Key #2 – Be prudent about debt
It’s a privilege for Family Life Radio to partner with other ministries, agencies and businesses across the nation—all of whom share the vision to help others experience hope in the name of Jesus. This month, please meet Brian Cochran and John Moore from John Moore Associates, a respected financial advice company founded on biblical wisdom.
Six keys to your financial wellness
Brian Cochran, CKA®, CFP®, Financial Planner
John Moore, CKA®, CIMA®, Principal
The John Moore Associates team could not be more excited to serve as a business partner with Family Life Radio. For over 21 years, we have helped families become intentional in their financial planning and investment decisions through the application of biblical principles.
Did you know there are over 2,000 verses in God’s Word relating to money and material possessions? From these Scriptures come six key principles that can serve as your foundation for wise stewardship and financial wellness:
- Spend less than you make
- Be prudent about debt
- Build liquidity
- Set long-term goals
- Act like a manager, not an owner
- Give generously
Today we will take a closer look at the second key: Be prudent about debt. God provides two clear principles about debt. First, debt holds us back from future opportunities. Proverbs 22:7—The rich rule over the poor, and the borrower is slave to the lender. Borrowing today holds us back from future opportunities as we are beholden to our debt. Does your debt hold you back from opportunities to give, pursue a new career, or participate in missions?
Second, scripture is clear that we are to repay our debts. Romans 13:8—Owe no one anything, except to love each other. Notice how the message is not to avoid debt completely. Instead, we are instructed to pay back any loans we take on. Unpaid debts hurt everyone involved. The borrower who does not pay his debts is saddled with shame. The lender takes on financial loss.
Ask yourself two questions when considering a new purchase that requires owing money:
- How confident am I that I can repay this debt?
- What opportunities am I giving up to pay this debt?
If you are comfortable with the tradeoffs of the new debt, then you can proceed with confidence.
More Keys to Financial Wellness: