Investing in the Stock Market with Biblical Wisdom: A Guide to Financial Stewardship
The stock market presents an opportunity for individuals to grow their wealth through investing in other companies and people creating good things and solving problems in the world. Investing comes with its risks of course, and I recommend you understand fully everything you invest in before considering giving your money to it – but how should we invest as Christians with the resources God has given us?
Making wise investment decisions is crucial to achieving long-term financial success, and it is also being a good Steward of what God has given us and trusts us to handle. That’s right – God wants you to use His resources to make your own life better and also improve and serve others. Investing is just one of the ways to do this and we should be looking to do it regularly or when God asks us to.
As we embark on this journey of investing, seeking guidance from the Bible can provide valuable insights and principles for making sound choices.
In this blog post, we will explore essential tips for investing in the stock market, supported by relevant Bible quotes, to help you approach this financial endeavour with wisdom and stewardship.
- Principle of Diligence
“The plans of the diligent lead to profit as surely as haste leads to poverty.” – Proverbs 21:5 (NIV)
Before investing in the stock market or investing in companies or people, conduct thorough research and educate yourself about the companies you’re interested in. Learn what all the terms and phrases mean relating to the particular sector or products you are thinking of investing in, and if you need help with the basics this website and my Youtube Channel cover these topics in detail. If it involves using Investment Platforms online, be sure to check out how trustworthy and the leaderships of the company that they will look after your money as well.
In the UK, we have the FCSC who protect up to £85k of your investments within a investing platform that has their approval so that if anything happens to the company – you will have up to that amount of money returned back to you. Diligence in understanding the market and individual stocks can help you make informed decisions and reduce the risk of financial losses.
- Avoiding Haste and Impulsiveness
“The simple believe anything, but the prudent give thought to their steps.” – Proverbs 14:15 (NIV)
Investing in the stock market requires patience and a long-term perspective. It will likely trigger you if you are a first time investor if you really struggle to not have full control over your finances and are looking to believe that long term you can see your money grow when giving it to others. With investing, it is common that you will see the investment value drop within the first few months but then over time it should grow if you have selected assets that globally will be of value and useful doing good in the world. Most people when they first start to invest do not like to see their investments lose value, but remember – there are only two days the value of your investments matter, the day you buy and the day you sell them. Any other days where you are checking their value does not matter, as you are not selling them yet to have the cash value. Avoid making hasty decisions based on rumours or short-term market fluctuations. Instead, be prudent and consider the potential consequences of your investment choices. With any money decision, pray and consider what God wants you to invest in long term and also if God wants you to cash out any investments on that day.
- Diversification
“But divide your investments among many places, for you do not know what risks might lie ahead.” – Ecclesiastes 11:2 (NLT)
Diversifying your investment portfolio is a prudent strategy to manage risk.
Spread your investments across various sectors and industries, reducing the impact of a single company’s performance on your overall portfolio. I would also suggest that you invest in the sectors and businesses that you want to encourage more of in the world, and have similar values you want to have as leadership within the companies. Our money is the source that companies use to develop, therefore it is important our decisions are not based on our gains but rather what we want to develop in the world instead.
- Avoiding Greed and Anxiety
“Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.” – Ecclesiastes 5:10 (NIV)
While investing in the stock market can be profitable, avoid being driven by greed. Set goals for regularly investing if you can so that you are increasing a portion of your income to make more passive income in the future, but do not make having “wealth” the goal. Resources are completely under God’s control and so our definitions of wealth and what that looks like are very different from what we should be focusing on.
Do not let a desire for quick riches cloud your judgment. Similarly, do not be anxious about market fluctuations. Maintain a balanced approach and focus on long-term goals. Similarly in this area, if you find any investments that seem very quick wins and you feel could have a risk – it is likely that discernment is telling you to avoid them completely.
- Seeking Wise Counsel
“Plans fail for lack of counsel, but with many advisers, they succeed.” – Proverbs 15:22 (NIV)
Consult with financial advisors or seasoned investors who can provide valuable insights and guidance.
Surround yourself with knowledgeable individuals who can help you make informed decisions in your stock market journey.
Read the best books on the topic and study what the Bible has to say about investing in businesses and others.
- Stewardship of God’s Resources
“For the Lord your God is bringing you into a good land… a land where you will lack nothing.” – Deuteronomy 8:7-9 (NIV)
Remember that all we have comes from God, and we are called to be good stewards of His resources.
Approach investing in the stock market as an opportunity to grow the resources He has entrusted to you.
Investing in the stock market is a path to financial growth, but it requires wisdom, diligence, and a long-term perspective.
By incorporating biblical principles into your investment approach, you can make sound decisions and be a faithful steward of the resources God has provided.
Be diligent in your research, avoid haste and greed, diversify your portfolio, seek wise counsel, and remember that your ultimate goal is to honour God through responsible stewardship of your finances.
As you navigate the stock market with biblical wisdom, may you find financial success and spiritual fulfilment on this journey of investment and growth.
On this website we talk a lot about money, business and investing as a key method of building income long term.
