As a Christian personal finance blogger I know that people are searching for advice on what to do with their money, and a lot of them want to know what the Bible has to say about those financial topics.
I wrote an article a while back that brought together 120+ bible verses about money, and categorized them by topic, essentially trying to give a picture of how God wants us to view money.
Among the topics covered in those verses were wealth, contentment, giving, greed, debt, worry, and depending on God’s provision in our lives.
One topic that was covered briefly, but that I’d like to cover in more depth in this post, is what the Bible talks about in regards to setting goals, saving and investing, and managing risk.
Wealth: Don’t let It Become An Idol
Before we get too far, I think it’s important to realize that the pursuit of wealth without good reason, and without a heart for Christ will only lead to disappointment.
Do not wear yourself out to get rich; do not trust your own cleverness.Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle. Proverbs 23:4-5
Wealth and money can quickly become idols in our lives, and if we allow it to take a central place in our lives, it will try to take the place of God. Don’t let that happen. Make sure that you’re seeking to create wealth for good reasons, to take care of your family, to help others and give, and to help bring others to Christ.
So what does the Bible have to say about investing and planning for the future?
Establish Written Goals
Ron Blue made an appearance recently on a Yahoo Finance show talking about how the Bible can inform our finances and investing. He made several points about how the Bible can help us to improve our finances, and then gave several lessons that we can apply to our financial lives.
First, he said that the Bible suggests that we plan ahead, and that we make written goals and plans for the future.
The plans of the diligent lead to profit as surely as haste leads to poverty. -Proverbs 21:5
Without written goals, and knowing where you’re eventually wanting to go and do with your money, your wealth building will essentially be without purpose. Write down your goals, and revisit them on a regular basis to stay on track.
Save And Invest First, Then Spend
His second point was to make sure to save and invest first, before you start spending your money on other things.
Put your outdoor work in order and get your fields ready; after that, build your house. -Proverbs 24:27
He who is impulsive exalts folly Proverbs 14:29
The Bible talks about getting your fields in order before you build your house. In other words, think and act long term before you start spending large amounts of money on things. Don’t be impulsive and spend first, and then try to save later. Save and invest first, and don’t even consider that money to be there and considered for spending.
Think Long Term
It’s important to think long term if you want to reach your goals and be successful in the long run. Plan ahead for a rainy day, not just for today.
Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? -Luke 14:28
A wise man thinks ahead; a fool doesn’t, and even brags about it! Proverbs 13:16
Think about your goals, and what those time horizons might mean for your saving and investing. Saving for your kids college costs, and have a 15 year time horizon? Plan accordingly. Saving for retirement and have another 30 years? Set your plan according to those long term timelines, not on what you feel like spending that day.
Diversify Your Holdings
The Bible stresses the importance of diversifying your holdings, and making sure you don’t place too much risk in one basket.
Invest in seven ventures, yes, in eight;you do not know what disaster may come upon the land.
Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well. -Ecclesiastes 11:2, 11:6
Even in Biblical times it paid to diversify your holdings and your risk. You don’t always know what ventures will succeed, no matter how good they look on the surface. While in our days we’re not investing in ships and grain as the man in the verse, we still want to make sure to diversify our holdings, and minimize our risk were one of our investments to fail.
Risk: Know How Much You Can Afford
Be aware of just how much risk you can afford to take on in your situation, and be wary of something that seems too good to be true, because often it is.
I have seen a grievous evil under the sun:wealth hoarded to the harm of its owners, or wealth lost through some misfortune, so that when they have children there is nothing left for them to inherit. Ecclesiastes 5:13-14
If you’re close to retirement and you can’t afford to lose any of your investments, you may want to think about moving into safer, but lower yield investments. Have a longer time horizon and you can afford to risk more? You can think about investing in some higher risk stocks, but never more than you can afford to lose.
Focus On Christ First, The Rest Will Follow
With all the focus on money in our lives, it’s important to take a step back and remember where to keep the focus in the long run. Not on your money, but on God.
For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life. John 3:16
Our true wealth lies in Christ, and in putting our hope in Him. In first Timothy it talks about how we are to rely on Him, and how we are to be rich in good deeds – and to be generous.
Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life. – 1 Timothy 6:17-19
For me, this is why it pays to plan ahead for retirement. Not only so I can take care of myself and my family in the long run, but also so that I can give back to others and be generous and be a living example of Christ’s love.
Do you think the Bible has good things to say about planning ahead, saving and investing? What verses do you think we should add to the list?
Thanks a lot for this today, Pete…needed to hear it. Been struggling a lot (for various reasons) on whether or not it’s okay to save, invest, and build wealth. There are some out there that often make you feel like you need to give all of your disposable income and become a missionary in order to really serve Him.
As you mentioned, of course your motives need to be properly led by Him …but it’s just refreshing to be reminded that it’s NOT a bad thing to save, plan, and invest for tomorrow as long as it’s not your idol.
“In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” Proverbs 21:20
Jesus talks about rewards we’ll receive. (This is of course over and above salvation, which is a free gift.) And those rewards will be based on what we accomplished with the resources (talents) entrusted to us.
Investing clearly is encouraged. What to do with the proceeds is left unclear, though. We can speculate why, but my inclination is that it leaves us the best opportunity to show where our hearts are (where your treasure is…) in what we do with with the proceeds. As someone once said: you can’t take it with you, but you can send it on ahead! :)
Nice explanation of how the Bible speaks to finances. I think a good starting point is that we don’t expect or feel entitled to wealth. Our faith does not have a direct correlation to how much money we make or will make. We aren’t promised material wealth. Being diligent, though, can definitely create that financial stability that allows us to be more effective followers of Christ.
I think Jesus said to max out your 401k.
Just kidding…
I have a question regarding your support for long term planning. Maybe you could share your views on James 4:13-15?
Your use of Luke 14:28 to support this is far out of context. Read before and after this verse and you can see that this is about counting the cost of following Christ, not about long term investing and saving your money for your kids education.
Also, the version of Proverbs 13:16 that you used is quite different from just about every other translation in English. I am not sure where you got that version (not found on Buble Hub at all), but it is closest to the NLT. All of the other versions make it very clear that the verse is about knowledge, not planning. See trusted translations below:
“In everything the prudent acts with knowledge, but a fool flaunts his folly.” ESV
“Every prudent man acts with knowledge, But a fool displays folly.” NASB
“Every prudent man dealeth with knowledge: but a fool layeth open his folly.” KJV
One more question: What do you think the ‘rich man who built silos’ would look like today? We don’t build silos to store our excess, instead, we put our excess in mutual funds, stocks, retirement funds, ect.
Interesting points Erik.
To me James 4:13-17 talks about remaining humble in Christ, to remember not to rely to much on your own knowledge and prowess, and to remember to daily rely on Christ for everything. Seek his will for your life. I don’t feel it says you should never plan ahead, but rather that you should remember that we aren’t promised tomorrow, and that we should seek Christ in everything.
I think while Luke 14:28 isn’t directly supposed to be about planning ahead in investing terms, and more about counting the cost of following Christ as you mention, I think it still applies in the sense that it is about counting the cost of making a decision, having common sense, looking ahead and thinking about the ramifications of your actions – or the costs of not making the decision.
The Proverbs translation used was “The Living Bible” translation. Found here on Bible Gateway: Proverbs 13:16. I think the point the verse makes in other translations, to act with knowledge, is still a good one!
I agree, that we are called to be giving, and that building huge amounts of excess isn’t probably good stewardship. On the other hand, I also believe that we’re called to provide for our own families, and to think ahead and plan for their future.
The question I have is in handing money to a financial institution and having them invest it. Goldman Sachs, Lehman Bros, Bear Stearns, take your pick.
How does one assure that the institution, the mutual fund manager, or whomever is directing the retirement account isn’t involved in perfectly legal but unscriptural practices, i.e., usury? the subprime mortgage scheme (did anyone go to jail? was anything illegal done?) or in illegal and unscriptural practices, using “unjust scales”?
If growth occurs in an account by those mechanisms-that’s ill-gotten gain, it’s dishonest profit. I read that I’m not to desire such things.
What’s the answer?
I’ve heard a sermon and it was about giving to the poor or hungry and people were saying what if they go buy alcohol or drugs…so many ppl don’t like to give… I have no problem giving… I do my part and the recipient what he/she chooses to do is between them and God… my intention is good… and others may not… we can’t control others and just continue to do as we do… i will continue to invest or donate with my intentions in the hopes that I’m making good choices, pray on it.
Just have a question. I am seeking Godly counsel like God says. I have money invested in 11 sector ETFs. I have asked this question to many financier and have not received an answer. When adding to these ETFs do I add to one each time I get paid or how should I invest in these ETFs?