Biblical Stewardship (6 Components of Responsible Stewardship)

Biblical stewardship is often discussed but rarely understood. If you’ve been around the church for over a year you’ve heard the term “stewardship” tossed around, often with impunity. It’s often limited to giving sacrificially — especially for a building project.

Is that biblical, though?

The term seems to have devolved into a financial shakedown of church members. Pastors, in many instances, lack financial vision. The HVAC system breaks down, and they’re often unprepared. Instead of having money set aside to solve the problem, a stewardship campaign is started. They often feel that they can squeeze more money out of the pews.

Biblical Stewardship Prelude

My first encounter with this was over a copy machine. Suddenly, the church’s copy machine was dead. The next Sunday, an offering was taken. The machine cost around $10,000. One would think that preaching the gospel was put on hold until the money was raised for this new office machine.

The church leadership questioned member’s faith and commitment. Our love for God was to be expressed in the purchase of a copier.

Biblical stewardship is managing financial resources as a fiduciary for God. Giving charitably is only one component. We must first earn money through work. Each dollar earned is either spent, saved, invested, used to retire debt, or given away.

Here’s a link to 13 Proverbs that promote Biblical Stewardship.

Biblical Stewardship #1 — Earning Money

Proverbs 14:23 (NASB) In all labor there is profit, but mere talk leads only to poverty.

Stewardship begins with work, not charity. Preachers typically encourage giving even when it’s unwise. Errors from the prosperity gospel have seeped beyond their borders. “You can’t outgive God,” is repeated every Sunday. The tacit implication is that we should give even when broke – which is unbiblical.

It all begins with work and earning a paycheck. From there we must, with God’s wisdom, determine our spending, saving, investing, debt reduction, and giving.

Proverbs 10:4 (NIV) Lazy hands make for poverty, but diligent hands bring wealth.

God rewards diligence.

Laziness leads to poverty.

Biblical Stewardship #2 — Spending

Proverbs 21:20 (NLT) The wise have wealth and luxury, but fools spend whatever they get.

Spending money is easy to do. That’s why Christians practicing responsible Biblical stewardship regularly scrutinize spending. Scrutinizing spending is not nearly as easy as spending money.

The first step to spending scrutinization is creating a cash flow plan. These are sometimes known as (queue the scary music) budgets.

Don’t fear the budget. It’s not a monster. It has zero power. Some people act as though their budget comes to life and become the King of the castle. Budgets are tools.

You set the boundaries of your budget.

It’s simply a spending blueprint.

A budget is telling your money where to go instead of wondering where it went

John C. Maxwell

I find zero-based budgets the best. Others might work but these seem to be the simplest to use in my thirty years of money management.

This is one of the handful of things where Dave and I agree.

The Rule of One — Biblical Stewardship

Build your budget and begin scrutinizing your spending one item at a time. Here are 7 Ways to Reduce Spending Without Losing Your Family.

We use the Rule of One approach. Ask yourself these simple questions:

• How can we reduce our grocery bill by 1% this month?
• What can we do to reduce our utilities by 1% this month?
• When was the last time I had my home and auto insurance policies quoted?
• Is Aldi as awesome as people say?

Continue to sift through each line item and scrutinize it. I fully recommend making this a family exercise. A dictatorial approach will most likely fail.

Savvy stewards objectively scrutinize spending.

Biblical Stewardship #3 — Supersize Saving

Proverbs 6:6-8 (NIV) Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.

Savings is often the Achilles’ heel of the American consumer. Approximately, 56% of Americans are currently unable to afford a $1,000 emergency (Bankrate). The financial situation for many families is dire.

Christians often are torn between saving for the future and bad theology. I recently heard a famous preacher patronize people for storing up treasures on earth. Conveniently there was an appeal for money at the same time.

Matthew 6:19-20 (NIV) Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal.

Jesus was not forbidding the practice of saving money.

Saving money is a vital piece of biblical stewardship.

The Emergency Fund

It’s important to have an emergency fund as your first savings account. Bad situations can arise unexpectedly at any time. We’re redeemed from the curse of the law. We are still vulnerable to the consequences of the fall. Cars break down. Furnaces need to be replaced. Companies downsize their workforce.

An adequately funded emergency fund brings peace to stressful situations.

Emergency Fund Size

Everyone starts with $1.oo in their savings account. Start where you are while also looking at where you’re going.

Open a separate savings account that is detached from your checking account. Set up direct deposit or automatic deposits that fit your budget.

Congratulations! You now have an emergency fund!

Your first goal should be to save one full week of pay. When that is done expand it to a month’s pay. Each goal that is hit should be celebrated! Continue doing this until you get to the 3-6 months of salary saved. Some like to match their emergency fund to their expenses. I prefer matching it to salary.

Potato, potato.

There are many more savings goals to reach. The emergency fund is a great place to start for most families.

Biblical Stewardship #4 — Investing

Ecclesiastes 11:1 (NLT) Send your grain across the seas, and in time, profits will flow back to you.

Investing, similar to saving, is often denigrated from the pulpit. This tact is also short-sighted. Plus, there is a conflict of interest.

Christians must plan for their financial future. The safest, most convenient, and most reasonable way to do that is to invest in stocks, mutual funds, and similar investments.

History of the Stock Market

The stock market might seem to be unsafe and volatile. Historically, the returns have been around 10% (annualized) since 1957 – 2023 (Investopedia). Banks typically pay around 0.05% and high-yield savings accounts pay around 4.75%. Both are much lower than the S&P average.

Inflation, even during tame years, erodes at about 2.5% each year. If your money is saved but not invested you’re financially below water.

The stock market is not a gamble. Some years are going to be painful. Other years will be blissful. The average will be decent and enough to retire with dignity — if investments are made.

Diversification

Ecclesiastes 11:2 (NIV) Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.

The simplest way to invest is through mutual funds or exchange-traded funds (ETFs). These funds own pieces of hundreds or thousands of companies.

Why? Diversification.

Stocks often move in different directions at different times. When the economy is in the tank stores such as Dollar General and Wal-Mart do better. As such, their stock price might increase.

Timing the market is a fool’s errand.

Mutual funds have stocks that zig and others that zag. In the end, the diversification reduces volatility.

If you’re just getting started pick a total market fund or an S&P 500 Fund. You can always move the funds later. The important thing is to get started.

Pay Off All Debt Before Investing?

Dave Ramsey teaches people to pay off all debt before investing. This advice is summarily rejected by the investing community.

Some people will always have some debt. Others will lose heart while pretending they are a gazelle avoiding a lion. During this time the clock continues to tick.

I suggest starting with a 1% investment. Many employers offer a 401(k). Some even offer a match. Beginning with 1% should not wreck even a strained budget.

Just begin. Become an investor.

Disagreeing with Dave Ramsey won’t send you to hell.

Biblical Stewardship #5 — Downsize Debt

Proverbs 22:7 (NIV) The rich rule over the poor, and the borrower is slave to the lender.

Debt destruction is an idol in many churches. Thousands of pastors lean on Dave Ramsey’s biblical interpretation of debt.

Dave Ramsey hates debt more than God. He has gone way beyond the Biblical context of debt. Debt is dangerous. However, Dave has taken the hatred of debt to an extreme.

The Bible is fairly silent on the subject of debt. It’s mentioned specifically twenty-one times in the NIV. The word “borrow” is mentioned eleven times in the same version. So the concept is only mentioned thirty-two times. Plus, all of those times it’s not always mentioned negatively.

The Debt Snowball

Debt accumulated because of discontentment is dangerous. Not all debt is a result of discontentment, though.

Objectively assess your situation. Which debts are tolerable to you and which are intolerable?

A debt snowball is a simple tool for downsizing debt. List all of your debts from the smallest balance to the largest balance. Feel free to exclude debts that you find tolerable (home, vehicle, etc.). Pay the minimum balance on each one. When extra money is earned put it towards the bill with the smallest balance. When the smallest debt is paid in full, apply that minimum payment to the next one in line. Continue this process until all of your intolerable debts are gone.

Learning to live free from debt can be challenging. It’s possible though.

The less interest you pay on debt the more that is available for other things.

Biblical Stewardship #6 — Fearless Generosity

Christians are created to give. Savvy stewards are fearlessly generous. Getting to that point is challenging.

Mixed messages are heard in many churches. Jesus and Paul put family above the church, financially. Few pastors will tell their people not to give financially even when faced with dire circumstances.

Every dollar that is earned can be spent, saved, invested, used to pay down debt, or given. All five of these are competing with one another. What is invested can’t be spent (right away). Money given can’t be invested.

You get the point, right?

Which comes first?

How much should one give?

There is no easy answer. Talk to God.

I will leave you with a great quote and a link to the Ultimate Guide to Tithing.

I do not believe one can settle how much we ought to give. I am afraid the only safe rule is to give more than we can spare.

C.S. Lewis – Mere Christianity