Biblical Investing

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).

Comments

[Doug]

I find it odd that none of your mentions of Christian investing discusses the morality of the investments you make. I don't think that it is important to use the bible to decide investing strategies. However, I think that the bible has much to say about supporting immoral companies. Investing in Altria may be a good dividend play, but I can't make money from something that causes death. Other companies, such as Caterpillar or pay-day loan companies, may operate in gray areas. With these companies, it is up to you, during your stock research to decide if the moral line has been crossed. In the end, Christian investing is about finding companies and ventures that don't violate your values, not investing strategies.

[Raj]

Good to find this site. There isnt all that much on out there on the relationship of our faith to business.

[Tom Franks]

Hello,

My new site, MoralInvestors.com and newsletter provides investment information that tries to be cosistent with Biblical principles. My goal is to be salt and light and help others do the same through investing. Christians could impact the world this way if we would act in unity. TF

[Mary]

I how do i join you

[FMF]

Do you mean how do you subscribe to this blog?

[MillyCarol]

This just goes to Prove the saying "...you can Prove Anything with a misquote/misuse of the Bible". If YOU want to know how to survive without cash, day-to-day, you Have to be Realistic...Not as the World Sees it; but, as Christ said it. The Short-cut Is: 1.Give it all away; and then 2.Ask the Father to show you/support your needs; and then 3.Wait for His directions to you. It is easier if you First learn as a child, how to wait on Him; and, how to take orders (obey) from Him. This Proceedure has Nothing to do with Religion and nothing to do with Any Preacher. It is Christian. But, prior to being Christian, this is how the Ancients' survived...by obediance to the Almighty Creator of the Universe. By the way, since He knows your needs Better than you do, you will be very surprised. Others, who don't know your 'secret' won't believe you either. AND, the less you 'fret' about your situation, the richer you get and richer you appear to be. You do pay Income taxes on any income....such as a job, or inheritance.

[Anna]

Thank you so very much for this article and for your blog. I need a lot of help with financial things and being a Christian, I would like to ensure I am handling my finances, etc. biblically! This is wonderful! May God continue to bless you!
Anna

[sean nelson]

very sound biblical info! It's good to know that individuals still use the scriptures to please God in all they do when it comes to non-moral issues such as investing. I want to start investing in some mutual-funds and any wisdom I can get will be beneficial in this process as I seek to leave an inheritance for my children. Thank you!

[Virgil]

Can anyone tell me if spreadbetting can be Christianly ethical when applied with Biblical principles ie: strict risk control;for survival of my family;not for greed or ego;willingness to pay appropriate taxes;putting into practice the intense stockmarket seminar paid from my savings;planning for longterm success not 'get rich quick';at 50 years of age I have become unemployable. Any advice would be appreciated, regards Virgil

[finright]

Hi, I own a mortgage cmpany and I'm haveing a diffcult time getting people to embrace doing there job in more of a servant attitude than a profit attitude. Do anyone have any pointers on how to refocus the mindset of my office.

[John]

investing is just like finding employment or geting training for a line of work. you have to have ethics in the work u do as well as how u invest. and most people over look both

[Jay Peroni]

People make choices every day - where they work, where they spend and donate money...yet many do not consider the moral implications of invetsing. Do your investments match your values? If you are a Christian, do your investments oppose your Faith? Through your investments, you may be supporting the adult entertainment industry, abortion industry, or supporting the homosexual agenda. Take the time to find out where you are invetsing and make changes.

[Darleen]

hi. well lets see, profiting from mortgages is sin. Let me explain...the Bible says that the borrower is the slave to the lender. when you issue mortgages, you are affectively enslaving people til death...and you want God to bless that?