Money can put us in bondage. God wants to free us from this bondage and help us put money in its proper place by considering it his rather than ours.
Investing money has been a source of debate among Christians for centuries. Some say that investing is unbiblical and any extra surplus should be given to the needy, while others argue that investing must be a part of every Christian's financial plan. In this post, we will address these and other issues concerning Christian investing.
The first topic that needs to be considered is whether investing is or is not scriptural. As in many cases, the answer depends on the situation. Anyone investing because of greed (Luke 12:15), to get rich quick (Proverbs 23:4-5), or to massage his ego (Proverbs 29:23) is not participating in biblically-based investing. On the other hand, those who are acting as good stewards as in Luke 19:12-27 or those who are saving for future needs such as college or retirement (Proverbs 6:6-8) are participating in biblical investing. In the end, it all depends on the attitude, which is ultimately determined by God. Remember, "All a man's ways seem innocent to him, but motives are weighed by the Lord." (Proverbs 16:2).
Assuming you are investing with the proper motives, there are some guidelines you should follow:
The greater the potential return, the greater the risk. (Proverbs 27:12) This is a fact of economic life. If someone has a "no risk" investment that generates 25% each year, stay away from him. Either he's deranged or lying.
Diversify your investments. (Ecclesiastes 11:2) Diversification is essential to long-term stability. If one investment goes down, another you have can offset it by going up. In short, this is just another way of saying "don't put all of your eggs in one basket".
Be sure you understand the investment you are considering. (Proverbs 24:3-4) You are God's steward, and you need to understand how it will be used. If you don't understand, then don't invest.
Don't risk money you can't afford to lose. (Ecclesiastes 5:13-14) If losing the money your are investing would cause financial ruin, family stress, or any other major problem, then do not invest it in a risky place. A safe investment such as federal government bonds would be more appropriate in this case.
Don't make a quick decision -- take time to think and pray. (Psalm 37:7) Stop and consider what you are doing. Once again, you are God's steward, and you need to handle His money appropriately.
In addition, you'll need to determine your goals -- what you want to accomplish -- before you invest. Since this is different for every person, it is impossible to provide specific direction that will apply to everyone. However, there are some general topics that you will want to consider. These include your age, income, and temperament. See the investment section of this blog for articles that may help you in this area.
Finally, you may want to get some advice to help you invest. There are a variety of people who are willing to give you advice -- for a fee. Either they will want to be paid upfront whether you use their advice or not (these people tend to be more unbiased, but can be expensive) or they earn their fee by selling you their investments (hence they are biased in recommending investments for you.)
My advice is to find a successful, Christian advisor who can not only recommend good investments but add biblically-based advice. If you can't find a good Christian advisor, go to a good non-Christian advisor (of course, you'll have to weigh his advice in accordance with biblical principles). While some may scoff at this suggestion, think if it was a brain surgeon instead. Would you rather have a top-notch non-Christian or an average Christian operate on you? I think you get the point.
Either way, you need to get good counsel from a variety of sources as "plans fail for a lack of counsel, but with many advisors they succeed." (Proverbs 15:22). Rest assured that if you need wisdom in this area, you can ask God, and He will provide it. (James 1:5).
Investing money has been a source of debate among Christians for centuries. Some say that investing is unbiblical and any extra surplus should be given to the needy, while others argue that investing must be a part of every Christian's financial plan. In this post, we will address these and other issues concerning Christian investing.
The first topic that needs to be considered is whether investing is or is not scriptural. As in many cases, the answer depends on the situation. Anyone investing because of greed (Luke 12:15), to get rich quick (Proverbs 23:4-5), or to massage his ego (Proverbs 29:23) is not participating in biblically-based investing. On the other hand, those who are acting as good stewards as in Luke 19:12-27 or those who are saving for future needs such as college or retirement (Proverbs 6:6-8) are participating in biblical investing. In the end, it all depends on the attitude, which is ultimately determined by God. Remember, "All a man's ways seem innocent to him, but motives are weighed by the Lord." (Proverbs 16:2).
Assuming you are investing with the proper motives, there are some guidelines you should follow:
The greater the potential return, the greater the risk. (Proverbs 27:12) This is a fact of economic life. If someone has a "no risk" investment that generates 25% each year, stay away from him. Either he's deranged or lying.
Diversify your investments. (Ecclesiastes 11:2) Diversification is essential to long-term stability. If one investment goes down, another you have can offset it by going up. In short, this is just another way of saying "don't put all of your eggs in one basket".
Be sure you understand the investment you are considering. (Proverbs 24:3-4) You are God's steward, and you need to understand how it will be used. If you don't understand, then don't invest.
Don't risk money you can't afford to lose. (Ecclesiastes 5:13-14) If losing the money your are investing would cause financial ruin, family stress, or any other major problem, then do not invest it in a risky place. A safe investment such as federal government bonds would be more appropriate in this case.
Don't make a quick decision -- take time to think and pray. (Psalm 37:7) Stop and consider what you are doing. Once again, you are God's steward, and you need to handle His money appropriately.
In addition, you'll need to determine your goals -- what you want to accomplish -- before you invest. Since this is different for every person, it is impossible to provide specific direction that will apply to everyone. However, there are some general topics that you will want to consider. These include your age, income, and temperament. See the investment section of this blog for articles that may help you in this area.
Finally, you may want to get some advice to help you invest. There are a variety of people who are willing to give you advice -- for a fee. Either they will want to be paid upfront whether you use their advice or not (these people tend to be more unbiased, but can be expensive) or they earn their fee by selling you their investments (hence they are biased in recommending investments for you.)
My advice is to find a successful, Christian advisor who can not only recommend good investments but add biblically-based advice. If you can't find a good Christian advisor, go to a good non-Christian advisor (of course, you'll have to weigh his advice in accordance with biblical principles). While some may scoff at this suggestion, think if it was a brain surgeon instead. Would you rather have a top-notch non-Christian or an average Christian operate on you? I think you get the point.
Either way, you need to get good counsel from a variety of sources as "plans fail for a lack of counsel, but with many advisors they succeed." (Proverbs 15:22). Rest assured that if you need wisdom in this area, you can ask God, and He will provide it. (James 1:5).
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