Topic: Financial Management
Topic: Financial Management
Proverbs 21:20, There is treasure to be desired and oil are in the dwelling of the wise; but a foolish man spendeth it up. (devours it.)
How to Manage Your Finances
Financial management is the process of planning, organising, monitoring, and controlling the financial resources of an organization, business in order to achieve long-term objectives and specific financial goals at the stipulated time frame.
Financial Management means management of finance/funds / money
Finance is critical to the growth and success of all businesses and must be managed effectively.
GENESIS 47VS 14, 17, 20
Joseph Principle is built on three key truths: He collected all the money (vs 14), then acquired their livestock (vs 17), and claim all the people and their land (vs 20).
The famine was too severe; they had no choice but to submit to Joseph’s request to get food.
There are cycles of prosperity and recession in every economy. During times of prosperity, surpluses should be saved and not consumed. In times of recession, that surplus can be multiplied into more wealth as it is used to help meet the needs of others.
When
most people think of financial management, they often think of managing their
own bank accounts: paying the rent or mortgage, paying utility bills, buying
groceries, maybe even planning a monthly budget.
But financial management for business is a
much more complex pursuit. It involves controlling and tracking all the money
flowing in and out of the business, as well as taking steps to make the company,
business as profitable and financially secure as possible.
To
get a clearer picture, let’s break down some of the key goals and functions of
financial management.
1. SPEND LESS THAN YOU EARN.
Sounds easy, but hard to do. We live in a culture of constant advertising bombardment, and our culture sows discontentment. We’re taught that we can and should buy what we want, when we want, regardless of consequences. Proverbs 13:11 states, “Wealth quickly gotten dwindles away, but amassed little by little, it grows.”
2. BE WISE WITH DEBT.
Debt always mortgages the future. It will always come calling, and it can lower our standard of living in the future. We must make sure that we don’t presume upon the future and that we understand the true cost. Proverbs 22:7 tells us, “The rich rule over the poor, and the borrower is slave to the lender.”
3. PLAN FOR FINANCIAL MARGIN, BECAUSE THE UNEXPECTED WILL OCCUR.
Who’s had to make an unexpected car or home repair? What about an unexpected medical bill for a broken bone? When we fail to build liquidity for short-term emergencies, we are creating a crack in our financial foundation. This principle applies to having a solid emergency fund and being properly insured with health, life, and disability insurance. Proverbs 6:6-8 states, “Go to the ant, you sluggard! Observe its ways and become wise. Without leader, administrator, or ruler, it prepares its provisions in summer; it gathers its food during harvest.”
4. SET LONG-TERM GOALS, BECAUSE THERE’S ALWAYS A TRADE-OFF BETWEEN THE SHORT-TERM AND THE LONG-TERM.
If we all operated off of long-term goals, how would that change our short-term perspective on how we use money? Focusing on goals that are important to us can also help us to establish a clear direction on God’s calling for our lives. Philippians 3:14 says, “I continue my pursuit toward the goal, the prize of God’s upward calling, in Christ Jesus.”
5. GIVE GENEROUSLY, BECAUSE GIVING BREAKS THE POWER OF MONEY.
Yes, giving our resources to others in need is a nice thing to do. However, this principle goes so much deeper than that. Giving breaks the power that money has over us. God calls us to trust him, and giving generously forces us to do just that. Christ is the ultimate sacrificial giver, and we are called to live our lives in the same manner. II Corinthians 9:6-9 states, “Consider this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully. Each must do as already determined, without sadness or compulsion, for God loves a cheerful giver. Moreover, God is able to make every grace abundant to you, so that in all things, always having all you need, you may have an abundance for every good work. As it is written: ‘He scatters abroad, he gives to the poor; his righteousness endures forever.”
PART 2
Now, we know saving money isn’t easy. But if you don’t control your spending enough to have money left over at the end of the month, you’ll wind up just like the Nigeria who live paycheck to paycheck.
once you have your salary you have nothing left over to save.
And.
That’s why it’s crucial for you to stick to your budget and have enough discipline to avoid being like the foolish man who devours all he has. The Bible is clear about how that kind of discipline is 100% worth it in the end, even though it can be really hard at first.
Hebrews 12:11 (NIV) says, “No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it.”
“In order to make it to your financial freedom, you’re going to have to get to the point where you
are ready to say, ‘I am not going to live like this! I don’t care how long it takes me to dig my way out of this mess. I’m going to keep my eyes on the freedom. by been stingy and pay yourself first
The Bible has a lot to say about money. In fact, God never meant for money to be a source of stress in your life, but He desires to give you the wisdom to handle your finances in a way that will
benefit you and others. So where do you begin
Avoid Waste
In John 6:12, after Jesus fed the multitude He told the
people, Gather up now the fragments (the broken pieces that are left over), so that nothing may be lost and wasted. Now, He could have easily done another miracle, so why clean up all the leftovers off the ground? Because He knew the importance of making the most of what God has provided.
Ephesians 5:3 talks about not living a wasteful life:
God gives each of us the talents, abilities, and finances in the proportion that He believes we can handle.
Matthew 25:15 is a good example of this: To one he gave five talents, to another two, to another one—to each in proportion to his own personal ability. What we need to do is take what we have and do the best we can with it.
PART 3
Proverbs 21.5 The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.
Don't run after money run after value.
Build a financial plan made of "bricks"
“Those who are financially intelligent can make money in both up markets and down markets.”
During the last great recession or lock down many people lost almost everything. Sadly, people lost homes, retirement funds, and more. Some even took their own lives.
For others, however, the story was different. They made more money than ever.
How?
They understood the new rules of money and had prepared for the bad times. They knew they were coming, and they were ready.
A young guy of 26 years in Canada is mother is an evangelist in Nigeria story about drinking miss management.
1Timothy 6;9 But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.
Build a financial plan to withstand the hard times
Whatever it is you plan to do in your future, whether work, business or other activities, your financial goals in the present should be realistic to enable you to fulfill your plan.
Taking control of your personal finances begins with thinking about your goals and deciding what really matters to you.
(image of cash flow power point explain )
Budgeting: A budget is simply the best way to balance the money that comes in with the money that goes out.
Expenses: There are certain financial obligations most students, father, mother have to pay for.
Needs Vs. Wants: Before you can make an effective budget, you examine your expenses and consider what’s essential and what’s optional.
Procrastination is like a credit card: it’s a lot of fun until you get the bill.
Distinguishes between "good" debt and "bad" debt. Good debt refers to borrowing money to invest in income-producing assets, while bad debt refers to liabilities that do not generate cash flow.
Trusting God for a miracle and you have no plan
it is not everybody that is broke that is lazy, some have not gotten the opportunity.
world leaders decide there's a new policy we want to collect the wealth of all the wealthy
and we give it to everybody equal amount all over the world one million dollars each after five years does who are poor before the money came will be back to poverty and does who are wealthy before will go back to wealth. the reason is because the poor thinks of consumption and the rich thinks of production.
Nobody is wealthy by chance people takes responsibility.
Take responsibility today for your finance.
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