Investing your finances is one of the many ways to increase your wealth. The Bible has a lot to say about money, ethics, and responsible management of resources, including how believers should manage their money. I want to discuss a few biblical principles of investing, the ethical issues, and the best strategies that can be used to make money, all at the same time pleasing God.
Biblical principles of stewardship
1. God Owns Everything
Christian investing is first and foremost defined by the understanding that all the things we own are not ours but the Lord’s. The Bible says in Psalm 24:1, “The earth belongs to God, and the fullness of it, world, and dwellers in it.” When we realize that the money we possess is not ours but it has been given to us by God, then we are able to make investments with a mind set of a manager and not a greedy person.
2.The Parable of the Talents
The Parable of the Talents that Jesus shared in Matthew 25:14-30 is also helpful in explaining the need to use the resources that have been provided to us. Only the servants that invested their master’s money were praised while one of the servants who put his talent in the ground due to fear was scolded. This parable tells us that God expects us to use our resources, make them grow and use them for the kingdom.
3.The Principle of Diligence
Proverbs 21:5 says, ‘The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.’ It means that investing wisely takes time, effort, and research, and not a rash or spontaneous decision. Christian investors should aim to make rational decisions that lead to sustainable growth over the years.
Ethical Investing: How to reconcile your finances with your faith
1. Staying Away from Investments in Unethical Industries
As Christians, we should know where our money is going. There are various industries that promote values that are not supportive of biblical principles, including:
- Gambling
- Pornography
- Alcohol and tobacco
- Weapons Manufacturing
- Abortion-related industries.
Investing in these sectors may be related with the activities that are against Christian ethical standards. Instead, we should look for investments that are close to God’s heart.
2. Supporting Kingdom-Focused Companies
There are many Christian based investment firms that review businesses on moral and biblical standards. These firms concentrate on companies that:
- Embrace ethical business practices
- Treat its employees well
- Support charitable activities
- Promote sustainability and social responsibility
Some investment funds and organizations, including Biblically Responsible Investing (BRI), offer portfolios that are consistent with Christian values.
3.Socially Responsible Investing (SRI) and Faith-Based Funds
Socially Responsible Investing (SRI) is an investment strategy of selecting stocks of companies that are likely to deliver positive social results. Faith based funds are investments that ensure that the money is used in a way that is consistent with the Bible. Some of the Christian mutual funds and ETFs include:
- Timothy Plan
- Inspire Investing
- GuideStone Funds
These funds assist believers to invest and grow their funds while obeying the Bible.
Practical Steps for Christian Investing
1. Set Clear Financial Goals
Before making any investment, it is advisable to know your financial goals. What is your investment goal: Retirement, Home ownership, Education, or Philanthropy? Knowing your goals helps to ensure that your investments are in line with your long term goals and biblical principles.
2. Learn to diversify Your Investments
Ecclesiastes 11:2 says, ‘Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.’ It is a way of minimizing risk through the division of investment across different asset markets such as:
- Stocks
- Bonds
- Real estate
- Mutual funds
- Faith-based investment funds
This way, you ensure that your wealth is well protected and has a high potential for steady growth.
3. Seek Wise Counsel
Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisers, they succeed.” A Christian financial advisor may be able to offer biblical insight and professional guidance on making sound investment decisions.
4.Invest for the Long Term
Christian investing is a patient and God’s blessed way of investing according to the Bible. Proverbs 13:11 tells us that, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” Do not seek quick results; instead, seek slow but steady results.
5.Practice Generosity and Kingdom Giving
The main purpose of wealth is to practice generosity. In 2 Corinthians 9:7, we are told that, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” When you are able to acquire some returns on your investments, then you should look for ways to deploy the resources towards:
