Category Archives: Investing

Generate Income, Investing, Optimizing Life, Stewardship, Taxes

Vote Wisely: This Decision Could Impact Your Income By 10-20% Or More

What if I told you that a single decision could impact all of your earning potential, savings, and investing by 10-20% or more? A wrong decision moves toward reducing your income, and a good decision moves toward increasing your income. You would immediately want to know what it was and how to learn more about it.

In the United States of America, we have the honor of voting in elections to select who takes many of our public offices at the local, state, and national levels. Elections have consequences and voting matters… a lot!

Our country was founded by Christians who were seeking freedom to worship God freely and Biblically, out from under any tyrannical rule of a king. Freedom was important… and so often not truly achieved.

It is very important to understand that the USA was not founded as a democracy, in which a majority of people can vote for whatever they want, including taking the wealth and possessions of the minority. Instead, God guided our founding fathers to establish a wonderful form of government known as a constitutional republic.

We do in fact participate in voting to elect representatives to the national government, but just as important is the US Constitution, which is in place to limit the power of the national government. The intent was to have a small national government doing the bare minimum (such as providing for the common defense… that’s the military) and not getting involved in impinging on the freedom of the states and the people.

Now we have a huge, stifling, mass of national government bureaucracy that tells us even how much water our toilet can flush and what kind of light bulbs we must use or cannot use.  We have fallen a long way and given up much freedom. The Constitution is constantly under attack from those who wish to redefine it and consider it a “living document”, which means essentially… “as long as we can get judges to say it means something else, then it does”. This approach is wrong.  The founders put in place a management of change process for the Constitution… and it is not simply getting people in black robes to say it means something else today than it did a few hundred years ago. It is called constitutional amendments. The process has been used many times, but not recently. The Constitution means what it says until we follow the process to change it. That is the only way to protect the individual rights of the people and the founding fathers knew it! It is supposed to be hard to change!

Not only does the national government continue to grow and impinge on personal liberty, but it continues to spend money it does not have at an increasingly alarming rate… on things it should not be involved in managing and does not manage well. To pay for this, the national government always says we need to spend more money on more government programs and raise taxes or go so far into debt we will never get out. Even if they print enough money to pay off the debt, the money we have will fall in value because of the extra money printed. Our purchasing power plummets! If a business was run this way, the same government would probably throw the business leader in jail.

America was founded as a land of opportunity! Those who work hard can improve their family’s standard of living over multiple generations or sometimes even in a single generation. This is harder and harder to do as the government gets bigger and taxes more and puts in place more regulations and more burdens like healthcare programs for which they have no constitutional authority, despite what a ruling of the Supreme Court may say.

Elections have consequences.   It all ends up affecting your ability to earn income with liberty, to keep what you earned rather than giving it to a government to waste, to save and invest freely and rely on God and the talents He gave you rather than relying always on the national government.

For those who want to get everything for free with someone else’s money… there is not enough of “someone else’s money” to pay for everything you want you will always be beholden to the national government to get by. You basically make yourself a voluntary dependent (e.g. like a child) of the government. On the other hand, many of us want to keep our freedom and the fruits of our labor. We want a small national government and a return to the protection of our personal liberty provided by the US Constitution. We trust in God and ourselves to work hard and get ahead. If we fail, we own it, and we get back up and try again. We don’t expect someone else to always pay our bills or cover our mistakes. We are accountable to God for how we use what He has given us in this life, whether time, talent, or treasure.

I encourage active participation in elections, not only by voting but also by influencing those around you. Research the truth. Do not trust what politicians say, but rather judge by the fruit of their lives as the Bible instructs us. Do not be lazy and believe what TV network news shows tell you, for they are decidedly leaning toward big national government and less individual freedom. The same is true for most social media sites today. Instead, seek out the truth diligently on the internet. Search out confirmation from multiple time-tested, reliable news sources. (You can’t trust everyone’s blog, either.) We are to test everything and discern truth from lies. If someone is constantly changing positions when it suits them, then you know they have no principle. They are political chameleons, and you cannot trust them except to look out for their own best interests. If they are honest but their plans will bankrupt our country worse than today… you may be able to trust them, but you are voting for disaster and loss of freedom. Look for those whose past actions and accomplishments line up with what they say and line up with what God’s word says. Seek those who strongly support the protection of individual rights provided by the Constitution… for ultimately it is your rights they protect!

How much harder it is to manage your personal finances when the government always takes more and more from what you earn, what you spend, what you invest, and even what you own when you die! What good is it to earn and save and invest if the government can just come and take what they want from whom they want?

Elections have consequences. Get involved today and don’t stop trying to influence your elected officials once they get into office. Remain engaged!

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Investing, Optimizing Life, Treasures In Heaven

A Truly Profitable Investment with Long Term Payout

We are all looking for profitable long-term investments to help us manage our personal finances. This is a very good goal. However, let’s pause long enough to put life in a slightly different perspective with regards to what is profitable. The greatest asset we have, one which we did not earn and we can not replace, is the life which our Father in heaven as gifted to us. In a way, we could think of ourselves as an asset in God’s hands. What “profit” is He seeking from us in how we use our lives? How will we invest this one time gift for His glory and our benefit? They are not mutually exclusive, though the world (and Satan) will try to convince you to pick one or the other.

After meeting Jesus Christ on the road to Damascus, Paul lived a life that serves as a good portrait of one who lived submitted completely to Jesus Christ. Paul truly died to self and took up his cross to follow after Christ. He turned His life into a fantastic investment for the Lord. I am confident he is even now enjoying the fruits personally of his choices. Eternity in the presence of the Lord. What Joy! But it was not without choices and trade-offs in his own earthly life. Paul had strong convictions and lived for God. He was focused on being truly profitable rather than just getting money and comfort for himself.

Matthew 16:24-27

      24Then Jesus said to His disciples, “If anyone wishes to come after Me, he must deny himself, and take up his cross and follow Me. 25“For whoever wishes to save his life will lose it; but whoever loses his life for My sake will find it. 26“For what will it profit a man if he gains the whole world and forfeits his soul? Or what will a man give in exchange for his soul? 27“For the Son of Man is going to come in the glory of His Father with His angels, and WILL THEN REPAY EVERY MAN ACCORDING TO HIS DEEDS.

As he prepared to leave for Jerusalem, Paul met with local elders of the church to remind them about his personal life lived as example as one submitted to Christ. It was filled with hardship and uncertainty, but also hope and joy in all circumstances. Paul provides a good summary of how we should approach our lives submitted to Christ. We do well to read carefully as if Paul were writing this to us and try to apply it in our lives today.

Acts 20:17-38

Farewell to Ephesus

      17From Miletus he sent to Ephesus and called to him the elders of the church. 18And when they had come to him, he said to them,
“You yourselves know, from the first day that I set foot in Asia, how I was with you the whole time, 19serving the Lord with all humility and with tears and with trials which came upon me through the plots of the Jews; 20how I did not shrink from declaring to you anything that was profitable, and teaching you publicly and from house to house, 21solemnly testifying to both Jews and Greeks of repentance toward God and faith in our Lord Jesus Christ. 22“And now, behold, bound by the Spirit, I am on my way to Jerusalem, not knowing what will happen to me there, 23except that the Holy Spirit solemnly testifies to me in every city, saying that bonds and afflictions await me. 24“But I do not consider my life of any account as dear to myself, so that I may finish my course and the ministry which I received from the Lord Jesus, to testify solemnly of the gospel of the grace of God.

      25“And now, behold, I know that all of you, among whom I went about preaching the kingdom, will no longer see my face. 26“Therefore, I testify to you this day that I am innocent of the blood of all men. 27“For I did not shrink from declaring to you the whole purpose of God. 28“Be on guard for yourselves and for all the flock, among which the Holy Spirit has made you overseers, to shepherd the church of God which He purchased with His own blood. 29“I know that after my departure savage wolves will come in among you, not sparing the flock; 30and from among your own selves men will arise, speaking perverse things, to draw away the disciples after them. 31“Therefore be on the alert, remembering that night and day for a period of three years I did not cease to admonish each one with tears. 32“And now I commend you to God and to the word of His grace, which is able to build you up and to give you the inheritance among all those who are sanctified. 33“I have coveted no one’s silver or gold or clothes. 34“You yourselves know that these hands ministered to my own needs and to the men who were with me. 35“In everything I showed you that by working hard in this manner you must help the weak and remember the words of the Lord Jesus, that He Himself said, ‘It is more blessed to give than to receive.’”

      36When he had said these things, he knelt down and prayed with them all. 37And they began to weep aloud and embraced Paul, and repeatedly kissed him, 38grieving especially over the word which he had spoken, that they would not see his face again. And they were accompanying him to the ship.

As we consider this portrait of living for Christ, Paul reveals several key elements we should carefully consider and apply in our own lives, not matter what our work or ministry.

  • Serve God with humility, even through trials and tears.
  • Do not shrink from teaching truth and repentance, regardless of consequences to you personally.
  • Remember that our life’s purpose is not our own when we are submitted to Christ. Our purpose is to wholeheartedly seek after the work God assigns us to further His kingdom.
  • Be on guard for false teaching and those who would draw you away from Christ. The threat comes both from those outside the church as well as from among the church. People will pervert God’s word to draw disciples after themselves.
  • Do not cease to admonish one another so that we help one another to remain in Christ and in His truth.
  • In testing for false teaching, admonishing, and living for Christ we must look to God and to the word of God as our unchanging source of truth.
  • Work hard to provide for yourself and do not covet someone else’s wealth.
  • Help the weak.
  • Pray for one another in genuine love and concern. Create a community of brothers and sisters in Christ that truly love and care for each other.

Ask yourself… “How does this teaching from Paul apply to my life today?” and then take action to make any course corrections you need to live fully submitted to Christ.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Diversification, Greed, Plan Carefully and Seek Wise Advice, Speculative Investment

Are You Gambling or Investing?

Are you a gambler or an investor? Consider your entire portfolio that you invest. Do you understand how you will succeed if one particular asset or asset class (e.g. the stock market) goes up, goes down, or stays flat? If the success of your financial investing strategy requires any one asset to move in a particular direction, then what happens if it does not do that? You are essentially gambling your money on an asset increasing in value.

Let’s consider someone investing in the US stock market.

  • A gambler may make a disproportionately large bet on the stock market or an individual stock going in a specific direction. For example, he hopes or believes it will increase in value. He may make a big gain if things go his way, but if the market crashes he loses much money.
  • An investor avoids the greed of chasing the maximum gain, that brings with it high risk. Instead, he plans a strategy that is diversified across multiple assets or asset classes (e.g. diversified group of stocks, bonds, cash, perhaps some silver or gold). If the market crashes he is positioned to use some of his cash position or bonds to buy stocks after he is confident the crash has bottomed out and stabilized. When stocks recover, he comes out with a profit. Later, he rebalances his portfolio back to target by selling some of the stocks he picked up when values had fallen. If he suspects a certain investment has potential for high gain, he considers investing a smaller portion of his portfolio to capture the gain with less overall risk… this is called speculative investment.

If you have not done so in a while, it is a good time to consider your investing strategy. The global economy is trying to recover from struggles through many years and yet stocks are already priced at or near all-time highs due in part to heavy interference by national governments (e.g. “the Federal Reserve” keeping interest rates low artificially, thus driving people into the stock market at higher risk).

Do you know if your portfolio is prepared for either outcome (e.g. stock markets decline or rally higher)? or are you betting that it will work out in one particular outcome and unprepared for the other?

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Investing

Should I Buy or Sell Stocks in Today’s Environment?

Sometimes it can be confusing to know whether you should be buying or selling stocks overall.

Should I buy now with both hands because this is as low as the market will go? or should I wait until some world event (or the reality of the poor global economy) triggers a significant pullback? Should I sell everything now at market highs? What should I do?

Avoid investing based on emotions or impulses. Instead, start by developing a longer-term personal financial investing strategy… a plan… and spend time reviewing how to adapt to the current environment. For many, you will want to consult with a professional financial planner or at least a friend or family member who has a greater understanding of investing than you.

For those of you who are not yet in a position to be investing in the stock market, I encourage you to continue working on the basics we cover elsewhere in our teachings… learn to earn an income consistently and then work hard to increase it, learn to budget and save… differentiating “wants” from true “needs”, develop an emergency fund in cash for surprises that always come, give to others in a way that honors God by investing in His kingdom. Your time may yet come when you will be well prepared to invest in stocks. Do not rush it lest you take on risk you are not ready for… as a child sprinting into the street to get his favorite ball, not aware of the oncoming cars.

For those that are in a position to invest in stocks… today’s article is for you. To begin with, you should have a plan before you just buy stocks, so if you are a beginner and not yet in the market, you need to do a bit more homework before you just buy a stock for a company you like because it is less expensive than it was before. This is not a robust strategy. You need diversification, an identified list of goals and objectives, a specific timeline for your investment… you need to be prepared. Plan carefully and seek wise advice. We have covered this too in other articles on our site.

Stocks that are falling, can fall much farther. In financial investing many use a parable of a “falling knife”. In other words, be careful trying to buy into declining stocks to greedily. If they have not found their bottom yet, you may be reaching out to catch “a falling knife”. When you do that… it hurts. As an example to illustrate… you see stocks decline 10% and you jump in with both feet… only to see them decline another 10-15%. Ouch. Let’s hope you don’t then panic and get out before they recover.

On the other hand, stocks that are near all time highs can actually go higher.

If you are a well prepared investor with a solid plan, you have prepared for this market volatility. You have a portion of your investing funds set aside as cash or “dry powder”. In other words, you are anticipating that you will have an opportunity to purchase stocks when there is a decline (ammunition ready to fire when needed). Now… what to buy, how much, when… all still important questions.

It is very important to identify a time horizon for your investing. Most of us should avoid day to day or month to month “trading” and instead focus on longer term investing such as over a few years or even a retirement portfolio. This important perspective is key in identifying what to buy and when and how much.

Dollar cost averaging is your friend. Hopefully you have previously set targets for specific diversification of stocks you would like to have as prices fall that would best diversify and boost your portfolio. This is part of having a plan. Then you buy some as the stock you are following falls. You do not do this on a whim or as a reaction to falling price. You have already done homework and seize the opportunity to invest in something you already targeted and studied. If it was at 100$/share a few months ago, perhaps you set a target to get a starting position (25%) when if pulled back to 95$/share to be followed up with increments again at 90, 80, 70. You do not try to pick the bottom and get all in at that bottom. That does not work.

If you are just now looking for opportunity and have not done a lot of pre-planning… take your time. Look for stability in the market and a support level to be reached that may indicate that the stocks you want have bottomed out… avoid catching the falling knife. You must avoid the temptation to try to pick the bottom. If the stock falls 20%, stabilizes and bounces back up 5%… be content to get a starting position at 15% discount, don’t try to pile all in at the absolute bottom. Greed will cause you great pain. Do your homework while you wait.

Oh… and you almost never want to use all your dry powder quickly because the the market may go lower than you think. You may want some cash left in your account to use over a 3-6 month time period.

If you are fully invested and have no cash position… seriously consider getting some investing help to make good decisions on how to reduce the risk of your portfolio through diversification, stocks with high dividends, and even creating a cash position… yes even if you may have to realize a loss by doing so. Avoid the trap of staying in a bad position in your portfolio just to insist to yourself that it will recover and you did not take a loss on that investment. Do you really want to go hunting a bear (e.g. “bear market”) with no dry powder?

Be careful. Do not be greedy. Avoid impulse and emotion. Hunting bears (e.g. “bear market”) can be dangerous game, and it can also be dangerous to be “all in” when markets are already overpriced and dependent on government manipulation of interest rates.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Greed, Speculative Investment

Big Gains Typically Come with Big Risk

Do not be greedy for high gains by placing large “bets” on stocks or other investments or pursuing “get rich quick” schemes. Keep in mind a short-term “bet” is very different than a longer-term investment. If quick bets worked without a lot of risk, the person offering the “can’t miss” opportunity would not be trying to get you involved. Instead, they would use their own scheme to get rich and then go about their early retirement or pursuit of more money.

Speculative investment is fine as a diversification but be prepared for any investment to go up or down, no matter who recommends it.

1 Timothy 6:10 For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.

Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Control Debt, Control Spending, Ethics, Generate Income, Greed, Investing, Optimizing Life, Plan Carefully and Seek Wise Advice, Saving, Stewardship, Treasures In Heaven

Biblical Guiding Framework For Financial Freedom

God lays out important principles for managing finances in the Bible. He wants His people to be wise stewards of the resources He provides.

In this article, we lay out a high-level framework that provides valuable insight for those who take the time to genuinely understand and apply it. I have paired the elements of the framework with some of the scriptures that support them, but there are many other scriptures that could be added.

You can also check out our Resources section of the website for other organizations with a great depth of material on this subject.

1 – Earn Money: Develop skill and work hard to generate income.

  • Colossians 3:23 – Work willingly at whatever you do, as though you were working for the Lord rather than for people.
  • Proverbs 6:9-11 – But you, lazybones, how long will you sleep? When will you wake up? 10 A little extra sleep, a little more slumber, a little folding of the hands to rest— 11 then poverty will pounce on you like a bandit; scarcity will attack you like an armed robber.

2 – Control Spending:  Set a budget that matches your income and stick to it in order to control spending. This budget should include short term “monthly expenses” but also saving ahead for long term expenses like a house, university education, future medical expenses, retirement, and contingency funds for the unknown.

  • Proverbs 6:6-8 – 6 Take a lesson from the ants, you lazybones. Learn from their ways and become wise! 7 Though they have no prince or governor or ruler to make them work, 8 they labor hard all summer, gathering food for the winter.

3 – Control Debt: Carefully consider any debt before committing.

  • Proverbs 22:7 – Just as the rich rule the poor, so the borrower is servant to the lender.
  • Romans 13:8 – Owe nothing to anyone—except for your obligation to love one another.

4 – Invest: Choose to invest your financial resources for growth. Don’t stuff your mattress with cash in hopes of avoiding risk.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents. Click the link to read the scripture.
  • Ecclesiastes 11:1 – Send your grain across the seas, and in time, profits will flow back to you.

5 – Diversify Investments: Diversify investments to manage risks.

  • Ecclesiastes 11:2 – But divide your investments among many places, for you do not know what risks might lie ahead.

6 –Consider Carefully and Seek Wise Counsel: Whether choosing how you will earn income, how to control spending or debt, or how to invest to grow your finances you should carefully consider your strategy and seek wise counsel.

  • Proverbs 22:3 – A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.
  • Proverbs 15:22 – Plans go wrong for lack of advice; many advisers bring success
  • Proverbs 14:15 – Only simpletons believe everything they’re told! The prudent carefully consider their steps.

7 – Steward Your Financial Strategy: Once you establish your financial strategy you must periodically review and analyze all elements to ensure you are following it and it is effective. This applies to earning income, spending, debt, and investment.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents not only that we should invest, but that a good steward periodically checks on the effectiveness of his investments and makes adjustments according to their performance.

8 – Ethics: Following God’s instruction in how we manage our finances is more important than the actual dollars themselves.

  • Proverbs 22:1 – Choose a good reputation over great riches; being held in high esteem is better than silver or gold.
  • Proverbs 22:5 – Corrupt people walk a thorny, treacherous road; whoever values life will avoid it.
  • Ecclesiastes 12:13 – That’s the whole story. Here now is my final conclusion: Fear God and obey his commands, for this is everyone’s duty.

9 – Do Not Be Greedy: To those who love money, they will never have enough. Money is a tool to serve God and to support yourself and your family. The draw to “get rich quick” brings much risk.

  • 1 Timothy 6:10 –  For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.
  • Ecclesiastes 5:10 – Those who love money will never have enough. How meaningless to think that wealth brings true happiness!

10 – Store Up Treasure in Heaven

  • Matthew 6:20 – Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal.
  • 2 Corinthians 9:7 –  You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. “For God loves a person who gives cheerfully.”
  • Proverbs 22:9 – Blessed are those who are generous, because they feed the poor

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Diversification, Plan Carefully and Seek Wise Advice

Do Not Catch A Falling Knife

When cooking in the kitchen we may remind ourselves not to catch a falling knife. We recognize it will cut us if we catch it on the way down. It is better to let it fall, getting hands and feet out of the way… and then pick it up.

However, sometimes it is easier said then done. Reflex kicks in when the knife drops and we reach for it. To avoid grabbing the knife as it falls typically requires planning ahead of time not to catch it and then discipline to avoid reaching for it. It is easy to make a mistake when reacting to a situation without upfront planning.

The same is true for many investments… in particular the stock markets when we see dramatic declines in a market. Sometimes the temptation is to jump in quickly to a market that is seeing dramatic declines. However, this can be a lot like trying to catch a falling knife. Sometimes the market will rebound and sometimes it continues to fall. You may want to wait to make sure it has finished falling before you get substantially in. You certainly don’t want to make that decision on a reflex or without a plan.  A market decline is one of the times that a clear, well thought out plan really helps.

For effective long term “investors”, or the “investment” section of our portfolios, a sharp decline can be a good opportunity to buy some stocks you have already researched and targeted.  An effective long term investor already had a plan for a market decline. They had cash or liquid fixed income on the sidelines they could use to buy stocks when the price falls. They have an idea of what they want to buy and for what time horizon. They have already considered a strategy to cost average in or rebalance their portfolios as the markets decline. They are less “reactive” and minimize risk of “panic” decisions because they had a clear plan.

If you are a long term investor and did not prepare for a decline… maybe your plan was just to ride out the short term storms, holding the same assets you held on the way in. While this is a long term strategy and it minimizes the chance for panic selling at a market bottom, you may want to look for a chance to rebalance your portfolio.  Are there some investments you think have a better chance of recovering quickly than the ones you are currently holding?  Do not rush into changing your strategy. Consider carefully. You may want to seek competent professional advice.

If you are a non professional “trader” or have part of your portfolio reserved for trading you want to consider a few key points.

  • You should already have a plan for this scenario. If you had a good plan you should stick to it… or at least revisit it before you start making quick decisions to buy or sell stocks on emotion or reflex.
  • If you didn’t… you are now reacting with emotion and reflex. Take some time to ensure you are calm and evaluate a strategy from where you are at the moment.
  • Avoid the psychology of holding onto a losing position… hoping it to become a winning position if you can hold out long enough.  Try to make decisions based on the facts rather than emotion.
  • If the basic reasoning, or thesis, for your trades is no longer valid you need to be willing to change your positions (take a loss if necessary) and position for recovery.
  • Avoid the assumption that you “must be near the bottom” and thus can put everything into the market. Be prepared for the market to stabilize, recover, or continue declining. Avoid “betting” on one direction.

If you are a non-professional trader and have a large portion (or all) of your portfolio dedicated to “trading” instead of a more stable approach with some dedicated to longer term “investing”… now may be a good time to reconsider. You may look at “trading” into some high quality names, perhaps with dividend, diversified across sectors and convert some of your portfolio to “investment” as diversification to your “trading” portfolio.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Control Debt, Control Spending, Generate Income, Greed, Investing, Saving

God’s Wisdom in Financial Choices: Digging, Gambling, or Investing?

 

There are always a lot of uncertainties in the world. Some may be global political conflicts or wars or terrorism. Others may include domestic conflict between political parties with very different views. The world is still recovering from a recession with a lot of interference from central banks keeping interest rates lower than they should remain. You do not hear about it much anymore, but banks are not really back to historical interest rates, which indicates they are still manipulating the markets to the extent they can.

How do you handle your finances in a situation like this? Are you digging a hole, gambling, or investing with your finances?

Digging a hole refers to constantly spending more money than you earn. Even if you are not accumulating debt, if you are not saving money for future emergencies or future planned expenses (e.g. car, house, retirement, etc.) you are actually digging a hole for yourself that gets harder and harder to climb out of as you get older. This principle applies whether world events are volatile or calm. Remember, that if you want to retire someday or even if you have to retire due to medical issues… you may not always be able to continue bringing in new income.  That means that over the long range, you need to save ahead, not dig a hole or even break even paycheck to paycheck.

Gambling reflects those who, often driven by greed, make disproportionately large investments, or bets, on things like oil or a particular stock that they think will make them “rich” if it moves in a particular direction. This approach may be acceptable as a speculative diversification in part of an investment portfolio but the typical investor should never assume any particular investment is “fool proof” and go “all in” on it. Sometimes it will work out, but it may also result in disaster.

A wise investor instead diversifies across multiple investments. He or she is prepared for unexpected moves in value of the investments in short term and long term. The wise investor does not always make the highest return on any one investment, but instead makes a steady and predictable return on investment regardless of circumstances.

So each of us should periodically reflect… “Am I digging a hole? gambling? or investing?”

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Control Debt, Control Spending, Diversification, Ethics, False Teaching, Generate Income, Greed, Optimizing Life, Plan Carefully and Seek Wise Advice, Saving, Speculative Investment, Stewardship, Treasures In Heaven

Biblical Guiding Framework For Financial Freedom

God lays out important principles for managing finances in the Bible. He wants His people to be wise stewards of the resources He provides.

In this article we lay out a high level framework that  provides valuable insight for those who take time to genuinely understand and apply it. I have paired the elements of the framework with some of the scriptures that support them, but there are many other scriptures that could be added.

You can also check out our Resources section of the website for other organizations with a great depth of material on this subject.

1 – Earn Money: Develop a skill and work hard to generate income.

  • Colossians 3:23 – Work willingly at whatever you do, as though you were working for the Lord rather than for people.
  • Proverbs 6:9-11 – But you, lazybones, how long will you sleep? When will you wake up? 10 A little extra sleep, a little more slumber, a little folding of the hands to rest— 11 then poverty will pounce on you like a bandit; scarcity will attack you like an armed robber.

2 – Control Spending:  Set a budget that matches your income and stick to it in order to control spending. This budget should include short term “monthly expenses” but also saving ahead for long term expenses like a house, university education, future medical expenses, retirement, and contingency funds for the unknown.

  • Proverbs 6:6-8 – 6 Take a lesson from the ants, you lazybones. Learn from their ways and become wise! 7 Though they have no prince or governor or ruler to make them work, 8 they labor hard all summer, gathering food for the winter.

3 – Control Debt: Carefully consider any debt before committing.

  • Proverbs 22:7 – Just as the rich rule the poor, so the borrower is servant to the lender.
  • Romans 13:8 – Owe nothing to anyone—except for your obligation to love one another.

4 – Invest: Choose to invest your financial resources for growth. Don’t stuff your mattress with cash in hopes of avoiding risk.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents. Click the link to read the scripture.
  • Ecclesiastes 11:1 – Send your grain across the seas, and in time, profits will flow back to you.

5 – Diversify Investments: Diversify investments to manage risks.

  • Ecclesiastes 11:2 – But divide your investments among many places, for you do not know what risks might lie ahead.

6 –Consider Carefully and Seek Wise Counsel: Whether choosing how you will earn income, how to control spending or debt, or how to invest to grow your finances you should carefully consider your strategy and seek wise counsel.

  • Proverbs 22:3 – A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.
  • Proverbs 15:22 – Plans go wrong for lack of advice; many advisers bring success
  • Proverbs 14:15 – Only simpletons believe everything they’re told! The prudent carefully consider their steps.

7 – Steward Your Financial Strategy: Once you establish your financial strategy you must periodically review and analyze all elements to ensure you are following it and it is effective. This applies to earning income, spending, debt, and investment.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents not only that we should invest, but that a good steward periodically checks on the effectiveness of his investments and makes adjustments according to their performance.

8 – Ethics: Following God’s instruction in how we manage our finances is more important than the actual dollars themselves.

  • Proverbs 22:1 – Choose a good reputation over great riches; being held in high esteem is better than silver or gold.
  • Proverbs 22:5 – Corrupt people walk a thorny, treacherous road; whoever values life will avoid it.
  • Ecclesiastes 12:13 – That’s the whole story. Here now is my final conclusion: Fear God and obey his commands, for this is everyone’s duty.

9 – Do Not Be Greedy: To those who love money, they will never have enough. Money is a tool to serve God and to support yourself and your family. The draw to “get rich quick” brings much risk.

  • 1 Timothy 6:10 –  For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.
  • Ecclesiastes 5:10 – Those who love money will never have enough. How meaningless to think that wealth brings true happiness!

10 – Store Up Treasure in Heaven

  • Matthew 6:20 – Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal.
  • 2 Corinthians 9:7 –  You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. “For God loves a person who gives cheerfully.”
  • Proverbs 22:9 – Blessed are those who are generous, because they feed the poor

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Control Debt, Control Spending, False Teaching, Generate Income, Investing, Optimizing Life, Parables, Plan Carefully and Seek Wise Advice

The Way of a Fool Is Right In His Own Eyes

We should be careful to listen to God’s advice. Those who wish to become wise, who love knowledge, must accept discipline and correction… must recognize that others may have more wisdom in some areas than ourselves. That is how we learn and get better.

Proverbs 12:1 and 15

1Whoever loves discipline loves knowledge,
But he who hates reproof is stupid.

 15The way of a fool is right in his own eyes,
But a wise man is he who listens to counsel.

If you are not humble enough to acknowledge that others may have wise input worthy to consider, that you may have made or be making mistakes than you will continue to make mistakes.

Be humble. Seek wisdom. Accept correction from God and from others. Learn from it. Grow in wisdom.

These fundamentals apply to all aspects of life… and certainly to all aspects of managing your finances. There are great examples of public organizations or private advisors that can help. Most people even have others around them that may have good input.

For a few examples, please visit our resources section of our website.

Resources

Our mission is to help you. We provide the Resources section of GrowGodsMoney.org to help provide you with greater depth of resources by referring you to high quality organizations that have a lot of great content or provide a financial service (e.g. broker for investments).

We do not get paid by these organizations for referrals. We do not “compete” with these institutions, but rather see ourselves as part of the body of Christ in connecting you with helpful resources they already provide.

If there are resources you would like to recommend or give us feedback on, please send us information from the Contact Us page.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .