The 6 biggest financial mistakes Christian millennials should avoid now!

Estimated reading time: 12 minutes

These are the 6 biggest financial mistakes Christian millennials should avoid now. Are you guilty of these financial mistakes? The lack of knowledge always leads to poverty and the Bible also shows us it causes one to perish. Therefore, I want us to look at the financial mistakes you should avoid and why you should avoid them. If this is something you are interested in, then keep on reading.

The 6 biggest financial mistakes Christian millennials should avoid now!
Scriptures that talk about saving.
Conclusion.

To start us off, I would like us to know one thing, we are all on a journey and we all make mistakes. So if you find yourself guilty of one or more of these mistakes, I encourage you to shake it off and resolve to do better. After all, you did not know any better. Don’t allow guilt and condemnation to hinder you from making progress. Now that we have that out of the way, let’s go.

The 6 biggest financial mistakes Christian millennials should avoid now!

Not having an emergency fund.
Not having a budget.
Failure to plan for retirement (future)
Not tithing and giving.
Failure to sow and invest.
Living on borrowed funds.

Not having an emergency fund is one of the biggest financial mistakes Christian millennials can make.

Not preparing is preparing to fail. When you don’t have funds that can hold you down in the vent of an emergency, you risk getting into debt to help cover the emergency. By doing so, you get yourself into more financial trouble since you will have to pay back the debt. And with interest at that. Having an emergency fund will help you avoid such pitfalls. To learn more about emergency funds, check out this blog post. A Complete Guide On Emergency Fund For Christian Millennials.

Ideally, you should have at least 6 months of your monthly expenses saved. This will ensure that should you lose a job or experience some unavoidable situation, you have money that can help you pay your bills and not have to resolve to borrow.

To help you tackle this you should:

Open an emergency fund account.
Set a goal on how much money you will put in the fund monthly.
Cut down on expenses to help you set up funds in your emergency fund
Exercise self-control and delayed gratification.

Let these 3 scriptures motivate you to have an emergency fund.

Go to the ant, you slacker! Observe its ways and become wise. Without a leader, administrator, or ruler, it prepares its provisions in summer; it gathers its food during harvest. – Proverbs 6:6-8

Precious treasure and oil are in the dwelling of a wise person, but a fool consumes them. – Proverbs 21:20

The prudent sees danger and hides, but the simple go on and suffer for it. Proverbs 22:3

A Complete Guide On Emergency Fund For Christian Millennials.

Not having a budget.

Having a budget will keep you in check. It will also curb overspending and learn how to manage your finances. . When you have a budget, you are aware of the income and expenses you have and this will help you make informed decisions. Whether it is on making a purchase or even taking a vacation. When you know your financial health and position, you will avoid living beyond your means.

A budget will also help you live within your means and not bite more than you can chew. Having a budget will also help you have a list of all your expenses, enabling you to cut back on unnecessary expenses as it gives you a snapshot view of your overall finances. You need a budget in your personal finance journey.

Use these tips to help you create a budget:

Tips on budgeting.

Track all your income.
Track your expenses to ensure that you fulfill all your obligations
Evaluate both your income and expenses to see if your income can sufficiently cover your expenses. If not, you need to cut back on your expenses. Look at the bills that you can do without and eliminate them. The goal is to ensure that you live within your means.
Use the 50/30/20 rule. Use 50% of your income to cover your expenses, 30% to cover your wants AMD 20% for savings. In doing so, you will also have funds to spare in case of an emergency.
Try online budgeting tools. You can find them on your apple store or google play on your android phone.
Review your budget regularly. Lifestyle changes and sometimes you will have unexpected expenses. Have some money set up on your budget to cover that.
Learn to say no. You should avoid people-pleasing, as this will get you in more trouble because you will spend more than you can afford and this will lead you to stay in debt.
Keep track of your progress and have an accountability partner to help you stay within your budget.

Not tithing and giving.

The Bible reminds us, we should give to God because it all belongs to Him. Now, as Christians, we are instructed to tithe and give first fruits as well. And when you don’t do that, you limit yourself to the blessings that God has spoken over those who tithe and give. God promises to protect your finances when you tithe.

Tithe simply put is the first 10% of your income. It belongs to God. In doing so you are honoring Him and giving Him room to bless you. The first fruit is the first income from every venture or even your first salary from your job. This also belongs to God. In doing so, God promises to protect your finances as well. I won’t go into much detail here as I have a blog post on the same, so check it out here.

Being generous and helping those in need is another way of giving. God promises that when you help the needy, He will help you in your time of need. Not only that the Bible tells us that those who refresh others will also be refreshed. Check out the blog post on the reward for your generosity to learn more.

5 UNIQUE FINANCIAL TRUTHS CHRISTIAN MILLENNIALS SHOULD KNOW.

Not sowing and investing is yet another one of the financial mistakes Christian millennials make.

Sowing is planting a seed with the expectation of a greater harvest in the future. Investment is pretty much the same thing. With investments, it is important that you seek professional advice. You cannot move blindly. And the Bible even tells us it is in the presence of wise counsel we experience victory and success.

Consider these tips before investing.

Be future-minded. Don’t expect to sow today and reap a harvest tomorrow. A harvest takes time. In fact, if you want to gain the best yields with lower risks, it is best to look for long-term investments. Investments like mutual funds, retirement plans, government bonds, and index funds are some places you could consider making investments in. Real estate is also another place. One thing you should keep in mind is that you should always seek professional advice. They will help you make the right decision based on your financial position.
Start early– You have heard this saying that the best time to invest was yesterday and the next best time to invest is today. The thing about money is that it will always have a need. Therefore, plan to save up for your investments. Of course, you should first ensure you have a fully funded emergency fund and a savings account before you consider investing. Also, use wisdom before you invest to ensure you don’t get scammed or end up losing all your money.
Do your own research– Seeking professional help is great, but you should first do research on the investment plans available so that you can have a general understanding of what you are getting yourself into. There are free resources on YouTube and Google that tell you about the different investment opportunities. Remember, knowledge is power, and you should learn to seek confirmation before making investments. After all, there is nothing wrong with having a multitude of wise counsel. Don’t be afraid to ask questions.
Be aware of your financial position and risk appetite. Understanding your risk appetite and your financial capabilities will help you avoid depression and other lifestyle shocks that come with making financial mistakes. Can you handle losing the finances you invest? Don’t invest more than you are willing to lose. Always remember that the higher the return, the greater the risk. Also, how much can you afford to invest? Do not borrow to invest!
Diversify your investments– Diversification will always help you avoid losing all your money in the event of an economic crisis. Always invest in products that are not directly correlated with each other. This will help you still gain a return when one product falls. Some ways you can diversify your investments include Global investments, index funds, ETFs, mutual funds, etc. Even with these, ensure that you seek professional advice and also be aware of the hidden fees.

Living on Borrowed Funds. Taking on debt

A borrower will always be a slave to a lender. And living on debt is one of the worst financial mistakes you can ever make. You will always move around in circles because of the interest you have to pay.

Tips that will help you get out of debt:

Pay more than the minimum payment– Go through your budget and decide how much extra you can put toward your debt. Paying more than the minimum will save you money on interest and help you get out of debt faster. You can do so by adding it to the monthly payment.
Try the debt- snowball- This debt repayment method asks you to make the minimum payment on all your debts except for the smallest one, which you’ll pay as much as you can. By “snowballing” payments toward your smallest debt, you’ll eliminate it quickly and move on to the next smallest debt while paying minimum payments on the rest. You will see progress quickly when you utilize this payment plan. This will help motivate you to keep going.
Commit windfalls to debt– Whenever you receive unexpected money, use it to pay off your loans. This will help build momentum and get you closer to becoming debt-free.
Re-examine your budget– Earn more and spend less.
You can negotiate your loans with your creditors and see if they will shave off some amount. You will never know if it is possible if you don’t try. And the worst answer you will get is a no!

Failing to plan for the future.

The truth is that we will all grow old. And when we fail to plan for the future, we set ourselves up for disaster. Not having a retirement plan is a very grave financial mistake you can make. Can you imagine not being able to sustain yourself in your old age? Lack of planning will lead you to that and you end up being a burden to your family. This is why it is important to have a retirement plan. The only way you will be able to laugh at the future like the Proverbs 31 woman is when you plan for it. While it is true God takes care of our needs, not having a proper plan is considered unwise and we all know that the end of the unwise is destruction and poverty.

Check out this tool to help you with your monthly budgeting

Use these tips to save up on your retirement fund:

Know the amount you need to retire-. This will help you know how much you need to save so you can be comfortable in later years.
Find the right investment plan for you. Factor in risk appetite, your age, your financial capabilities, your timeline, your current responsibilities, etc. Doing this will enable you to soberly invest for your retirement. If you are employed, ask if your employer offers pension plans and how he or she contributes to them. Do as much research as possible and max it out.
Start early. Don’t wait until you are older to plan for retirement. You should start as soon as possible. The earlier, the better. Factor in compound interest. Your money will be more the longer you save. So why not factor that in?

Scriptures that talk about saving.

Proverbs 31:18‭, ‬21‭, ‬25 NIV She sees that her trading is profitable, and her lamp does not go out at night. When it snows, she has no fear for her household; for all of them are clothed in scarlet. She is clothed with strength and dignity and she can laugh at the days to come.
Proverbs 13:16 A wise man thinks ahead; a fool doesn’t, and even brags about it!

Proverbs 6:6-8 Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler,yet it stores its provisions in summer and gathers its food at harvest.

Proverbs 16: 9 In their hearts humans plan their course, but the LORD establishes their steps.

Luke 14:28-30 “For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it—lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying ‘This man began to build and was not able to finish’?”

Proverbs 27:23 Be diligent to know the state of your flocks, and attend to your herds.

Proverbs 14:29 He who is impulsive exalts folly

Conclusion.

Don’t be afraid to have a savings account. It is okay to plan for your future. In fact, that makes you wise. God wants you to avoid ignorance and be prudent in your dealings. So let me ask you this: do you have a savings account? Always remember that an emergency fund comes first. And also always remember that delayed gratification is always better. Don’t forget that you should ensure that your money works for you. And this is possible through investments. Find the right investments for you. The next time we will talk more about investments so that you can have the knowledge you need to make the right decision.