Page 71 - Managing Your Resources - Student Syllabus - short combined

Ecclesiastes 7:14 reminds us: “When times are good, be happy; but when times are bad, consider: God
has made the one as well as the other.”

6. Debt can foster envy and greed. “Beware! Don’t be greedy for what you don’t
have. Real life is not measured by how much we own” (Luke 12:15).

7. Don’t Co-sign! “Do not co-sign another person’s note or put up a guarantee for
someone else’s loan. If you can’t pay it, even your bed will be snatched from under
you” (Proverbs 22:26–27 NLT). Co-signing for another person is placing your name on a loan. What you
are doing is stating that if the person borrowing the money does not pay, you will. It is the same thing
as obligating yourself as the borrower.

Important Lesson: It is ALWAYS better to SAVE for a purchase than to BORROW. Wait and get it when
God provides the funds, rather than getting it now and obligating God to pay for it in the future. Remain
FREE from slavery to others so that you can OBEY Christ in everything He asks you to do. Make Him your
sole master!

When is Debt Appropriate?

For the most part, you should try to avoid all debt if you can. However, there may be
situations where you can enter into debt, understanding the negative aspects of the
relationship. These may include:

1. Purchasing a home. If you know you are at a place where God wants you to minister, and you sense
from God that your ministry there may be for a period of time, then you may want to borrow some
funds to purchase or build a home. Sometimes purchasing a home costs less than renting a home. And
when you pay rent, you do not actually accrue equity (ownership) in the home. As you purchase your
home, each month more and more of the home actually becomes your property. When you sell the
home, you will be able to recoup some or most of the money you have paid into
the home, less interest.

If God would ask you to move on to another ministry, relocating your family,
you could sell the home and repay the loan, as a portion of the home is your
asset (money you have into the home). Normally, you can either rent or sell the
home and pay off your loan with some return on your investment. The home is
called an appreciating possession, because normally the value of the home
remains somewhat constant or increases over time.

2. Starting a business. A personal business can generate income for your family, allowing you to be
able to provide for your family, save for your future, and be generous. Personal entrepreneurship is
commended in the Bible. Proverbs 31:10-31 describe a virtuous woman, and in the description she is
involved in working with her hands to create products which she sells at market to help produce income
for her family. Paul was a tent-maker and boasted that he was not a burden on anyone, but was able to
create income from his tent-making skills.

To start a business, quite often products or equipment must be purchased and used in establishing the
business. These items require a capital investment. They must be purchased and used in the business
to create the products which are sold. A capital investment is mandatory to start the business.

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