Why is it important for Christians to understand the banking system? Although its main purpose is to help us to save money, it can also get us into trouble by contributing to debt. We know banks are necessary, but we also need to know how to use them.
On this episode of Faith and The Future, Dr. Kameel Majdali discusses the banking system’s impact on the economy and what he thinks we should all know about financial management and how it mirrors other aspects of our lives.
‘I still believe putting money in the bank as an initial process is good discipline for the future,’ says Kameel. ‘Money is the litmus test because Jesus says where your treasure is there your heart will be also.’
Banks give us debt in at least two ways. One is through the issuing of credit cards. The other is through loans. Kameel says his philosophy is simple, and he believes it’s a biblical mindset. Don’t let anything be master over you. The only master you should have is Jesus Christ. Anything else needs to be a tool you use for a worthwhile end.
The Importance of Budgeting
‘Credit cards should not be your master,’ says Kameel. ‘They should be your servant. They should only be used if you can pay off the debt quickly, preferably within that month. Credit Cards should only be used for things that are budgeted, not impulsive. If you don’t have a budget, you are going to invite debt.’
A budget is something that can deliver you from financial tribulation in the future. Don’t spend unless it’s budgeted. Even if you pay your credit card in full every month and have no interest, you do have an annual fee, particularly if it’s giving you reward points. Make sure that fee is justified.
‘When it comes to the other issue of borrowing for home loans or businesses,’ says Kameel. ‘I have a simple philosophy. Live in a manner that you can sleep at night. One salary is how you should base your mortgage, because spouses can get pregnant or lose their jobs.’
‘You may not get as big of a house as you want initially, but you will be able to sleep at night. And that’s far more important.’