re investing. Having a plan to control expenses is a wise way to take control of the money and not let money control us.