Learning To Manage Money
Lesson 14: Understand Financial Stewardship and Practice It Right
It is often said that money is a terrible master but an excellent servant. It has the power to shape our lives, but how we manage it determines whether it controls us or serves us. The way we manage our money reflects the values we hold and the priorities we set. Learning to steward finances wisely is the key to turning money into a tool for purpose, rather than letting it become a source of stress or distraction.
I got my first job in my form six vacation and earned a small allowance. While it wasn’t much by today’s standards, it should have been sufficient, considering that I wasn’t responsible for much. It covered transport and meals, leaving a small balance for other needs. Yet, like clockwork, I found myself spending more than I earned, often on things I didn’t even need. This pattern worsened when I got to university, landing me in debt and straining some foundational relationships I had built, especially at work.
By God’s grace and constant guidance, I began slowly learning about financial stewardship and taking small but significant steps to do things right. While I’ve read books and learned from mentors about managing finances, the most profound lesson came from Matthew 25:14-30—the Parable of the Talents. This parable taught me three transformative principles about money:
- All Money Belongs to God: The resources we have are not ours—they belong to God. Viewing money through this lens reminds us to handle it with reverence and responsibility.
- We Are Only Stewards of God’s Money: Like the servants in the parable entrusted with their master’s talents, we are tasked with managing financial resources wisely and purposefully.
- Our Money Habits Should Glorify God: How we use money reflects our values and priorities. Stewardship involves intentionality, gratitude, and generosity in how we allocate our resources.
With this understanding, I began taking intentional steps to steward finances better. This journey has taught me practical principles for managing money well:
Practical Steps for Managing Money Well
- Create and Stick to a Budget: Budgeting is the foundation of good financial management. Track your income and expenses to ensure you live within your means. Categorize spending into essentials, savings, investments, and giving. Regularly reviewing your budget ensures you remain aligned with your financial goals and can adapt to changes in your circumstances.
- Avoid Unnecessary Debt:Debt can derail financial progress. Living within your means and saving for future purchases helps eliminate the need for unnecessary borrowing. When borrowing is unavoidable, such as for a home or education, develop a clear and realistic repayment plan to avoid financial strain.
- Practice Generosity:Generosity shifts your focus from accumulation to gratitude and purpose. For those who tithe, returning 10% of your income reflects acknowledgment of God’s ownership of all resources. Beyond tithing, set aside funds to support meaningful causes or help others. This practice not only fosters gratitude but also strengthens your values and deepens your relationship with money.
- Build an Emergency Fund:An emergency fund prepares you for life’s uncertainties, such as medical bills or car repairs. It’s advisable to save at least three to six months’ worth of living expenses in a separate, easily accessible account. If saving seems overwhelming, start small—consistency is key to building this financial cushion.
- Set Financial Goals:Financial goals provide direction and purpose for your money. Whether saving for a home, starting a business, or planning a vacation, set clear objectives and break them into actionable steps. Track your progress regularly to stay motivated and on course to achieve your targets.
- Invest for the Future:Investing helps grow your money over time. Begin by exploring options like stocks, real estate, or mutual funds, and diversify to reduce risk. If you’re new to investing, consider starting with low-cost index funds or seeking advice from a financial advisor. Educating yourself on investment basics ensures informed decisions and secures your financial future.
- Be Content and Grateful:Contentment is essential for financial well-being. Resist the temptation to compare your situation to others and focus on using your resources wisely. Cultivating gratitude fosters a mindset of abundance, helping you appreciate your progress and remain disciplined in your financial journey.
Stewardship is about aligning our financial habits with a higher purpose, ensuring every decision honours God and serves the right priorities. For me, it’s a continuous journey of growth. These steps have helped me steward the resources entrusted to me, and I hope they guide you too.
So,
How are you stewarding the financial resources entrusted to you today?
In case you missed lesson 13, you can read it here.
Ivan Kabandize