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Writer's pictureNeil Chacko, CFP®, CKA®

What does the Bible say about investing?




As Christians, one of our core beliefs is that the Holy Bible is the infallible Word of God.  In fact, God’s word tells us:

 

“All scripture is breathed out by God and is profitable for teaching, for reproof, for correction, and for training in righteousness.”   2 Timothy 3:16

 

We also believe that God owns everything, and our role is to be stewards that responsibly manage the resources entrusted to us by God:

 

“For the earth is the Lord’s and everything in it; the world and those who dwell in it.”  Psalms 24:1

 

The Bible is full of wisdom that is relevant in all eras.  Money and money management, in fact, is a topic that is abundantly covered in scripture.  In fact, there are over 2,350 verses that have to deal with money and the topic of money management represents a significant portion of Jesus’ teachings.  Based on all of this, we can surmise that this is an important topic to God.  Jesus told us in Matthew 6:21:

 

“For where your treasure is, there your heart will be also.”

 

There are many verses that specifically discuss the importance of saving.  For instance, when Joseph interprets Pharaoh’s dream in Genesis 41:28-39, he discusses the importance of saving one-fifth of the produce of the land of Egypt during the seven years of plenty so that when the seven years of famine arrive, there will be a reserve available.  This is a great lesson teaching us of the importance of having an “emergency fund.”

 

However, what does the bible say about investing?  There are plenty of references to investing within the bible.  However, we are to first have a healthy attitude towards investing.  What is the purpose of the investment? Why are we looking to grow this money?  Ecclesiastes 5:10-15 teaches us that we are not to love money and pursue gains simply for the sake of gaining wealth.  Verses 13-15 warns us of riches lost in a bad venture, or investment, by a man who desired to be rich.  In the New Testament, Paul warns us of the dangers of loving money or seeking to be rich:

 

“Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into run and destruction”  1 Timothy 6:9 NIV

 

There is nothing wrong with becoming rich.  Many of the Bible’s key figures were considered rich (Abraham, Isaac, Job, David, Solomon, Joseph of Arimathea, and Joanna to name a few). However, gaining wealth should be a by-product of being faithful and having the right heart.  In the parable of the Talents (Matthew 25:14-30), Jesus teaches about a man who went away and entrusted his servants with some of his wealth.  The faithful stewards doubled what they were entrusted with while the foolish servant hid it and gave back only the money he was entrusted with.  The master, in this parable, is God our Father.  This parable teaches us that we are to invest the resources we are provided with by our Master for the Master.  The stewards that doubled what they were given were praised by the master and one was given even more because they did what the Master would have wanted them to do with what He provided.

 

There are going to be goals in life that will require getting a higher rate of return than what a savings account will provide.  These longer-term goals, such as saving for a time when you can no longer work or saving for your children’s college education, may require investing to get the possibility of a higher rate of return.  Investing involves many risks, one of which is the loss of some or all your investment.  The bible gives good counsel in this regard as well:

 

“Cast your bread upon the waters, for you will find it after many days. Give a portion to seven or even to eight, for you know not what disaster may happen on earth.”  Ecclesiastes 11:1-6

 

This verse tells us of the importance of diversification.  By investing in various asset classes such as stocks, bonds, real estate, gold, etc., we can spread the risk of loss.  Each investment has its own advantages and disadvantages and it is important to review them to see if the investment is a right fit for you and your own tolerance for fluctuations.

 

The bible also tells us that we should be steady plodders when it comes to investing.  A fundamental principle for becoming a successful investor is to spend less than you earn and invest some of the surplus:

 

“Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” Proverbs 13:11

 

I have witnessed firsthand many of my older clients who saved and invested a small portion of their paycheck year after year and are now millionaires in their 50’s, 60’s and 70’s due to this diligent saving.

 

As investments grow, however, scripture also warns us not to be conceited or to trust in our savings but to continue to trust in the Lord:

 

“As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy.” 1 Timothy 6:17

 

Thus, our focus should always be upon God because we can only find real financial security in Him.  Without a relationship with Christ, financial security is really nothing more than an illusion.  Jesus told us:

 

“I am the vine; you are the branches.  Whoever abides in me and I in him, he it is that bears much fruit, for apart from me you can do nothing.”  John 15:5

 

As we see, the Bible provides profound wisdom on investing, urging us to adopt a prudent and faith-driven approach. If we desire to be good stewards of God's resources, we must manage our finances wisely, always mindful of our motives. Scripture, from Joseph's counsel on saving in Genesis to the parable of the Talents in Matthew, guides us in making thoughtful, diversified investments that both honor God and prepare for the future while understanding that our true security lies not in financial gains but in our relationship with Christ. Let our hearts be centered on God, trusting in His provision and seeking to glorify Him in all that we do.

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