What Is Faith-Based Investing?
Sometimes, Christian financial advisors are asked whether bold investment growth strategies can reflect one’s personal beliefs. Faith-based investing is a way to accomplish that goal.
Faith-based investing entails selecting and managing investments according to established moral, or ethical principles from the Christianity. Typically, this means evaluating investment products, services and companies through a biblical lens while also pursuing sound financial objectives for growth, income, capital preservation, and long-term wealth accumulation.
Faith-based investing may involve:
- Avoiding companies whose activities conflict with biblical values
- Seeking out businesses that demonstrate ethical leadership and responsible practices
- Incorporating stewardship principles into investment decisions
- Balancing financial performance with values-based considerations
The goal is not simply avoiding certain investments, but intentionally aligning financial resources with deeply held, spiritual convictions.
Is Faith-Based Investing Truly Related to Christianity?
Christianity teaches that God owns all things and that believers have a spiritual duty to be faithful stewards of the resources God entrusts to them.
Several Christian principles support this perspective:
- Stewardship Mindset: “[It] is required in stewards, that [they] be found faithful."
1 Corinthians 4:2 directly expresses the God-intended, diligent and mindful application of resources toward multiplying His positive influence in the world’s future. - Intentional Planning: "The plans of the diligent lead surely to abundance." Proverbs 21:5 plainly promotes intentional handling of resources to bring about an abundance that in turn expands one’s reach and support to good purposes in others’ lives.
- Wise Management: In the Parable of the Talents (Matthew 25:14-30), Jesus commended the servants who wisely invested the resources entrusted to them. He also specifically condemned the steward who ignored opportunities to grow the value of what was given to him through investment.
- Generous Giving: "It is more blessed to give than to receive." Acts 20:35 expresses the fact that a Christian perspective on investing extends far beyond garnering wealth for selfish ends. It goes into responsibly managing God's given resources to support one’s extent and future family needs, as well as charitably sharing with others. This aligns with kingdom purposes. Generosity is also reflected in the Old Testament Jewish laws that forbade usury and commanded compassionate provision of food to the foreigners and destitute among them. (Psalm 15:5 & Proverbs 28:8, Deuteronomy 24:19)
Is Faith-Based Investing Really Connected to the Bible?
The Bible does not specifically discuss mutual funds, stocks, or modern portfolio management. However, it propounds foundational principles and motivations that directly relate to investing.
1. Stewardship
- Psalm 24:1 teaches that, "The earth is the Lord's, and everything in it."
- Christians are managers of God's resources, not owners.
2. Wisdom and Discernment
- Many Proverbs encourage the principle of mindful decision-making that honors God by reflecting his wisdom.
- Investors are to exercise diligence rather than speculation or reckless risk-taking.
3. Integrity
- Proverbs 11:1 states, "A false balance is abomination to the Lord.” Here, balance refers to the weights placed on scales to verify comparative value in various transactions.
- Ethically sound practices and honest dealings in business matter greatly to God because they reflect His character in the world.
4. Prudent Diversification
- Ecclesiastes 11:2 encourages distributing resources broadly and is comparable to diversifying investments.
5. Long-Term Perspective
- Luke 21:9 and James 5:7 reflects a mindset of persistence and patience that points out that Christian investing chooses patience and discipline over chasing quick schemes and short-lived market trends.
Misconceptions About Faith-Based Investing
Some investors assume faith-based investing requires sacrificing performance or abandoning proven investment principles. In reality, faith-based investing utilizes many of the same disciplined, research-driven strategies implemented in traditional portfolio management.
Common misconceptions include:
- "Faith-based investing is not for bold or serious investors."
- "It places burdensome constraints on diversification."
- "It focuses on religious emotions rather than financial fundamentals."
- "It cannot support long-term wealth-building goals."
In practice, faith-based investment strategies commonly employ rigorous analysis, diversification, risk management, and long-term planning. The difference is that values-based considerations are integrated into the process to drive financial objectives.
Actively Support a Christian Worldview
Faith-based investing helps Christians maintain consistency between what they believe and how they live out management of financial resources. By aligning investment decisions with a biblical understanding of the world, investors can remain focused on stewardship, integrity, wisdom, and eternal priorities in how they pursue financial goals. Greater confidence and peace ensues where financial decisions reflect the Christian worldview.
Take the Next Step
Strategic Stewardship Advisors understand that each investor's goals, convictions, and financial circumstances are unique. If you have questions about faith-based investing, financial planning, biblical stewardship, or how sync your investment strategies with your Christian values and worldview, speak with one of our qualified financial advisors. We’re close by, headquartered in Woodstock, Georgia—come in and meet with us. We can provide examples, explain available investment approaches and opportunities that’ll help you develop practical steps to align your long-term financial plans with your faith.