Financial Health And Why It Matters

I grew up in a family that took financial health very seriously.  I had very good role models in my parents.  One of two daughters, I remember feeling cared for and never worrying about money.  My college was paid for and life was good.  Simple principles like saving, purchasing only on sale and the joy of a good deal were instilled in me.

My adult life has been very different.  Financial health has been a constant struggle for my husband and I.  Why?  Many reasons really, life happens and we navigate through with God’s help.

We have 6 children, we are a single-income family, and my husband has had significant health issues. A brain tumor and seizures to name just two.  We have a daughter with special needs who has required many therapies that we have gladly paid for.  We have adopted a child.  We have had the normal things in life like job loss, poor personal choices, and the issues of the national economy.  Four of my daughters as well as myself have struggled with dietary allergies, Celiac Disease, and Autoimmune Diseases.  Special diets cost a lot of money.   Life costs money.

The real question is what is financial health and why does it matter?

According to the Bible financial health is dependent on certain principles.

• God is the Provider (Philippians 4:19)
• Giving (Luke 6:38)
• Saving (Proverbs 21:20)
• Contentment (Hebrews 13:5)
• Working Hard (Proverbs 14:23)
• Seek Godly Counsel (Proverbs 15:22)
• Keep Financial Records (Psalm 23:23)
• Tithe (Leviticus 27:30)
• Live Debt Free (Proverbs 22:7)
• Love God not Money (1 Timothy 6:10)

Money management is no different than any other area of our lives. When we follow God’s plan and walk in obedience then we have blessings when we don’t we have issues.  Financial health is not just about obedience though, there are many other contributing factors to maintaining your financial health.  The point I want to make is that as Christians we have a responsibility to walk in obedience.  You do your part and walk in obedience and God will do His part and allow circumstances that will grow you into a godly individual.

Finances have a way

of bringing out the true

condition of our hearts.

Finances can bring out the worst in me.  I am ashamed to say that if I lose perspective in the area of personal finances I can easily become an emotional wrecking ball.  For me, it comes down to a trust issue.  Do I trust that God is better able to manage my finances than I am?  Do I trust that He knows my circumstances and is working all things together for my good?  When we trust God in all circumstances the peace that passes all understanding descends upon us so that our financial situation does not define who we are or take away our peace. When we have confidence that God will care for us, that knowledge and obedience give us good financial health.

When I am in a state of financial unrest I have found 3 things that help return my peace.

1. Prayer
2. Read my Bible
3. Do Something    (For example, it could be anything from clipping a coupon, looking through sale flyers, or reading a Dave Ramsey post.)

Why do healthy finances matter?  They affect so many areas of our lives.  Our marriage, our relationship with God, and our stress levels.  Unhealthy financial practices can make us sick.  If you have not already taken Dave Ramsey’s Financial Peace University then I highly recommend investing your time in this Biblical approach to finances.  It will give you the tools you need to become financially healthy!

1. $1,000 to Start an Emergency Fund     An emergency fund is for those unexpected events in life you can’t plan for. Whether there’s a plumbing issue and everything but the kitchen sink is draining, or your brakes are squealing at every stop sign, you can be ready!
2. Pay Off All Debt but the House     List all debts but the house in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest-rate debt first.
3. 3 to 6 Months of Expenses in Savings    This step is about building a full emergency fund. It’s time to kick debt for good, with 3–6 months’ worth of emergency savings. Sit down and calculate how much you need to live on for 3–6 months (for most that’s between $10,000–15,000) and start saving to protect yourself against life’s bigger surprises like the loss of a job. You’ll never be in debt again—no matter what comes your way.
4. Invest 15% of Household Income Into Retirement     Now it’s time to get serious about retirement. With no payments and a full emergency fund, put 15% toward the retirement of your dreams. Between your 401(k), Roth IRA, and Traditional IRA, you have a lot of options. Find the fit that is right for you. The money you were using to attack debt can now help build your future.
5. College Funding for Children     College tuition and housing expenses continue to rise. Don’t let college sneak up on you. Saving now will put you ahead of the game when your kids graduate from high school. Two smart ways to save for your kids’ college are a 529 college savings fund or an ESA (education savings account). These are both tax-advantaged savings vehicles that let you save money for your kids’ education expenses.
6. Pay Off Home Early     It takes the average family five to seven years to pay their home off early. Just imagine life with no mortgage. There’s only one more debt standing in the way of freedom from all debt! Apply all the extra money toward paying off your home. Not only are you paying off your home early, you’ll be saving tens of thousands of dollars in interest fees.
7. Build Wealth and Give     This is the last step and by far the most fun. It’s time to live and give like no one else! Build wealth, become insanely generous, and leave an inheritance for future generations. Do you know what people with no debt and no payments can do? Anything they want! Now that’s leaving a legacy.

YOUR TURN…

What do you do to maintain your financial health?

Blessings,

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