The Bible can play an important role in helping you form your investment principles, says Ron Blue managing director of Kingdom Advisors, which assists Christian financial professionals.
He cites Biblical text that illustrates the importance of five major investment guidelines in an interview with Yahoo:
• Write down your financial goals. "The plans of the diligent lead to profit as surely as haste leads to poverty," according to Proverbs 21:5.
• Saving takes priority over spending. "Put your outdoor work in order and get your fields ready. After that, build your house," according to Proverbs 24:27.
• Focus on the long term. "Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?" according to Luke 14:28.
• Make sure your investments are diversified. "Divide your portion to seven, or even eight, for you do not know what misfortune may occur on the earth," according to Ecclesiastes 11:2.
• Limit your risk. "I have seen a grievous evil under the sun: wealth hoarded to the harm of its owners," according to Ecclesiastes 5:13.
To be sure, you don’t have to be Christian, or even religious, to see the virtue of those five investment principles. It would be difficult for anyone to deny their importance.
And any tool that helps you keep them in mind is a positive one.
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