The 5 Short-Term Uses of Money
The 5 “Short-Term” Uses of Money
By Dr. Gerald House
The Bible mentions money over two thousand times, and it is integral to Christians' lives. There are several fundamental truths about Christians regarding money. First, we acknowledge that God owns everything, including the money we earn. Second, as Christians, we must become good stewards of God’s resources, including money. Third, money is a foundation of faith. How we use money will assess our faithfulness.
Ron Blue, the founder of the Ron Blue Institute and Blue Trust, teaches that money has five uses: Live, Give, Owe Debt, Owe Taxes, and Grow.
Live, Give, Owe, Grow
Imagine these five uses in a pie chart to see how we use money.
Pie Chart, Live, Give, Owe Taxes, Owe Debt, Grow
If we examine our personal balance sheet and adjust our pie chart to reflect on how we use money, we are often shocked to discover how much we spend in each category. The greater the slice of pie for a particular category, the more money is allocated to this area. The pie chart visual aid is invaluable for identifying what kind of steward we have been with our money.
The way we spend our money measures our priorities. If our debt is too great, our faith is weak because we spend more than we earn and deny God an opportunity to bless us. Sometimes, we must ask ourselves if “stuff” is more important than becoming debt-free. Our society today is infected with impatience. We want “things” now. Giving biblical advice about money is difficult for me. I feel like a hypocrite, specifically in debt management. I am still a slave to debt myself, although I am in much better shape in this area than in the past. King Solomon had a lot to say about debt in the Old Testament. Proverbs 22:7 says, “The Rich rule over the poor, and the borrower is the slave to the lender.” (ESV). In Romans 13:8, the Apostle Paul informs us, “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.” (ESV) Ron Blue often states that debt mortgages the future, and he has a point. One of my pinned sayings is, "Life is living out the decisions we made.” If you want a better life, make better decisions. Start by eliminating debt, yes, including your home mortgage.
Looking at the pie chart above, it is understandable that living expenses will be our largest category. However, we may have some spending habits that need to change. Shrinking or eliminating the debt slice will give us a larger slice for savings and giving. The tax category is more difficult to shrink. We can explore legal tax strategies; however, we may need to realize that paying taxes is a systematic provision of God’s resources given to us. Jesus tells us in Matthew 22:17-21 when the Pharisees tried to trap Jesus, “Tell us, then, what you think. Is it lawful to pay taxes to Caesar or not?” But Jesus, aware of their malice, said, “Why put me to the test, you hypocrites? Show me the coin for the tax.” And they brought Him a denarius. And Jesus said to them, “Whose likeness and inscription is this?” They said, “Caesar’s.” Then He said to them, “Therefore render to Caesar the things that are Caesar’s, and to God the things that are God’s.” (ESV)
Naturally, the slices of the pie we are striving to grow are savings and giving. We may need another visual reminder in the pie chart. Let us place God in the center.
God Owns it All
We are reminded that it is all God’s and that we are only stewards of His resources. This added visual may keep us focused on the real benefits of our short-term spending habits. Along with short-term uses of money, we must consider five principles of money management: spend less than you earn, avoid the use of debt, build liquidity, set long-term goals, and give generously. Saving and investing are the only ways to meet long-term goals. If we consider every spending decision to be spiritual, we may continue to focus on God’s resources and become good stewards of His money blessings.
Your faithful servant
