Book: Proverbs 21
“There is desirable treasure and olive oil in the dwelling of the wise, but a foolish devours all he has.”
Many financial advisers today would express this proverb in a slightly different way by saying, “It is not about how much you earn, It is a matter of how much you save!”
Two people (families) can earn the same amount of money but one “devours” all of their paycheque and the other puts some of it aside for savings. Or one family can make twice the amount of the other but “devour” all they earn and the family with half the paycheque who still puts some into savings each time will have desirable treasure.
Some financial advisers have suggested that a healthy financial picture is one where you live off of no more than 70% of your income. The remaining 30% you would divide into three categories: 1) 10% Giving (tithing), 2) 10% Savings and, 3) 10% Active Investing. (Active investing is buying and selling, or making and selling outside of your regular job).
As Kingdom people, just as giving ones tithes first from one’s paycheque should be a basic standard, so should setting aside savings be a basic standard. Once these two steps are done, it will be clear how much money you will have to live on (This is where budgeting can be very helpful).
It is almost a guarantee that if a person/family waits and gives what is leftover from their paycheque towards tithing and savings they will not accomplish either. But if they are taken off first, it is always amazing how their expenses will meet what is left over.
Being wise is not devouring all you earn but first giving to God and secondly paying yourself by putting some into savings. If you are not in this practice I would strongly encourage you to consider this proverb and take action today!