Importance of a Financial Plan: Do I Need One?
A plan gives directions on where to go and what to do. We rely on plans to schedule calendars and events, we use a GPS to give a plan on how to get somewhere. All types of plans. So what makes financial planning important?
Without goals, objectives and strategies, wandering can only get us so far. Much like sitting around without training won’t prepare you for a marathon, and simply walking into a gym won’t help you get stronger, achieving financial goals takes planning and work.
A financial plan can appear like a puzzle between investing, insurance options and budgeting as just a starting place. It can seem overwhelming putting everything together. But that is exactly why it is important to make a financial plan. To have some direction on where to head to achieve the goals you have.
What does God say?
God encourages to make a plan. In both the Old and New Testaments, Scripture offers timeless wisdom that applies to our daily lives, including managing our finances. Two passages—Jeremiah 42:3 and Luke 14:28—speak directly to the importance of planning and counting the cost before making decisions.
In Jeremiah 42:3, the people of Judah seek guidance from the prophet Jeremiah, asking him to pray to God on their behalf and reveal God's will for their future. They recognized the need for direction and clarity before making a major decision about their journey. This reflects the principle of seeking counsel and planning ahead. Just as the people of Judah understood the importance of knowing God's will and considering the consequences before moving forward, we too must approach our financial decisions with careful thought, prayer, and a clear plan. Without such foresight, we may end up facing unexpected challenges or difficulties.
Luke 14:28 highlights a more specific area in planning ahead. Jesus uses the parable of a builder who starts construction without calculating the costs, ultimately leaving the project unfinished. Jesus asks, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” This principle applies to our finances—without a plan, we may find ourselves overwhelmed and unable to finish what we've started.
These verses emphasize the need for foresight and careful consideration. Whether in life decisions or financial matters, having a plan in place is vital to achieving success and fulfilling commitments. A financial plan helps us make wise decisions, prioritize needs, and navigate unforeseen challenges.
As we reflect on these passages, let’s take the time to carefully assess our financial situation, set goals, and make intentional plans that will help us stay on track. It’s not just about money—it’s about wisdom, responsibility, and being faithful stewards of what God has entrusted to us.
“Pray to the Lord where we should go and what we should do.” Jeremiah 42:3
“suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” Luke 14:28
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