"The Biblical Advantage: How Being Your Own Lender Can Make You Money on Major Purchases"

Example: A Tale of Two Tithers – Following Biblical Financial Principles

This example illustrates the difference between a tither who follows biblical principles, specifically the command to be the lender and not the borrower (Deuteronomy 28:12), and one who does not. Both individuals need a new car, and their budget is $50,000. Let's see how their choices lead to drastically different outcomes.

Tither 1: The Biblical Steward

Tither 1, which practices biblical financial stewardship, uses its?Indexed Universal Life (IUL)?policy to finance its car. Instead of borrowing from a bank, it borrows $50,000 from its policy at an interest rate of 6%. It then sets up a repayment plan, paying $750 monthly over 5 years. This payment covers both the principal and interest.

At the end of 5 years:

• Recaptured 100% of the loan: Tither 1 has paid themselves back fully.
• Made a 35% profit: Because of the structure of their IUL, Tither 1 earned a profit on their repayment and the interest accumulated in their policy.

Not only did Tither 1 avoid paying interest to a bank, but it also made a profit and remained faithful to the biblical principle of being a lender, not a borrower.

Tither 2: The Conventional Borrower

Tither 2, on the other hand, chooses to finance their car through a traditional bank loan, ignoring the biblical principle of avoiding debt. They take a $50,000 loan from the bank at a 6% interest rate, with the same monthly payment of $750 over 5 years.

At the end of 5 years:

• Paid the loan back to the bank: Tither 2 has no financial gain from the transaction.
• They lost thousands in interest payments,?which went to the bank and did not return to their financial system.

The Key Difference

• Tither 1 made a profit, avoided paying interest to outsiders, and controlled their financial destiny by following biblical principles.
• Tither 2, who did not follow these principles, ended up in a conventional debt structure, losing money in interest payments and gaining no additional financial benefit.

Conclusion

This example highlights the practical application of biblical financial wisdom. When Tither 1 adhered to the biblical instruction of being a lender and not a borrower, they experienced economic growth and profit. In contrast, Tither 2, by relying on the traditional banking system, lost out on potential gains. This demonstrates how important it is to align financial decisions with biblical teachings to receive God’s promised blessings.