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Many have said that crisis doesn’t create character but rather reveals it. When it comes to stewardship, financial crisis doesn’t call for new models. But it does serve to highlight Biblical truths about stewardship and to emphasize the importance of applying them.
Crisis is Coming
Crisis is coming. Jesus tells us that we will experience trouble in this world (John 16:33). Jesus said this in the context of persecution, but it applies in many places, including in our finances. And we don’t always know when or how it will hit. James makes it clear that we don’t see the future (James 4:13-14). He assumes that we will experience trials of many kinds (James 1:2). The writer to the Hebrews takes it a step further, telling us to endure hardship as discipline, because it’s an evidence that God is treating us as his children (Hebrews 12:7).
Crisis affects believer and non-believer alike, since we all live in a world of sin. Paul speaks to creation groaning in the grip of fallenness (Romans 8:22). Paul himself faced many kinds of trials, and Peter tells us not to be surprised when we suffer. Again, much of this is written in the immediate context of persecution, but it has wider application.
It’s impossible to future-proof our finances – even through the best of stewardship. The future will bring difficulties that we would probably never imagine. This is why Jesus tells us not to worry about tomorrow, because we have enough on our plates for today (Matthew 6:34). If we’re counting on our money or our planning for future security, we’re building on a shaky foundation. Paul recognizes this when he tells Timothy to advise those who are wealthy not to put their hope in that wealth but rather in God (1 Timothy 6:17).
Handling Crisis
However, none of this means that we shouldn’t do our best to prepare for crisis through wise stewardship. A balanced approach to handling crisis requires two things: faith, and financial margin. Faith to trust in God as our Provider, and margin to help us manage the crisis. And these two are not in opposition.
God was going to send a famine. But his purpose wasn’t to destroy entire populations; his purpose was, as it always is, to bring glory to his own name. So he gave Pharaoh two dreams to warn him of what was coming. Joseph interpreted these dreams for Pharaoh and gave him a dire warning: God is going to bring famine, and he’s going to do it soon (Genesis 41:32). Joseph believed God.
But he didn’t stop there. He went on to advise Pharaoh on preparing for the famine. Joseph’s faith led him to action, to preparation. Pharaoh took his advice, and the end result was the saving not only of Egypt but also of Joseph’s family and people from many nations (Genesis 41:57). And so God’s fame spread.
And what did Joseph do to prepare for the crisis? He built margin, in the form of stored up grain, ready for use as both seed and food during the famine. Faith and margin. Proverbs 21:20 tells us that fools gulp down everything, but the wise store up for the future. Faith and wisdom go together.
Preparation and Endurance
Faithful stewards prepare for the future. They don’t put their hope in wealth, but they recognize the wisdom of managing finances in a way that will honor God in both the present and the future. Faithful stewards don’t worry about the future, but they also don’t presume on the future. They understand the importance of Biblical principles of earning, spending, saving, giving, and debt – and they live by these principles in a way that honors God.
When crisis comes, faithful stewards endure with contentment (Philippians 4:12-13), joy (James 1:2-4), and gratitude (Philippians 4:6-7). As a result, they experience peace when others are churning. Because they’ve built up some margin, faithful stewards are able to care not only for themselves but also for others in difficult times (see Acts 2:44-45 and 4:32-37).
We’ve said elsewhere that faithful stewards are diligent earners, prudent spenders, generous givers, wise savers, and cautious debtors. Let’s look at how each of these characteristics prepares us for financial crisis and how we can apply each during a crisis.
Preparing for Crisis: Diligent Earners
“My Father is always at his work to this very day, and I too am working.”
John 5:17
Work may at times seem like drudgery, like something we have to do in order to be able to do the things we want to do. But work is part of what God created us for. He gave Adam and Eve work in the Garden prior to the Fall. Jesus, when challenged about healing on the Sabbath, responded that he continued to work just as his Father did.
Diligent earners work with a view toward serving God, not just their employer (Colossians 3:23-24). They’re not just punching a clock but actively looking to serve the interests of their employers as part of putting others ahead of themselves. They honor God with thoroughness, integrity, and positive attitudes. These are the workers that employers want to keep around when they have to make decisions about who to keep and who to let go.
Diligent earners are also diligent learners. They constantly look for ways to improve their skills or learn new ones. As a result, they continually increase in value to their employers as they serve more effectively, more efficiently, and in a broader scope of responsibility. Often, this leads to promotions and to additional income. At the same time, this diligence prepares them for a crisis such as a job loss by making them more marketable to other prospective employers.
Earning in time of crisis
Still, diligent earners sometimes lose their jobs – whether due to macro-economic conditions or situations specific to their company or department. In a crisis like this, diligent earners actively pursue new income opportunities – through a new job, starting a business, or maybe a side hustle. Even the most ambitious earner may be forced to rely on assistance (government or otherwise) for a period of time, but diligent earners don’t accept this as a way of life. They take seriously the exhortations of Scripture:
Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.
1 Timothy 5:8
Anyone who has been stealing must steal no longer, but must work, doing something useful with their own hands, that they may have something to share with those in need.
Ephesians 4:28
Make it your ambition to lead a quiet life: You should mind your own business and work with your hands, just as we told you, so that your daily life may win the respect of outsiders and so that you will not be dependent on anybody.
1 Thessalonians 4:11-12
For even when we were with you, we gave you this rule: “The one who is unwilling to work shall not eat.” We hear that some among you are idle and disruptive. They are not busy; they are busybodies. Such people we command and urge in the Lord Jesus Christ to settle down and earn the food they eat.
2 Thessalonians 3:10-12
Diligent earners thus earn the respect of others and reflect positively on the character of God.
How am I doing?
When it comes to being a diligent earner, several hallmarks can provide a window into how we’re doing:
- Attitude: Does our conversation – especially in difficult times – reflect gratitude and peace or is it full of complaining and arguing? (see Philippians 2:14-16)
- Relationships: Are we looking out for the interests of our boss, our teammates and others, or are we looking out only for our own interests? (see Philippians 2:3-4)
- Work ethic: Are we working wholeheartedly, picturing ourselves as working for God, or are we getting by on the minimum? (Colossians 3:22-24)
- Growth: Are we stewarding our knowledge and skills, growing them appropriately in service to our employer and to God? (see the Parable of the Talents, Matthew 25:14-30)
Preparing for Crisis: Prudent Spenders
The wise store up choice food and olive oil,
Proverbs 21:20
but fools gulp theirs down.
Prudent Spenders know that they can’t spend everything they make. They balance giving and saving with lifestyle spending to create a financial environment that meets their needs while still providing margin in case of a crisis.
Prudent spenders cultivate a heart of contentment and gratitude, which protects them from greed and materialism (Philippians 4:11-13; Colossians 3:5). They’re patient, willing to delay purchases until they have the money to pay for them, rather than impulsively purchasing on credit. They live within their means, practicing moderation and perseverance.
Prudent spenders don’t leave their finances to chance; they’re intentional about where and how much they spend. They prayerfully create a prioritized Spending Plan, so they know where they want their money to go. They track their spending regularly, so they know where the money is actually going. And they persevere in these disciplines over the long run, making adjustments as life circumstances change but always in the context of prayerfully examined priorities.
Spending in time of crisis
Prudent spenders experience crises like everyone else, but they’re better prepared than others to face it. Because they practice contentment, prudent spenders are able to choose to cut back spending during hard times. Because they’ve developed a solid financial plan and have tracked to that plan, they know where their money is going and where adjustments are possible. When crisis hits, prudent spenders reconnect with their financial priorities and make the needed adjustments – all the while maintaining hearts of gratitude and contentment.
How am I doing?
How are you doing as a Prudent Spender? There are many ways to measure this and life circumstances vary widely, but here are a couple of key guidelines:
- Cash flow: If your cash flow is neutral, meaning that your spending, saving, and giving all fit within your income, then you’re on the right track.
- 10-10-80: Many Christian financial experts tout the 10-10-80 plan: 10% of gross income for giving, 10% for saving, and 80% for everything else. If you’re in this ballpark, then you’re likely on the right track.
Preparing for Crisis: Generous Givers
“Do not store up for yourselves treasures on earth, where moths and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.
Matthew 6:19-21
Generous givers understand that our hearts follow our treasures. So they continually cultivate more of a heart for God by putting their treasure in heaven. Of course, generosity includes more than money. It includes other key commodities, like time, talents, and expertise. Generous givers faithfully and joyfully give of themselves. Part of that is financial, and part of it comes from other areas.
Knowing that money is a chief rival god, always striving to pull us away from serving the living God (Matthew 6:24), generous givers keep their hearts on track through giving. This balanced approach to money protects them from greed and materialism – and this serves them well during a crisis. Generous givers live by the so-called Golden Rule (Matthew 7:12), which is really an application of the second Great Commandment (Matthew 22:37-39). They love God and love others through their giving, among other ways.
True generosity entails humility. Generous givers know that everything they have is a gift from God (James 1:17), so they give out of gratitude rather than pride (see Matthew 6:1-4 and Luke 18:9-14).
Giving in time of crisis
This humility enables generous givers to seek help from others when they need it. When crisis hits, they don’t suffer in silence; they make their needs known to the body and the body takes care of them (see Acts 2:45 and 4:32-37; we often focus on the giving aspect of these passages, but there’s also a clear reference to those in need being helped).
Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.
2 Corinthians 9:7
Because generous givers have cultivated a heart for God and a practice of generosity over time, crisis doesn’t change their hearts. It might change the amount they’re able to give, but they still give cheerfully of what they have (2 Corinthians 9:7). And when they don’t have money to give, they give of what they do have (see Acts 3:1-10). And God is glorified!
How am I doing?
The Biblical benchmark for giving is the tithe, or 10% of our gross income. This number provides a good guideline, and something believers should strive toward. But for some, whom God has blessed abundantly, giving beyond the tithe should be the norm:
From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.
Luke 12:48
Even more important than the amount or the percentage, though, is the heart behind giving. Jesus upbraided the Pharisees for paying strict attention to the minutest details about tithing but neglecting the more important matters of the law (Luke 11:42). In his parable of the Pharisee and the tax collector, Jesus emphasized the position of the heart over the amount of the tithe.
Preparing for Crisis: Wise Savers
Go to the ant, you sluggard; consider its ways and be wise!
Proverbs 6:6-8
It has no commander, no overseer or ruler,
yet it stores its provisions in summer and gathers its food at harvest.
Wise savers anticipate crisis. They understand that we don’t know what tomorrow will bring, so they prepare. Not in the sense of worry or anxiety about the future or in the sense of trusting in their savings to take care of them, but in the context of wise planning and faithful stewardship. Wise savers don’t hoard (see Luke 12:15-21) because they know that God is their ultimate Provider. Unlike the fool in Jesus’ parable, they don’t save at the expense of generosity; instead, they save in tandem with generous giving and prudent spending.
In fact, prudent spending is a prerequisite for wise saving – we can’t save what we’ve already spent! Wise Savers know this, and treat saving as one important aspect of faithful stewardship.
So, when crisis comes, wise savers have margin to fall back on. Because they haven’t consumed everything they’ve earned, they’re prepared. Ideally, they’re prepared to help others along with themselves as part of their ongoing generosity. In fact, the ability to provide for others in a crisis is one of the most effective ways to open the doors for a Gospel conversation! This happens around the world in areas of crisis many times each day. Remember the story of Joseph and how people from all over the world were rescued during the famine through his wise and faithful saving.
Saving in time of crisis
Financial crisis may preclude saving for a time. In fact, in times of crisis, it may be wise to evaluate saving patterns and see if any need to be discontinued or reduced for a time in order to meet other key financial obligations.
But financial difficulty can also be a time for great gratitude, as we use the savings that God has enabled us to set aside. This is the time to remember God’s provision in the “seven years of plenty” and to thank him for the wisdom to be disciplined in saving during those years. This attitude of thankfulness is a key difference between believers and non-believers in a crisis, and can bring great glory to God by opening doors for Gospel conversations.
How am I doing?
It’s hard to put a number on how much to save – people have different family situations and different needs. The economy is ever-changing. The future is unpredictable.
But generally, you’re on the right track if most or all of the following are true:
- Your net worth (assets minus liabilities) is growing over time.
- You have at least 2% of annual gross income set aside in Emergency Savings.
- You’re working toward a Replacement Savings fund that would enable you to replace a vehicle without borrowing.
- You have 3-6 months of net income set aside against a major crisis (such as a job loss).
- You’re contributing significantly to long-term savings – at a minimum, maximizing any employer match of contributions to a retirement fund.
Preparing for Crisis: Cautious Debtors
One of the biggest hurdles to overcome in a financial crunch is the hurdle of debt. While other expenses can often be adjusted for a season of lower income, debt repayment is typically inflexible, which can worsen financial difficulty during hard times.
This is not to say that debt is sin! Debt has several positive uses if the specific decisions are made wisely, such as education, housing, and business loans. But the fact remains that repayment is not typically optional or flexible during a crisis, so there is risk involved. All debt – whether efficient or inefficient – presumes on the future in some way, so it needs to be handled wisely and cautiously.
Eliminating inefficient debt is key to preparing for financial difficulty (whether personal or more widespread). At the top of the list would be consumer debt such as credit cards and personal loans. Cautious debtors eliminate this kind of debt as quickly as possible, while taking a more measured approach on efficient debt such as mortgages and school loans.
Cautious debtors eliminate consumer debt in the context of other key stewardship objectives, including giving and saving. Situations vary as to how each of these should be prioritized, and the mixture of giving, saving, and debt retirement will evolve during the journey to elimination of inefficient debt.
Of course, key to avoiding and eliminating inefficient debt are prudent spending and wise saving. Most consumer debt occurs as a result of imprudent spending – impulse buys, purchases made on credit for items that should have been saved up for, etc. And debt from unexpected events – such as a car breakdown or an emergency medical bill – can often be avoided with sufficient savings.
Debt in time of crisis
Handling debt during a crisis requires a bit of a balancing act. The first step is to reduce lifestyle spending as much as is feasible. This may mean dropping subscriptions, postponing purchases, and avoiding entertainment spending for a time. In more serious circumstances, it may entail larger decisions such as selling a car that isn’t fully paid for, or moving in with parents, etc.
Prioritizing the order of debt repayment is critical if available income is not sufficient to cover all the payments. Payments should start with housing costs such as mortgage and utilities, then transportation costs (assuming inability to sell a car on which debt is owed), then other debt.
Working directly with creditors can lead to attainable solutions involving reducing interest rates, establishing lower minimum payments, etc. Such negotiations will likely have a negative impact on credit rating, so they shouldn’t be taken lightly; but they may provide enough relief to manage debt payments during a financial downtime.
Debt consolidation loans and balance transfers may also help relieve a cash flow problem in the short-term. However, they’re not a complete solution for retiring consumer debt over the long run. Typically, such transfers generate a temporarily lower interest rate and lower monthly payments – but they also increase the amount of credit available (unless the accounts transferred “from” are closed). As a result, transferring balances without addressing the issues that led to debt (overspending, materialism, etc.) often leads to ever-deepening debt issues.
How am I doing?
If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you.
James 1:5
Cautious debtors avoid consumer debt, and if you don’t have credit card balances or other consumer debt, you’re certainly on the right track here. Even if you do have consumer debt, you could be on the right track if you have prayed through a plan for paying it off and if that plan includes prayerfully determined giving and saving.
Evaluate any efficient debt – such as a mortgage – occasionally, to determine if it’s truly wise. A low interest rate on a house much larger than needed doesn’t necessarily make for a wise investment. This is a good place to reconnect with financial priorities (see related article below).
Faithful Stewardship in Action
Recognizing God as the Source and Owner of all we have removes much of the pressure that financial crisis can bring. God will call us to account for how we’ve used the resources he has provided – but he won’t call us to account for emergencies beyond our control that impacted us. We needn’t live like it all depends on us; instead, it depends on the One who saved us and who provides for all our needs.
It’s nearly impossible to develop faithful stewardship habits in a crisis. Good stewards must cultivate these habits in advance over time, so that they can help us through a financial downtime. Like any spiritual discipline, effective stewardship requires practice over the long term.
Our preparation for difficult times and our response in crisis honors God. The peace we experience from knowing that we’re in God’s hands and from having employed wise stewardship principles contrasts greatly with the churn the world faces in difficult times. The resources we can provide for others in need testify to God’s compassion and faithfulness and may open doors for Gospel conversations.
Faithful stewardship is not so much about what we have, but more about what we do with what we have. In the parable of the talents (Matthew 25:14-30), the servant who received three talents and earned three more received the same praise from the master as the one who received five talents and earned five more. God gives us gifts – both spiritual and material – as he determines. Our faithfulness in employing those gifts for his honor and glory is the measure of our stewardship in both good times and hard times.