Table of Contents
ABOUT THE AUTHOR 21
ACKNOWLEDGMENTS 23
PLEASE READ THIS BEFORE YOU BEGIN 25
INTRODUCTION 29
I. GOD’S WISDOM ON DEBT AND THE
IMPORTANCE OF SAVING 33
A. KEY BIBLICAL FINANCIAL PRINCIPLES IN DEALING
WITH DEBT 34
1. You Must Pay Your Debt 35
2. When You Borrow, You Become a Servant to the
Lender 35
3. Borrowing Presumes on the Future 37
4. God Promises to Meet Our Needs 37
5. God Promised the Israelites They Would Be
Lenders and Not Borrowers if They Obeyed Him 39
6. All References in the Bible to Borrowing Are
Negative 41
7. Financial Turnarounds 42
8. Mr. Wise versus Mr. Unwise in Managing Money
44
9. The Importance of Saving 45
10. God’s Admonition That We Should Plan Ahead 46
11. A Summary: Biblical Perspective versus
Worldly Perspective 47
B. MEMORY VERSES 48
C. CASE STUDIES, QUESTIONS, TOM’S COMMENTS 48
12. Case Study #1: Mike and Sharon Accumulate
Debt 49
13. Case Study #2: A Young Single Man 53
14. In Summary: God’s Wisdom on Debt and Saving
59
II. HOW TO GET OUT OF DEBT 61
A. SEVEN PRACTICAL STEPS TO HELP YOU GET OUT OF
DEBT 61
1. Pray and Ask God for His Wisdom and Specific Direction
61
2. Study and Meditate on God’s Word as It Relates
to Finances and Implement God’s Financial Principles in Your Life 62
3. Evaluate Your Present Financial Position:
Assets, Liabilities, Revenues, and Expenses 64
4. Develop and Implement a Budget 64
5. Learn to Be Content with God’s Provision 65
6. With Your Surplus Cash, Pay Off the Most
Expensive Debt and Non-Deductible Debt First 67
7. Depend on God, Follow Through, and Persevere Until
You Are Debt-Free 68
8. Summary of the Steps to Get Out of Debt 69
9. The Importance of Meditating Upon Scripture 69
B. SUGGESTED MEMORY VERSE 70
C. CASE STUDIES, QUESTIONS, TOM’S COMMENTS 70
10. Case Study #1: A Couple Learns God’s Way of Managing
Money 70
11. Case Study #2: A Single Man Learns and
Applies Biblical Financial Principles 78
12. Case Study #3: Successful Business Owners
Learn God’s Way Managing Money
13. Case Study #4: The Financial Story of Mr.
Borrower and Mr. Saver 95
14. Two Mortgages: Benefits of Paying Your
Mortgage Down Faster 95
15. Summary: Benefits of Debt Reduction 98
16. Appendix to Chapter II: Jim and Jennifer’s Budget
100
III. HOW TO DEVELOP AND IMPLEMENT A BUDGET
109
A. OBJECTIVE OF THIS CHAPTER 109
B. KEY BIBLICAL PRINCIPLE 109
1. The Purpose of Budgeting 109
2. The Copland Budgeting System Overview of Forms
112
3. Step 1: List Your Assets and Liabilities on Form
#1 112
4. Step 2: List Your Revenues on Form #2 113
5. Step 3: Plan for Non-Monthly Expenses on Form
#3 113
6. Step 4: Transfer Funds from Checking Account
to Savings Account on Form #4 114
7. Step 5: Estimate Where Your Money Is Being
Spent
on Form #5 116
8. Step 6: Regularly Track Your Expenditures and Revenues
on Form #6 117
9. Step 7: Budget Analysis on Form #7 118
10. Starting a New Month 119
11. Year-to-Date Figures 120
12. Final Points 120
13. In Summary 121
C. HOW TO CHANGE THE WAY YOU MANAGE MONEY 122
14. Assignment 122
15. Ideas to Reduce Expenses 123
16. Mortgage Costs 123
17. Utility Costs 124
18. Shared Accommodation 124
19. Advantages of Shared Accommodation 125
20. Challenges of Shared Accommodation 126
21. Creative Ways to Increase Income 133
D. CASE STUDIES, QUESTIONS, TOM’S COMMENTS 134
22. Case Study #1: Learning to Budget 134
23. Case Study #2: A Single Man with a High Income
138
24. Case Study #3: Implementing a Biblically Based
Budget 142
25. Questions Regarding Budgeting 147
26. Appendix to Chapter III 148
Bill and Barb’s Initial Budget 148
Bill and Barb’s Revised Budget 150
Dave and Debbie’s Budget 152
Copland Budgeting System with Blank Forms 160
IV. QUESTIONS TO CONSIDER BEFOREBORROWING OR
CO-SIGNING 169
A. CHECKLIST OF QUESTIONS 169
1. Do You Have a Plan, Such as a Budget? 169
2. Do You Understand Your Responsibility to Pay
Your Debts on Time? 170
3. Have You Prayed and Given God the Opportunity
to Provide the Funds? 170
4. Have You Given God an Opportunity to Provide
at a Lower Cost or an Alternative? 171
5. Could It Be That God Does Not Want You to Have
What You Are Asking For? 171
6. Is the Item You Plan to Purchase a Necessity?
172
7. Have You Prayed for God’s Guidance? 172
8. Have You Spent Sufficient Time in Prayer
Seeking God’s Direction? 173
B. CASE STUDIES, QUESTIONS, TOM’S COMMENTS 174
9. Case Study #1: A Couple Engages in Biblical
Planning Before Purchasing a Home 174
10. Case Study #2: A Couple “Steps Out in Faith”
189
11. Case Study #3: A Single Woman Obtains
Financial Advice 195
12. Co-Signing 200
13. Case Study #4: A Couple Co-Signs on Their Son’s
Loan 201
14. A Single Father Co-Signs a Son’s Automobile Loan
207
15. A Single Mother Co-Signs a Friend’s Business Loan
208
16. Co-Signing Reduces Borrowing Capacity 209
17. Recommended Steps to Take Before
Co-Signing 210
C. A SUMMARY OF WHAT THE BIBLE SAYS ON DEBT AND CO-SIGNING:
BIBLICAL PERSPECTIVE VERSUS WORLDLY PERSPECTIVE 212
18. Personal Guarantees for Corporate Debt Are a Form
of Co-Signing 212
19. Summary of Comments Regarding Questions to Consider
Before Borrowing 215
20. Summary of Comments Regarding Co-Signing 216
V. FINANCIAL DECEPTIONS 219
A. OBJECTIVE OF THIS CHAPTER 219
B. KEY BIBLICAL PRINCIPLE 219
1. Introduction 219
2. Financial Deception #1: It’s Okay to Live Paycheque-to-Paycheque
220
3. Financial Deception #2: You Should Gain
Financial Freedom Quickly 221
4. Financial Deception #3: Debt Restructuring
Solves Financial Issues 223
5. Financial Difficulties Can Reflect an Underlying
Spiritual Problem 225
6. If You Are in Debt, I Urge You to Do Two
Things 225
7. Financial Deception #4: More Money Brings Happiness
226
8. Financial Deception #5: “Buy Now and Pay Later”
Makes Sense 227
9. Financial Deception #6: Smart People Use Other
People’s Money 229
10. Financial Deception #7: A Lot of Money Equals
Financial Freedom 231
11. Financial Deception #8: Bankruptcy Solves
Financial Problems 233
12. What If You Have Already Declared Bankruptcy?
235
13. Financial Deception #9: Faith-Filled
Christians Will Enjoy Prosperity 236
14. Financial Deception #10: “Step Out in Faith”
and Trust God for the Payments 238
C. SUMMARY OF THE TEN FINANCIAL DECEPTIONS 239
D. RECOMMENDED MEMORY VERSES FOR DEALING WITH
FINANCIAL DECEPTIONS 239
E. CASE STUDIES, QUESTIONS, TOM’S COMMENTS 240
15. Case Study #1: A Couple Did Not Save for Retirement
240
16. Case Study #2: A Couple Covet What Others Have
248
17. If You Are Forced into Bankruptcy by a Creditor
253
18. Case Study #3: An Individual Learns Biblical Principles
of Investing 256
19. Case Study #4: “Stepping Out in Faith” and
the Prosperity Gospel 262
20. Personal Testimony and Summary of Chapter V on
Financial Deceptions 265
VI. DISCERNING GOD’S WILL THROUGH YOUR
RELATIONSHIP WITH CHRIST 269
1. God Loves You, and He Desires a Personal Relationship
with You 271
2. Our Sin Separates Us from God 272
3. Many Seek God the Wrong Way 273
4. God Provides the Only Solution to Sin—His Son,
Jesus Christ 273
5. Are You Willing to Do the Following? 274
6. If You Prayed This Prayer from Your Heart,
Here Are Some Promises from God 275
VII. CONCLUSION AND RECOMMENDED FOLLOW-UP
277
1. Chapter I: God’s Wisdom on Debt and the
Importance of Saving 277
2. Chapter II: How to Get Out of Debt 278
3. Chapter III: How to Develop and Implement a Budget
279
4. Chapter IV: Questions to Consider Before Borrowing
and Co-Signing 279
5. Chapter V: Financial Deceptions 281
6. Chapter VI: Discerning God’s Will Through Your
Relationship with Christ 281
7. Chapter VII: Conclusion and Recommended Follow-Up
283
8. Tom’s Final Comments 285
