There are only 3 things you can do with money. You can spend it, give it, and save it. This post will focus on saving. Saving seems to be a lost art in America. The latest data shows that Americans have a negative savings rate, where most of Europe and Japan have a 10-15% savings rate. What does a negative savings rate mean? It means that we spend more than we make! This is not a good long term plan. Saving for our future, emergencies, and for purchases is very important. Have bank interest work for you instead of against you. The power of compound interest is awesome or devastating depending on which side you are on.
Saving for the future is important. The Bible tells us to do it. We do need to rely on God for our daily provisions, but He also tell us in Proverbs 21:20, “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” We are not to hoard stuff and money, but to prepare for the future.
Saving for emergencies is also prudent. We cannot predict the future and God has given us plenty of resources to protect our families from unexpected problems. God has provided for us by providing a surplus in the time before the emergecy. Think back to Joseph in Egypt preparing for the 7 years of famine.
Saving for purchases is old school, but phenominally more efficient than using financing. It also teaches us patience and builds our character. Going into debt for things we want is not smart. Proverbs 22:7, “The rich rule over the poor and the borrower is slave to the lender.” We cannot serve two masters, God and the lender. We are to be a servant to Christ alone. Our goal should be to limit debt and eliminate it systematically. Saving for purchases is one way to work toward this goal.
In conclusion, we should Give, Save, and Spend, IN THAT ORDER.