Should Christians invest in the stock market?

Ralph Estep Jr.
00:00:00

Have you ever felt guilty about wanting to invest in the stock market? Do you worry that making money through investments might conflict with your Christian values?

Today, I'm going to share how my client Rosa found peace in balancing her faith with wise financial stewardship through stock market investing. So join me today as I answer the question, should Christians invest in the stock market?

Podcast Announcer
00:00:24

In a world where crushing debt keeps you trapped, where living paycheck to paycheck has become your new normal, and where the dream of retirement seems impossibly out of reach, there's hope. Join financial evangelist Ralph Estep Jr. A man who's walked through the fire of financial failure and emerged stronger on the other side.

Welcome to Ask Ralph, the show where real world experience meets biblical truth. To break the bondage of financial despair.

To get ready to take control of your money, break free from the financial stress and align your resources with God's purpose for your life. This is Ask Ralph with Ralph Estep Jr.

Ralph Estep Jr.
00:01:07

Well, welcome to the show as we continue our journey on search of mastering our finances through our Christian faith. I am your host, and I am ready to take it to the next level today.

Now, if you missed yesterday's show, we talked all about waiting until age 70 to collect Social Security benefits. You're going to want to check that one out because my answer might literally mean thousands of extra dollars in retirement income for you.

Well, today's listener question comes from Haley. And Haley writes this. Ralph, I've been struggling with whether I should invest in the stock market.

As a Christian, my church friends tell me it's gambling, but I know I need to grow my savings for retirement. How do I honor God while being financially responsible? It keeps me up at night wondering if I'm doing the right thing.

Well, Haley, thank you for your question. And I heard heard that same thing before. People have said it's like going to the casino and playing a slot machine.

Not sure I agree with that, but that's exactly what we're going to talk about on today's show. Now, Haley, your question reminds me of an important biblical principle about stewardship, and it's found in the Book of Proverbs.

And this is Proverbs 21:20. And I use this on this show quite a bit because it really nails down this whole faith and finance thing. And this is what Proverbs 21:20 says.

It says, precious treasure and oil are in a wise man's dwelling, but a foolish man devours it. Now, Haley, I think that completely addresses your question today because you want to have that precious treasure but you don't want to devour it.

So you're looking for that happy medium or that balance in wondering about should a Christian person invest in a stock market? So we're going to get right to that.

Now, a few days ago, I told you I'm always going to add a gratitude statement to the show because, as I mentioned, we should always start every day with gratitude.

So today I'm going to tell you I'm grateful for this verse from the Bible because it reminds us that God expects us to be wise stewards of the resources rather than being wasteful consumers. So that's what we're going to set our focus on as we enter into this journey today. So picture this. My client, Rosa. Now, this is a woman of deep face.

She's sitting across from me. She's got tears streaming down her face.

And she had listened to my show, and she decided to come in for a consultation, reached out for help, and she said, ralph, I'm really concerned about my future. And we got into the details, as I do, as you listen to the show, you know, always start off with, let's see where we are right now.

Let's take a snapshot of where things stand right now. So picture this. Rose is 52, and Rosa had about $50,000 in retirement savings.

Now, that's not great for somebody 52 years old, but I'm not making any judgment. I'm just sharing the facts. We're trying to figure out where we are. And I could tell that for Rosa, this was bigger than just a financial struggle.

But this was a crisis of faith.

And she shared with me, she said, ralph, I'm trapped between my spiritual community's warning and the financial realities because she was worried about what her church friends would think if she started to really invest in the stock market. Now, listen, if you've never been around some of these very judgmental Christian people, you don't understand this.

But there are a lot of people in the Christian faith who think that any kind of thing that you do that isn't just putting it in faith alone is wrong. And see, here's the thing. There was a conflict for Rosa.

She didn't want to put money above her faith, and she battled this idea of the Lord will provide because that's what people are really talking about. A lot of people get hung up on this idea that, well, you know, I really shouldn't invest.

I really shouldn't look for returns because the Lord's going to provide. And I don't know that I 100% agree with that. I think you have to balance that. So let's talk about what that core conflict was for Rosa.

And the core conflict for Rose was her church friends had equated investing with gambling. Yeah, picture that 52 year old Rosa and, you know, a very simple person. Her other people pictured this like she's going to the casino.

You know, she walks in the door of the casino and there's all of these slot machines and roulette tables and blackjack tables. And that's what people were equating the stock market to.

And what that did is it created this paralyzing inner conflict for Rosa between providing for her future and staying true to her beliefs. She knew.

She realized after listening to my show, other people had talked to her about it, that she didn't have enough set aside for her retirement and she needed to do something to build that. And at 52, hey, I'm the same age. It's time to start doing that. But she had this huge fear. She had this fear of dishonoring God.

But what she didn't realize is that was actually preventing her from being in proper stewardship of his blessings. So let's talk about the biblical realities, because this is what we're really talking about today.

And it might get a little controversial, but here's the thing. Scripture repeatedly emphasizes wise planning and good stewardship. It talks about that all over the Bible. It talks about seeking first his kingdom.

Well, guess what? That includes being responsible with our resources. Think about the parable to talents.

God calls us to multiply what we've been given, not hide it away in fear. If you think about that story, the master gave one of the servants five talents and he expected him to do something with it.

And listen, I'm not saying to go into that casino door and bet it all on black. That's not at all what I'm saying. But the parable of the talents was very clear. Let me ask you a question.

What was the expectation of the master when the master returned and the person who had five talents had doubled those talents, the master thanked him. When the person had been given one talent or two talents. Excuse me, he doubled it. That was great.

But when the person had only been given one talent and didn't do anything with it, they buried it. The master sent him away. And I think we have to read into that that we have been given a charge to multiply what we're given.

We shouldn't hide it away in fear. So I work with Rosa and I helped her go down this road. Of understanding that, listen, investing is not gambling. It's a partnership in value creation.

And I talked to her about the biblical principles that align with sound financial planning. I'm going to talk about some of that a little bit later in the show. But here's the deal. These biblical principles are found in scripture.

It talks about it routinely. And here's one of the things I'm going to say.

Creating budgets, you know, I talk about on this show all the time, having a budget, having that intentional spending plan. Well, if you think about it, that reflects orderly management. That's mentioned all throughout the Bible. Building stability.

What Rosa was looking for, she was looking for that stability. She wanted to make sure that as she retired, she would have a steady income source. Well, guess what? That shows responsibility.

And another thing that it does, planning ahead. If you invest and you do wise things, you. You have wise stewardship. It demonstrates wisdom.

And listen, if you've read the Bible, you know the Bible is all about wisdom. And last but not least, avoiding debt shows prudence. How many times have you listened to my show?

And if you haven't listened to it before, I talk all the time about debt and debt, how it creates a slave to the lender. So you might be asking, Ralph, what happened? Well, there was a massive transformation over a couple of meetings.

Rosa found peace in aligning her faith with financial wisdom. We got her connected to a broker, and she started to do some investing. Now she sleeps soundly. And here's the best part.

She knows she's honoring God while securing her future. And her story shows us how spiritual and financial wisdom can work in harmony.

And that's what this whole show's about, how to bring those two worlds together. So here's the key message for today. Faithful stewardship. And that's what we're all trying to get to.

I would hope it means actively managing our resources and not. It doesn't mean to fearfully avoid them. We don't hide them. We don't bury them in the backyard.

Because the truth is, and this is Ralph's opinion, and I believe I'm right in saying this, we can honor God while building financial security. There is nothing wrong with building financial security so long as that doesn't become your God. Now, it's very easy to get to that point.

But if you really want to get to peace, true peace comes when our financial choices align with our faith. So here's my general thoughts. Let's jump right into it. Let's start with the Biblical Foundation.

Well, the Bible offers principles for financial Decisions, though not explicit stock market guidance. You're not going to go in the Bible and find a verse in the Scripture that says it's okay to invest in the stock market.

You're not going to find that, but I found some scripture verses which I think allude to that. The first One is Proverbs 13:11. It states this. Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

Well, if you think about it, that is advocating gradual wealth over hasty gains. Well, gradual wealth is built by doing a conservative and wise investment in the stock market or in other investments. But think about that.

We're not talking about going out and betting it all on black or pulling that casino slot machine thing. We're not talking about that.

But if we're building it gradually over time, Proverbs 13 says right to that anyone who ever gathers little by little will increase it. Well, here's another one, Proverbs 21:20. It encourages us to be like the wise who save resources in times of plenty. Here's that Scripture verse.

Precious treasure and oil are in a wise man's dwelling. We talked about this at the beginning, but a foolish man devours it. What does that emphasize?

And the Bible is emphasizing wide stewardship and saving. That wise stewardship, those smart decisions and saving for the future. It's right there in the Bible.

Another verse, 1 Timothy, chapter 6, verses 17 and 19, instructs those who are rich not to be arrogant, nor to put their hope in wealth, which is so uncertain, but to put their hope in God, which richly provides us with everything for our enjoyment. And see, this is the counterpoint to this.

My opinion is if you take these three Bible verses together, the first two really tell you it's okay to invest, it's okay to save, it's okay to make wise stewardship decisions. But this one is making sure that you understand that you got to be careful entrusting wealth over God. I think that's the balancing point, at least.

When I talked to Rosa, she's like she said to me one day, she said, ralph, I think I finally get it. God doesn't want me to get into these get rich quick schemes overnight. That is truly a gamble.

But what he wants me to do is to do things over time so that they don't become what I trust. And I still trust in God, but I'm also using the tools that he's provided for me to get there. So that's the biblical perspective.

There's also Christian perspectives. And listen, if you have a different Denomination. There are different views within Christian leadership.

There are many people who warn about greed and materialism, risk, and I get it, those are legitimate concerns. Other people see responsible investing as good stewardship.

I know when I was younger, I worked for a Presbyterian church, now the Presbyterian Church, and I'm not calling them. They have all kinds of investments. So it just depends on that particular area of Christianity that you're looking at.

But here's one thing they all agree on. They all agree on avoiding unethical practices. So if you want to hang your hat on anything, know this.

As long as you're not getting to that point of greed or that point of materialism, or like I talked about with Rosa, where it's your trusting in wealth over God and, and you avoid these unethical practices. Ding, ding, ding. My answer is that a Christian. Yes, they can invest in the stock market. So let's talk about some historical examples of this.

In the early, early days of British and Dutch East India companies in the 1600s, there was these things called joint stock companies. These are among the first examples of collective investment ventures. And they demonstrated early Christian participation in capital markets.

It just, that's what it was. So these things go back to the 1600s. So if anyone wants to argue and say, well, you know, back in the day we didn't do these things, that's nonsense.

The British and Dutch East India companies emerged in the 1600s and that was a collective. That was where people of Christian faith were able to invest. Let's talk about John Wesley. He had investment ethics. This goes to the 18th century.

He's a well known Christian guy. Now, John Wesley had the counterpoint. He advised against investing in alcohol and tobacco industries.

And so he was one of the early pioneers of value based investing, which I think is absolutely prudent.

So like I said to Rosa, Rosa, I'm not telling you to go invest in companies that sell alcohol or companies that do things with smoking or anything else that you consider to be, you know, not aligned with your financial decision. That's why you had to be educated. So this sets a precedent for aligning faith with financial decisions.

So let's talk about the practical application of this. So you want to practically put this into place. You got to consider ethical investing aligned with your Christian values. Ask those questions.

Screen out companies involved in problematic activities.

If those are things that you object to say to your broker, or if you're doing your own investing, which I don't recommend, I recommend you work with a broker. Screen out those companies that do things that you don't agree with. Look for those companies that demonstrate good stewardship.

Look for those companies that are doing things according to biblical principles. There's a bunch of them out there. There are a bunch of faith based investment options available.

And I'm going to tell you though, as I say that be careful because there's also a lot of scammers out there that try to take advantage of Christian folks. Be oh well, this is a good Christian investment. I've even seen it.

People coming into my own church trying to do this, this university and that university. And I'm not calling anybody out, but just be cautious of that. But there are faith based investment options.

I've talked on the show before about a broker that isn't about just, you know, that secular investment. Because like I've said on the show many times, I can show you or a broker can show you how to become a very rich scoundrel.

You might be invested in things that you don't agree with. I don't say that's the best way to handle it. I think you need to do things that match up to your values.

Now balancing that risk and stewardship is the next principle we need to talk about. Because listen, like I said to Rosa, there is inherent risk in investing in the stock market. That's just the truth.

Things could go now, you could lose all your money. That's just a fact. I've known people that have lost everything in the stock market.

Now I'm going to make the argument they thought they were betting on that black, you know, they thought they were, you know, they were going to win overnight. And that speaks volumes about the character and it speaks volumes about their intention.

So if you're going to invest in the stock market, focus on long term growth. Don't buy into those speculations. Don't listen to that neighbor who says, oh Joe, listen, I got a sure thing on this.

Kind of like going to the horse track saying this, you know, this horse is definitely going to win. You don't want to play the market like that. Another thing you definitely want to do is practice diversity diversification.

Had a hard time getting that word out, but practice diversification, research the stocks, research the mutual funds. And remember this wealth is a tool. It's a tool to help you get from point A to point B. It's not the end goal.

You shouldn't have this belief that wealth is that tool. Listen, I've been here, I've done that, I've talked about this on this show before.

There are times that I Can look back into my life where I thought wealth was the destination. I'm going to have that Mercedes Benz car. I'm going to have that Corvette. I'm going to have that Rolex. I'm going to have that Breitling.

I'm going to have that beach house. But that's the problem. When you get to that point, you feel empty. Now, I'm using wealth as a tool to help me get to where I need to go.

But you cannot make it the end goal. So what does that mean? It means you have to have a balanced approach. Pray about it, seek God's guidance in financial decisions.

You know, I talk about that all the time on this show. Ask for prayers, maintain proper perspective on wealth. Because, listen, it's not yours. If you listen to my show, you know, I say this constantly.

You are being given this money to manage here while you're here, but it's not yours. It's not mine.

I don't know if you remember, I talked about this a couple times, but there have been times in my life when I thought, oh, I've got it all figured out. Like I said a few minutes ago, I got the cars, I got the watches, I got the vacation homes. But looking internally, man, I was empty.

So you've got to think about both the financial and the ethical returns and going alongside this. Like I said to Rosa, you've got to plan for your family's needs and for those of future generations.

Now, I know I went pretty deep today, but I want to remind you that each day when I do the show, I also write a blog article that goes even deeper. Like, if you didn't think there was enough to begin within the show, hey, I go even deeper in the blocks. I'll put a link to that in the show notes.

But if you ever want to check out any of our blogs, you just go to askralphpodcast.com/blog now, I'm going to share my reflection questions in a few minutes and some action steps. But first, I want to ask you this. Are you struggling to balance your money and faith?

Do you feel like, Rosa, do you feel like you're that person that just doesn't know what to do? You feel like you're taking three steps forward, two steps. There are three steps back.

After taking two steps forward, do you feel like you're just struggling? Listen, I get it.

I know sometimes it feels like you're the only one trying to make godly decisions in a world that pulls you in so many different directions. There are worldly secular things out there that are constantly pulling us away from what many of us know to be truth.

And that's why I created a live show. And I go live every Tuesday night at 7pm Eastern time because I want you to know you're not alone in the journey. Hey, it's hard being out there.

It's hard if you feel like you're all alone, if you feel like you're the only one making these godly decisions. But let me tell you, you are not alone.

And you know what makes my heart sing When I see members of the community having those aha moments during our live show. Somebody will write something in the chat. Someone. I love it when somebody finally breaks free from debt.

I'll tell you what, that just makes my heart sing. Or maybe they understand how to invest while honoring God. Like that meeting I had with Rosa was enormous.

We worked together, and I could just see that she found peace in her financial decisions. And listen, those are the moments that matter. Like I said, the accumulation of stuff doesn't fill my tank anymore.

But helping people get to where they need to go under a godly place is what matters the most. And every week in the live show, I hear stories that could be your story.

I've had people say to me, ralph, I was drowning in debt until I found your show. Or I never thought I could invest and stay true to my faith. Hey, that's Rosa. That's you. You.

Or they might say, your advice helps save my marriage from financial stress. And here's what makes our Tuesday night special. It's real talk about money and faith. Listen, you know how I call things? There's no sugar coating.

There's no sugar coating on the Daily show, but it's even ratcheted up a notch on Tuesday nights because I answer your questions live. Yes, I'm gonna help you with your specific situation because everybody's situation is different.

And there's a supportive family of believers who get what you're going through. You'll see them make comments in the chat. They might say, oh, yeah, you're right, I felt the same way. Or here's what you could try. Or how about this?

Or to just put their arm around you to give you a high five and say, great job. And yes, I do give away. If you didn't have enough reason to go there. We give away $100Amazon gift card every single week.

But you want to know the best part? This is the honest to God truth. The real magic happens in our community.

When you join us, you'll see others facing the exact same challenges you're facing. But the difference is they're winning.

They're building upon their knowledge, they're working together, and their victories can become your inspiration. So here's what I want you to do right now.

Take out your phone or make a note and add askralphpodcast.com/live to your calendar for Tuesday at 7pm it's really that simple. A lot of people ask me, Ralph, I don't understand all this live show stuff. Don't worry about it. Just go to askralphpodcast.com/live.

Make this commitment to yourself and your financial future. Don't let another week go by feeling stuck or alone.

Join me and our incredible community this Tuesday night, and together we'll build a stronger financial future while keeping faith at the center. Now, I'm going to be looking for you on the chat. And hey, you might just walk away with that Amazon gift card.

So see you Tuesday at 7:00pm Eastern Time. Again, that's at askralphpodcast.com/live.

Well, let's get to those reflection questions because we've covered a great deal today and I just want to take a couple minutes to ponder what we talked about. So number one, how might fear be preventing you from being a good steward of your resources? Do you have those same fears like Rosa had?

Do you feel like Haley had in her message today? Do you have fears about that? Are you afraid of what people will say? Are you afraid of making the wrong decisions?

Are you afraid that it's going to feel like gambling? So answer that question for yourself. Second question, what biblical principles could guide your investment decisions?

We covered some of them today, but get into the word, get into the scripture and make your heart rate. With that, find other resources that help put you on that same page.

And number three, here's the big question for today, and this one crosses all of us. Are you managing your finances in a way that honors both God and your future needs? And that's what Rosa had to do.

She had to figure out, how do I balance this desire to have this godly focus? But she also needed to get to her future needs. Well, now let's get to my action steps.

As if I haven't talked enough, here are some key takeaways for Christian investors. Here's the thing, and I mentioned this a couple times, prioritize prayer and seek God's guidance in all your financial decisions. Just start there.

Say to God, and it doesn't have to be complicated. Say to God, lord, show me what I should do Help me to find the people I can surround myself with.

Help me to find that Christian based broker, somebody that understands the importance of my faith. Be a faithful steward of the resources God has entrusted to you. Again, they are not yours. They are. They're entrusted to you.

Seek wise counsel from trusted Christian financial advisors. You know you're listening to me. I hope you trust me. I hope you can find other people to trust.

Reach out to brokers, ask people in your congregation if they work with other people. And then align your investments with your values and biblical principles.

Again, I told you, I can make you a really successful scoundrel, but they're not going to be aligned with your values and biblical principles. And then listen above all things else, consider the potential risk and rewards before making investment decisions. Because here's the deal.

You got to avoid the love of money and the pursuit of quick riches because it's easy to get to that point. And here's what I want you to take away. Remember this, true security comes from God, not our financial possessions.

And I know that's a strong statement. And a lot of people will argue with Ralph. A lot of secular people, a lot of people who don't understand faith would argue with that.

But true security comes from God, not our financial possessions. And I learned that and I encourage you to learn that as well.

Now tomorrow we're going to attack another important question, and that is one I got a lesson from email and she said, how will I ever be able to buy a home? And I get it. People are really struggling with that right now. The cost of buying a home is going through the roof.

Interest rates have increased a little bit. But I'm going to put together some biblical insights and helping you get to that point of homeownership.

I'm going to share with you some stories of when I was in the credit union industry and how we built some ways for people to find that. Now remember this. My passion is to help you achieve financial success. I want to see you live out your dreams.

I'm passionate about what I do because I want to see you grow in your faith. And at the same time, like I do with Rosa, I want to see you find that financial peace.

And I know together we can master your finances from a Christian perspective. So as I always end this show, stay financially savvy and may God bless you abundantly.

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00:26:15

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