Part 1


The following steps should enable you to learn and implement God’s investment principles.

1. Pray and depend on God for his wisdom (James 1:5) and his direction (Psalm 32:8) when investing, because no human can consistently predict the direction of the markets (James 4:13–15).

First, Pray and Depend on God for His Wisdom & Direction

Prayer and dependence upon God are required in order to develop a personalized and a biblically-based investment strategy. It is well known that the past performance of investment provides no guarantee for its future performance.

Develop & Implement a Biblically Based Investment Strategy

A biblically based investment strategy should meet the following two criteria:

1. be consistent with God’s principles
2. reflect God’s specific will for your life

Diversification (1 of 2)

In my experience, I’ve seen too many cases where an individual has invested the majority of retirement funds in one company or in one sector.

Diversification (2 of 2)

As explained in my previous Financial Moment, God’s Word recommends the diversification of one’s portfolio into different types of investments that will likely react differently to any particular market condition.

Use Minimal Debt - Or Better, No Debt

Over the past 28 years, I have met many investment advisers who have instructed their clients to use debt in order to increase their investment returns.

Ensure that you Understand the Investment

Over the past 28 years, I have had the privilege of working with 300 to 400 business people. In my experience, generally when they invest in something that they understand, and within biblical principles, they earn a profit. However, when they invest in something that they don’t understand, frequently they lose money.