Biblical Financial Lessons

The Importance of Diversification – Ecclesiastes 11:2

I have a question for you:

Are your investments appropriately diversified?

Before you answer this question too quickly, let me ask the question in a more extended version:

Are your investments appropriately diversified – both within and outside of the stock market?

This is a very important addition to the question. Let me explain.

When the entire stock market goes up, it tends to drag the stocks of lower performing companies up with it. However, when the entire stock market goes down, it tends to drag down the stock price of companies that continue to perform very well. This is why it is vitally important to diversify your investments – both within and outside of the stock market.

Many people only have investments within their company retirement plan where they are offered various stock market investment options. As a result, their investments are subject to the greater market’s performance.

Ecclesiastes 11:2 provides this great wisdom: Invest in seven ventures, yes, in eight;you do not know what disaster may come upon the land.

This is why I have invested in both market-based investments as well as non-market-based opportunities.

Here are some great non-market-based investments to consider:

  1. Rental Real Estate – Commercial and Residential
  2. Land – They’re not making any more of it – except in a few volcanic islands
  3. Precious Metals – Gold, Silver, Platinum, etc.
  4. Antiques
  5. Talents – Write a book, Record an album, etc.
  6. Business – Start up a small business

I’ve found Ecclesiastes 11:2 to be very helpful in my money journey. As I’ve invested in a variety of assets, some of them have encountered struggles. By having a widely diversified set of investments, my other assets have helped carry the load until a struggling investment improved.

Bible Money Tip: Generosity Is Contagious

I recently heard Ken Friar, Executive VP of INJOY Stewardship Solutions, share the following statement:

People don’t plan to be selfish. They just don’t make a plan to be generous.

But it only takes one or two people who are living generously to move literally hundreds – even thousands – to give.

Consider Exodus 36:3-8:

And the people continued to bring freewill offerings morning after morning. 4. So all the skilled workers who were doing all the work on the sanctuary left what they were doing 5 and said to Moses, “The people are bringing more than enough for doing the work the Lord commanded to be done.” 6 Then Moses gave an order and they sent this word throughout the camp: “No man or woman is to make anything else as an offering for the sanctuary.” And so the people were restrained from bringing more, 8 because what they already had was more than enough to do all the work.

Moses cast the vision God had given to him, and the people responded in an amazing way.

I’ve seen similar examples happen throughout my life. When tornadoes swept through Alabama in 2011, I saw one or two people begin giving to provide immediate assistance, and it compelled me to give. The next thing we knew, more than $100,000 had been raised.

When Hurricane Katrina smashed the Gulf Coast, people around the world rushed to help by giving tremendous amounts of money. The same was true for the earthquake in Haiti and tsunami in Indonesia.

We see it happen when a family’s home burns down and a community unites together to help them.

Generosity is contagious!

As I consider the various “contagious giving moments” I’ve witnessed, here are some common variables:

  1. There was a clear need. We all want to make a difference with money that we give away. We want a “return on investment” on the money. Without clear understanding of the ROI, we are more inclined to hold onto their dollars.
  2. The need was urgent. There are many cases where there is a need, but it isn’t urgent. Urgency is what causes us to move immediately.
  3. There was a trusted entity to send money. There have been so many highly reported instances of financial mismanagement that we have been conditioned (and rightly so) to ask the question, “Is this organization going to handle this money in the exact manner they’ve communicated?”
  4. Someone gave first. When we see our friends, family, or heroes give, it inspires us!

Have you ever been able to be a part of a “Contagious Generosity Moment”? Will you take a moment to share it with us in the comments?

This is part of the “Biblical Financial Lessons” series here on the wildly popular Click HERE to read more posts in the series.

You Can’t Set Money Apart From Your Heart

“You can’t set money APART from your HEART.”

It is a biblical principle: Matthew 6:21 For where your treasure is, there your heart will be also.

It is a fundamental rule of money.

Where ever you have spent, given, or invested money, you will be interested in it.

  • If you have placed money into a particular company stock, you will suddenly become very interested in that company. You will check the stock price, follow news about the company, and tell your friends and family to buy their products.
  • When you purchase a home, you will treat it as an owner. When something breaks, you will fix it. You will spend money to decorate it. The lawn will be kept up.
  • If you’ve started up a small business or have seen a friend start one, you are fully aware of how much time and energy they place into getting the business off of the ground.

The opposite is also true! You will spend money on people and things you love. Money will just flow to them.

  • I spend money on my bride and my children because I love them.
  • I spend money on deer hunting because I’m passionate about it.
  • I give money to my church because I love Jesus and my church helps people

In other words, show me your bank statement, and I will be able to tell you what is important to you.

This is part of the “Biblical Financial Lessons” series here at the wildly popular Click HERE to read more.

Mentors Matter

The people who are allowed to speak into your life impacts your ability to make progress.

Stated more simply, “Mentors matter.”

If I had not sought wisdom in managing my personal finances, I would have remained broke. But I did seek wisdom. I’m no longer broke.

If I had not sought wisdom in operating a business, I would have run ours into the ground by now. But I did seek wisdom. I have three healthy businesses.

If I had not sought wisdom in raising up a strong and independent daughter, I would have an obstinate teenager by now. But I did seek wisdom. I have an incredible daughter.

If I had not sought wisdom in running a 26.2 mile marathon, I would have bonked a few miles in. But I did seek wisdom. I have run not one, but two full marathons.

Proverbs 4:7 shares this: “The beginning of wisdom is this: Get wisdom. Though it cost all you have, get understanding.

Don’t skip past the advice about the “price” one should be willing to pay: though it cost all you have

Have you ever sought wisdom though it cost you tons of money?

My Favorite Sources for Financial Knowledge

I seek to learn something new about money every single day.

Every. Single. Day.

The sources are wide ranging. I learn from:

  1. Leaders
  2. Organizations
  3. Magazines
  4. Books
  5. Conferences
  6. Blogs
  7. Major websites
  8. Observation of people
  9. Personal experiences
  10. My family

But none of these are as good as the best source that I’ve used to gain proven financial wisdom and knowledge: The Bible.

There are stories of feast AND famine. Moments of wealth AND poverty. More than anything, I’ve discovered that if I would:

  1. Read the Bible, and
  2. Put the teaching and wisdom into practice

I would maximize every dollar I’ve been blessed to manage.

I’m convinced the same is true for every living being. This is why I’ve written many blog posts as part of the “Biblical Financial Lessons” series. They can help you get from where you currently to living the fully funded dream you have in your heart.

Read recent posts