“What does the Bible say about money?”
More than any other question, this is probably the one I get the most. Then, many people follow that up with: “What does it say about giving, tithing and investing?” (Or other financial topics they’ve heard their pastor or priest speak about.)
Most of all, why should we care?
When you look to The Bible as an authoritative source on life, we have to remember that money is one of our life’s key tools. So, if you’re asking these questions, you are in the right place.
In this article, we’re going to talk about what Biblically Responsible Investing (BRI) is, as well as what The Bible says about investing overall.
First, we’ll start with the short answer. Biblically Responsible Investing (BRI) is an asset management system that screens the policies and actions of investments based on a Biblical standard.
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It is akin to ESG investing (Environmental, Social, and Governance) because both have screening systems based on a moral standard. While an ESG investing standard is determined by the portfolio manager, investment company, or investor, a BRI standard is The Bible. Granted, investors do not always agree on this topic, but the standard is foundational.
Are you trying to get an edge, to make a profit?
Or did you ask because you thought it was the right thing to do?
Come on, be honest.
For myself, I asked for both reasons and many more. I wanted to know what one of the world’s oldest, most trusted books said about money! So, I dove in and read everything I could get my hands on, which is kind-of our job. I wanted to be right when I advised my clients.
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And I wanted more than academic knowledge. I wanted something that stood the test of time. I discovered it in The Bible.
So, let’s come back to those questions I hear the most:
Because understanding the textbook definition of BRI is only the beginning.
Whole books have been written on this topic. In fact, we have published a few ourselves, including Failure and Success: The Story of Money. But we’ll be concise for this article.
“You will be enriched in every way so that you can be generous on every occasion… (which) will result in thanksgiving to God. (2 Corinthians 9:11)
The purpose of money is to produce thanksgiving to God. I know that sounds like a very churchy answer, but think about it. Everything in creation moves in productive cycles that point to a Creator. Why would money be any different?
🔎 Related: 25 most powerful bible verses about finances (+ key insights)
The oldest money on earth is a shiny yellow metal dug out of the ground. Humans didn’t create it; God did. And His creation gives Him glory. When we use money correctly, God’s glory is the result.
“God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work…He who supplies seed to the sower and bread for food will also supply and increase your store of seed and will enlarge the harvest of your righteousness.” (2 Corinthians 9: 8,10)
Generosity, enjoyment, and investing are the three Biblical actions for money. God blesses you with the resources to invest and grow in the opportunities He gives.
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You have permission to enjoy the results of your work, grow by being generous, and invest for the future, which creates a healthy financial cycle.
“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”(1 Timothy 6:10)
Fear of loss and greed (fear of missing out, the dreaded “FOMO”) drive most people’s financial decisions to a devastating outcome. We all battle these two! And I have found that many of us trudge on in silent despair, endlessly attempting something new to achieve an old goal.
But wouldn’t it be a shame to get to the end of your life and discover that you succeeded at something that did not matter? The love of money does that to us. We measure our success, status, and security with a mythical number representing “we made it.”
All while God offers us so much more!
Ecclesiastes, Chapter 11, gives us excellent investment instructions. King Solomon, the book’s historical author, was one of the wealthiest men in history. Some estimate his net worth to exceed $2 trillion!
He said this about investing:
Invest in winners with a rules-based system. Search for profitable companies doing good work that do not harm people or the environment. Or discover mutual funds and ETFs that include such companies. Then invest in those whose prices are going up.
Easier said than done, huh?!
At SoundFSG, one of our methods is to measure profitability by searching for companies with at least two decades of stable or growing dividends. Then we screen out companies we have determined earn revenue by harming people or the environment. Last, we rank these by stock price growth over multiple periods.
Our team’s investment strategy may be helpful for you to learn more.
Everything cycles; the seasons move from spring to summer to fall to winter. The economy and markets also ebb and flow. Therefore, you must manage risk. At SoundFSG, our first investing rule is to avoid large losses — those losses that ruin your chances of reaching your financial goals.
As Warren Buffett once said:
"The number one rule in investing is 'don't lose money,' the second rule is ‘don't forget the first rule.’"
Notice I said "avoid large losses," not avoid all losses.
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If you invest money, you will lose money occasionally. But if you have a proper investment system and stick with your approach, you should avoid significant losses. Again, check out our investment article below for a further explanation.
Fears, biases, emotional decisions, and knee-jerk reactions cause some of our worst financial mistakes. I named two earlier — fearing loss or missing out — but let’s add to the list following traditional norms and succumbing to peer or family pressure.
This is where we focus on managing our emotions.
I emphasize this a lot because I cannot overstate the importance. As a financial advisor, I spend much of my time helping people manage their emotions. And I am a very emotional person, so I fully understand! But the worst financial outcomes I have seen in my career have all been caused by an unfortunate emotional decision.
You must learn how to find calm in a financial storm. However, the great news is The Bible helps with this!
🔎 Related: Asset vs. wealth management (What’s the difference?)
An old saying is, “You are either in a storm leaving a storm, or entering a storm.”
I learned to find calm in life’s financial storms by changing my focus. Think about that statement. Our focus matters tremendously. If money is what you keep score with, how you measure success, whether or not you feel secure, or with what determines your status … well, you will never be satisfied.
You will never have enough money.
But your identity changes when you recognize that Christ removes your sins (and petty financial failures) and gives you His righteousness. (2 Corinthians 5: 17-21) You no longer identify with success, security, or status. You are free to succeed or fail because neither determines who you are. It is a magnificent and fulfilling feeling. You can be driven and ambitious while being radically content!
Here, we practice Biblically Responsible Investing by investing in profitable companies doing good work with rising stock prices that do not earn revenue in ways that harm people or the environment. We build these ideas into our rules-based investment strategies and our financial plans.
Because we believe The Bible gives us a foundation of truth and the highest likelihood of success. Moreso, The Bible gives us an excellent foundation for financial planning and success. Through experience and study, we've learned that a high moral standard, a love of learning, and a steady work ethic are common traits among successful people.
🔑 Free resource: Financial planning template for individuals and families
So, we strive to incorporate these ideals into all we do. If you want to learn more, contact us for an appointment – let’s talk! We look forward to meeting you soon.
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