Knowing where you are financially with the intention of improving things is a good thing to do. Money is of importance even though the Bible warns against loving it. It also warns against lusting after wealth. Note that the Bible is not saying money and wealth are wrong. But we should be careful that God is always number one in our lives compared to all worldly wealth. Today we will take our reading from two portions of scripture:
“Those who love money will never be satisfied with the money they have. Those who love wealth will not be satisfied when they get more and more. This is also senseless.”(Eccl. 5:10)
“But remember that it is the LORD your God who gives you the power to gain wealth, in order to confirm His covenant that He swore to your fathers even to this day.” (Deut. 8:18).
Here are some of the issues or concerns to consider when assessing yourself:
1) Can you stay on top of your debt?
Debt helps one buy assets that cannot be bought with cash. This is because they are expensive and it takes a long time to accumulate enough cash. For example, a house or a car. In addition, debt can also help one start a business or go to college. However, debt can also delay life progress as it takes more money than borrowed to repay it. So, the question is: can you repay the loan comfortably, while meeting other financial obligations? If it is difficult, try and negotiate with your lender to see how you can best handle the challenge.
In his book, Rich Dad Poor Dad, Robert Kiyosaki (Kiyosaki, 2000) says, “The rich use debt to get richer, while the poor use debt to get poorer.” Debt can be a tool to create wealth and build a better future.
2) Can you save?
Since you have a debt to repay (or with no debt), can you put money aside for the future? Everyone should strive to save for the future regardless of their current financial situation. Even if it’s just a small amount, putting away some money each month can help you reach your long-term financial goals. It is advisable to start saving without waiting to experience the need for such. At least 10% of your income is recommended if possible. Even small amounts of savings can add up over time and create a cushion for unexpected expenses or goals.
A quote from George Classon on the Richest Man in Babylon on saving says, “Save a part of your income and begin now, for the man with a surplus controls circumstances and the man without a surplus is controlled by circumstances” (Classon, 2019).
3) Do you own a business for additional income?
It is common for people to say that the money they earn is not enough to meet their needs. Therefore, they need to supplement their income. Starting a business can be a great way to do this. It can give a sense of pride and accomplishment. The most common include becoming a landlord, writing a book, selling a product, offering rides, shopping for others, completing tasks, hosting seminars, and making a hobby into a job (Indeed, 2023).
4) Do you invest?
In assessing your financial situation, remind yourself if you are investing. The ideal situation would be to first save, then invest the savings to make more money. Before investing, make sure to understand the risks involved and the types of investments available. To ensure that investing is the right choice for you, take the time to consider all aspects of the decision, including your available resources, desired outcomes, and risk tolerance.
May I conclude by saying we looked at four questions that need to be answered to assess ourselves financially. You should be careful how you use debt. Ensure you save monthly. Start a business to supplement your income. Finally, invest your savings where you are comfortable taking risks. Visit my site.
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