"If it don't make dollars, It don't make cents"

If It Don’t Make Dollars, It Don’t Make Cents!

The idea of Biblical investing often brings up an array of mixed emotions and misunderstandings in Christians and non-Christians, alike. However, these misunderstandings usually stem from a misunderstanding of the intention of such investments. Investing, in the biblical sense, is not about hoarding money for the sole purpose of watching it grow. Investing is about being good caretakers of the blessings that we have been given in order to further God’s work in the world.

The Bible has numerous examples of those who have both prospered and lived lives that are pleasing to God through the proper management and use of their riches. But not only are there anecdotal examples throughout Scripture, but there are also specific tidbits of wisdom and advice, mostly from King Solomon, to help Christians invest wisely and maintain an ethical and spiritual standard that follows the core beliefs of Christianity.

Now you might be wondering what the Bible could possibly say about modern investment theories, and that is a great question. Of course, Scripture does not directly relate to the stock market or the “tech bubble,” but the fundamental principles of being proper stewards of what God has given us have not changed.

Money is the most frequently mentioned subject in the bible. According to some counts, it’s mentioned over 2000 times! And many of those verses talk about investing in one way or another. In fact, the bible lays out a great number of specifics about how to invest your money wisely according to godly wisdom. And when you do them correctly, these biblical investing principles not only increase your monetary wealth, but they’ll also bless you in every other part of your life as well!

We can learn a great deal about the PRINCIPLES of investing Biblically by closely examining the wisdom of King Solomon, who was known amongst his peers as an individual for whom anything he touched prospered.

I believe there is one verse that sums up godly investing principles really well:

Matthew 25:29 (NLT)

To those who use well what they are given, even more will be given, and they will have an abundance. But from those who do nothing, even what little they have will be taken away

This is a concept mentioned more than once by Jesus and others in the bible.

When you are wise and use well the resources you are given, whether it’s a little or a lot, it’s a natural law that what you have will increase even more over time.

However, if you use what you’re given unwisely, or not at all, you eventually lose it.

Principle #1 – Be Faithful With A Few, Remove Debt

Luke 16:10 (NIV)

Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.

If your desire is to build massive wealth, then you first need to be trustworthy and disciplined with what you already have. You will never become wealthy if you’re living paycheck to paycheck and spending more than you make. You must be the master of your money before the Master will trust you with more.

If we get extra dollars, we shouldn’t increase our lifestyle or start wheeling and dealing in the investment markets. We should respect God’s priorities and use any extra financial resources that come our way to get debt-free.

Principle #2 – Save For Future Needs

Although it’s economically sensible to first pay off debts that are carrying high interest charges, you shouldn’t use every spare penny for that purpose. At the same time

you’re working on your debts, it’s wise to put money aside for unforeseen expenses

Having a savings reserve is an important aspect of financial wisdom

• It reflects responsible preparation.

• It reflects self-control.

Your savings reserve serves as a contingency fund for dealing with the unexpected expenses such as a medical expense, auto repair bill, or you might face a temporary layoff at work or a disabling injury. If you don’t have a “cushion” to fall back on, you’ll eventually wind up back in debt.

Principle #3 – Investing Your Surplus

Only after the first two objectives are reached do I suggest moving to this area of financial investing: using any of your monthly surplus to begin investing in stock and bonds. (Of course, you may already have money set aside in an IRA or other retirement plan.)

The reason for making investing the third priority, rather than the first or second, is straightforward: up to this point, every dollar of surplus is being used in a manner that guarantees you will advance financially. When you invest in stocks or bonds, however, an element of financial risk is being introduced. But first you must have laid a strong financial foundation.

• Laying a proper foundation reflects wise stewardship.

Proverbs 24:3-4 (NIV)

By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.

• Laying a proper foundation reflects responsible planning.

Proverbs 21:5 (NIV)

The plans of the diligent lead to profit as surely as haste leads to poverty.

Principle #4 – Diversify For Safety

This is the most frequently referenced advice of King Solomon and the meaning for modern investors is clear. Diversification is absolutely essential to weathering the ups and downs of the market. It greatly reduces the risks that are often associated with many investments. This is especially important in an economy that is tentative at best, as is the current economy of the United States. Remember, the goal is long term stewardship, not overnight wealth. To that end, diversification, as suggested by King Solomon is a timeless investment strategy.

• Diversification reflects prudence.

Proverbs 14:15 (NIV)

A simple man believes anything, but a prudent man gives thought to his steps.

Ecclesiastes 11:2 (NASB)

Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

• Diversification reflects humility.

Proverbs 15:22 (NIV)

Plans fail for lack of counsel, but with many advisers they succeed.

In the investing world, diversification means picking a series of investments that “march to different drummers.” This means that rather than loading up on a few “sure things” that promise big short-term rewards, your strategy as Christian investor involves owning a mix of investments that are affected by different economic events

Principle #5 – Seek Wise Counsel

Proverbs 15:32 (ESV)

Whoever ignores instruction despises himself, but he who listens to reproof gains intelligence.

Proverbs 15:22 (ESV)

Without counsel plans fail, but with many advisers they succeed. 

You can’t be a successful investor by going it alone.  You need the help and advice of others if you want to truly succeed.  Whether you seek out a qualified, licensed investment advisor, or you read a lot of books on investing, seeking wise counsel always pays off.

The best way to know someone’s ability to give wise investing advice is to look at their life. What is their success level when it comes to investing?  Taking investment advice from a multi-millionaire investor is probably a good idea.  Getting hot stock tips from Uncle Joe who has a mountain of debt and lives paycheck to paycheck is not.

Principle #6 – If Sounds Too Good to Be True, It Probably Is

1 Timothy 6:9 (NIV)

Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. 

This biblical investing principle reveals that anytime someone tries to sell you an investment that promises incredible returns, you should seriously beware. It’s easy to get greedy if you’re not careful. Greed will not only mess with you spiritually, it will cause you financial harm as well.

Principle #7 – Be a Giver, Invest In The Kingdom

Hebrews 13:16 (NIV)

And do not forget to do good and to share with others, for with such sacrifices God is pleased.

When you boil down these biblical investing principles to their essence, there is one overarching reason God wants to provide you with material wealth. It’s so you can be a giver.

I know it sounds counterintuitive, but when you give a portion of your wealth away, it’s a natural law that it will come back to you multiplied.

This biblical investing principle is not about you and your bank account, it’s about how you can use material wealth to help others and fund projects that further God’s kingdom and influence here on Earth.

The more money you have, the more you can give. And the more you give using godly principles of giving, the more likely you are to achieve true wealth in every part of your life, including finances. It’s good for your bank account, it’s good for your soul, and it’s good for those on the receiving end of your giving too. Everybody wins!!

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CHRISTIAN INVESTING ENJOYS GOD’S BLESSINGS

On the day that we die, whatever wealth we may have will be of zero value to us, of no help or comfort whatsoever. But knowing Him will mean everything. This is why Jesus Christ is “our peace.” He is the only one who can give us peace in an uncertain world.

Christian investing isn’t focused on making the most money. Christian investing is focused on glorifying God by doing our best to manage His resources wisely and well, then trusting Him for the results.

We must also humbly acknowledge that from God’s eternal perspective what appears good to us (“wealth and success”) can be bad for us, while what appears bad (“trials of many kinds”) can be good for us. Only He knows what is best.

But if you aim your life in the direction of God’s glory, you will enjoy his blessings — perhaps those blessings will be material, perhaps they will be spiritual, perhaps both. I don’t know

But I can assure you of this: in the end — as the Scripture says in Romans 10 — “Whoever believes in Him will not be disappointed”