5 Financial Traps Pastors Should Avoid

Why do those of us entrusted with the sacred task of discipleship often have so much trouble with discipline? Today, I want to help you identify and overcome the top five financial traps that can damage your testimony, ministry, and marriage. 

“Those who want to be rich fall into temptation, a trap and many foolish and harmful desires, which plunge people into ruin and destruction.”

(1 Tim. 6:9)

The verb “fall” is in the present tense, which suggests continual, compulsive (normal) action. Is your financial track record normal? If so, you should know that normal is just plain stupid.

• 90% of Americans admit to buying things they can’t afford.
• 10% spend more than they make.
• 92% of their disposable income is spent on debt payments (coenic.org). 

Pastor – I want to encourage you to be abnormal, smart, and “above reproach” by avoiding these five preventable financial traps. 

1. Spending like you’re single 

This applies to all adult ministers, but I will write this article man-to-man since my audience is overwhelmingly made up of married pastors. [RH1] [2] My first financial trap was at seminary when I succumbed to my desire for the latest, cutting-edge technology – a VCR (go ahead and laugh). I fell for the “only $10 a month” ruse and paid for that dang thing twice over the next few years!  

Fortunately, this madness stopped the day I said “I do” to my wife Janet and “I don’t” to consumer debt on the same day – January 2, 1988. We have avoided the credit card trap for 36 years and counting and thus have never paid a penny of credit card interest in our marriage. 

Set a spending limit between you and your spouse for individual purchases and consult with each other on the rest. This won’t alleviate all marital conflict, but it will minimize it. 

2. Impulse purchases

“Stupid people spend their money as fast as they can get it.”

(Proverbs 21:20b)

Scripture does not dichotomize self-leadership and church leadership, so neither will I. Others have said, “Every spending decision is a spiritual decision.” The root of this trap is buried deep into the tenth commandment.

“Do not covet your neighbor’s house. Do not covet … anything that belongs to your neighbor.”

(Ex. 20:17)

The Hebrew word for “covet” can also be translated as “desire.” Impulse buying is a heart problem that, if left unchecked, will lead to a lifestyle that will entrap you quickly. Today, you may be at that point where you are so sick of financial slavery that you are ready to take a brave exit onto the road to financial freedom. You can do this, pastor!

“It is a trap for anyone to dedicate something rashly and later to reconsider his vows.”

Prov. 20:25

3. Poor planning 

Financial discipline involves more than avoiding traps. Long-term success must include a simple, solid financial plan (a.k.a. budget). Please hear me out before you roll your eyes or move to the next article. Your financial plan does not have to include envelopes or a 13-part video to succeed. You and your wife simply need to agree upon—and implement—a plan that keeps track of income and expenses. If expenses exceed income, your plan needs to be tweaked…now. 

God did not call you to be an expert on everything. However, he did call you to “manage your household competently.” (1 Tim. 3:4) 

Pastor, it is unlikely that you are the most financially competent person in your church or even your own home, but you are the most responsible person in both. Managing your home and church means assuming responsibility for both families. Don’t be afraid to ask for help. GuideStone has 500 professionals standing by to help you with your questions about everything from retirement to insurance because they exist to help every servant of Christ finish well by enhancing their financial stewardship and resilience. 

4. Stealing from God

I have pastored churches for three decades, and for the first two, I assumed that all our ministry staff supported their church by giving joyfully, sacrificially, consistently, and generously. I was wrong. Without exception, those few who did not manage their personal income well likewise did not manage their church budgets well.

Their tight-fisted giving revealed their wayward hearts. When Ananias and Sapphira withheld from God while pretending to be generous, their greed became a deadly trap (Acts 5).

Some of you may be in this same financial trap for one reason or another. You want to be generous, but you feel like you cannot afford to. Withholding from God is confusing ownership with stewardship. Do not expect God to entrust you with much if you have been untrustworthy with little.

According to Ellison Research, less than 1:10 give 10% or more to a church or charity. I want to encourage you to do a self-audit to see how much you spend, how much you save, and how much you give away. If you need help, reach out to someone you can trust to help you live and give in such a way as to avoid this financial trap and prepare for a strong ministry finish someday. My peers at GuideStone would consider it an honor to help you (GuideStone.org).

5. Waiting for the perfect time

I have observed too many ministers struggle in silence for years with financial traps like these because we do not know how to overcome them. They can only fake financial literacy for a season, but eventually they end up in big trouble because they waited so long to get help. The average age of a minister who comes to GuideStone for retirement planning is 42 years of age.

Pastors will rarely be the most financially competent people in God’s house, or even their own house, which is fine. However, we are the most responsible people in both houses (1 Tim 3), so take please take responsibility for your life, family, and ministry by asking someone to help you manage your finances. Take the financial bull by the horns today by exposing, then overcoming, these traps, one day at a time – starting today.

©2024 Mark Dance. Used with permission