Steps to Biblical Financial Empowerment
Dr. Bettie M. Ferguson, Pastor/Teacher
Budgeting
In Step One we reviewed our financial status, began the
development of our get-out-of debt blueprint, and we set
attainable goals. We should now have at the very least, “a
simplified budget in place.” This budget should show all
income and expenditures.
liabilities equals net worth. When assets are larger than
liabilities, you have a “positive” net worth. On the other
hand, if the liabilities are larger, then you have a “negative”
net worth. Remember: Positive net worth is your wealth!
There are 3 things you should now know about building
and accumulating wealth: #1. Know your net worth
#2. Know your total debt #3. Know your budget numbers.
And you should have a spending plan in place.
You should be tracking your spending and balancing the
checkbook. How are you doing with that? You may have
noticed that budgeting tells your money where to go in-
stead of you wondering where it went.
Your financial empowerment wealth-building strategy is
based on specific goals. In preparing your goals: 1) Be re-
Now that you have begun your journey, you know where alistic, 2) Establish time frames, 3) Develop a plan and 4)
you are and have a road map to reach your destination. Be flexible.
In other words, you have figured out your current finan-
cial situation. If you are just starting, there are a few ways Remember: Your assets and liabilities will change over
to determine your current financial status. The first, is to time, especially as you pay down debt and start growing
know and understand your net worth. This is determined your savings.
by what’s left over after you subtract your liabilities from
your assets.
One goal to financial empowerment is simply, “spend less
than you earn.” If this statement seems overly simplified,
Another way to evaluate your finances is to measure your that’s because − it is!
cash flow: Spending versus earnings. Net worth gives you Now, let’s uncover several Biblical Principles of Money
a clear picture of where you stand financially, while cash Management.
flow is a great way to determine where you’re headed.
•
Spend less than you earn: The wise man saves for
Once you have an idea of your cash flow, it’s time to set up the future, but the foolish man spends whatever he gets.
or adjust the budget. Budgeting helps you sort out your (Proverbs 21:20 LB)
priorities and filter your money into the proper areas. Re- •
Plan for your future: Good planning and hard
member: keep it current and relevant.
work lead to prosperity, but hasty shortcuts lead to pov-
erty. (Proverbs 21:5 NLT)
Assets: Are what you own, such as the money in your bank •
Avoid “get rich quick” schemes: Dishonest money
account, retirement accounts or the equity in your home. dwindles away, but he who gathers money little by little
Liabilities: Are debts such as, student loan balances, mort- makes it grow. (Proverbs 13:11 NIV)
gages, or revolving loans, and credit card debt. Even the •
Work hard & save for the future: Take a lesson from
money you owe friends and family are liabilities.
the ants you lazybones. Learn from their ways and become
wise! Though they have no prince or governor to make
Negative cash flow means you are spending more money them work, they labor hard all summer, gathering food for
than you make. Positive cash flow means you spend less the winter. (Proverbs 6:6-8 NLT)
than you earn. Positive cash flow also leads to a surplus,
which can be added to any financial goals you might have Steps To Biblical Financial Empowerment Workshop
like growing savings and emergency funds.
Presented on Sat. April 27th 10AM-2PM at
18190 SW 102 Ave, Perrine, FL 33157 Register at
ASSETS – LIABILITIES = NET WORTH
fiamiami.org. For more information please contact
Know Your Net Worth: Accountants refer to this as a “bal-
Dr. Ferguson at 305-878-8158
ance sheet.” Let’s keep it simple. On a piece of paper, list
*Biblical Financial Empowerment is based largely on
what you own (assets) on one side of the page, then list
the condition of our hearts and attitude, not just the
what you owe (liabilities) on the other side of page.
Subtract your “liabilities” from your “assets.” Assets minus
condition of our finances. “The real purpose for
financial empowerment is: to glorify God.”