Patience: A Fruit of the Spirit that Transforms Our Financial Journey

Patience is the ability to wait for someone or something without becoming agitated or frustrated. It’s a calm, self-controlled attitude that isn’t instinctively present at birth but rather develops over time, especially through challenges and adversity. The apostle James teaches that patience grows in the midst of trials and hardships

James 1:2-4, says: “My brethren, count it all joy when you fall into various trials, knowing that the testing of your faith produces patience. But let patience have its perfect work, that you may be perfect (mature) and complete, lacking nothing.”

A patient person reaps many benefits: reduced stress, greater perseverance, improved problem-solving skills, and healthier relationships. In contrast, impatience often leads to restlessness, irritability, and rushed decisions without proper thought.

When it comes to finances, patience plays a crucial role in making wise financial decisions, avoiding costly mistakes, and preventing the burden of debt. Patience helps us delay gratification and trust God to meet our needs, while also teaching us to manage our money in a way that allows us to grow our savings over time and make big purchases without relying on debt.

Patience to Delay Gratification

It’s no secret that waiting for something you really want can be frustrating. Whether you’re saving for a special vacation, a new car, your first home, a new outfit, or the latest gadget, delaying that immediate gratification isn’t easy. However, the benefits of saving and waiting are substantial.

  • Avoiding Debt: By saving for an item instead of charging it, you avoid the stress of debt that can take months or even years to pay off, often with interest.
  • Increased Satisfaction: The anticipation of waiting often heightens your satisfaction when you finally make the purchase, and the joy of avoiding debt adds to that satisfaction.
  • Better Deals: Waiting gives you the time to research the best deals, potentially finding better prices or discovering a product that better meets your needs.

As Solomon wisely observed in Proverbs 22:7, “The rich rules over the poor, and the borrower is a servant to the lender.” Patience helps you avoid this type of financial bondage.

Patience to Accumulate Wealth Over Time

One of the best financial strategies is to start saving small amounts early, allowing your investments to grow over time. Consider this: If you begin saving $25 a month at age 25 into an annuity paying 3% interest, by the time you turn 65, your $12,000 investment will grow to $23,209. It’s not hard to save $25 a month—just skip one dinner or two lunches out each month, and you’ll be able to invest that money. If you increase it to $25 a week, your balance would grow to $100,547.

This principle is found in Proverbs 13:11, “Whoever gathers money little by little makes it grow.”

Trying to get rich quickly can often lead to risky, costly mistakes. Some people resort to gambling or high-risk investments that promise large returns. However, gambling can lead to addiction and financial ruin, and get-rich-quick schemes often end in loss. In fact, the Federal Trade Commission estimates that Americans lost more than $8 billion in 2023 to risky investments and scams, and nearly $117 billion was lost to gambling.

Patience to Wait on God

Patience is also about waiting on God’s timing. It’s about trusting that He will fulfill His promises, even when it seems like our prayers go unanswered. Patience allows us to stay faithful, even when we feel overwhelmed by financial difficulties. God has promised to meet all our needs, and He is faithful to His word.

In Philippians 4:19, Paul expressed his confidence that God would provide for the needs of the Philippians: “And my God shall supply all your need according to His riches in glory by Christ Jesus.” Despite the trials Paul faced, he had learned to be content, knowing that God would meet his every need. Patience and faithfulness during trials helped Paul grow in his trust in God’s provision.

When we wait on God, we develop patience and maturity, learning that God’s timing is perfect. Even when waiting feels difficult, remember that the trials we endure can build perseverance, and perseverance leads to maturity in our faith.

A Reflective Question for Your Heart

As you reflect on your relationship with money, consider the following:

  1. Have you made financial decisions in the past that might have turned out better if you had been more patient?
  2. Can you recall instances where God rewarded your patience with a better outcome than you expected?

Take a moment to think about these questions, and feel free to share your thoughts in the comments. Let this be an opportunity to invite God’s peace and patience into your financial journey.

Know Your Financial Statements—Accounts Payable

Most small businesses have a number of unpaid bills at any given time. Inventory has been delivered, but the invoice isn’t due yet. Utility bills arrive two to three weeks before the due date. Retail sales tax has been collected but not remitted to the tax department. Payroll withholding taxes are being held in escrow until it’s time to file quarterly reports. These unpaid bills are known as accounts payable.

It’s crucial to keep track of your accounts payable so you know how much is owed, to whom, and when the bills are due. Managing your accounts payable effectively offers several benefits. A statement of accounts payable will help you achieve this.

Benefits of a Statement of Accounts Payable

  1. Effective Cash Flow Management
    Accounts payable should be included in your cash flow statement for the month they are due. This ensures that you’ll have enough cash on hand to cover those bills. It also helps highlight months where a shortage might occur, allowing you to arrange a line of credit to meet forecasted shortfalls.
  2. Avoidance of Late Fees and Interest
    Tax authorities impose penalties for late filing of quarterly tax payments and monthly sales tax reports. Banks, utility companies, and suppliers may also charge late fees or interest for bills that aren’t paid on time.
  3. Take Advantage of Discounts
    Many suppliers offer discounts for early payment. A statement of accounts payable lets you easily spot vendors offering discounts, so you can ensure bills are paid on time to take advantage of these savings.
  4. Maintain Good Credit and Vendor Relationships
    Timely payments are key to maintaining a strong credit score and healthy relationships with lenders and suppliers.
  5. Preparation for Loan Requests
    If you need to borrow money or establish a line of credit, lenders will often request a statement of accounts payable. This statement helps them evaluate your level of debt in relation to industry norms and your ability to cover outstanding debts if your revenue declines.

Creating a Statement of Accounts Payable

A statement of accounts payable is essentially a table that includes:

  • Name of creditor
  • Account number or invoice number
  • Invoice date
  • Due date
  • Amount owed
CreditorAcct/Invoice NumberInvoice DateDue DateAmount
Bill 1    
Bill 2    
Bill 3    
Bill 4    

Tips for Managing Accounts Payable

Managing accounts payable effectively is crucial for maintaining healthy cash flow and good vendor relationships. Here are some best practices to consider:

  • Separate Regular and Occasional Bills
    Keep distinct charts for bills that occur regularly and those that are occasional. This makes it easier to track and manage.
  • Record Monthly Bills on Your Cash Flow Statement
    Include occasional bills in the months they are due, not just the regular ones. This will help you get a clear picture of your upcoming cash flow needs.
  • Set Up Automatic Payments for Fixed Monthly Bills
    Set up automatic payments for bills like rent, loan payments, cell phone bills, and subscriptions that are predictable and have a fixed amount.
  • Estimate and Adjust for Variable Bills
    For bills that vary, like utilities or discretionary expenses (marketing, for example), use an estimated amount in your cash flow statement and adjust for seasonal variations.
  • Automate Bill Payments When Possible
    If possible, have bills go directly to your bank. This simplifies the payment process, especially if you’re using a bill-paying app.
  • Track Infrequent Bills
    For less frequent bills, like insurance payments, set up automatic payments to ensure you don’t overlook them.
  • Balance Your Checkbook Regularly
    Schedule weekly or bi-monthly checkups to balance your checkbook and confirm that all bills have been paid or are scheduled for timely payment.
  • Forecast Cash Flow in Advance
    Predict your monthly cash balances several months in advance to determine if sufficient funds will be available during slower months. If you forecast a shortage, take steps to ensure enough cash is available, like establishing a line of credit or injecting more capital into the business.

Conclusion

A statement of accounts payable is a simple but powerful tool for tracking your bills and maintaining healthy cash flow. By following the tips above, you’ll be able to manage your accounts payable effectively, avoid late fees, and maintain good credit and vendor relationships.

If you have any questions about managing your accounts payable or tips for creating your own statement, feel free to drop them in the comments below. I’d love to help you better understand this important aspect of your business finances!

The Peace of God in Our Finances: Letting Go of Financial Anxiety

The third fruit of the Spirit is peace—a deep sense of inner contentment and calm. Peace of mind stands in stark contrast to worry or stress. We experience peace when we feel safe and secure. However, in today’s world, feelings of peace can be rare and short-lived. We find ourselves worrying about our family’s safety and health, job security, political turmoil, and, of course, whether we have enough money to meet our obligations.

Money is consistently one of the top causes of stress. In fact, a recent study revealed that 70% of Americans report feeling stressed about their finances, and 90% say that thinking about money causes them anxiety. But God does not want us to live in fear or anxiety about money. He desires for us to have peace, no matter our financial situation.

True Peace Comes from God

The first step in experiencing peace is recognizing that only God can truly supply all of our needs. As Philippians 4:19 reminds us:
“And my God will meet all your needs according to the riches of his glory in Christ Jesus.”

When we bring our needs before God in prayer, He listens and responds in a way that aligns with what’s best for us. Philippians 4:6-7 encourages us:
“Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.”

As we bring our needs to God and trust Him to guide us, we begin to experience the true sense of peace that comes from knowing Christ as our Savior and recognizing God as our ultimate provider.

Money Cannot Give Us Peace

It’s also crucial to acknowledge that no amount of money can provide lasting peace. A 2024 study found that the average American household believes they need an annual income of $186,000 to feel financially secure. However, the most recent Census Bureau data shows that the median household income is $78,538, with only 10% of households earning $186,000 or more. This means that the vast majority of Americans feel insecure about their financial situation. It’s no wonder that many experience stress when they think about money.

Even those whose income greatly exceeds $186,000 often admit feeling financially insecure and wishing for “just a little more.” King Solomon understood this idea when he wrote in Ecclesiastes 5:10:
“Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.”

True peace comes not from accumulating wealth but from trusting in God, who provides for our needs.

Money Is Fleeting

Even if you have accumulated enough money to feel financially comfortable, it’s important to remember that wealth can be lost in an instant. A stock market crash or economic downturn can wipe out fortunes overnight. Political unrest or war can destroy the wealth of entire nations. Many people have lost their wealth due to bad investments or unscrupulous financial advisors.

King Solomon described this in Proverbs 23:4-5:
“Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off into the sky like an eagle.”

Paul also warned against putting our hope in wealth. He wrote to Timothy:
“Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.” (1 Timothy 6:17)

We can only feel secure and at peace with our finances when we depend on the Lord to provide for our needs. Isaiah 26:3 assures us:
“You will keep him in perfect peace, whose mind is stayed on You, because he trusts in You.”

A Reflective Question for Your Heart

As you consider your relationship with money, ask yourself: Do I place my peace and security in my financial situation, or am I trusting God to provide for my needs, no matter what my bank account looks like? Take a moment to reflect on whether your financial outlook aligns with God’s call to trust Him fully or if you’re still holding on to worry and insecurity. Let this be an opportunity to invite God’s peace into your financial journey.

Know Your Financial Statements—Accounts Receivable

If your business extends credit to customers, understanding and managing accounts receivable is essential. Accounts Receivable (AR) refers to the money customers owe for services rendered or goods delivered, and it’s a critical part of your cash flow. Many businesses—like professional services, utility companies, and wholesalers—work with accounts receivable.

What Are Accounts Receivable?

When you extend credit, you’re essentially allowing your customers to pay later, often within a specified number of days. For example, if you deliver goods or services to a customer, you may allow them 30 days to pay the bill. In this case, you would have an account receivable until that payment is made.

To effectively track AR, businesses use an aging schedule, which categorizes accounts based on how long the payment is overdue. At the end of this blog, I’ve provided a helpful Accounts Receivable Aging Schedule Template. This template outlines what to include in your report, but if you prefer to create your own, it offers a great starting point to ensure you’re tracking the necessary information. Typical categories are:

  • Current (not yet due)
  • 1-30 days past due
  • 31-60 days past due
  • 61-90 days past due
  • Over 90 days past due

Why Does This Matter?

An Accounts Receivable Aging Report plays a significant role when you apply for a business loan. Lenders will review this report to assess how much of your business’s sales are made on credit, how it compares to industry norms, and whether there’s a risk of non-collection. Specifically, lenders are concerned about the percentage of receivables that are more than 60 days overdue. If the report shows high delinquency, it could signal poor cash flow management, which might lead to a loan denial.

Why Managing Accounts Receivable is Crucial

Effective AR management is key to your business’s cash flow health. Here are a few strategies to keep in mind:

  • Measure the Effectiveness of Discounts
    Many businesses offer early payment discounts, like “2/10 Net 30,” meaning a customer gets a 2% discount if they pay within 10 days, but the full amount is due in 30 days. If a lot of customers are taking advantage of the discount, cash comes in quicker—but your profit margin takes a hit. Understanding how well your discount terms are working can help balance cash flow with profitability.
  • Monitor Customer Behavior
    Let’s say you’ve had a loyal customer who consistently pays early for the discount, but now they’re paying late or just on time. This could be a sign that they’re experiencing cash flow problems. If so, it’s worth reaching out to see how you can help. Perhaps they need smaller orders, or you can work out a payment plan to keep the relationship strong and reduce your risk of uncollected debt.
  • Improve Cash Flow Management
    By closely tracking overdue invoices, you can promptly follow up with reminders. If certain customers consistently pay late, it might be necessary to put a hold on further orders until they clear their outstanding balance. Proactively managing receivables ensures that cash keeps flowing into your business and reduces the risk of uncollected debt.
  • Assess and Adjust Credit Terms
    If few customers are taking advantage of your early payment discount, it could be time to reassess your credit policy. Maybe your discount isn’t big enough to incentivize early payment. Or perhaps customers need more time to pay based on how quickly they can sell your product. Adjusting your credit terms might help accelerate cash flow without compromising customer relationships.

The Risk and Reward of Extending Credit

Offering credit is an excellent way to attract new customers and keep current ones loyal. A discount for early payment can boost cash flow and reduce the risk of bad debt. But, as with all things in business, extending credit comes with its risks—delayed payments can affect cash flow, and offering discounts reduces profit margins. It’s important to stay informed about industry standards, track your AR regularly, and adjust your policies as needed. Most accounting software has monitoring features that can make this process easier.

Here’s a template for an Accounts Receivable Aging Schedule:

Final Thoughts

Tracking accounts receivable is more than just a financial task—it’s a critical element in your business’s cash flow management. By understanding how to monitor, manage, and adjust credit policies, you can strengthen your business’s financial health and make sure cash continues to flow in the right direction.

Joy and Money: Embracing Contentment Through Generosity

The second fruit of the Spirit listed is joy—a word often associated with gladness and delight. While joy is frequently tied to specific events, such as a parent celebrating their child’s graduation, this type of joy tends to be temporary, fading as circumstances change.

True joy, however, is different. It is internal, unshaken by life’s ups and downs, and is a gift from God. As Romans 15:13 says, “May the God of hope fill you with all joy and peace as you trust in Him, so that you may overflow with hope by the power of the Holy Spirit.”

When it comes to finances, joy plays a critical role in how we handle money. Let’s explore a few ways joy connects to our financial lives.

Joy in Knowing God Is Our Provider

Knowing that God is our provider should bring us great joy. Jesus reminded His disciples not to worry about life’s necessities, assuring them that God would meet their needs. As He said in Matthew 6:25-26, “Therefore, I say to you, do not worry about your life, what you will eat or what you will drink; nor about your body, what you will put on. Is not life more than food and the body more than clothing? Look at the birds of the air, for they neither sow nor reap nor gather into barns; yet your heavenly Father feeds them. Are you not of more value than they?”

During times of financial stress, it’s easy to let worry steal our joy. But in these moments, remembering God’s past faithfulness can restore our peace. I can personally attest to this—when my husband was laid off, and our income dramatically decreased, my first thought was that God would provide. Even in uncertainty, I felt joy and peace knowing He was in control.

When you face financial challenges, take your needs to God in prayer. Jesus promised, “Ask, and you will receive, that your joy may be full” (John 16:24).

Joy from Helping Others

There’s also joy in sharing our resources with those in need. Acts 20:35 teaches, “It is more blessed to give than to receive.” If you’ve ever helped someone less fortunate—whether providing a meal for the hungry or offering relief after a disaster—you’ve likely experienced the satisfaction and joy that comes from easing someone else’s burden.

God calls us to care for the poor and promises to bless those who obey. Deuteronomy 15:10 says, “Give generously to them and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to.” This promise should fill your heart with joy, knowing that your generosity brings blessings.

Furthermore, God delights in those who give with a cheerful heart. As 2 Corinthians 9:6-7 reminds us, “He who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully. So let each one give as he purposes in his heart, not grudgingly or of necessity; for God loves a cheerful giver.”

Future Joy for Faithfulness

We also look forward to the joy of future rewards in heaven for our faithfulness in giving. Jesus taught that we should store up treasures in heaven by being generous on earth. As He said in Matthew 6:19-21, “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.”

When we care for others, we are building treasure in heaven. Jesus further emphasized this in Matthew 25:31-36, explaining that when we feed the hungry, give drink to the thirsty, welcome strangers, clothe the naked, visit the sick, and care for prisoners, we are serving Him. These acts of kindness lead to eternal rewards and deepen our joy in Christ.

Finding Joy Through Generosity

As we trust God to provide for our needs and follow the Holy Spirit’s direction in giving, we experience true joy. This joy is not found in accumulating wealth, but in living out God’s call to be generous and compassionate. When we honor God with our finances, we discover contentment and peace, no matter our circumstances.

Know Your Financial Statements—The Cash Flow Statement

The cash flow statement is an essential tool for business owners and anyone considering business ownership. Unlike the balance sheet or income statement, which show what’s already happened, the cash flow statement is a forecasting tool. It projects future income and expenses over a specific period, helping you see what’s coming down the line.

A typical cash flow forecast is broken down by month and often extends for one or more years. For example, if you’re applying for a commercial loan, the lender will typically request a 24-month forecast.

A solid cash flow statement does three important things:

  1. Demonstrates the profit potential of your business
  2. Highlights the seasonal nature of your revenue
  3. Shows when you might face cash shortages

When Should You Develop a Cash Flow Forecast?

As a business owner, it’s critical to create a cash flow forecast before making major decisions like:

  • Starting a new business
  • Applying for a business loan
  • Changing locations (whether moving from a home office to a rental or expanding to a larger space)
  • Hiring additional employees
  • Opening a second location
  • Introducing new products or services

How to Develop Your Cash Flow Forecast

To create your cash flow forecast, follow these steps:

  1. Identify Your Revenue Streams:
    List out all the ways your business makes money. This could include retail sales, consulting services, wholesale accounts, etc.
  2. Estimate Monthly Revenue for Each Stream:
    • What does the “average” customer spend?
    • How often will purchases be made? Retail sales might happen daily, but consulting services could be more occasional and of a higher value.
      • How will customers pay? Retail transactions are typically paid upfront, but wholesale or service-based businesses may bill customers and expect payment within a set number of days. Make sure to include the revenue in the month you expect to receive payment.
  3. Account for Seasonality:
    Some industries see fluctuating revenue throughout the year. For example, retail tends to be slower in the first quarter and peaks in the last quarter. Be sure to include this in your forecast.
  4. Estimate Your Costs:
    • Cost of Goods Sold (COGS): How much does it cost to produce or acquire the goods/services you sell?
    • Operating Expenses: Fixed expenses (rent, salaries, insurance), Variable expenses (utilities, marketing, supplies), and Occasional expenses (licenses, subscriptions, property taxes)
    • Non-Operating Costs: These include investments in new equipment, furniture, building improvements, utility deposits, and loan payments.
  5. Include Your Owner’s Draw:
    Your own payment, called the Owner’s Draw, should be listed at the bottom of your cash flow statement to show that you’re paid after all bills are covered.

Cash Flow vs. Income Statement

The cash flow statement and income statement are different in a few key ways:

  • Loan Payments: The cash flow statement includes the entire loan payment (both principal and interest). The income statement, however, only includes the interest portion of the loan, as that’s the amount that’s tax-deductible.
  • Depreciation: While depreciation affects your income statement by reducing taxable income, it doesn’t appear on the cash flow statement because it doesn’t involve an actual cash outflow.

Why Accurate Estimates Matter

It’s essential to estimate revenues and expenses as accurately as possible. Your cash flow forecast will help you decide whether to start or expand your business, assist lenders in evaluating your loan application, and highlight any months where your revenues might fall short of covering expenses. By recognizing potential cash shortfalls ahead of time, you can make a plan to cover those gaps—whether by borrowing, saving during busier months, or investing your own funds.

Get Started with Your Own Cash Flow Statement

I’ve included a cash flow statement template to help you create your own forecast. If you’d like an editable version of the worksheet, just email me at susan.ball5@aol.com, and I’ll send you a copy.

How LOVE Shapes Our Financial Choices

Love is a word we use frequently, but often in different ways. We say “I love that!” when we talk about food, clothing, or even our favorite vacation spots. While these may reflect strong preferences, they’re far from the deeper, more self-sacrificial love we’re called to show our family, friends, and ultimately, God.

In his paper The Fruit of the Spirit: Love, James Hernando defines love as a relationship term within the context of redemption. He writes, “Love…defines our relationship to ourselves, to God, to our neighbor, and to the members of God’s body.” God’s love is self-giving, intimate, and requires personal involvement. It’s the kind of love that drives us to share our resources—especially our finances—to meet the needs of others.

Love and Giving: A Call to Action in Christian Finances

We demonstrate love in tangible ways when we open our pocketbooks and share the financial blessings God has given us. The Bible is clear about this. In the Old Testament, God commands the Israelites to care for the poor: “For the poor will never cease from the land; therefore, I command you, saying, ‘You shall open your hand wide to your brother, to your poor and your needy, in your land.’” (Deuteronomy 15:11) Similarly, in the New Testament, John reminds us that the love of God isn’t just a feeling; it’s actionable: “But whoever has this world’s goods, and sees his brother in need, and shuts up his heart from him, how does the love of God abide in him?” (1 John 3:17)

You might be thinking, “I work hard for my money. Why should I sacrifice my earnings for others?” The answer lies in understanding the depth of God’s love for you. He loved you so much that He gave His only Son to die for you. Jesus’s love was sacrificial—it cost Him everything. Our love should reflect that same generosity, both spiritually and financially, as we strive to honor God with our money.

Intimacy in Love: A Heart Connection in Financial Stewardship

God’s love is intimate. Hernando writes, “Intimacy involves close personal interaction resulting in commitment, emotional bonding, and mutual care and concern.” Jesus modeled this intimacy with His disciples—He spent time getting to know them, understanding their needs, and responding with love.

As we grow in love, our relationships deepen, and we naturally start to care for others, not just emotionally, but practically, including financially. This was evident as the early church met daily to pray, fellowship, share meals and meet one another’s needs. “Now all who believed were together and had all things in common, and sold their possessions and goods, and divided them among all, as anyone had need.” (Acts 2:44-45) Christian stewardship means being generous with our resources to help those around us.

Avoiding the Love of Money: A Biblical Warning

As we mature in the Fruit of the Spirit, we become less attached to money and more devoted to loving God and others. Jesus warned that it’s impossible to serve both God and money: “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.” (Matthew 6:24, NIV)

The love of money can harm our relationship with God and create all kinds of problems. “For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.” (1 Timothy 6:10) Money, when idolized, becomes a barrier to a relationship with God and others. It can even destroy relationships, as people prioritize wealth over love and well-being.

Loving money leads people away from God and into many types of sin.  “For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy.” 2 Timothy 3:2 The sins depicted in this verse are attitudes that destroy relationships with God, family members, and friends.  As these attitudes take root in a person’s heart, he or she may go to great extremes to get more money. For some this involves sacrificing their families and relationships to seek promotions and raises in order to earn larger salaries and achieve more status.  Others violate the law to gain more money.  Stealing, fraud, tax evasion, identity theft, and robbery are just a few of the ways that greedy people try to gain more money.  No matter how much money they obtain—either through hard work and ingenuity or through theft and crime—lovers of money will never be satisfied.

Despite what culture tells us, money can never fulfill our spiritual and emotional needs. “He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity.” (Ecclesiastes 5:10-11, ESV) Biblical stewardship teaches us that contentment comes not from accumulating wealth, but from trusting God to provide all we need.

Loving Others: A Practical Application of Financial Stewardship

Romans 12 offers practical instructions for loving others, many of which tie directly into how we handle money. Take your Bible or open your Bible app and look up Romans 12:9-15 & 20-21. Discover how some of the instructions apply directly to our use of money:

  • Entertain strangers
  • Demonstrate hospitality
  • Feed and give drink to our enemies
  • Provide for the needy

These actions often require us to spend our resources—time, energy, and yes, money. Christian hospitality doesn’t have to be extravagant, but it does require sacrifice. We are called to share freely, not to impress others, but to genuinely care for their needs.

As you grow in your relationship with God, your heart for others will deepen. Be attentive to the Holy Spirit’s promptings, and seek opportunities to love others with your finances, just as Christ loves you. In doing so, we demonstrate biblical generosity and honor God with the resources He has entrusted to us.

Final Thoughts on Stewardship and Love

As we reflect on how love impacts our finances, we are reminded that it’s not about the amount we give, but the heart behind it. True love—God’s love—compels us to be generous, sacrificial, and intimate in our care for others. Let that love guide your financial choices today, and trust that God will bless your generosity.

Know Your Financial Statements—The Income Statement

As a business owner, understanding your financial statements is key to making informed decisions. In this post, we’re diving into the income statement—a crucial report that shows how well your business is performing over a specific period of time, whether it’s a month, a quarter, or a year. Simply put, the income statement tells you how much revenue you’ve earned, how much you’ve spent, and—ultimately—whether you’re turning a profit.

Revenue: The Starting Point

The income statement starts with revenue, also known as sales or income. This represents the money your business earns before any expenses are subtracted. For most businesses, revenue can be broken down into different categories, depending on the nature of the business.

Common sources of revenue include:

  • Sales (products or services)
  • Fees and commissions
  • Rental income and interest income
  • For nonprofits, revenue also includes donations

You might also break down your revenue into specific categories to gain deeper insights into how your business is performing in different areas. Here are a few examples of how businesses typically organize revenue:

  • In-store vs. online sales
  • Food vs. beverage sales (for restaurants)
  • Restaurant sales vs. catering sales
  • Sales by department (women’s, men’s, and children’s clothing)
  • Sales by location (if you have multiple stores)

Cost of Goods Sold (COGS): Direct Costs Tied to Sales

Next, we have the Cost of Goods Sold (COGS), which represents the direct costs associated with producing or acquiring the goods you sell. COGS is often separated from operating expenses because it directly impacts your revenue.

The formula for COGS is:

COGS = Beginning Inventory + Purchases – Ending Inventory

For manufacturers, this cost also includes direct labor (the wages paid to employees who produce the product) and the raw materials used to create the product.

Keep in mind, determining your COGS accurately requires precise inventory management. Regular inventory counts—whether manual or tracked through software—are essential. Also, fluctuations in purchase prices can affect your COGS, especially if inventory items were bought at different prices.

Operating Expenses: The Cost of Running Your Business

Now, let’s talk about operating expenses—the costs involved in running your business day-to-day. These expenses can be fixed or variable:

  • Fixed expenses stay the same every month, such as rent, salaries, insurance, and depreciation.
  • Variable expenses change from month to month, such as wages (if you’re paying hourly employees), utilities, credit card fees, and supplies.

Some expenses can fall into both categories. Take advertising for example: while contracted services like digital ads might be a fixed cost, other components—like ad spend or promotional events—could fluctuate based on your business decisions.

Other Expenses: Beyond Operations

In addition to operating expenses, businesses also incur other expenses that are not tied directly to day-to-day operations. These are typically separated on the income statement.

Here are a few examples of “other” expenses:

  • Loan payments: The principal portion of a loan repayment isn’t deductible, but the interest portion is. Only the interest is accounted for here.
  • Capital expenditures (CapEx): While expenses related to property and equipment are legitimate business costs, they aren’t shown directly on the income statement. Instead, these are capitalized on the balance sheet and then depreciated over time.
  • Taxes: These include property taxes, sales taxes, and income taxes, and are generally listed separately from operating expenses.

The Bottom Line: Profit

After all expenses have been deducted, what’s left is your net profit (or loss). This is the amount that ultimately accrues to the owner(s)—and what determines if your business is financially healthy.

Final Thoughts

The income statement isn’t just a tool for accountants; it’s an essential document for any business owner. Understanding each section allows you to make smarter decisions about pricing, expenses, and growth. By regularly reviewing your income statement, you’ll have a clear picture of where your business stands and what adjustments might be necessary to hit your goals.

Here’s a template to show you what an income statement looks like:

Company Name
2025
Revenue
  Less:  Cost of Goods Sold 
Gross Profit $             –  
Expenses:
  Administrative Expenses
  Advertising and marketing
  Credit card fees
  Depreciation
  Insurance
  Interest expense
  Licensing and registration
  Professional Services
  Professional Memberships
  Office Expense
  Owner’s Draw
  Rent
  Supplies
  Telephone & Utilities
  Travel Expenses
  Wages
Total Expenses $             –  
Net Profit (Loss) $             –  

If you’d like a changeable balance sheet template, feel free to email me at susan.ball5@aol.com, and I’ll send it your way!

Money, Faith, and the Fruit of the Spirit: A Christian’s Guide to Financial Wisdom

“But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, self-control.” Galatians 5:22-23

As Christians, we’re called to grow closer to Jesus, allowing His life and teachings to shape every part of our lives—including how we handle money. The way we manage our finances can reflect Christ and influence those around us, especially in a world where many are struggling with financial stress.

Money is simply a tool—it helps us navigate life and conduct business—but it should never be the focus of our lives. Your worth is not determined by how much you have in the bank; it’s rooted in the truth that you were created by God, who loves you deeply. The way we handle money, however, should reflect God’s heart, shining His light in a world full of need.

In this blog, we’ll explore how the Fruit of the Spirit can guide us in our approach to money. Think of this post as an overview—a beginner’s guide or refresher on how these biblical qualities intersect with our financial lives. Over the coming weeks, I’ll dive deeper into each characteristic, offering more insights and practical tips for applying these principles in your finances. This series can serve as a personal study, a group discussion for Sunday school, or a home group study to help you grow in both your financial stewardship and your walk with Christ.

Love

When you accept Christ, God’s love fills your heart. In fact, He calls us to love Him with all that we are: “You shall love the Lord your God with all your heart, with all your soul, and with all your strength.” (Deuteronomy 6:5)

Desiring money isn’t sinful, but loving it can be. When we place too much emphasis on acquiring wealth, we risk letting it take God’s rightful place in our hearts. Jesus makes this clear in Matthew 6:24: “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”

When we love money more than God, it can lead to destructive behaviors like theft, fraud, or worse. As 1 Timothy 6:10 warns: “For the love of money is the root of all kinds of evil.”

How Love Shapes Our Financial Choices

Joy

We all want joy, but it’s different from happiness. Happiness is based on circumstances—it’s temporary, like the joy you feel when you receive good news. Joy, on the other hand, is deeper and more lasting. It comes from knowing our sins are forgiven and that we are part of God’s eternal family.

Romans 15:13 tells us, “May the God of hope fill you with all joy and peace as you trust in Him.” This kind of joy isn’t dependent on money or possessions.

While an unexpected windfall may bring a moment of happiness, it can’t provide the lasting joy that only comes from Christ. As Jesus reminds us in Luke 6:23–24, “Rejoice in that day and leap for joy, because great is your reward in heaven. For that is how their ancestors treated the prophets. But woe to you who are rich, for you have already received your comfort.”

Joy: Embracing Contentment Through Generosity

Peace

True peace comes from knowing we are secure in Christ. As Jesus said, “In this world, you will have trouble. But take heart! I have overcome the world” (John 16:33). No amount of money can provide that kind of peace.

Even the wealthiest people often feel insecure. Studies show that even multi-millionaires regularly feel that they need even more money to feel “secure.” King Solomon understood this when he wrote in Ecclesiastes 5:10: “Whoever loves money never has enough.”

True peace comes from trusting in God, not in wealth.

Peace: Letting Go of Financial Anxiety

Patience

Patience helps us avoid rushing into poor financial decisions. It allows wealth to grow over time and teaches us to wait before making big purchases until we can afford them. Without patience, we might impulsively invest in get-rich-quick schemes or fall into debt by buying things we can’t afford.

Proverbs 13:11 teaches, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” And Proverbs 22:7 reminds us, “The rich rules over the poor, and the borrower is a servant to the lender.” Patience and self-control in money management are key.

Patience Transforms Our Financial Journey

Kindness

Kindness means treating others as family—especially those in need. As God’s people, we’re called to show kindness by helping those less fortunate, both with our resources and our time. True kindness eases others’ burdens and points them to Christ.

Job 6:14 says, “Anyone who withholds kindness from a friend forsakes the fear of the Almighty.” Jesus also taught that when we serve the least among us, we are serving Him (Matthew 25:31-46).

Isaiah 58:6-7 explains that true fasting is about meeting the needs of the poor and oppressed. “Is it not to share your bread with the hungry, and to bring the poor who are cast out into your house?”

The Power of Kindness

Goodness

Goodness is about using what we have to fulfill God’s purpose, especially in helping others. James 4:17 tells us, “Anyone who knows the good he ought to do and doesn’t do it, sins.” When we fail to care for others, especially the poor, we miss an opportunity to show God’s love.

1 John 3:17-18 challenges us: “If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person? Dear children, let us not love with words or speech but with actions and in truth.”

Proverbs 21:13 warns that if we ignore the cries of the poor, God may not answer us in our own time of need. “Whoever shuts their ears to the cry of the poor will also cry out and not be answered.”

How Practicing Goodness Can Transform Your Finances

Faithfulness

God is faithful to provide for us, and we are called to be faithful with what He has entrusted to us. This includes being faithful to give—whether through tithing or supporting others in need. Malachi 3:8-10 reminds us that failing to tithe is like robbing God, and that He will bless those who are faithful in their giving.

Jesus also promises rewards for those who use their resources wisely. In Luke 19:17, the faithful servant is told, “Well done, good servant; because you have been faithful in a very little, you shall have authority over ten cities.”

The Reward of Faithfulness

Gentleness

Gentleness compels us to help others without making them feel ashamed. It’s easy to judge those in financial trouble, but the Bible calls us to restore them gently. Galatians 6:1 reminds us, “If someone is caught in a sin, you who live by the Spirit should restore that person gently.”

As we help others, we must remember that our fortunes can change. Today, we may be the ones in a position to give, but tomorrow, we might need help ourselves (Proverbs 23:5). We should offer assistance discreetly and with humility, following the Golden Rule: “Do to others as you would have them do to you” (Luke 6:31).

Financial Help with a Gentle Heart

Self-Control

Self-control is essential for avoiding impulse spending and debt. It also applies to giving. While it’s important to be generous, we must be careful not to give beyond what we can afford, trusting that God will meet our needs (Philippians 4:19).

Jesus warned against giving to be seen by others. “When you give to the needy, do not let your left hand know what your right hand is doing” (Matthew 6:3). Self-control in giving, just like in spending, helps us maintain balance.

Proverbs 21:17 reminds us that “He who loves pleasure will become poor; whoever loves wine and oil will never be rich.” We must practice self-control in all areas of life to manage our resources well.

Steward-well blog

A Personal Bible Study on Money and the Fruit of the Spirit

As you reflect on the principles of money and the Fruit of the Spirit, I encourage you to take a moment to think about how each characteristic applies to your own financial life. The Fruit of the Spirit isn’t just a list of qualities to admire—it’s a call to live out the very nature of Christ in every area of life, including how we handle our finances.

Would you like to make this a personal study?
Consider printing out this blog and keeping it in your Bible as a reminder. You can use it for daily reflection or as a study guide with family or friends. Allow the Holy Spirit to reveal areas in your financial life where you can grow in love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control. Ask God to give you wisdom as you apply these principles, and trust that as you do, He will bless your efforts and help you reflect His character in all you do.

Know Your Financial Statements: Understanding the Balance Sheet

Many small business owners find financial statements intimidating, but they don’t have to be. Understanding your financial statements is key to managing your business’s health and growth. In this blog post, we’ll break down the balance sheet—one of the most essential financial statements you need to know.

By the end, you’ll have a clearer understanding of how your business’s assets, liabilities, and equity come together to tell the story of your company’s financial health.

What Is a Balance Sheet?

A balance sheet provides a snapshot of your business’s financial position at a specific point in time. It outlines three core components:

  • Assets: What your business owns
  • Liabilities: What your business owes
  • Equity: The owner’s stake in the business

The fundamental equation behind a balance sheet is:

Assets = Liabilities + Equity

This equation shows that all assets are financed either by the owner’s investment, debt (liabilities), or retained earnings (profits that remain in the business).

Assets: What Your Business Owns

Assets are the resources your business owns or is owed. They can be divided into two main categories: Current Assets and Fixed Assets.

Current Assets

These are assets that can be converted into cash or used within one year. They include:

  • Cash: Money in bank accounts and on-hand
  • Accounts Receivable: Money owed to the business, typically due within a year (e.g., unpaid customer invoices, credit card balances)
  • Inventory: Goods held for sale or used in production

Inventory Valuation Tip: Inventory can fluctuate in value over time. A common method is the FIFO (First In, First Out) method, where older inventory is sold first. This helps ensure the most recent purchases are valued accurately.

Fixed Assets

Fixed assets are long-term investments that have a stable value and are expected to last for more than one year. These include:

  • Furniture, fixtures, and equipment
  • Property and real estate
  • Vehicles

Depreciation: Fixed assets lose value over time due to wear and tear. Your accountant will help determine the most beneficial depreciation method for your business, as set by the IRS.

Liabilities: What Your Business Owes

Liabilities represent debts your business is obligated to pay. These are also categorized into two types: Current Liabilities and Long-Term Liabilities.

Current Liabilities

These are debts that need to be paid off within a year, including:

  • Accounts Payable: Money owed to suppliers for purchases made on credit
  • Accrued Expenses: Unpaid expenses like utilities and payroll
  • Short-Term Loans: Loans due within the next 12 months
  • Taxes Payable: Unpaid taxes, such as sales tax or payroll taxes

Long-Term Liabilities

These are debts that won’t be paid off within the next year, including:

  • Bank loans
  • Mortgages

Equity: The Owner’s Investment and Retained Earnings

Equity represents the value of the owner’s investment in the business. It shows how much of the company’s assets belong to the owner after liabilities are subtracted.

Owner Investment vs. Retained Earnings

  • Owner Investment: Money the owner invests to fund the business’s start-up or operations (also known as Owner’s Injection).
  • Retained Earnings: Profits that are kept in the business rather than taken out by the owner for personal use. These earnings are used to fuel growth and expansion.

If your business is incorporated, the value of the owner’s investment is shown through stock shares issued to the owner. For sole proprietors or LLCs, the investment is recorded directly as part of the business’s equity.

How to Create a Balance Sheet for Your Business

To create your own balance sheet, start by listing all your assets and liabilities. Here’s a simple balance sheet template you can use:

Balance Sheet 
Company Name 
  
 2025
Assets: 
  Cash 
  Account Receivable 
  Furnishing 
  Equipment 
 Net Fixed Assets 
Total Assets $                 –  
  
Liabilities and Equity: 
  Accounts Payable 
  Notes Payable 
  Long-term Debt 
Total Liabilities                    –  
  Owner’s Injection 
  Retained Earnings 
Total Equity                    –  
  
Total Liabilities + Equity  $                 –  

If you’d like a changeable balance sheet template, feel free to email me at susan.ball5@aol.com, and I’ll send it your way!

Final Thoughts: Why the Balance Sheet Matters for Your Small Business

Your balance sheet is more than just a snapshot of your business at a specific point in time. It’s a valuable tool that helps you:

  • Understand the financial health of your business
  • Track your growth and plan for future investments
  • Make informed decisions about spending, borrowing, and retaining earnings

By regularly reviewing your balance sheet, you’ll be better equipped to manage your finances and maximize your profits. Have questions about your business’s balance sheet? Or need help understanding your financial statements better? Drop your questions in the comments below, and I’ll get back to you as soon as possible.