Investment Wisdom From Proverbs

investment wisdom

I love to read through the book of Proverbs and rediscover the wisdom shared in the verses. I’ve been reading some books recently about investing and wanted to remind myself what the book of Proverbs says about investing. If we use the wisdom from God’s word and always look for ways to expand our knowledge in business and investing, we put ourselves in a good position to become better stewards of the resources we have been given.

Proverbs About Investing

As I looked through the verses in Proverbs, I saw 8 verses that we can use to remind us of how to approach our investments. Whether we’re investing in the stock market, a business, or other investments, these principles can really apply almost everywhere.

Invest In What You Know and Understand

Proverbs 15:22
Without consultation, plans are frustrated, but with many counselors they succeed.

Proverbs 24:27
Prepare your work outside and make it ready for yourself in the field; afterwards, then, build your house.

Warren Buffet and Peter Lynch are famous investors who were known for investing in what they knew. It’s no surprise that these two verses would instruct us to â˜prepare your work’ and to obtain consultation before investing. Buffet and Lynch weren’t born as investment geniuses (though some would say that). No, they surrounded themselves with smart people (wise counselors) and took the time to understand each investment in detail before making a decision to invest.

Don’t Get Lazy With Investing

Proverbs 27:23, 24
Know the state of your flocks, and put your heart into caring for your herds, for riches don’t last forever, and the crown might not be passed to the next generation.

Yes, being a long-term investor and not jumping in and out of investments because of fear is a wise piece of advice to follow. BUT, it’s just as important to continue to review your investments. To put it bluntly, investing is no place to use the â˜ignorant’ card. We have to avoid the temptation of laziness in our investing and truly understand what we’re invested in and to continually watch our â˜flocks.’

Don’t Be Fooled!

Proverbs 28:22
Greedy people try to get rich quick but don’t realize they’re headed for poverty.

Proverbs 10:16
The earnings of the godly enhance their lives, but evil people squander their money on sin.

If we needed any reminder of what not to do with our investments, these two verses sum it up nicely. Be careful not to jump in with the crowd regarding certain investments hype. As an investor, you’ll be approached with investments that seem like a â˜no-lose’ or a â˜sure-win.’ If it’s too good to be true, then it’s probably not a good idea.

There’s a difference between a â˜hot investment’ and a successful business. One is built on fear; the other is built on hard work. I know which one I want to be a part of, do you?

Always Remind Yourself Why You Invest

Proverbs 23:4
Do not wear yourself to gain wealth, cease from your consideration of it.

Proverbs 13:22
Good people leave an inheritance to their grandchildren, but the sinner’s wealth passes to the godly.

Financial freedom is a fantastic goal to have â“ but it’s not the only thing in life. I’ve heard it said that your money is your life spent a second time around. Think about it. We spend our lives earning a dollar only to spend it on something in the future.

These verses aren’t telling us not to invest or gain wealth â“ they warn us not to wear ourselves out trying to gain it. I think it’s good to remind ourselves why we invest our money and to remember that it’s not our most valuable asset.

What’s the best investment advice/wisdom you’ve heard?

(This is a guest post by Tim who writes at  Faith and Finance.   Be sure to visit his blog or subscribe to his articles  here.)