Is it Biblically Sound to Make Purchases on EMI?
Hey folks, I hope you're doing well and that we're all growing in this season!
Last week, I had the opportunity to share the word of God in our Hindi service. By the way, if you're not part of any church, you're welcome to come and visit our church here in Bangalore. Our church is called HISNearness, and we're located at the Hormavu.
As I was sitting and worshipping, I was trying to listen to what God was speaking to me. Instantly, I received two points. One was about being proactive in every area of our lives, and the other was more like an assurance from God. Our God is saying that every assignment given to us this season is because God believes we are capable of handling it. Whether it's a new job, a new career path, or a significant life event like becoming a parent, God is entrusting us with these tasks because He believes in our capability. So, let's not let other voices tell us otherwise!
Now, let's get to the topic I want to discuss today in this blog.
"Pastor, is it okay to buy stuff on EMI? Is that even biblical? What does Jesus say about it?"
These are the most common questions I receive, especially when discussing finances with the young people in our church. So, I thought let's address it and provide you with a perspective on this concept.
Every year, we are tempted to upgrade our iPhones or buy expensive gadgets when they come out. Maybe we don't have enough money to pay upfront, but we do have a provision that still allows us to buy them, and that's where EMI (Equated Monthly Instalments) comes in. EMIs have been a game-changer for Millennials and Gen Z. Back in the day, I remember when our parents wanted to buy a refrigerator or an oven, they had to plan it a year in advance so that they could save enough money for the purchase. Our previous generation never really had the privileges we have today, especially when it came to finances. But today, it's often a cakewalk for most of us due to the flexibility of EMIs.
EMI sounds so convenient, right? While it gives us quick access to making purchases of the commodities we want, it can also be dangerous if we don't manage it in the right way. So, I wanted to shed some light on this topic so that we are wise enough to use it and not let it lead us to a place where it becomes a stress factor added to our lives!
Biblical Perspective
The Bible calls us faithful stewards of all our resources, which means we are called to exercise wisdom and discernment in all areas of our lives, including our finances. The Bible offers a great perspective on how we can work towards financial freedom and responsibility. For instance, Proverbs 22:7 offers profound insight into the consequences of indebtedness: "The rich rule over the poor, and the borrower is slave to the lender."
The idea captured by "The Borrower is Slave to the Lender" is that debt can feel like a tight knot, squeezing our freedom and independence. When we owe money, it's like having a constant weight on our shoulders, nudging us to repay it, often with a little extra on top. This obligation can take over our lives, dictating where our money should go and leaving little room for what truly matters to us. It's akin to being tied to someone else's agenda. Just as a servant serves their boss, the borrower serves the lender, all bound by financial obligations.
The warning in Proverbs 22:7 is not a condemnation of all borrowing but serves as a cautionary tale against excessive debt. While borrowing money can sometimes be necessary and even beneficial, such as investing in education or a home, it's essential to do so responsibly and within our means. EMI arrangements, while convenient, can sometimes encourage overspending and lead to unsustainable debt burdens if not managed carefully.
By heeding the wisdom of Proverbs 22:7, we recognize the importance of avoiding excessive debt and exercising prudence in our financial decisions. As faithful stewards, we strive to honor God with our resources, using them wisely for His glory and the well-being of ourselves and others.
Considering Jesus' Teachings
Jesus, our ultimate role model, provides many lenses through which to view wealth and possessions. For example, in Matthew 25:14-30, the parable of the Talents, we learn about a master who entrusts his servants with different amounts of money (talents) before going away. Upon his return, he commends those who wisely invested and multiplied what they were given but rebukes the servant who buried his talents out of fear. This parable underscores the importance of stewardship and resourcefulness. Each of us is entrusted with resources by God and called to use them wisely and productively. So, when considering EMI, we should reflect on whether the purchases align with being good stewards of what God has given us. Are we investing in something worthwhile that will yield positive returns, or are we merely satisfying fleeting desires?
Jesus also warned us against the trap of greed in Luke 12:15. When contemplating EMI purchases, we should assess whether our desires are driven by genuine needs or by a desire for more possessions. Are we seeking contentment and fulfillment in material wealth, or are we prioritizing spiritual and relational richness?
Practical Considerations
Now that we've delved into the biblical principles guiding our financial decisions, let's get practical about navigating Equated Monthly Installments (EMI) with wisdom and intentionality.
Honest Financial Assessment: Take a good, hard look at your financial situation. Consider your income, expenses, and any existing debts. Be honest about what you can afford and what might stretch your budget too thin. Assessing your financial health upfront sets the stage for informed decision-making.
Monthly Obligations vs. Essentials: Before committing to an EMI plan, ensure that you can comfortably meet the monthly payments without sacrificing essentials like food, housing, and healthcare. It's crucial to strike a balance between fulfilling your financial obligations and maintaining a sustainable standard of living. If the EMI payments leave you struggling to make ends meet, it may be a sign to reconsider or adjust your purchase
How Important is this purchase? : Let me clarify. Consider the significance of this purchase in your current situation. For instance, when I started my business, I needed a laptop to work and build on the goals I aimed to achieve. However, I lacked the necessary funds to make the purchase outright. Recognizing that obtaining the laptop was crucial for initiating my business endeavors, I sought God's guidance. After careful consideration and prayer, I decided to proceed with the purchase on EMI. This investment enabled me to kickstart my business, and within a matter of two years, it yielded returns exceeding 1000%. Therefore, it's essential to assess the importance of the purchase in light of your circumstances and seek Godly guidance before making a decision.
Seeking God's Guidance: Most Importantly invite God into your financial decision-making process. Through prayer and reflection, seek His wisdom and guidance. Ask for clarity and discernment as you weigh your options. Trust that God cares about every aspect of your life, including your finances, and He desires to lead you in paths of righteousness and abundance.
Finally, the decision to buy on EMI is not merely a financial one but also a spiritual one, influenced by our values, priorities, and faith. As we've explored, the Bible offers timeless wisdom on stewardship, responsibility, and contentment, guiding us towards making wise choices with our finances. We can navigate EMI purchases with clarity, intentionality, and trust by aligning our decisions with biblical principles and seeking God's guidance. It's essential to assess our financial situation honestly, prioritize essentials, and consider the importance of the purchase. Ultimately, let's remember that our financial decisions are part of our journey of faith, and by trusting in God's provision and guidance, we can make choices that honor Him and lead to abundance in every aspect of our lives.
I hope this blog has provided you with valuable insights into the topic of buying on EMI. If you have any further questions or want to share what you've learned, I encourage you to email me at Jo@jogonsalves.com. Additionally, if you need more guidance on this matter or any other financial topics, feel free to reach out to me we can get on a virtual call and discuss the same. Your journey towards financial stewardship and wisdom is important and I will be happy to help you in this journey in any way possible.