Have you ever stopped and thought about how money is used in our lives? Of course, at the highest level, it is used in exchange for goods and/or services. But have you ever really broken down the use of money into silos in your life?
I like to classify money into four categories, with one of the categories having two parts. We use money to “Give, Live, Grow, and Owe.” Owe has two parts: owe taxes and owe debt. Those are the only five ways we use money in our lives.
Scripture leads us to Give of our first fruits. In Malachi 3:10 (NIV) scripture says, “Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty… In Proverbs 11:25 (NIV) scripture says, “A generous person will prosper; whoever refreshes others will be refreshed.” In 2 Corinthians 9:7 (NIV) scripture says, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” In fact, the Bible references a form of the word giving more than 2,000 times, and specifically uses giving as an act of generosity, tithing, or helping others hundreds of times across various passages.
The second way we use money is to Live. In Matthew 25:14-30, Jesus tells the Parable of the Talents, in which servants are entrusted with their master’s property, teaching that we are to use God’s gifts wisely and productively. God entrusts resources to us based on our stewardship of them. We are to use these resources to provide for ourselves, our families, and our community. A challenge we must overcome is balancing our consumption habits with the other four areas where we spend money.
The third way we use money is to Grow. This is God’s plan for us to be able to provide for ourselves, our families, and our community in the future. Growing or saving for the future is biblical. In Genesis 41:34-36, Joseph advised Pharaoh to save during the years of abundance for the years of famine. Joseph’s advice to Pharaoh is a powerful example of saving during times of plenty to provide for times of need. These passages collectively illustrate that saving and preparing for the future is a wise and biblical principle. I also like to share Proverbs 13:11 with my clients, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” This encourages steady, prudent accumulation rather than reckless spending.
In the Owe silo, we have two parts. We owe taxes, and we owe debt. Taxes are a condition of the amount of resources God entrusts to us. We should be good stewards of our approach to paying taxes, just as we are with any other use of money, so we do not pay unnecessary taxes out of ignorance of the tax code. However, paying taxes means God has entrusted us with more resources, so in that we should be joyful.
The Bible is very clear on owing Debt, “Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” (Romans 13:8) In Proverbs 22:7, we are told, “The rich rule over the poor, and the borrower is slave to the lender.” Scripture encourages us to avoid unnecessary debt, to repay what we borrow, and to be generous.
If you need assistance balancing your use of money through a Biblical worldview, you are encouraged to call our office to speak with one of our advisers. The Bible shares in Proverbs 15:22, “Plans fail for lack of counsel, but with many advisers they succeed.” We desire for you to be a successful steward in God’s Kingdom.
With an intentional approach to identifying how each dollar entrusted to you is being spent and classifying it within the five categories mentioned above, everyone can be counted among the wise.
—Michael Wallin, Certified Financial Planner ™. For more information, please visit whcwealth.com or call 615-236-2220.
