Financial habits play a vital role in our lives. The attention we give our finances impacts many of the opportunities we have to grow God’s Kingdom and shape our legacies. When we are intentional and organized in this area, we can best use the resources we have been blessed with.
Here are five financial habits every Christian should put into practice.
1. Create and stick to a budget.
If we do not keep track of our money, it has a way of getting away from us and not being there when we need it. That is why maintaining a budget is so important. A budget is simply a plan for the use of our money. Creating and using a budget puts us in the driver’s seat and allows us to make financial decisions based on our deepest priorities and values.
2. Become intentional about generosity.
Most people would say they want to be generous, but it is easier said than done. When opportunities arise, it is too easy to feel like it’s an inconvenient time. Yet when we have a plan for our money—a budget—we are able to be intentional in our generosity.
Work into your budget how much you choose to give to your church and other charitable organizations. Then your giving will not be left to impulse. You can even set aside some cash each month for spontaneous acts of generosity!
3. Find ways to invest.
One thing that successful people understand is how to put their money to work for them. Sometimes that is through investments in stocks and bonds, but those are not the only ways to put your money to work. Even consistently putting money into a 401(k) or IRA can yield significant growth over time.
4. Pay off your credit card each month.
Credit card debt is an epidemic. With such high interest rates, it can create a debt snowball that can be hard to get out from under. Many Americans can barely afford to make the minimum monthly payments on debt that has spiraled out of control—and making the lowest payment traps them in a decades-long struggle.
But this issue is about the way you view and use a credit card rather than being an issue with credit cards in general. When you view your credit card like a debit card and choose to pay it off each month, you can benefit from perks such as cash back or airline miles while simply going about your normal spending. This can be a helpful tool to stretch your dollars further, but only when you are able to shift your approach and pay your balance each month.
5. Learn from good financial advisers.
Many people enter adulthood without having received much in the way of financial instruction. When they head out on their own, they are not likely to know how to balance a bank statement, let alone how to invest in the stock market.
Informed financial advice can help you define your goals and map out a path for achieving them. Sound financial education demystifies investments, insurance, and estate planning. It can be a benefit to people in every tax bracket and will likely reveal opportunities and ideas you never knew existed.
Your financial habits matter.
Your habits play an essential role in your ability to live out your values. When it comes to finances, bad habits can have a damaging effect on your future and your ability to be a good steward. The key to knocking out bad habits is to replace them with good ones. Adopting these five habits will help you along the path to financial flourishing.
