7 Biblical Principles for Investing and Saving Money

Most Christians are aware that they should save and invest for retirement or incapacity. However, many people find it difficult to embrace a practical theology for money management, especially when it comes to saving and investing for a distant and unknown future.

It's challenging because there are so many points of view on this subject. Some advocate a life of denial, foregoing all luxuries and saving for the sake of the kingdom. 🤦🏻‍♂️ Others advise budgeting, debt avoidance, and regular saving in order to have more money for giving and spending later in life. 🤦🏻‍♂️  In general, the FIRE (Financial Independence/Retire Early) movement promotes extreme frugality and saving in order to retire before the age of 40. 🤦🏻‍♂️

With all of these seemingly contradictory messages, how can you develop a personal theology of money that integrates biblical orthodoxy with practicality in saving and investing for the future? Let's dive in.

Here are seven biblical concepts that may be of assistance.

1. It Is Biblical to Save for Future Needs 🕙

Some Christians refuse to save for retirement because they believe it is rebellious (typically citing Matt. 6:19–20), or they feel terrible about doing so when others are in desperate need. Others feel it isn't essential since God will provide for them (Isa. 46:4). And some would like to save but squander everything they earn (Prov. 13:18).

You might be surprised to hear that saving is actually encouraged in the Bible. Scripture encourages saving for known, anticipated future needs (Gen. 41; Prov. 6:6–11; Prov. 21:5; Prov. 21:20).

The Bible teaches that it is possible to save and invest effectively for the future while simultaneously becoming "rich toward God" by "storing up treasures in heaven" (Luke 12:21; Matt. 6:19–21).

2. Saving Honors God and Serves Others 🤝

It's tempting to dismiss saving as a completely selfish activity. That can be true—just look at the rich fool in Luke 12—but it doesn't have to be.

Saving glorifies God because it correctly regards money as a gift that he has provided to us (James 1:16–17). Instead of unplanned, impetuous, or unwise spending, careful saving illustrates the value of stewarding God's resources (Luke 12:47–48).

Proper stewardship will put you in a better position to assist with crucial needs as they occur (Eph. 4:28). You can respond more swiftly and possibly in a more important way (Prov. 3:27). Saving may also enable you to leave a legacy, blessing your descendants so that they might subsequently bless others (Prov. 13:22).

3. Procrastination Is a Mistake ❌

We all have a tendency to put things off. However, neglecting to save early means foregoing one of the most powerful financial forces: tax-free compound interest, or gaining interest on interest.

Most people do not put off saving because they believe it is unnecessary. Instead, they anticipate having more disposable money in the future, or they have more pressing demands that interfere, such as debt payments, low earnings, health-care bills, or the desire to prepare for a child's education. They want to address it later.

Even if things change in the future, money saved for retirement later has less time to grow (Matthew 25:27), which means you'll have to invest much more to have the same amount as if you started today.

Simply begin by doing what you can and create momentum over time.

4. Debt is a Crippling Condition ♿️

The Bible isn't quiet on the subject of debt. Although there were no Visa cards or auto loans in Jesus' time, lending and borrowing were a part of the economic landscape. The Bible does not strictly ban debt, but it does depict debt as a type of bondage (Prov. 22:7).

Aside from that, there is a direct relationship between excessive spending, excessive debt, and a poor savings rate. Debt has a cost in terms of saving. The money required to service debt, which goes to creditors, is money that cannot be utilized for anything else. That is the "opportunity cost" of debt. Compare borrowing $1,000 and paying 12% interest ($120) to saving $1,000 and investing it at 6% ($60). The true economic benefit is 18% ($180)!

Pay down your debt by creating additional avenues of income.

5. Wise Investing Is Right, and Good Investing Isn't Day Trading 📉

It's not worth risking everything on a hot tip from your brother-in-law. Such speculation equates to gambling on future occurrences, and most of the time you lose more than you win (Prov. 28:19; 1 Tim. 6:10).

Investing is actually encouraged if done wisely. It is about putting money into real businesses that employ people and provide goods or services to customers. Hopefully, the enterprises in which we invest do well and produce a return proportionate with our investment (Prov. 31:10–31; Eccl. 11:1–6).

Most of us would be better off investing in low-cost, passively managed mutual and exchange-traded index funds (ETFs) rather than individual stocks and bonds. We also need to watch out for high fees and expenses (which can be a big drag on returns), not being diversified enough (having assets that balance each other), buying and selling at the wrong time (due to emotion), and a lack of knowledge about your investments (don't buy what you don't understand).

If you need more info on how to get started with investing check out my complete guide here.

6. Saving Can Bring Temptations 😵

We can be tempted to save for the wrong motives, such as fear and avarice, or a desire for independence from God and others.

If you save out of fear, you aren't trusting God (1 Tim. 6:17). If you do it for selfish reasons, you've completely missed the point (Prov. 1:19; Mark 8:36; Luke 12:15). And if you've amassed some wealth, you don't want to end up like the miser described in Ecclesiastes 5:13 or the "rich fool" described in Luke 12. The problem with both isn't that they saved; it's that they were primarily concerned about themselves and placed their trust in money rather than God.

We can be tempted to save for the wrong motives, such as fear and avarice, or a desire for independence from God and others.

Hoarders are consumed by the need to conserve wealth rather than risk it for productive ends and the benefit of others. It also brings curses (Proverbs 11:26) and judgment (Luke 12:16–21; James 5:3; Psalm 39:6; Eccl. 5:13; Zech. 9:3).

7. It's All About Balance ⚖️

The idea is to strike the proper balance.

On the one hand, we must layaway funds and prudently invest them for future requirements. On the other hand, we desire to be generous and stay dependent on God, acknowledging that he is the source of our provision and alone controls the future.

Whatever we do, it must be done with a grateful heart to God for his kind generosity toward us—a God who is gracious, loving, and merciful (Ps. 107:8–9)—and based on the biblical understanding he has given us on the subject.