George Muller on Debt and Romans 13

"My wife and I never went into debt because we believed it to be unscriptural according to Romans 13:8, "Owe no man any thing, but to love one another." Therefore, we have no bills with our tailor, butcher or baker, but we pay for everything in cash. We would rather suffer need than contract debts. Thus, we always know how much we have, and how much we can give away. Many trials come upon the children of God on account of not acting according to Romans 13:8.
p43, The Autobiography of George Muller

"Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed. Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."
Romans 13:7-8

The above is quite an interesting point from George Muller on debt, and his conviction on the matter really makes you think. I've heard people say that verse 7 shows the Bible doesn't prohibit borrowing, it's just that you are to pay back what you owe in the manner you agreed. So credit cards, loans, and mortgages aren't necessarily bad things as long as you stick to your repayment agreements.

But then you throw verse 8 into the mix, "Owe no one anything", which is very straightforward. It's a phrase which really seems to limit the extent to which verse 7 applies. It basically says "just don't be in debt". Debt is bondage, and throws up all sorts of difficulties.

Verse 7 refers to taxes and revenue, and even respect. It is referring to on-going expenses that are unavoidable. You should pay your taxes, your household bills, your rent and such things. They're not so much debts but normal day-to-day expenses. You only become in debt if you miss a payment and get in arrears. So paying them is actually a means to keeping out of debt.

Verse 8 seems to specifically prohibit any sort of owing that isn't necessary. And it seems really personal – "Owe no one anything". It sounds different to owing tax to the government. It seems more like a friend, a neighbour, a local business, your bank. So don't owe your mate Bob £50. Don't rack up bills on your store cards or credit cards. Avoid your overdraft like the plague. As Muller says, it's better to suffer need that suffer debts.

What seems to sit awkwardly is all that stuff in the middle. Like loans and mortgages. What's unavoidable? When your boiler breaks down and you have to borrow a load of cash off your dad? And is a mortgage more of a good investment than debt? Is a business loan justified if it provides a means to generate income and cover the expense in the long run? Hmmm… there's always grey areas where you have to discern what's good, what's absolutely necessary and what can be avoided with better financial planning.

Expenditure

Another thought-provoking quote on finances and materialism...

"Occasionally when a couple cannot make ends meet the problem is that they do not have enough income to support themselves. Most often the problem lies with their expenditure. Rob Parsons writes about his own upbringing:

My father was a postman and my mother a cleaner. We lived in a rented house, and life was simple to say the least. Non-essentials like heating in the bedrooms, fitted carpets, and toilet paper (don't ask!) belong to another world. I didn't eat in a restaurant until I was sixteen. But I had everything I needed in that home, including wise advice from a father who would take me aside regularly and recite to me the words of Mr Micawber from Dickens, David Copperfield: 'Annual Income: twenty shillings; expenditure: nineteen shillings and sixpence - result: happiness. Annual income: twenty shillings; expenditure: twenty shillings and sixpence - result: misery.' A belief in that principle meant that my father was never in debt. You may think that he paid an unacceptable price for that. He never had a holiday away from his own home, or had his own bank account, and he never did get to taste pasta - but I have never known a man so content."

p358, Nicky & Sila Lee, The Marriage Book.
Original quote: p190, Rob Parsons, Loving Against the Odds.

Joyful Unconcern

"Therefore do not be anxious, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?' For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. But seek first the kingdom of God and his righteousness, and all these things will be added to you."
Matthew 6:25-33

It's so easy to read this verse thinking "aha, if I seek first the kingdom, I'll have material provision and security." I must have read that verse so many times with that subtle thought process ticking away unnoticed. But then you realise there's a problem: your focus and heart is still set on material provision, not the kingdom of God.

Your 'seeking first the kingdom' is nothing more than a means to your true end, provision. So the kingdom of God is not first at all but second at best.

In an ironic sort of a way, if you're totally anxious about making ends meet, you actually need to just forget it. Forget it and worship God. Forget it and trust God. Be consumed with his gospel and count yourself expendable for his purposes. Pursue him first and perhaps things will fall into perspective.

But by all means, get a budget and be debt free. You're more useful to God that way.

Hudson Taylor on debt

It's so unbelievably easy to buy some immediate want or apparent need with a credit card or an overdraft. But in doing this we fail to realise the opportunity of prayer laid before us, an opportunity to listen to our Father and wait for His answer. We forget that all our money is His. And we deny Him headship over our finances, even in the small purchases. Slowly but surely you creep into the oppression of debt and find yourself in a place your Father never intended.

Perhaps many of our 'needs' are really 'wants'. A little bit of discipline and self-denial is good for the soul.

From the Biography of James Hudson Taylor:

"To me it seemed that the teaching of God's Word was unmistakably clear, 'Owe no man anything'. To borrow money implied, to my mind, a contradiction of Scripture –  a confession that God had withheld some good thing, and a determination to get for ourselves what He had not given. I could not think that God was poor, that He was short of resources, or unwilling to supply any want of whatever work was really His. It seemed to me that if there were lack of funds to carry on work, then to that degree, in that special development, or at that time, it could not be the work of God."
p198

    "They who trust Him wholly
     Find Him wholly true,
but also that when we fail to trust fully He still remains unchangingly faithful. He is wholly true whether we trust or not.'If we believe not, he abideth faithful; he cannot deny himself'. But oh, how we dishonour our Lord whenever we fail to trust Him, and what peace, blessing and triumph we lose in thus sinning against the Faithful One. May we never again presume in anything to doubt Him."
p199

"Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."
Romans 13:8

"If we are faithless, he remains faithful — for he cannot deny himself."
2 Timothy 2:13

If you don't have a budget, you won't have any money

Working on your accounts is like fine tuning an engine. If it's done well you can get an awful lot out of it. Life becomes much more satisfying and you have a real peace of mind about what you spend and what you give to God. When every penny is assigned as 'worship', suddenly, every day has a new sense of purpose behind it. A little bit of discipline can really free you up.

On the other hand, if you pay no attention to it, ignore it, bury your head in the sand; all sorts of problems develop. Your finances become wasteful and inefficient. Money is frittered away and you can easily accumulate debt. Your peace of mind goes out the window, your soul feels uneasy.

"A little sleep, a little slumber,
a little folding of the hands to rest-
and poverty will come on you like a bandit
and scarcity like an armed man."
Proverbs 24:33-34

I've heard a lot of sermons on why you should give, but very few on how to give. I thinks there's a general assumption, somewhere along the line, that people actually know how to budget. For years and years I didn't have a clue. It's one of those things that seems obvious when you know how. But if no one has taught you, you're lost at sea. You're stumbling around in the dark.

But one thing that is clear – when you work so hard to earn cash, surely wisdom should govern its distribution. Hard earned cash that is frittered away on things that don't matter is a life consumed with toil, debt and fruitlessness. Effectively managing your accounts is one of the most important elements of your life's work.

At my life group, I plan for us to share effective ideas on how we give to God and manage our accounts. In this, I'm making the assumption that we know why we should give and that we want to be a cheerful give. Here are some of my own techniques I've used in the past, and the ones my wife and I are currently using.


1) Account for every penny.

When I first decided to really tackle my accounts head-on, I decided to write down every penny I spent. To my horror I realised that in that very month I had spent over £300 on socialising and convenience foods. Going out to pubs, eating out, trips to the cinema, drinking Coca-Cola. It honestly didn't feel like I had spent that much. It 'felt' like I had spent about £100. It's easy to forget what you did last week. And it's incredible how expenses add up.

Question: If an accountant was to examine your finances, would he find that Jesus was a priority?

In a lack of discipline I would spend too much on clothes and CDs. And then in a lack of finances I would fail to give God anything. If you're budgeting for the first time, going through the last 6 months of bank statements can be a real eye-opener, and quite painful.


2) Develop a list of averages.

Keep all your receipts and tally up average amounts on a monthly basis. Over the course of a year you can work out average expenses for pretty much everything. Here's a list of what my current averages include:

– Church Giving
– Food
– Clothing
– Socialising
– Rent
– Car Insurance
– Car Maintenance
– Car Servicing
– Car Tax
– Home Insurance
– Home Expenses
– Dentist
– Glasses
– Gym
– Car & Bike Repayments
– Life Insurance
– Mobile Phone
– Sky
– TV license
– Card Protection
– Holidays & Special Events
– Weddings
– Stag Do's
– Haircuts / Beauty
– Presents
– General savings

Developing this list helps you learn exactly what you need to budget each month and pay into savings. In particular, you need to work out all the seemingly random and unexpected expenses (such as weddings and stag-do's). Otherwise, you get caught out.

In this, highlight all the items on the list that you would regard as 'worship' to God. Interestingly, most of the items are necessary in life (most, not all!). And a lot have a question mark over them. These are the open-ended ones, such as food, clothing, socialising, holidays, presents, phone tariff and type of vehicle. They can all be governed with wisdom and diligence, or they can be self indulgent and reckless. These will make or brake the bank.

"So whether you eat or drink or whatever you do,
do it all for the glory of God."
1 Corinthians 10:31


3) Determine the open-ended expenses.

– Food
– Clothing
– Convenience foods
– Socialising
– Presents
– Random purchases

These are the day-to-day expenses that can go off the scale if left unchecked. The most effective way that Lynsey and I have dealt with this is to have a weekly cash allowance. We worked out that we get £25 each per week, and out of that we have to cover all of the above. All birthday, Christmas, wedding presents, clothes etc come out of this. We have to save up in advance for lots of these.

We've found it to be a brilliant method as when the money in your wallet is gone, that's it for the week. You know you won't go over budget. And anything you buy, you know you can afford and you feel good!


4) Keep on top of it.

It only takes 30 minutes every week or so. Regular updates to your charts means you can remember what the expenditures on your bank statements relate to. Constantly updating your averages and budget keeps things in check. Apparently the very act of keeping accounts improves your spending, as you're mindful of your finances.


5) Find peace about your church giving.

It's not about 10%, it's about generosity. There's nothing in the New Testament about giving 10%. In reality, when you study the early church, they all appear to give much more than this. Old Testament tithing was effectively the Jewish taxation system, and was actually about 25% of their total income per year. The 10% figure is just a reference to the largest part.

"Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver."
2 Corinthians 9:7

Would you ever want a present off a friend who gave it reluctantly because they felt they had to? You would probably feel awkward, and wish they hadn't felt obliged. In stark contrast, how much would you love to get a gift from a friend who was really excited to give it to you, and couldn't wait to see the look on your face! You would love it.

I think each one of us has to find the right level of giving and the right heart that produces this excited attitude. In one sense, the cost has to be there. The gift has to be worth something to us to contain meaning; but not to the level that it breaks the bank and causes us to freak out.

What feels too low? What feels too high? I think you can home-in on a figure that your heart really feels at peace with, that makes your faith muscles stretch but not tear.

Any thoughts?