Are you struggling with your finances and feeling lost? You’re not alone. Many, both young and old, are facing hard financial times in Kenya, which has had its fair share of economic challenges in recent years. But here’s something worth noting, all have the power to navigate these trials with prudence. So, what practical steps can we take if we find ourselves in a phase of financial difficulty? Let’s explore.
What Does It Mean to Be Broke?
In his LinkedIn post titled ‘The Difference Between being poor and being broke’, Warden Rhino differentiates the terms poor and broke in this way:
“Poor – a mental state tied to certain beliefs about wealth. Until you change your mindset, you remain poor….”
“Broke – a financial state tied to lack of capital. Being broke means you had money, mismanaged it, and now it’s gone, but you still have skills you can replicate to make it back, provided that you avoid making the same mistakes.”
From this definition, we can already see that being broke is tied to mismanagement, which points to a lack of stewardship. However, I do want to acknowledge that there are times when God, in his sovereignty, will cause for us to be broke despite our good stewardship. Such an example of a situation can be found in the book of Job (Job 1:1-12). It takes wisdom to know whether your broke moment is one caused by poor stewardship or one of the sovereignty of God. Job teaches us that if you’re broke due to the sovereignty of God, then your money can be restored; hence, remain steadfast in the Lord (Job 42:10, 1 Peter 5:10, James 1:2-4). For this blog, however, I will be dealing with being broke due to poor stewardship.
How to be a Poor Steward
Laziness
Whenever you can do something but find it difficult to do just because you prefer not to, you are being borderline lazy. The Oxford Dictionary defines it as the quality of being unwilling to work or use energy. Adam was not created to sit around and do nothing and this goes for all humanity. He was made to work and be active (Genesis 2:15). Eden was perfect but not devoid of work, that is pleasurable work. God intended that Adam and Eve would find joy in doing what they were created to do, and we know this because of the contrast that comes in after the Fall. Man would face hardship and toil in order to eat food through the sweat of his brow (Genesis 3:19-24).
Solomon expressed the sorry state of the lazy man (who must always find himself broke) and strongly discouraged us from that path (Proverbs 244:32-34, 19:15, 20:13, 6:10, Ecclesiastes 4:5). Are you this lazy man who is folding their hands and waiting for handouts and miraculous wealth? Arise from your bed and start the journey to do away with laziness. If you remain lazy, then you will stay broke.
Dependency Mentality
The other thing that makes us walk in such desperation (being broke) is the thought that everyone must always give us something for survival. It is called the dependency mentality. Cambridge Dictionary defines dependency as a situation whereby you need something or someone and cannot continue normally without them. So, we have people who won’t work because they have wealthy parents/guardians from whom they expect to receive all the benefits of hard work.
This attitude and mentality are rampant in the younger population, who have a very unreasonable sense of entitlement, which breeds the mindset of dependency. Paul warned that those who do not work should not eat (2 Thessalonians 3:10) mainly to address laziness. The instructions that Timothy receives as he establishes the Church are that those who refuse to provide for their families have denied the faith (1 Timothy 5:8). The only form of dependency a believer ought to exhibit is upon the Lord (proverbs 3:5-6), which, in a more profound sense of things, calls us out of dependency on people.
No Financial Goals
Financial goals are stepping stones to our growth and success. Some people have chosen to live recklessly and not care about planning or strategizing for tomorrow. We are called to have plans and submit them to the Lord (Proverbs 3:5- 6), not just doing things randomly. The best reference for hard work and goals are the ants (Proverbs 6:6-8), which take time to save up for the stormy days ahead. A man who has goals and works at them is wise and will get a reward (Proverbs 24:27). What are your goals? Are you saving some money for the rainy days? Or the question should be, are you even working or doing business? Are you using constructive means of getting money? Being broke is directly connected to a lack of goals or focus. Jesus warned us about such living (Luke 14:28) when he talked about counting the cost. Those who count the cost have character qualities such as being thinkers, hard workers, and being deliberate in all they do. Most people are broke because they lack a road map out of their present situation . When one fails to plan, then they have automatically planned to fail.
Too Much Bad Debt
Debt is good when taken for the right reasons and with the right repayment plan. Economists and financial advisers will tell you that there is such a thing as good debt. When you take a debt/loan to buy assets, you invest wisely. Assets are things that will bring value and add to the quality of life as they bring in profit. Liabilities, on the other hand, are things that and to your monthly expenditure and dent your monthly cash flow, than add to it. Debt taken for liabilities is bad debt because it drains more than it adds, and will eventually leave you cashless and broke. I encourage you to only take a debt when you have a clear repayment plan (Proverbs 22:26-27). With this, you will have made a drastic step away from being broke (1 Timothy 5:8). If you cannot afford it, then you probably do not need it, and if you still get it, please ensure you can pay for it (Romans 13:7).
Is There Hope?
Now that we know what makes us broke, is there a chance that we can walk away from these things, or are we doomed to remain in this condition? Scripture tells us that discipline will only produce fruit for those trained by it (Hebrews 12:11). We must take deliberate steps away from the self-inflicted life of being broke and become more intentional about making things different in life. What practical steps can we take?
Budget Your Resources
Write down the monthly or weekly funds you receive. Also, write down all your financial responsibilities; otherwise, you will not really know where your money went (Proverbs 21:5). If you fail to plan, you automatically plan to fail.
Pay Your Bad Debts
Secondly, teach yourself to repay when you borrow from others. You are a slave to the one you borrow from (Proverbs 22:7, Romans 13:8, Psalm 37:21). Deny yourself some luxuries and pay off the debt until you are free. Get a friend or spouse to keep you accountable as you walk this difficult path. Remember, if you’re disciplined, It shall soon pass.
Be Content and Live Within Your Means
Avoid impulse expenditures and learn to say ‘No!’ to unnecessary, unbudgeted spending. Contentment is reminding yourself that you are okay with the little you have and having no pressure to match up to others who seem to be doing much better than you; herein lies significant gain (1 Timothy 6:6-10).
Set Up An Emergency Fund
Finally, save some cash for rainy days (because they will come…unannounced). Do not spend funds from this account until you really need to. There is wisdom in keeping money aside in some account for the sake of an unknown tomorrow, just like the ants do (Proverbs 6:6-9). There are different options to save and invest, such as money market funds among others. Do your due diligence and choose the one that suits your needs best.
In conclusion, may we be quick to take the necessary measures to tackle the broke vicious cycle regardless of income. Let us aim to be good stewards of what we have and glorify God in how we spend your money.
References
Warden Rhino, linkedin.com/pulse/difference-between-broke-and-poor
What does poor cash flow mean? (2024). https://schoolsofspanish.com/articles/what-does-poor-cash-flow-mean
