Christian Finance 101 [Managing Money God’s Way]

Money matters, even for Christians. But how do we manage our finances in a way that honours God? Christian finance, also known as “Managing Money God’s Way,” is an approach to personal finance that applies biblical principles of stewardship to the management of money and possessions. This framework is built on the understanding that God is the ultimate owner of all resources, and humans are entrusted as temporary managers, or “stewards,” of these gifts. At Life Purpose Matters, we believe that Christian finance is about more than just balancing the books. It’s about aligning our financial decisions with biblical principles and using our resources to further God’s kingdom. In this guide, we’ll explore practical ways to manage money God’s way, from budgeting and saving to giving, dealing with financial challenges, and touching on side hustle ideas for Christian women.

How Can We Manage Money God’s Way?

Stewardship: It’s All God’s Anyway

Let’s start with a mind-blowing fact: everything we have belongs to God. Psalm 24:1 reminds us, “The earth is the Lord’s, and everything in it.” This means we’re not owners, but managers of God’s resources. How’s that for a perspective shift?

What does this look like in practice? It means making financial decisions with the awareness that we’re handling God’s money. Before making a purchase, ask yourself, “Would God approve of this use of His resources?” This simple question can transform your spending habits.

Generosity: The Heart of Christian Finance

Now, let’s talk about giving. The Bible mentions money over 800 times (and a good chunk of those verses are about generosity). Tithing – giving 10% of your income to your local church – is a great starting point. But don’t stop there!

In 2 Corinthians 9:7, Paul encourages us to be cheerful givers. This isn’t about grudgingly parting with your cash. It’s about joyfully supporting God’s work and helping others. Try setting aside a “blessing fund” each month for spontaneous acts of generosity. You’ll be amazed at how God uses it!

Debt: The Financial Ball and Chain

Here’s a sobering statistic: total household debt increased by $185 billion to hit $18.39 trillion in the second quarter, according to the latest Quarterly Report on Household Debt and Credit. While the Bible doesn’t outright forbid debt, it certainly warns against its dangers. Proverbs 22:7 says, “The borrower is slave to the lender.”

If you’re in debt, don’t panic. Start by creating a debt repayment plan. The “debt snowball” method, where you pay off your smallest debts first, can motivate you incredibly. And remember, every dollar you put towards debt is a step towards financial freedom.

Contentment: The Secret Weapon

In a world that constantly tells us we need more, contentment is a radical act. 1 Timothy 6:6 says, “Godliness with contentment is great gain.” This doesn’t mean we can’t enjoy nice things, but it does mean finding joy in what we have rather than always chasing the next big purchase.

Try this: for one month, write down three things you’re grateful for each day. You’ll be surprised how this simple practice can shift your perspective on what you really need.

Managing money God’s way isn’t always easy, but it’s incredibly rewarding. It’s about trusting God’s provision, being generous with His resources, avoiding the trap of debt, and finding contentment in what He’s given us.

Now that we’ve covered the basics of Christian finance, let’s explore how to put these principles into practice with some practical money management strategies.

How to Create a God-Centred Budget

Prioritise Giving

A God-centred budget starts with giving. Set aside money for tithing and offerings before anything else. This isn’t about following rules; it’s about putting God first in your finances. Many Christians try to give at least 10% of their income, but the exact amount is a personal decision between you and God. The important thing is to make giving your top financial priority.

Monitor Your Expenses

For one full month, write down every single expense. You might find some surprises in where your money actually goes! Use a budgeting app (like EveryDollar or Mint) to make this process easier. Split your expenses into two main categories: needs (such as housing and food) and wants (like entertainment).

Distribute Your Resources

After you know your spending patterns, it’s time to take control. The 50/30/20 rule is a popular method: 50% for needs, 30% for wants, and 20% for savings and debt repayment. As Christians, we might adjust this to include our giving. For example, you could try 10% giving, 40% needs, 30% wants, and 20% savings/debt repayment.

Prepare for the Future

Saving isn’t just about retirement; it’s about being ready to serve God’s kingdom at any moment. Set aside money for emergencies (try to save 3-6 months of expenses) and long-term goals. A high-yield savings account could be a good option for your emergency fund.

Address Debt Strategically

If you have debt, create a plan to eliminate it. The debt snowball method (paying off smallest debts first) can provide great motivation. Alternatively, the debt avalanche method (tackling highest interest rates first) might save you more money over time. Whichever method you choose, commit to becoming debt-free.

If you are looking for ways to make extra income, check out our post on High-paying Side Hustle Ideas for Christian women

A God-centred budget isn’t about restrictions. It’s about freedom – the freedom to use your resources in a way that honours God and supports His work in the world. Now that we’ve covered budgeting, let’s explore how to navigate financial challenges as a believer.

When Financial Storms Hit

Facing Job Loss Head-On

Losing your job can feel like the ground has been pulled from under you. But your identity isn’t in your job title – it’s in Christ. Here are some practical steps to take:

1. Apply for unemployment benefits immediately. Don’t let pride stop you.
2. Cut non-essential expenses. That streaming service subscription? It might need to go for now.
3. Update your CV and professional profiles. Reach out to your network for job leads.
4. Consider temporary or gig work to bridge the gap. Freelancing platforms can be great resources.

Use this time to seek God’s direction. This job loss might open doors to a career that aligns more closely with your calling.

Praying Through Tough Financial Decisions

When faced with difficult financial choices, prayer should be our first resort, not our last. Here’s an approach to combine prayer with financial decision-making:

1. Present your situation to God in prayer.
2. List out all your options on paper.
3. Pray specifically about potential outcomes for each option.
4. Note any Bible verses that come to mind during this process.
5. Stay open to God’s guidance, even if it differs from your initial thoughts.

God’s wisdom often comes through practical means, which leads us to our next point…

The Power of Godly Financial Counsel

Proverbs 15:22 states, “Plans fail for lack of counsel, but with many advisers they succeed.” When facing financial challenges, don’t isolate yourself. Seek advice from:

1. Your pastor or church leaders
2. Christian financial advisers
3. Mature believers who’ve navigated similar situations

Godly counsel provides clarity and direction. It’s not about finding someone to make decisions for you, but gaining wisdom to make informed choices aligned with God’s principles.

Finding God’s Peace in Financial Turmoil

Financial stress can overwhelm us. But as Christians, we’re called to a different response. Here’s how to cultivate peace amidst financial storms:

1. Start your day with gratitude. List three blessings each morning.
2. Memorise and meditate on verses about God’s provision.
3. Practice Sabbath rest, even from financial worries. Set aside one day a week where you don’t check your bank account or discuss money issues.
4. Serve others. Helping those in need can shift your perspective from your own troubles.

Financial challenges provide opportunities for our faith to grow. They remind us of our dependence on God and can lead us to deeper trust in His provision.

As we navigate these storms, let’s keep our eyes fixed on Jesus, the author and perfecter of our faith. He’s with us in the boat, and He has the power to calm every financial storm we face.

Final Thoughts

Managing money God’s way transforms our financial decisions into opportunities to glorify Him and bless others. We encourage you to review your current financial situation prayerfully and create a God-centred budget that prioritises giving. Take steps to reduce debt, build savings, and cultivate a heart of contentment and trust in God’s provision.

At Life Purpose Matters, we support you in discovering and living out your God-given purpose, including in your finances. We offer resources and encouragement to help you integrate your faith more fully into every aspect of your life, including money management (Christian finance included).

May you experience the freedom and joy that comes from aligning your heart with God’s purposes in your financial journey. As you apply these principles, trust that God will guide your steps and provide for your needs according to His perfect plan.