If you had to guess, how many biblical principles do you think apply 
to investing? The number may surprise you. Knowing and applying God’s 
financial principles in your investment decisions will make you a better
 steward of His resources and give you peace of mind. Investment expert 
Mark Biller joins Rob West today to discuss it. 
Mark Biller is executive editor at <a href="https://soundmindinvesting.com/">Sound Mind Investing</a>. 
A lot of the most familiar biblical financial 
principles revolve around the “personal finance” side of money … things 
like saving, borrowing, and so forth. But the Bible teaches us to live differently. Romans 12:2 says, "Do
 not conform to the pattern of this world, but be transformed by the 
renewing of your mind. Then you will be able to test and approve what 
God's will is — his good, pleasing and perfect will.” While Scripture doesn’t weigh in on the differences between Roth IRAs and Traditional IRAs, or a market order versus a limit order, it does provide numerous principles that can (and should) guide us in our investing. 
The SMI newsletter had an <a href="https://soundmindinvesting.com/articles/view/what-every-christian-needs-to-know-about-investing">article this month</a> that focused on nine biblical principles specific to investing:
BIBLICAL PRINCIPLES SPECIFIC TO INVESTING 
1. KNOW YOUR ROLE. Our culture tells us we own our stuff. The Bible says otherwise.
<ul><li>Psalm 24:1-2 says clearly, “The
 earth is the LORD’s, and everything in it, the world, and all who live 
in it; for he founded it upon the seas and established it upon the 
waters.”</li><li>Acknowledging God’s ownership of everything is the
 essential starting point of biblical stewardship. It’s also the 
essential starting point of investing. We’re stewards, or managers, of 
whatever God generously and temporarily entrusts to our care. That means
 we should be investing for God’s purposes and according to His 
principles.</li></ul>2. PURSUE MULTIPLICATION. Most of 
us are familiar with the Parable of the Talents in Matthew 25. Jesus 
uses the story of a wealthy man entrusting his possessions to three 
servants as an illustration of God entrusting each of us with some of His resources. There are a few important points we can take from this parable:
<ul><li>The amount we’re given to manage is related to our current abilities (v. 15);</li><li>The Lord will one day return and He’ll want to see what we have done with what He entrusted to us (v. 19);</li><li>If
 we manage His resources well — in other words, if we make something 
more of what He entrusts to us — He’ll entrust us with more to manage 
(v. 20-23).</li></ul>3. MOTIVES MATTER. The Bible doesn’t encourage multiplying money for its own sake or so that we can live a life of comfort (see <a href="https://biblia.com/bible/niv/Luke%2012.13-21">Luke 12:13-21</a>). In God’s economy, multiplication is all about impact.
<ul><li>Scripture teaches that our lives are to be about loving God (<a href="https://biblia.com/bible/niv/Matt%2022.36-38">Matthew 22:36-38</a>), loving people (<a href="https://biblia.com/bible/niv/Matt%2022.39">Matthew 22:39</a>), and bringing glory to God (<a href="https://biblia.com/bible/niv/Eph%202.10">Ephesians 2:10</a>).</li><li>Financially, some important ways we can fulfill those purposes are by giving generously toward Kingdom-building causes (<a href="https://biblia.com/bible/niv/Prov%203.9">Proverbs 3:9</a>) and providing for our families (<a href="https://biblia.com/bible/niv/1%20Tim%205.8">1 Timothy 5:8</a>). </li><li>While
 we’re in the paid workforce, our wages typically enable us to do both. 
But someday, most of us will retire from full-time paid work. Investing 
wisely now can give us the means to continue giving and supporting our 
family even after our salary days are over and we move into later life.</li></ul>4. EXPECT DIFFICULT TIMES. Job 5:7 says, “man is born to trouble as surely as sparks fly upward.” When
 trouble comes, it shouldn’t surprise us! We’ve been warned in advance. 
And trouble is certainly common in the investing world.
<ul><li>While 
the stock market’s long-term trajectory has been upward, it doesn’t move
 up in a straight line. Over the past seven decades, the market has 
experienced:</li><li>A “correction,” which is a decline of 10% or more from its most recent high … every other year on average</li><li>It has experienced a “bear market,” which is a decline of 20% or more … every seven years on average</li><li>And it’s experienced a “crash,” which is a decline of 30% or more … roughly every 12 years.</li></ul>5. GUARD YOUR HEART. Our God-given emotions enable us to enjoy the richness of life. They can also get us in trouble.

Two emotions that are especially challenging for investors: fear and greed. 
<ul><li>When
 the market is going up, greed can tempt us to invest more aggressively 
than we should. When the market is falling, fear can tempt us to abandon
 our long-term plan and run for cover at the worst possible times. 
That’s why, in addition to knowing the kind of market history we just 
discussed, the sixth principle is so important.</li><li>And that is to “think long-term. The Bible teaches us to build wealth slowly. Proverbs 21:5 says, “Steady plodding brings prosperity; hasty speculation brings poverty.”</li><li>A
 biblical approach to investing takes a long-term view. History 
demonstrates that time favors the patient investor. On any given day, 
the market only has a slightly better than 50% chance of rising. But the
 longer you stretch that time horizon, the higher that percentage 
becomes. So for example, there has never been a 20-year period when the 
total return of the stock market has been negative. </li></ul>6. DIVERSIFY. Scripture teaches us not to put all of our eggs in one basket … and of course … we find that in Ecclesiastes 11:2, “Divide your investments among many places, for you do not know what risks might lie ahead.”.
<ul><li>If
 you invest your entire portfolio in a single stock and that stock has a
 bad year, that’s a problem. But if you invest in 10 to 20 stocks and 
one of them has a bad year, the performance of the others may balance 
that out. That’s the idea behind diversification.</li><li>Investing in 
mutual funds, as opposed to individual stocks, is a simple way to 
diversify your investments. A mutual fund is a pool of money from many 
investors that is invested in many stocks (or other types of 
investment).</li></ul>8. USE WISE COUNSELORS. The Bible encourages us to seek the input of trusted advisers.
<ul><li>Proverbs 20:18 says, “Plans succeed through good counsel” and by the same token, Proverbs 5:22 teaches, “Plans fail for lack of counsel.”</li><li>Investing
 can be challenging to do entirely on one’s own. Fortunately, good 
counsel is readily at hand, whether via an investment service like SMI 
or by working with a Christian financial advisor.</li></ul>9. TRUST IN GOD. Psalm 20:7 says, “Some trust in chariots and some in horses, but we trust in the name of the Lord our God.” That’s really the main thing that should set a Christian investor apart: in good times and bad, our trust is in the Lord.
<ul><li>What’s the difference between a debt settlement company and a Christian credit counseling organization? </li><li>How should you determine the best way to help your parents financially if they haven’t handled money biblically? </li></ul>On this program, Rob also answers listener questions: 
<ul><li>What’s the difference between a debt settlement company and a Christian credit counseling organization? </li><li>How should you determine the best way to help your parents financially if they haven’t handled money biblically? </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the <a href="https://moneywise.netviewshop.com/donate2">Donate tab on our website</a> or in our app.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

If you had to guess, how many biblical principles do you think apply to investing?  Knowing and applying God’s financial principles in your investment decisions will make you a better steward of His resources and give you peace of mind.

What You Need To Know About Investing With Mark Biller

FaithFi | Mar 11, 2022

Show Notes

Where Faith Meets Finance

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