For several years I have managed a handful of checking accounts. Having a good system allows me to stay organized and to be a good steward of my financial responsibilities. My wife and I share a checking account. That is where my Blackaby Ministries International paycheck is deposited twice per month. I have a second account that I use for all my online payments. I transfer adequate funds from my primary account to cover the bills that will be automatically paid out of that second account. I also have a business account I use to handle the income and expenses for a small LLC I manage. As if that weren’t enough, for several years I also managed my parents’ checking account and made sure their checks were deposited and their bills were paid. Though all together it doesn’t amount to a great deal of wealth, I discovered that it is more efficient to use four accounts to manage the finances for which I am responsible.
I have found that leaders must also manage at least three accounts. They are wise to steward each one carefully in order to have the maximum positive impact on those they lead.
1. Personal Account. The first account leaders must manage is their personal financial account. Whether they are highly compensated corporate CEOs or meagerly paid church planters, leaders are responsible for carefully stewarding the resources God gives them. This fact seems self-evident, yet many leaders have eroded their ability to influence others because they didn’t take this responsibility seriously.
People who are careless or neglectful of their personal finances will be ineffective in their leadership role. I know a pastor who chronically spent more than he earned. He wasn’t underpaid; he just liked buying things! When he couldn’t repay his debts, bill collectors came calling on his church. He was so irresponsible that his church finally asked him to resign. People couldn’t take his spiritual counsel seriously when he obviously lacked self-control in his personal life.
Wise leaders maximize their funds. I know many people who earn modest salaries but are great at managing their finances. They buy reliable used vehicles. They do research before making purchases and choose quality products that will last. They care for their possessions and their home. They live within their means and avoid lavish spending. As a result, they present themselves well. They can afford to purchase books and tools that help them stay current and equipped for their leadership role. For many reasons, leaders who manage their finances well have far more going for them than those who don’t.
Scripture is clear that if you are faithful in a little, God will entrust you with more. Those who manage their own household well can be entrusted to manage other responsibilities as well.
When I was taking a Lyft ride home from the airport the other day, the driver told me he’d love to be in management at a company one day, but right now he was merely a Lyft driver. I told him he already was in management. He was the manager of one person: himself. He was solely responsible for ensuring every one of his bills was paid. He was in charge of his vehicle payments and upkeep. He was the director of his own educational program. He was the manager of his own social calendar and the maintenance of his physical, emotional and spiritual self. Managing himself was clearly a full-time job! So I asked him, “If I were looking for someone to manage my company, would examining how you are currently managing your own life inspire me to hire you?” If people aren’t managing their own life well, why would God entrust them with more?
2. Business/Organizational Finances. Leaders often manage a budget for their division, committee, or organization. Some people view that responsibility as an opportunity to enrich themselves by squandering company finances on their personal desires. Many leaders feel no qualms about spending more money than is in their budget. Those people often end up either in jail or in government!
Wise leaders manage organizational money with as much care and integrity as they manage their own finances. They aim to leave their organization in better shape financially than how they found it. They build in systems of checks and balances so the money entrusted to their care is safeguarded.
When I first became a pastor, my church was suffering from financial hardship. Under its previous pastor, the church couldn’t pay its mortgage. The pastor suggested they sell some of its property to reduce the burdensome debt. Instead, they lowered his salary. When I arrived, though I was not trained in finance, I was determined to move our church into a better place financially. We ultimately paid off the mortgage early and grew our income as attendance increased. Through the years, we improved the property, called two additional staff people, and became debt free. It wasn’t rocket science. We simply lived within our means and used our money wisely.
After I left that church, it went through several other pastors. One of the later ministers disliked talking to people about giving money, so he didn’t. Giving dropped dramatically. Spending did not. Whenever the debt grew too high, he sold off part of the church’s property. Then the debt would grow again. Eventually the church was in such serious debt that it needed to sell its facility. The pastor moved on to a new vocation. It was a disaster.
Effective leaders keep a keen eye on their organization’s finances. They work hard to reduce debts, increase revenue, and manage resources wisely. They take as much delight when their organization prospers financially as when they experience monetary success personally. When they eventually move on from that leadership role, they leave behind a financially robust organization. Leaders who cannot steer their organization toward financial success should step aside and allow someone who can to take the helm.
3. Trust Accounts. The third type of account is not financial, but it is crucial. A trust account is a leader’s currency. People will not follow someone they don’t trust. This principle is crucial to effective leadership.
Leaders make withdrawals from their trust account each time they ask people to follow them. If that account becomes empty, people will stop following. Conversely, when leaders experience small wins, trust is added to their account. When leaders love and serve people, they make deposits into their trust account. When leaders develop a track record of dependability and integrity, their trust account grows even more.
Successful, experienced leaders have far more trust in their account than weaker or newer leaders do. One of the primary reasons young leaders fail is because they don’t keep tabs on their trust account. If they only have a 3 in their trust account, they are foolish to ask people to take a leap of faith that requires a 6. They simply have insufficient funds. It is critical for leaders to make trust deposits when they arrive at a new position. Taking time to listen to people builds trust. Building a track record of small wins and careful stewardship shows that they can be trusted for larger undertakings.
The pastor I mentioned earlier who mismanaged his personal finances had also depleted his trust account. He was completely untrustworthy in his personal finances, so people didn’t trust him to manage church finances. He had a history of irresponsibility that eroded, rather than built, trust. He desperately wanted people to trust him, but his actions convinced them that doing so would be foolhardy.
Many leaders are untrained at reading financial statements when they begin their first assignment. They must become familiar with organizational finances as quickly as possible. Likewise, they need to become familiar with their trust account. Effective leaders can tell if they need to stop making withdrawals and focus on making deposits. They don’t try to lead people farther than they are currently prepared to follow.
Leaders of large or complex organizations may have to manage dozens of accounts. But every leader is responsible for a minimum of three. First, they must be wise stewards of what God has placed into their hands personally. Second, they must carefully manage their organization’s resources. Finally, they must build their trust account. Astute leaders maintain a healthy balance in that account so they are prepared to take their organization to the next level when the opportunity arises.
Take an audit of all three of these accounts in your leadership portfolio. What adjustments do you need to make?
