Money Matters

"…the genuineness of your faith, being much more precious than gold that perishes…” 1 Peter 1:7 

(By Rob McLeod)

The title of this article has an obvious two-fold meaning: money does matter and there are many vital matters in life that involve money. Here we are going to consider how we can better honour the Lord with our finances. Many stresses in life arise due to the mishandling of personal finances. It is a gross understatement to say that poor financial budgeting, unwise purchases, long-standing debt and living outside of one’s means has destroyed the peace of many and caused great strain on family relationships and marriages. We assume a Biblical worldview here and see that Scripture clearly instructs the reader in all of the following areas: purchases, wants, needs, debt, budgets, career aspirations, giving, savings, investments, housing, and leaving an inheritance. We must see that none of our financial choices are made in a vacuum—our choices will always affect other people. These choices will either glorify the Lord and build His kingdom or, alternatively, bring shame upon our name as well as His.

Practical needs and the purpose of money
Let’s start with the basics: unless you are entirely living on the support or handouts of others you clearly cannot exist without generating an income. In Matthew 6:31-33 the Lord acknowledges the basic needs of life (food, clothing, and shelter) and, unless you live exclusively in a barter society, these things require cash to obtain. Having money (lots or little) is not inherently wrong. The Lord has used both the humble poor and the humble rich to further His work and glorify His name. On the other hand, some people are poor for the wrong reasons (think laziness and poor choices) and some are wealthy for the wrong reasons (think greed and the love of money).

Believers are instructed in Scripture to provide for their immediate family. In fact, 1 Timothy 5:8 states that a man who does not provide for the needs of his family is behaving worse than an unbeliever! The provision for needs is going to take money. 1 Timothy 5 also commands that aging parents and widows are to be provided for—first by their believing family, and if that is not possible, then by the local church. Ephesians 4:28 instructs believers to work so to be able to give to others having legitimate needs. On occasion, we are exhorted to give to poorer believers outside of our community (2 Corinthians 8) and we are also instructed to contribute to society via the payment of taxes—even to wicked governments (Romans 13:6-7). We are called to properly ‘invest’ our money so that we can have eternal rewards (1 Timothy 6:17-19) and we are to make wise financial choices so as not to unnecessarily jeopardize our future (Proverbs 21:5, 20; Luke 14:28-30; Luke 22:35-36).

I am going to briefly consider each of the following financial decision points: career choice, vehicle purchases, housing, debt, saving, investing and giving.

Career choice
Unless you are about to receive a large inheritance, your career is your primary source for generating an income. One of the biggest financial decisions you make occurs when you choose a career path. Please, don’t base your job path upon dreamy and wishful thinking. Your choice of career should be made after carefully considering the following:

• Do you have a real and lasting interest in this career area or field of study?
• Are you naturally gifted in this area? What do others (whom you trust) think?
• Does this job provide enough money to support a family? What is the ceiling on your income? Are there good prospects for advancement within your field?
• What length of training does the job skill require? Training can require anything from zero years (on-the-job-training) to as many as 10+ years (think surgeon) before you earn a legitimate paycheque. Can you handle the training duration?
• Will technology soon render your career obsolete?
• Can you perform the work as you age? Some jobs are physically demanding.
• Does the job require you to move far away from friends, family, and church fellowship?
• Does the job require lengthy periods of travel?
• What is the expected stress level of the job?
• What’s your character like? Are you talented but unteachable? This can kill your job prospects.
• Have you truly prayed about it? Keep open hands.

Vehicles
A vehicle purchase may be the first large financial decision that a young person makes. The famous financial advisor, Dave Ramsey, frequently remarks that most vehicle accidents occur on the car showroom floor. Men, we seem to be particularly bent on buying much more vehicle than we need for a much greater price than we can truly afford. Impulsive purchases, merely based upon the color and style of the vehicle, can be devastating. The Globe and Mail recently reported that the average new-vehicle loan payment in Canada is around $880 per month¹. However, nearly 30% of buyers who finance their purchase are paying at least $1,000 per month². Further, some payment plans stretch well beyond the life of the vehicle warranty. This means that many people will still be making payments on their beloved vehicle while simultaneously being responsible for repair costs.

Here are some general thoughts that one should consider before making a vehicle purchase:

• Try to pay with cash. A young person’s first debt experience often occurs with a vehicle purchase.
• A vehicle is not a true financial investment; rather it is a depreciating asset.
• The moment you drive your new vehicle it becomes a used vehicle.
• A vehicle is a tool, not a toy, and it should assist you to fulfill your job obligations and to provide for your family.
• Guys (especially): don’t buy a vehicle simply to keep up or to project a ‘cool’ image. Scripture calls that pride.
• The purchase price just gets you a vehicle. Along with the purchase price you must calculate the following costs in your monthly budget: insurance, fuel, repairs, and possible extended warranty costs.
• Reliable used cars are available, often for a fraction of a new car price.
• Consider expanding your skill set and learn how to repair your vehicle. Invest in some basic tools. Ask a knowledgeable friend for help. Go online for do-it-yourself videos.
• Only buy a new vehicle when you can pay with cash and it puts no strain on other life needs or relationships.
• Avoid leasing vehicles. Leasing allows you to perpetually drive a new vehicle but leasing also gives you a perpetual vehicle payment. Plus, the vehicle is not yours at the end of the lease agreement.
• Ask your wife, parent(s), or an honest friend what they really think about your prospective purchase.
• Don’t buy at first glance. Avoid sales pressure tactics. Never be forced to make a decision on the spot.
• Research the car. Compare it to competing models. Do your homework.

Housing
Everyone needs a place to live. Unless you are planning to live under the financial umbrella of your parents or a generous friend you will be faced with housing decisions and their associated costs. Housing costs will likely represent your most significant expenditure in life. In Canada, the housing market is presently quite competitive regardless of whether you plan to purchase a home or rent. House prices are steadily increasing and many young adults and recent immigrants feel priced out of the market. Appealing rental units (houses or apartments) are also difficult to find in many locations. Single income households (for example: singles, single parents or families who desire to have the mother stay at home with the kids) are finding the current housing market prices particularly intimidating and discouraging. Even if home or rental prices in your desired location are more reasonable they will still likely demand the largest line items in your personal budget. Here are some general guidelines to consider when making housing decisions:

Like anything, be in prayer and seek the Lord’s heart on the matter. What are your needs versus your wants? Are you seeking certain housing mostly due to self-image and pride?

Don’t just buy a certain home or live in a certain area due to other people’s expectations. Live within your means.

Although I am generally in favour of purchasing a home versus long-term renting, you need to consider if rent money is always spent money. There are times when renting is more advantageous than purchasing a home especially when newly married or establishing a career.

A house purchase (using a mortgage) and a rental both assume certain things such as a steady income and a level of job security. But it’s likely that home ownership assumes a few more things: Are interest rates (if you have a mortgage) going to be reasonable? Are you planning to live long enough in the home to accrue equity? Closing costs and initial home repairs can be costly and can take years to earn back in equity. Property taxes in some locations are formidable. What do utilities cost? Are you able to fix and maintain your own property? If you take out a mortgage, how long is it? Do you have a reasonable down payment? Do you need mortgage loan insurance?

Older, rural homes are often cheaper than in the city and may be worthy to consider. Such housing typically has larger yards and other outdoor possibilities, such as gardening. This may be especially appealing for a larger family. Do keep in mind, however, how far your housing is from your workplace, family, church life, etc. Is all the driving and gas costs worth it? Considerable driving will require at least one well-running vehicle to be in your possession.

No housing situation is perfect. Godliness with contentment is great gain (1 Timothy 6:6).

Debt: How to avoid it and strategies
for eliminating it
As a starting point, you must live within your means. This first means that you need to make a realistic budget and then to stick with it. Your budget must adequately demonstrate that your monthly income exceeds your monthly expenses. You must also plan for unexpected and infrequent expenses.

Impulsive purchases made during the highs and lows of life can have long-term financial consequences and there are many ‘mainstream’ ways to quickly accumulate debt. Credit cards, student loans, vehicle payments, and mortgage payments are all possibilities. Be aware that other, smaller, recurring monthly fees (for example: cell phone bill, internet bill, TV bill, bank fees, gym membership, subscriptions, etc.) add up quickly!

Getting out of debt can be a painful and lengthy process but it is worthwhile in order to have peace of mind and to be able to adequately provide for your family and others. Below is a strategy for debt elimination. It works, but it may be painful in the short-term:

• Spend some time making a realistic budget. Be open to receiving advice on it.
• Immediately start saving towards an emergency savings fund having between $1,000 to $3,000.
• After an emergency fund is established, be very aggressive in first paying off the smaller, high interest debts. Seeing these financial leeches drop off will motivate you when tackling larger debts.
• Larger debts:
  Ditch the high car payments as soon as possible; get a cheaper car. Bus or cycle to work if needed and able. Try fixing your own car. Pay off student loans and larger credit card debt. To accomplish this you should consider implementing the following three suggestions:
  • (i) When at all possible, eliminate recurring and unnecessary payments (for example: gym memberships that you don’t use, excessive cell phone data plans, TV subscriptions, and so forth).
  • (ii) Eliminate or reduce duplicate expenses (for example: the second or third car, second phone, etc.) and habitual spending (for example: eating out, coffee, and expensive outings).
  • (iii) If your current job cannot realistically provide for your basic needs, then consider a new job or career. This decision, however, cannot be taken lightly as a new career can take considerable time to establish.
• Save towards a rainy day fund (usually around three to six months of income).
• Pay the mortgage off last.

Saving, investing, and giving
According to Scripture, the fail safe way to have enough is accomplished via putting the Lord first. Matthew 6:33 says, “But seek first the kingdom of God and His righteousness, and all these things [food and clothing] shall be added to you.” When we pursue the Lord He will be our daily supply. If we go against His ways, times will be difficult indeed.

I am only going to present some general guidelines for saving and investing. Consider the following:

I’m not sure if many people see giving as a form of investment; however, the Lord sure does. 2 Corinthians 9:6 says, “He who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully.” Acts 20:35 records Jesus as saying that “It is more blessed to give than to receive.” Our needs will always be met when we put the Lord first. This does not mean that we will be wealthy in the world’s eyes but we will have all that we need. Only in this will true contentment be found (1 Timothy 6:6; Philippians 4:11-13). In Spirit-led giving we must recognize that anything given ‘to the Lord’ and to others is actually an investment. This is a very under-appreciated fact. The pattern of giving from our best and from our firstfruits is found even in the beginning of Scripture (Genesis 4:3-5; Genesis 14:20). Our giving is not to be out of compulsion or because someone is ‘twisting our arm’ but rather from a pure heart (2 Corinthians 8:1-12). Are we open to giving to others without expecting anything in return from them? This is real investment because it is kingdom-centred and God-motivated.

Preparing for your death
Perhaps this topic doesn’t sound very appealing. Nonetheless, how we handle our personal finances has a direct impact on our loved ones. Are we leaving our family with a headache or financial security upon our death? Please consider helping others even after you are gone. This can be accomplished by having a clear will drafted long before you are incapacitated. Have all debts paid off; don’t leave your wife or children with a poor testimony as to your financial dealings and stewardship. Make sure that any of your funds or other possessions are divided as fairly as possible in your will. Do not unintentionally create family divisions with a vague or inequitable will.

Conclusion
How we oversee our finances leaves a powerful testimony to others. Are others benefitted or hampered by our financial dealings? Crippling debt, hasty purchase decisions, and poor career choices can reduce our effectiveness in the Lord’s kingdom for years. On the other hand, our ability to provide for our families and to invest in others is significantly strengthened when we seek to honour the Lord with the resources that He has blessed us with.

Sources:

1 Deanne Gage, “Rising car costs are leaving financial plans in their dust,” The Globe and Mail, June 9, 2025. https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-rising-car-costs-are-leaving-financial-plans-in-their-dust/

2 Rob Carrick, “High interest rates mean the new normal in vehicle buying is a monthly payment in the $1,000 range,” The Globe and Mail, July 12, 2023. https://www.theglobeandmail.com/investing/personal-finance/article-car-payments-high-interests/