Seven Steps to Christian Saving and Investing
BACKGROUND: Christian investor, please check your attitude at the door before you enter.
According to the Bible, God-honoring investing is a critical element of good stewardship. You are absolutely accountable to God for the way in which you manage the resources He gives you, including surplus resources. Therefore, part of God's plan for your life is to clearly understand why, when, where, and how to invest as one tool to help multiply the resources He gives you.
CAUTION! There are prerequisites to investing. From the practical side, we coach our clients to be debt free except for their house and to have three-six months' worth of expenses in an emergency fund tucked away in a well managed money market mutual fund.
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However, the most important perquisite is ATTITUDE. Why do you want to invest? How will you use the surplus? Are your answers formed from a history of disciplined living, regardless of your income? Or, are your answers based on a history of greed and self-indulgence? OUCH!
BEWARE! Even within Christianity, examples of Godly stewards (managers) of material surpluses are few and far between. Larry Burkett once said, "To protect against the infectious diseases of greed and pride, the best weapon is a specific plan for returning the excess to God's Kingdom."
How do you invest in ways pleasing to God? During our times together we'll help you answer that question by showing you how to prayerfully build and execute a practical, seven-step, written investment plan. You need a prayed over, well informed, and written plan if you want to invest to further God's work because you have the gift of giving (Romans 12:8). You need a prayed over, well informed, and written plan if you want to invest to help meet the needs within your own family (1 Timothy 5:8).
OVERVIEW Here are the "Seven Steps to Christian Saving and Investing." These "steps" are an compilation of teachings, readings and applications I've picked up over the years from some of the best and most successful Christian and secular investors.
1. Define your goals 2. Make a plan 3. Determine your risk tolerance 4. Choose appropriate investment products 5. Pick a financial professional 6. Avoid problems 7. Begin the journey
God's Word tells us that we are to take an active part in planning for our financial well being. It isn't rocket science—and you don't have to be a genius to do it. You just need to know a few basics, form a plan, and be ready to stick to it. No matter how much or little money you have, the important thing is to prayerfully educate yourself about your opportunities.
Remember, there is no guarantee that you'll make money from investments you make. But if you get the facts about saving and investing and prayerfully follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
You are not born knowing how to save or to invest. You must start with the basics—the information you're about to read. It's just possible that you will slip, trip, and stumble into financial security—a wealthy relative may die, or a business may take off. But for most people, the only way to attain financial security is to save and invest over a long period of time. Time after time, people of even modest means who begin the journey reach financial security and all that it promises: buying a home, educational opportunities for their children, and a comfortable retirement.
If they can do it, so can you.
NEXT TIME we'll cover the first step of the "Seven Steps to Christian Saving and Investing" which is to "define your goals."
