Series: Stewardship
Category: Core Seminars, Money, Work & Vocation, Giving
Detail:
Debt and Savings
PRAYER
I. Introduction
Last week, we talked about spending and choosing a lifestyle. These are financial decisions that matter for us right now in the present. But what about the future? How do the financial decisions we make today affect our stewardship tomorrow?
II. Considering the Future
As stewards, it’s important for us to consider the future in our decisions.[1] Proverbs 20:25 says, “It is a trap for anyone to dedicate something rashly and later to reconsider his vows.” [2] But does anyone really know the future? We can all make guesses about tomorrow’s weather, election outcomes, or the winner of the Superbowl, but we can’t predict these things for certain.[3]
So how are we supposed to make financial decisions for the future when we don’t know the future? Well, we have to remember that even though you and I don’t know the future, “[God] knows everything” (1 John 3:20). He knows the past, present, and future perfectly.[4] And what’s great is that he’s revealed things about the future to us through his Word.
In scripture, God reveals future events that will definitely occur, things like Christ’s second coming and the final judgment. He also reveals probable outcomes for present actions, such as Proverbs 10:4 which says, “Lazy hands make a man poor.” This is wisdom, and wisdom has a futuristic component to it—being lazy today will make us poor tomorrow. Although God doesn’t tell us everything about the future, He does reveal how to live in the present for the future.[5] And it’s our job, as stewards, to trust what our Master says until Christ returns.
So while we all must make decisions about the future, we mustn’t do so foolishly or unadvisedly, but humbly and wisely, and seek wisdom from God’s word. At the end of the day, our decisions don’t just have implications for tomorrow but eternity.
Comments or Questions or Predictions about the Future?
III. Debt: Mortgaging the Future
Debt can be defined as getting something now by paying for it later. How many of us here have some form of debt? [Raise hands ] To some extent, credit is a necessary means of doing business. So I can rent a car for a week but not pay for it until the week is over.
A. Does God Forbid Borrowing?
But what does God think about debt? Does God forbid borrowing? Well, for all of you who just raised your hands, you’ll be relieved to know that we can legitimately borrow money without sinning. God doesn’t forbid all borrowing.
In the Old Testament, we see that God actually permitted lending in the law given to the Israelites. Exodus says, “If you lend money to any one of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him” (Exod. 22:25). In the New Testament, Jesus encouraged lending and said, “love your enemies, and do good, and lend, expecting nothing in return” (Luke 6:35).[6]
So if God permitted lending, then it would naturally follow that he permitted borrowing, as well. Otherwise, the act of lending would be leading a borrower into sin. Instead, lending can sometimes be used to show mercy to those in need, and being able to borrow is a kindness from God.
But while we can borrow without sinning, we can also sin by borrowing. Borrowing may be the outward act of a heart that’s impatient, greedy, or discontent.
Borrowing also becomes sin when we wrongly presume upon God. What does that exactly mean?[7] Well, it doesn’t mean that we shouldn’t make plans and commitments for the future. Life requires us to make plans and commitments for the future! We schedule appointments, promise to do things, plan our budgets, and prepare for Christ’s return. That’s life!
But when it comes to debt, wrongly presuming upon God means one of two things. First, it may mean that we’re sinfully attempting to obligate God to pay for our debt. For example, it would be like building up our credit card balance trusting and expecting God to provide us with the additional cash to pay it off. We’re trusting God for something He’s not promised us and may actually be against. We assume He’ll cater to us like a vending machine, but we fail to remember that God’s holy. We can’t manipulate Him to do what we want. This is what we do when we live beyond our means.
Second, wrongly presuming upon God for our debt is to ignore God’s sovereignty over the future.[8] Presumption is pride, and we sin when we act as though we control our ability to pay off our debt in the future. But James writes, “Come now, you who say, “Today or tomorrow we will go into such and such a town and spend a year there and trade and make a profit”—yet you do not know what tomorrow will bring…Instead you ought to say, “If the Lord wills, we will live and do this or that.” As it is, you boast in your arrogance. All such boasting is evil” (James 4:13-16).
B. The Wisdom of Borrowing
Okay, so let’s say that you examine your motives for taking on debt and don’t find them to be sinful. What’s next? Well, we should probably ask if borrowing would be wise? After all, Christian liberty allows for Christian stupidity, doesn’t it?
Raise your hand if like to have the option to borrow money? Why do you like it?
There is some value to having credit made available to us. Credit allows us to provide for unforeseen emergencies, such as paying for a child’s surgery. Credit allows us the opportunity to earn money by providing education for a job or start-up costs for a business. Businesses in turn create wealth and provide people with jobs. Micro-loans are utilized around the world as a resource to help people work their way out of poverty.[9] Credit also allows us to purchase big-ticket items that may be necessary to care for one’s family, such as a house or a car. So there are some benefits.
Okay, so if we like the option to borrow money, then raise your hand if you like to have debt? Why don’t we like to have debt?
Although borrowing isn’t always sin, it’s always a form of servitude. Proverbs says, “The rich rules over the poor, and the borrower is the slave of the lender” (Prov. 22:7). This is generally true. Someone who has to borrow is by nature of the transaction indebted to his lender. And the greater the debt, the greater the lender’s power is over the debtor.[10]
In the Old Testament, if Israel failed to obey God’s commands, God would curse them, and part of this curse meant that they would become debtors to those around them. Having to borrow was a sign of God’s judgment (Deut. 28:43-45).
Debt also mortgages the future. It limits financial flexibility and options that we may wish we had down the road.[11] And those constraints can hinder relationships, as well. Just look at marriage. For the unmarried, having a large debt may scare off potential spouses. And those who get married may regrettably choose to remain barren for a time because both spouses need to work to pay off loans. Debt causes tension in the relationship, and debt often plays a role in divorce.
Debt isn’t something to enter into lightly. We should never view debt as our savior, no matter how low the interest rate. We’re still obligated to pay it all back—including the interest! And while we don’t fear going to debtor’s prison or being sold into slavery here in the U.S., other times and other places show these threats to be real.[12] Remember that just because a bank approves a loan, doesn’t necessarily mean that God does. Credit can be a financial tool but more like a chainsaw—it’s dangerous to use and so we must be careful.
C. Making Decisions About Borrowing
So let’s make this practical. Let’s say that you’re thinking about taking out a loan to purchase a car. How should you be thinking about this? Well, there are three general questions you should ask.
Why Do You Need It?
First, why do you need it? What are the reasons? Are they God-glorifying or selfish? Do you want new wheels to attract a potential date or because you need the latest and greatest or to make a statement that you’re successful? Or do you need the car to fulfill the lifestyle you’ve chosen to best honor God, things that we discussed last week? Maybe the reason to buy a car is to help you get to work faster so you can spend more time building into relationships? Examine your heart and what’s “driving” your spending decision.
Can You Afford It?
Second, can you afford it? Do you have the means to pay for it? Last week, we said that God’s not calling us to a lifestyle with expenses greater than our income. If you take out a loan, have you assessed the risks? Here’s where budgeting, that was discussed last week, is hugely beneficial.[13] The cost of buying a car is more than just repaying the purchase price. We must first pay interest for the privilege of taking out the loan. Then we must pay for sales tax, car insurance, registration, inspection, gas, parking, tolls, repairs, and ongoing maintenance, as well. Do you have enough to pay for these also? We mustn’t live beyond our means.
Have you considered all other alternatives before getting into debt? Can you bring in additional income, such as taking a temporary job for a while? Maybe liquidate other assets? Could you cut back on other expenses? Or give up certain conveniences, such as your TV subscription? Or buy a cheaper car? Maybe you could use public transportation or bum rides from friends. Have you thought about saving up for the expense first? Now there’s a novel idea not practiced much these days!
One thing that marks our culture is the desire to get what we want when we want it. But impatience isn’t a fruit of the Spirit.[14] Do we think that God doesn’t provide for His people? How absurd! Of course, He does! From placing man on the world after everything was set up to placing His Son on the cross after everything was messed up, God has provided for all our needs. Now we may define our “needs” more liberally, but we mustn’t go beyond scripture for what God promises his children. And we must trust God, not letting impatience rule our decision to take on debt.
When it comes to debt, a man’s wisdom gives him patience (Prov. 19:11). For one thing, patience keeps us from making impulsive, spontaneous decisions that we may regret later. Being patient allows for more time to see things accurately and to pray and to seek counsel. It’s also a great way to discipline yourself to save up for a down payment, such as 50% of the cost, before making the purchase. This not only reduces the overall loan, but it enables us to establish a habit for making payments on this purchase before such payments are made mandatory.
Finally, have you assessed the risks associated with a loan? What if you default? Is the value of having a loan worth the risk of loss upon default? Would you be willing to put up the house where you sleep as collateral for a loan or losing the ability to borrow in the future with a poor credit rating?[15] Are you willing to assume other risks, such as the added stress and pressure of paying off the loan? There is a psychological component to having debt.
All debt is servitude, but the degree of servitude depends on our ability to undo the obligation. This is where the type of debt incurred comes into play. For example, a car loan can be greatly reduced, or even paid off, by selling the car tied to the debt. It will likely have less of an impact on our lifestyle choices than other debt, such as credit card debt. This consumer debt will just remain.
Have You Sought Counsel?
Third and final, have you sought godly counsel from others? The larger the debt, the more you should research it and get counsel. Pray about it. I think that we often won’t seek counsel because we want what we want and don’t want to hear opposition to it. But Proverbs says, “Without counsel plans fail, but with many advisers they succeed” (Prov. 15:22).
When seeking counsel, it’s best to get advice from those who you know and trust.[16] In 2 Timothy 3:14, Paul appeals to Timothy to stand firm in the gospel and says, “But as for you, continue in what you have learned and have firmly believed, knowing from whom you learned it…” Timothy was taught the gospel by his mother and grandmother, who were faithful to God and could be trusted.
In our example, it’s fine to get counsel from unbelievers, particularly when they have an expertise in an area such as vehicles or loans. Just understand that they’re not factoring God in the equation. This is where having believing friends or family who know you well can speak into your life about things you might not see clearly. For example, maybe you’re impulsive, and it would be better for you to wait a bit before make a large purchase.
Living In Debt
Okay, so we’ve talked about making decisions in the future regarding debt. But what if you’re already in debt…a lot of debt…too much debt? What should you do? Oh, friend, that’s a hard place to be. But even here, God has not forsaken you. God loves his children and will help us. Ultimately, we’re all debtors—debtors to God’s mercy. We could only be released from our debt of sin through Christ. Jesus went to great lengths to pay off our debt, and so we should be of the same mind.
So what do we do with all this debt we have? The quick answer is to pay it back. Paul says in Romans, “Pay to all what is owed to them...Owe no one anything” (Rom. 13:7-8). Scripture also tells us that it’s the wicked who borrow and don’t repay (Psalm 37:21).[17] While it’s easy to get into debt, debt isn’t a simple thing to always undo, and it may take a lot of time and sacrifice to be free of it. So don’t be overwhelmed, just take it one day at a time and diligently work to pay off your debt.
Now the longer answer is that you need to reflect on why you have so much debt. It’s possible to come into debt involuntarily. Perhaps your spouse left the marriage, took the money, and left you with debt.[18] But for a lot of us, we have too much debt because of unwise, and possibly sinful, choices—choices that stem from greed, covetousness, impatience, or materialism.
Therefore, we must repent by confessing our sin and seeking counsel. We must take responsibility for our actions by humbly working with our creditors to reconcile and pay back the debt.[19] Jesus said, “Come to terms quickly with your accuser while you are going with him to court, lest your accuser hand you over to the judge…and you be put in prison…you will never get out until you have paid the last penny” (Matt. 5:25-26).[20] Jesus’ point is to seek reconciliation now to avoid a harsher judgment later. Repentance also involves taking steps so that the same decisions aren’t repeated, such as refraining from use of credit cards.
Comments or Questions?
Savings: Enabling the Future
Let’s suppose you’ve been through this core seminar, and you consider yourself to be generous in your giving, you don’t spend above your basic lifestyle, and you’re readily paying down your debt…but you’re not saving for the future. Does that mean you’re foolish? Or on the other hand, does it mean you have great faith? Well, that’s what we want to explore the remainder of our time together, as we think about saving our money.
Earlier, we defined debt as getting something now by paying for it later. Well, savings is the opposite. It’s getting something later by paying for it now.
How many of us really enjoy saving money? Saving isn’t fun, is it? To a child, the best piggy bank is a broken piggy bank. But what does God think about saving money?
A. Prudence in Planning
The first thing that we should understand is that the bible is in favor of planning for the future. Proverbs says, “Go to the ant, O sluggard; consider her ways, and be wise…she prepares her bread in summer and gathers her food in harvest” (Prov. 6:6-8).[21] Elsewhere it says that plans lead to profit (Prov. 21:5), and it’s the wise who store up, whereas the fool devours all he has (Prov. 21:20).[22] Joseph is a great example of wisely planning and saving for the future. After receiving a revelation from God, he stored up Egypt’s grain to provide for the people during the upcoming years of famine.
Here again is where budgeting is so helpful. If we want to save well, we need to identify financial goals and take the steps needed to obtain those goals through working to earn money.[23] As stewards, we just need to attend to the task at hand and trust God to provide. Ecclesiastes 11:4 says, “He who observes the wind will not sow, and he who regards the clouds will not reap.” Don’t wait for the perfect time, now is the time to start saving for the future, not later.
So we see that hard work and saving is God’s normal means of enabling us to provide for ourselves and our future. Don’t ignore God’s means of provision. Otherwise, you’ll be like the fabled fool who was swept away in the flood. He refused to be rescued by the passing boat and helicopter because he was waiting for God to rescue him.[24] He didn’t realize that the boat and helicopter were God’s means of rescue.
There are dangers to not saving for the future. That future might include unanticipated expenses or loss of income. We live in a fallen world that’s full of surprises. So it’s prudent to set aside some cash for times of uncertainty, such as the loss of a job. It keeps us from living paycheck to paycheck and having to borrow each time we incur an unexpected expense. God doesn’t want us to be an unnecessary burden to others.[25] Instead, He wants us to bless others. Money is inherently relational, and having available cash on hand can help to provide for other’s needs when they arise.[26]
We can also save for large, expected expenses, such as the birth of a child, or the down payment on a home, or college tuition, or a new furnace. We can save for retirement when our income is reduced and deteriorating health is pending. It’s also good for parents to save up for their children (2 Cor. 12:14). Proverbs says, “A good man leaves an inheritance to his children’s children” (Prov. 13:22).[27] The main thing is that every dollar we keep in savings is marked for the purpose of glorifying God.
B. Hazards of Hoarding
So it’s prudent to plan and save for the future. But, as with debt, it’s also possible to sin in the process.
As mentioned in an early class, Jesus told a parable about a man who received a large crop and decided to build bigger barns and store up the grain so he could take life easy (Luke 12:13-21). But what happened? God said, “Fool! This night your soul is required of you, and the things you have prepared, whose will they be?” Jesus goes onto say, “So is the one who lays up treasure for himself and is not rich toward God.”
This is the definition of hoarding: selfishly accumulating wealth without consideration towards God. Hoarding is sin. We’re to save for a purpose. Don’t just save for saving’s sake or for selfish reasons—that’s hoarding! God calls us to use our wealth—the wealth He’s given us—to glorify Him and to generously bless others. Proverbs says, “People curse the man who hoards grain, but blessing crowns him who is willing to sell” (Prov. 11:26).
But hoarding doesn’t just affect others. Ecclesiastes tells us that wealth is hoarded to the harm of its owner (Eccl. 5:13), and God will judge us for it (James 5:1-5). It’s being idle with what God’s given us to steward. Ultimately, hoarding is selfish greed, which is idolatry (Col. 3:5). It’s an act of independence from God, as the hoarder trusts in his wealth for future security. But “whoever trusts in his riches will fall” (Prov. 11:28).[28] Instead of owning money, it will own you. The more a hoarder saves over time, the further his allegiance is from God. “Spiritual shipwreck doesn’t just happen in a moment but is a slow and quiet drifting away out to sea.”[29]
So then the hoarder and the biblical saver can both save the same amounts of funds, but the motivations of the heart are diametrically opposed. One saves, trusting in his wealth, the other saves, trusting in his God.
C. Treasures in Trusting
So far in this Core Seminar, we’ve discussed giving, spending, debt, and now savings. Questions often arise about which of these areas has priority over the others. So should I pay off my debt or save for retirement? Should I save later for this or spend it now on that? Should I give to the church or pay off my debt? Each situation is different, and there’s not a one-size-fits-all answer. But generally, we should follow the biblical pattern of prioritizing the giving first, spending on our needs second, paying off any debts third, and saving last. Saving for future needs is wise, but it’s also a luxury that many don’t have.
But for those who are able to save, how much should we save? What’s the amount? Is there a formula? Maybe 5% of all earnings?
It would be nice to have a bible verse for this, wouldn’t it? It would certainly lessen the temptation to be anxious about the future. But God chose not to reveal this to us in His Word. Why? Because He wants us to not trust a formula, but to trust Him.
When Israel was in the desert, God fed them by providing manna on the ground each day. But God told them not to gather more than what was needed for that day. If they did, it would smell and be full of maggots by morning.[30] Why did God do this? He did it to teach Israel to trust Him for providing for their future, even when they had nothing. Ultimately, it pointed to Jesus as the true bread from heaven where our trust should be (John 8:32-59).
Saving for the future doesn’t mean that you’re not trusting in God, although it could mean that. Saving money can be a wise stewardship for future needs—as long as our plans are committed to the Lord.[31] The question of how much should I save is different for each person, but the motives should be the same—we should glorify God.
There’s a huge difference between how the world saves and how a Christian saves. The world trusts in their savings. Their savings is everything to them. So when the stock market dips or their house burns down, their fear, anxiety, and stress go up because everything is at risk. But savings aren’t eternal, only God is.
The Christian, however, doesn’t fear a stock market plunge or the loss of an asset because our trust is in God. Jesus tells His disciples, “Therefore do not be anxious, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. But seek first the kingdom of God and his righteousness, and all these things will be added to you.” (Matt. 6:31-33).
The goal of saving for the Christian is simple—be faithful. God will provide. If we’ve been responsible with what we received, then our goal—faithfulness—is accomplished. It doesn’t matter if we end up with nothing for retirement due to circumstances beyond our control. God is well aware of our situation. Our job as Christians is just to be faithful.
If you’ve been given the means to wisely save up for anticipated, future expenses—good. Be thankful that God has provided in this way and be generous towards others who are lacking this. And if you haven’t been given the means to save—good. You’re in the proper position to trust in God, which is exactly where He wants you to be.
Remember who our God is! He’s our heavenly Father, who compassionately cares for His children. He’s our sovereign Lord, who causes all things to come to pass for the good of those who trust in Him. He’s our Prince of Peace, who removes our fears of the future. He’s our Rock, who shelters us. He’s our Good Shepherd, who quiets our souls and extends mercy and goodness to us all our days. He’s the God who looks after the widow and orphans (James 1:27). He’s the God who cared for Israel and his sons amidst a severe famine, who made Esther queen at such a time of despair, who sent angels to feed and strengthen Elijah, and who taught Paul to be content in all circumstances.
We could go on and on and on, but the point is this: as Christians, we’re not to worry about tomorrow (Matt. 6:31). We’re to seek Christ’s kingdom and commit ourselves to His will. God may call us to future hardship and persecution (Rom. 8:35), but even in these, God, who didn’t spare His own Son, won’t forsake us. He’s our refuge and is working all things for the good of those who love him (Rom. 8:28).
Conclusion
So to conclude, only God knows the future. Yet He’s revealed to us how to be wise in ordering our lives today in preparation for tomorrow. Christ promised that He will return, and since He’s paid our debt of sin, let’s work on saving up treasures in heaven to the glory of His name.
PRAYER
[1] Ignorance doesn’t exempt us from our sin (Heb. 9:7), and it doesn’t exempt us from being accountable for our finances. Instead, we’re to grow in understanding God’s will for how we should think about the future and our finances (see Col. 1:9-10 and Rev. 1:1-3).
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[4] As David writes, “In your book were written, every one of them, the days that were formed for me, when as yet there was none of them” (Psalm 139:16).
[5] Also,
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[11] The point is that there is a lot of good that we will need to forgo because of the future commitment that debt places on us.
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[19] Bankruptcy involves the debtor, a trustee, and creditors to consider possible repayment or forgiveness of debt. The concept of bankruptcy in American jurisprudence is grounded in the biblical concept of Jubilee: freedom from the slavery of debt. It’s a fundamental constitutional right, and serves as a societal waiver, to both provide a fresh start, and to encourage risk-taking and entrepreneurial capitalism. There are several Chapters of Bankruptcy that may be filed (Chapter 7, 11, or 13). Chapter 7 relieves debt due to inability to pay with no objections from creditors. Chapter 11 allows for a reorganization of debt and establishes repayment plan voted on by creditors. Chapter 13 allows for partial discharge of debt and establishes repayment plan to creditors for amount not discharged.
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[21] It survives the winter, while grasshoppers die. See also Proverbs 30:25 “The ants are a people not strong, yet they provide their food in the summer.”
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[23] Ecclesiastes 11:2 says, “Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.”
[24] But the man said, “No thanks, God will save me." Then a helicopter came by offering to help the man to safety. But the man said, “No thanks, God will save me." In the end, the man drowned. When he got to heaven, he asked God why he didn’t save him, and God replied, “What do you mean? I sent you a radio report, a rowboat, and a helicopter.”
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[27] Also, parents need to be discerning in how much to give their children. Wealth can be dangerous to one not trained with wisdom.
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