Новые времена Go back to the homepage What you should know about finances As a longtime investment advisor, I often hear the question, "What is the number one financial mistake many investors make?" My answer is always the same: they ignore biblical wisdom in managing their money and instead follow secular wisdom. Do you believe this? Have you ever wondered if, guided by God's protective biblical principles, you would be wiser and more prudent with your financial resources – and glorify God at the same time? I know because I've experienced it. From the early 1970s through the mid-1980s, I relied primarily on my skills and intellect to make financial decisions. I had successes, but more failures. In the late 1980s, I faced my limitations and turned to the teachings of Larry Burkett, who became a leading voice for Christians on the importance of applying biblical interest rates to financial management. Synchronizing with God's ways, not mine, laid the foundation for future financial success. Here are some of those principles that I have found to work whether you have a lot of faith or little: We should rely primarily on God's wisdom in making decisions. God-given principles are practical and relevant, often contrary to conventional "wisdom." "All Scripture is divinely inspired and profitable for teaching, for reproof, for correction, for instruction in righteousness" (2 Timothy 3:16). We must take personal responsibility for our decisions. We cannot rely on others to make difficult choices for us. We are required to make informed, biblically consistent financial decisions. "But it is required of housebuilders that each one prove faithful" (1 Corinthians 4:2). Debt can be enslaving and should be avoided if at all possible. Whether it is an individual, a company, or a nation, debt can destroy freedom and prosperity, take away independence, and reduce the possibilities of what can be done with the financial resources that will be earned. "The rich lord it over the poor, and the debtor [is] made the slave of the lender" (Proverbs 22:7). It is advisable to maintain a proper balance between current expenditures and long-term savings. Our spending decisions should always be tempered by the realization that some of these resources may be needed in the future. If we spend everything now, we will have nothing left for future needs and emergencies. "The coveted treasure and thuk is in the house of the wise man; but a foolish man wastes them" (Proverbs 21:20). We must invest consistently, using a carefully considered strategy. Some people invest impulsively, ad hoc instead of intentionally formulating a wise strategy and sticking to it. "The thoughts of the diligent strive for abundance, but everyone who is in a hurry suffers privation" (Proverbs 21:5). We must rely on diversification in our investments. Too often investors are preoccupied with market cycles and get trapped in unpredictable changes. Diversification is a good means of controlling risk and protecting capital. "Give a portion of seven and even eight, for you do not know what trouble will come upon the earth" (Ecclesiastes 11:2). When we "renew our minds," as Romans 12:2 says, by using and following these and other proven biblical commands, we can be sure we are making wise choices about spending, saving, and investing. Austin Pryor has over 40 years of experience counseling investors. He is the founder of Sound Mind Investing and the author of The Common Sense Investing Guide, endorsed by many respected Christian teachers and has sold over 100,000 copies. Austin lives in Louisville, Kentucky with his wife, Susie. Questions for reflection/discussion Even if you are not a professional financier and were not familiar with these reflections, what do you think now about the number one financial mistake investors make? What is the rationale behind your answer? Looking at your own spending, saving and investing, what approach or strategy would you use? Do you think your methodology is effective? Explain your answer What do you think about the recommendation to apply biblical commandments to money management and financial decisions? Do you agree with the statement that biblical principles are practical, relevant, and can lay the foundation for future financial success? Why yes or why no? Which of the following principles do you find most important or meaningful? Why do you think many people do not want to follow these concepts of managing their finances? NOTE. If you have a Bible and would like to read more, note the following passages. Proverbs 3:27-28, 11:24-25, 14:31, 15:16, 22:2,26-27; Matthew 6:19-21,33; 1 Timothy 6:6
