Biblical Principles in Investing

These are some of the biblical principles.

Money is a very good servant but a very bad master.

“You cannot serve both God and money.” — Matt 6:24c

“Whoever loves money never has enough;
    whoever loves wealth is never satisfied with their income.
    This too is meaningless.” — Ecclesiastes 5:10

Often we can let the pursuit of money consumed us. But let us take a step back. It’s what we do with the money that counts. And we can never let the pursuit of money distract us from the pursuit of His Kingdom.

With this principle in mind, we can make rational decisions and judgement and not let greed consume us and take unnecessary risks in investing.

Be Good Stewards of Money

We are not just growing money but being good stewards of our finances. Stewardship is more than growing money. It also encompasses how we spend it and are we having safeguards to minimize risks.

Don’t make rash decisions, be patient and honest

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

Don’t rush into investments but give considerable thoughts. It is fine with less gains. Slowly but surely.

Always have a plan

“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? 29 For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, 30 saying, ‘This person began to build and wasn’t able to finish.’ — Luke 14:28-30

When you fail to plan, you plan to fail. In each investment, you need to answer what role/position/sizing it plays in your portfolio. What are the risks, what is the entry and exit/review price?

Know your investments, monitor them

“Be sure you know the condition of your flocks,
    give careful attention to your herds;
 for riches do not endure forever,
    and a crown is not secure for all generations.” — Proverbs 27:23-24

It is not just the initial investment nor homework. Things change and you need to have a monitoring mechanism to monitor the investments.

 

Diversify

Invest in seven ventures, yes, in eight;
    you do not know what disaster may come upon the land.” — Ecclesiastes 11:2

Ensure some form of diversification in your portfolio. You can never be 100 percent sure.

 

The best investment

“But seek first his kingdom and his righteousness, and all these things will be given to you as well.” — Matt 6:33

The best investment is still the kingdom of God. Jesus said do not store up for yourselves treasures on earth but heavenly ones. The investments we made should be for this pursuit.

“Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” — Matt 6:19-21