You may disagree with me if you want to but I see saving as the making of a defined pile of money to deal with emergencies and/or seasonality of employment. We keep it in the bank and although it earns a little interest we are mostly concerned about safety and availability. The FDIC (Federal Deposit Insurance Corp) protects most bank accounts up to $250,000 in case the bank goes belly up. I’ve never had to worry about that kind of limitation but in case you do, you should be doing business with more than one bank.
In order to move on to investing, I’m going to assume that you have your emergency fund (pile of money) stashed away in a safe place and that you have your credit cards all paid off. Most experts and authors on this subject recommend that we not start thinking about investing until we are debt free. I guess I don’t feel quite that hard nosed or adamant about debt, or at least some kinds of debt. I do think it is a good idea to pay off your unsecured (credit card) debt but I’m not so sure about the mortgage on your home, especially if you’ve been able to obtain a relatively low interest rate. There are a few exceptions but most credit cards charge rather high interest rates on unpaid balances and when you pay off a credit card balance that carries a 17% or more interest rate, it’s the same as earning that kind of return on an investment. I think it is common sense to pay those balances off and then start following the four rules for using your credit cards. Remember what they were?.
I have to admit that I am struggling a bit right now with what to say about investing because we have to keep this in context. Once you have gotten yourself out of (at least) unsecured debt (maybe all debt) by whittling your lifestyle down to and have become accustomed to living on the N’s and even the adjusted N’s, God’s surplus will continue to grow. Incidentally, you are to be commended for a really good job of cash flow management when you get to this point. As good Christian stewards, what should we do now with this growing surplus of God’s money. There are three possibilities. What do you suppose they are?
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Did you say “invest” the money? If you did, you got one right. We’ll address the other two answers later. But, how does investing fit into the idea of Christian stewardship? Is investing making wise use of God’s money to glorify Him? Is investing a Biblical concept? Do you think God would approve of us “investing” His money?
First of all let’s take a look at what we are talking about when we say let’s invest this money. Go back and get out your Webster’s Dictionary again and then go back on line to Wikipedia and jot down what you think is going to happen when we invest God’s surplus. ________________________________________________________________
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Now take a look at the following scripture passages and tell me what they say about investing:
Gen 3:22-23 ______________________________________________________
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Prov 21:20 _______________________________________________________
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Prov 13:22 _______________________________________________________
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2 Cor 12:14 ______________________________________________________
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1 Tim 5:8 ________________________________________________________
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Matt 25:14-30 ____________________________________________________
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1 Tim 5:8 But if anyone does not provide for his own, and especially for those of his household, he has denied the faith, and is worse than an unbeliever. NASB
Prov 13:22 A good man leaves an inheritance to his children’s children, And the wealth of the sinner is stored up for the righteous. NASB
2 Cor 12:14 Here for this third time I am ready to come to you, and I will not be a burden to you; for I do not seek what is yours, but you; for children are not responsible to save up for their parents, but parents for their children. NASB
Prov 21:20 There is precious treasure and oil in the dwelling of the wise, But a foolish man swallows it up. NASB
Matt 25:14-30 “For it is just like a man about to go on a journey, who called his own slaves, and entrusted his possessions to them. 15 “And to one he gave five talents, to another, two, and to another, one, each according to his own ability; and he went on his journey. 16 “Immediately the one who had received the five talents went and traded with them, and gained five more talents. 17 “In the same manner the one who had received the two talents gained two more. 18 “But he who received the one talent went away and dug in the ground, and hid his master’s money. 19 “Now after a long time the master of those slaves came and settled accounts with them. 20 “And the one who had received the five talents came up and brought five more talents, saying, ‘Master, you entrusted five talents to me; see, I have gained five more talents.’ 21 “His master said to him, ‘Well done, good and faithful slave; you were faithful with a few things, I will put you in charge of many things, enter into the joy of your master.’ 22 “The one also who had received the two talents came up and said, ‘Master, you entrusted to me two talents; see, I have gained two more talents.’ 23 “His master said to him, ‘Well done, good and faithful slave; you were faithful with a few things, I will put you in charge of many things; enter into the joy of your master.’ 24 “And the one also who had received the one talent came up and said, ‘Master, I knew you to be a hard man, reaping where you did not sow, and gathering where you scattered no seed. 25’And I was afraid, and went away and hid your talent in the ground; see, you have what is yours.’ 26 “But his master answered and said to him, ‘You wicked, lazy slave, you knew that I reap where I did not sow, and gather where I scattered no seed. 27’Then you ought to have put my money in the bank, and on my arrival I would have received my money back with interest. 28’Therefore take away the talent from him, and give it to the one who has the ten talents.’ 29 “For to everyone who has shall more be given, and he shall have an abundance; but from the one who does not have, even what he does have shall be taken away. 30 “And cast out the worthless slave into the outer darkness; in that place there shall be weeping and gnashing of teeth. NASB
Gen 3:22-23 Then the LORD God said, “Behold, the man has become like one of Us, knowing good and evil; and now, lest he stretch out his hand, and take also from the tree of life, and eat, and live forever”– 23 therefore the LORD God sent him out from the garden of Eden, to cultivate the ground from which he was taken. NASB