The biblical principles of investing and saving are deeply ingrained in Scripture, from Genesis to Proverbs to the teachings of Jesus Himself. They are not a contemporary invention. However, the majority of Christians either completely steer clear of the subject out of guilt or approach it from the perspective of the world rather than God. The confusion is cleared up in this post. These seven biblical investing and saving guidelines will help you create a financial life that serves others, honors God, and prudently plans for the future.
There are a lot of different viewpoints on this subject, which makes it challenging. Some promote a life of denial, eschewing any luxuries and savings for the sake of the kingdom. To enjoy more wealth for giving and spending later in life, some advise budgeting, avoiding debt, and consistent saving. In the broader culture, the FIRE (Financial Independence/Retire Early) movement emphasizes extreme frugality and saving to be able to retire before age 40.
How do you develop a personal theology of money that strikes a balance between biblical orthodoxy and practicality in saving and investing for the future in light of all these seemingly contradictory and contradictory teachings?
These seven biblical precepts could be useful.
Principle 1: The Biblical Principles of Investing and Saving Begin With Permission to Plan Ahead
First and foremost, realize that God’s own endorsement of forward planning is where the biblical principles of investing and saving begin. Before the famine struck, Joseph kept grain in storage for seven years (Genesis 41). According to Proverbs 6:6–11, the ant gets ready for winter in the summer. God is not opposed to saving; in fact, He exemplified it.
Some Christians don’t save for retirement because they feel guilty about doing so when others are in such dire need, or they think it’s disrespectful (typically citing Matt. 6:19–20). Others think it’s unnecessary since God will provide for them (Isa. 46:4). Additionally, some people want to conserve money but end up spending it all (Prov. 13:18).
The Bible really encourages saving, which may surprise you. Scripture encourages saving for known, future needs (Gen. 41; Prov. 6:6–11; Prov. 21:5; Prov. 21:20).
According to the Bible, one can be “rich toward God” by “storing up treasures in heaven” and prudently saving and investing for the future (Luke 12:21; Matt. 6:19–21).
Principle 2: The Biblical Principles of Investing and Saving Serves Others and Honours God
It would be simple to consider conserving money to be solely self-serving. It doesn’t have to be, but it may be—all we have to do is read about the rich idiot in Luke 12.
Because it appropriately recognizes money as a gift that God has given us, saving money glorifies God (James 1:16–17). The significance of stewarding his gifts is demonstrated by prudent conservation as opposed to spontaneous, impulsive, or unwise expenditure (Luke 12:47–48).
You’ll be better equipped to assist with critical needs as they emerge if you practice good stewardship (Eph. 4:28). You are able to react more swiftly and possibly with greater significance (Prov. 3:27). By saving, you may also be able to leave a legacy that will benefit your heirs and enable them to bless others (Prov. 13:22).
Principle 3: The Biblical Principles of Investing and Saving – The Mistake of Procrastination
Everybody has a tendency to put things off. However, one of the most powerful financial tools—tax-free compound interest, or gaining interest on interest—is lost if you don’t start saving early.
The majority of individuals don’t put off saving because they believe it to be insignificant. Rather, they anticipate having more disposable money in the future, or they have more urgent demands that interfere, such as debt repayment, poor salary, medical costs, or the need to save for a child’s schooling. They want to address it at a later time.
However, money saved for retirement later has less time to grow (Matt. 25:27), so even if things do change in the future, you will ultimately need to contribute much more to have the same amount if you started today.
Simply begin by doing what you can and gradually build momentum.
Principle 4: The Biblical Principles of Investing and Saving – Debt Is Incapacitating
The Bible makes no mention of debt. Lending and borrowing were a part of the economic environment in Jesus’s day, even if there were definitely no Visa cards or vehicle loans. Although the Bible does not expressly forbid debt, it does describe it as a type of servitude (Prov. 22:7).
Beyond that, excessive debt and a poor savings rate are directly correlated with excessive spending. Debt has a price when it comes to saving. Money that cannot be utilized for anything else is required to pay off debt, which is paid to creditors. The “opportunity cost” of debt is that.
Principle 5: The Biblical Principles of Investing and Saving – Investing Wisely Is Correct and Beneficial
The exhortation to make prudent investments is one of the most misinterpreted biblical principles of investing and saving. Many Christians mistakenly believe that prudent investing is the same as speculation or greed. Trading stocks is not the same as investing. It’s not about placing a huge wager on your brother-in-law’s hot tip. This kind of speculation is equivalent to gambling on future occurrences, and you typically lose more money than you make (Prov. 28:19; 1 Tim. 6:10).
When done well, investing is truly praiseworthy. It involves investing in actual companies that have employees and provide goods or services to clients. We hope that the businesses we invest in prosper and yield returns that match our investment (Prov. 31:10–31; Eccl. 11:1–6).
Instead of buying individual stocks and bonds, the majority of us would be better off investing in inexpensive, passively managed mutual funds and exchange-traded index funds (ETFs). Additionally, we must be on the lookout for high fees and charges (which can significantly reduce returns), a lack of diversification (i.e., assets that balance each other), emotionally driven purchasing and selling, and a lack of financial understanding (don’t buy what you don’t understand).
Principle 6: Saving May Lead to Temptations
The same discipline that fosters financial wisdom can also subtly turn into a trap, so even the biblical principles of investing and saving carry a warning. It is anxiety with a budget, not stewardship, to save out of fear rather than out of faith. It is idolatry in a spreadsheet to save out of greed instead of gratitude.
You are not trusting God if you save out of fear (1 Tim. 6:17). You have completely lost the point if you act out of avarice (Prov. 1:19; Mark 8:36; Luke 12:15). Additionally, once you have some money, you don’t want to turn into the “rich fool” described in Luke 12 or the miser described in Ecclesiastes 5:13. The issue with both is not that they saved; rather, it is that they were self-centered and placed more trust in wealth than in God.
The urge to protect wealth rather than risk it for beneficial purposes and the welfare of others drives hoarders. Additionally, it brings judgment (Luke 12:16–21; James 5:3; Psalm 39:6; Eccl. 5:13; Zech. 9:3) and curses (Prov. 11:26).
Principle 7: The Key Is Balance
Holding money loosely is the last, and possibly most crucial, of the biblical principles of investing and saving. Save with self-control. Make wise investments. Give generously. And have faith in God for the results, since He is ultimately in charge of everything. Spending and saving are not in balance. It lies between surrender and faithfulness. Let your heart be thankful to God for all of your resources when making any financial decisions. You have been entrusted by him (Psalm 107:8–9).
On the one hand, we must put money aside and make prudent investments for future requirements. On the other hand, since God is the source of our provision and the only one in charge of the future, we want to continue to be giving and continue to rely on him.
Whatever we choose, it must be grounded in the biblical understanding that God has given us on this subject and come from a heart of thankfulness to God for his gracious generosity toward us—a God who is kind, loving, and merciful (Ps. 107:8–9).
The biblical principles of investing and saving are straightforward, but they do call for intentionality. Recognize that everything you own is a gift from God. Develop the habit of saving money before spending it. Steer clear of debt that enslaves. Make prudent investments and diversify. Give liberally. Additionally, don’t let greed or fear influence your financial choices. Read our guide on Christian financial planning—the biblical basis that enables each of these seven principles—to learn more about how these ideas relate to your overall money management.
