Mr. Joshua Lyons: Twelve Practical Financial Principles
Author: David Markopoulos | Living Education
Mr. Joshua Lyons, a pastor serving in the Upper Midwest area of the United States, began a recent forum message by asking the Living Education students a question: “Do you like money?” While for most of us the answer is “yes,” Mr. Lyons—previously serving as the Assistant Financial Controller for the Church—pointed out a sobering fact: few people actually have a grounded understanding of how to handle their finances.
Having a good handle on your personal finances is one of the most important skills you can learn in life—and there are many who never learn it. Further, most ignore important biblical principles that contribute to financial stability, such as tithing and giving offerings. Mr. Lyons stressed that while having practical financial literacy is important, there are godly principles that can be applied to handling our money. His forum message covered 12 practical financial principles:
- Have at Least $1,000 in an Emergency Fund
Making sure you have some spare money in savings is critical. Emergencies can happen at any time, and having an emergency fund that you not only never touch, but continuously contribute to, is fundamentally important.
- Intentionally Build and Maintain a Good Credit Score
While it’s easy for some to view credit cards as an easy way out—or, conversely, the greatest evil ever conceived—carefully building good credit is very important and beneficial. This takes both discipline and intentionality—avoiding credit card debt by promptly paying it off helps build a good credit score, and helps earn benefits.
- Buy Things Used
Buying name-brand items and expensive retail products can be tempting, but the obvious problem is that we tend to spend more than we should. We can avoid going into debt over high prices by thrifting. Buying used furniture, clothes, and other items is an intelligent way to get what you want/need without unnecessary overspending.
- Keep a Personal Balance Sheet
Mr. Lyons advised the students to run their personal finances like a business. Carefully track your expenses, cash flow, and liabilities. Making sure we know where our money is going is critical to having a firm handle on our own money. Developing your own method for tracking finances will be extremely helpful later on.
- Avoid Credit Card Debt
While it’s easy to hear, it’s harder to put into practice. Credit card debt can be a dangerous black hole that sucks the money right out of our wallets. While building credit can be helpful, if we recklessly spend money we don’t have, we incur unnecessary and dangerous debt. We should be vigilant of our credit card usage, and have the discipline and foresight to avoid debt.
- Never Invest in Anything You Don’t Understand
If you don’t know what you’re getting into, you shouldn’t do it. There are all kinds of places to invest your money, but we should apply discernment before we put our money into something. Investments can be an important way to help build wealth, and it’s important to understand exactly what we’re getting ourselves into.
- Never Gamble.
Gambling can be a temptation for many seeking an easy way to get rich quickly. But not only is it risky and irresponsible, it is also a serious issue laden with spiritual implications. The money we have is given to us by God, and we have a responsibility to take care of it in a responsible, godly way. On this point, Mr. Lyons referenced a relevant sermon by Mr. Jonathan McNair on this very issue.
- Make Sure Your Biggest Decisions are Good Ones
Small purchases here and there might not destroy your bank account, but the bigger ones can have heavy implications. We should think through our biggest purchases first before making a decision. It’s important to consider the implications of our choices and whether those decisions will impact us later. If we’re going to make a big financial decision, we should be sure that it’s a good one.
- Choose a Good Career & Get a Good Job
Connected to the previous point, one major decision that we make is our choice of career. While there are many factors that go into that decision, one should certainly be the financial considerations. We want to be able to take care of our families and have a solid hold on our money. Particularly for young people who have not yet decided, making educated decisions about your career is a critical element of long-term financial success.
- Always Spend Less Money Than You Make
While it may be easier said than done, this point takes a great deal of discipline and intentionality. If we spend more than what we make, we’re putting ourselves in a serious financial situation that can be hard to escape from. Making sure we live within our means is a critical way to maintain financial stability.
- Make Your Money Work For You
Making solid investment choices can be hugely beneficial to our financial stability. It’s important to be educated on investment opportunities, side hustles, and other ways to make our money make more money. Your assets can earn you even more money if you know how to wield it properly.
- Spend Time Educating Yourself on Personal Finances
As with all things, becoming competent with your personal finances takes time. Becoming financially literate is a long-term investment that will pay off as we build stability in our lives. We should put forth the effort to educate ourselves and live responsibly as we put good habits to practice.
Understanding how to handle money is more than a practical skill—it is an essential aspect of our lives, and we must ensure that we have a disciplined approach to our personal finances. The financial blessings we enjoy are gifts from God, and He lets us learn to take care of what ultimately is His money. With this in mind, it’s important to be good stewards of the gifts God has given us, learn to practice discipline, and build good personal financial habits.
David Markopoulos is a Living Education alumnus from the 2023-2025 school years. Originally hailing from Chicago, he currently works for the Living Education program.
