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Breaking Out of Financial Bondage: Principle of Accounting

“Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations” Proverbs 27:23-24 (NIV).

God tells us in Proverbs to “know the condition of your flocks.” What does this mean? He is telling us to know the current state of our finances. To take an honest assessment of our situation because they won’t last forever…they change—they are not secure.

Many people avoid bad news and situations; they live in a place of denial or avoidance. They hope and pray that things will not get worse while they burry their heads in the sand trying to avoid the reality of their circumstance. That is one of the reasons why so many have gone into foreclosure—they knew they could not afford their home but they delayed calling the bank to make arrangements. And by the time they tried to do something it was too late.

If they had applied the principle of accounting they may have avoided foreclosure by selling or renting out the house. Or they may not have entered into the situation from the very beginning because they would have seen that they could not afford the home—which is walking in truth and discipline (Proverbs 23:23).

The principle of accounting helps us to see what income is coming in and what portion of it is going out. But it entails more than this from a circular stand point we need to:

  1. Know what we own
  2. Know what we owe
  3. Know what we earn
  4. Know where it all goes (know our expenses)

But in God’s word he tells us to also:

  1. Buy truth
  2. Get wisdom
  3. Get discipline
  4. Get knowledge

Ignorance of our financial condition + easy credit = DISASTER and this is not what God wants or desires for his children. The Bible tells us that Jesus came to set the captives free—and anything that binds us makes us a slave…it holds us captive.

If you desire to be free the first step is to look at your financial situation truthfully. Take responsibility for your finances…don’t let it spin out of control—you must rule over it.

What can you do?

  1. Get a book and write down what you earn, what you owe, identify your fixed costs, and your other expenditures.
  2. Ask God to give you wisdom in financial matters.
  3. Cut back on spending. What are the things you can live without—cable, buying lunch, doing your nails each week, playing golf, etc?
  4. Start to save—start out with 10%-20%
  5. Be disciplined—make up your mind and stick to it—eliminate compulsive or emotional shopping.

Further readings

Proverbs 23:23
Proverbs 22:7
Luke 16:11

Articles inspired by the Breaking out of the Debt Zone Series by Jorge Vega, of Full Gospel Tabernacle, Far Rockaway, NY.

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