Since I started to write about money and finances, I have had some people ask me about investing. I try to keep my blogs as close to the Word of God as possible. God does not say much about WHAT to invest in, but He does have much wisdom when it comes to certain aspects of how to manage your money.

One of the most important pieces of wisdom that God gives us is Proverbs 28.

Proverbs 28:19-22  He that tilleth his land shall have plenty of bread: but he that followeth after vain persons shall have poverty enough.  A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent. To have respect of persons is not good: for a piece of bread that man will transgress. He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him.

New Living Translation
Proverbs 28:20 The trustworthy person will get a rich reward, but a person who wants quick riches will get into trouble.

So, God says here that the hasty person shall have poverty come upon him, and he will get into trouble. What does it mean to be hasty?

On the internet the other day, I watched a short clip of Dave Ramsey talking about saving money. He stated that the average car payment in the US right now was about $500.00 per month. He stated that if you put that $500.00 per month into a good growth mutual fund from age 30 to 70 you would have $5.4 million. This is an example of steadily and faithfully applying the biblical principle of saving money.

About 10 minutes later, I saw Robert Kiyosaki talk about how to become rich using other people’s money (OPM). Buy a cheap house, fix it up, have it reappraised for a higher value, take out part of the new equity to use as the down payment on another house and then rent the first one out. You do this over and over. He stated that the way to become wealthy is with DEBT!

I saw a similar conversation on Facebook a couple of days later:

Debt is your friend!!??

“I just paid off my house in 10 years.”

“Congratulations!”

“Thanks, I saved so much. I paid it off in 10 years instead of 30! Now that I’m debt free, I’m ready to build wealth. How do I do it?”

“Refinance that home and put it all into investments.”

“What?! I just paid off my loan, now you’re telling me to get a new one?”

“Yep! If you want to be wealthy, you have to be comfortable using debt for investments. If you have $200K sitting in your house, it’s not making you any money. If you want to build wealth, pull out that money and put it to work.”

While this is A WAY to wealth, it is absolutely the wisdom of the world. This is for those hasty souls that are willing to risk that they won’t get caught when the music stops.

The advantage of a paid off house is found here:

Proverbs 22:26  Be not thou one of them that strike hands, or of them that are sureties for debts.

Proverbs 22:27  If thou hast nothing to pay, why should he take away thy bed from under thee?

The bankers can’t take your or your children’s beds. It is paid off. This is the Wisdom of God.

Proverbs 10:22 The blessing of the LORD, it maketh rich and he addeth no sorrow with it.

$5.4 million by following the wisdom of God and saving money for 40 years is a blessing, and there is not sorrow in that. But if you use debt and they take your family’s home, that could be great sorrow.

So, some of these debt propounding gurus argue that there is good debt and bad debt. To me that is like arguing that there are good witches and evil witches. God just calls them witches and He calls debt, debt.

What does God say about debt? Does He agree that you need to get comfortable with debt to become wealthy?

Let’s look at some verses:

Deuteronomy 28:12 The LORD shall open unto thee his good treasure, the heaven to give the rain unto thy land in his season, and to bless all the work of thine hand: and thou shalt lend unto many nations, and thou shalt not borrow.

Here, God says that He as THE LORD will open unto you His good treasure (storehouse). This is like the verse:

Proverbs 8:21 That I may cause those that love me to inherit substance; and I will fill their treasures (storehouses).

Here, God says HE will fill your treasures or storehouses. A storehouse for us is like a bank account. In the Old Testament times, they stored their crops against the winter coming up. We store cash because we are not an agricultural-based economy anymore. But God says HE will fill your storehouses. How? He will give rain unto your land in due season. That would be like God giving us the jobs we need and supplying us through our work. Then God says He will bless all the work of our hands. The context here is money. With all that blessing, who would need to borrow? Then God says we shall be lenders and NOT borrowers!!

If God is going to supply, we should have no real need to borrow. Borrowing has a real problem.

Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.

Proverbs 23:4 Labour not to be rich: cease from thine own wisdom.

The borrower, God says, is servant to the lender. WOW – servant to the lender!!  Who are we supposed to serve? Well, in the Old Testament God told Pharoah to let His people go:

Exodus 8:1 And the LORD spake unto Moses, Go unto Pharaoh, and say unto him, Thus saith the LORD, Let my people go, that they may serve me.

We are servants as well as sons and daughters of God Almighty. Our Father has great resources to supply all we need and more. We are to serve Him. He has said HE will fill our storehouses. This is the wisdom of God.

So then if we decide God’s way is not quick enough for us in the gaining of wealth, the only wisdom left is the wisdom of the world – the use of debt. It may look good going in, but God says it ends in poverty and will get you in to trouble.

So, you might ask then, if I am never to have debt, how would I ever buy a house? Good question. The economy we live in is designed for us to be in debt all our lives or at least most of our lives. If you read the book, The Creature from Jekyll Island: A Second Look at the Federal Reserve, it talks about how the bankers set up our economy so we would be paying them every month for years via car loans, house loans, credit cards, and school loans. These are the ways and wisdom of the world. God has a better way. We cannot change how our economy works, but we can decide to not play the game of life long debt. We can pay off those loans as quickly as possible. Pay them off in 10 years instead of 30 and have a secure home for our family and children.

If you buy a house, pay it off as quickly as possible. It is quite a nice feeling to not owe on your home. No one can take it away from you no matter what the economy does.

Our natural way of thinking is to believe that the way things are today is how they will continue to be forever. Inflation is increasing the value of properties, so the gurus say, “Refinance and get some.” But that is just not true. You can easily wake up one morning and everything has changed. I have lived through three economic downturns in our state since the early 1970’s.

When the price of oil dropped in the 1990’s, we lost our home and all of our rental property that we bought using OPM. It was interesting and sad. Many banks that had loaned out money to drill oil wells were considered unstable, and the FED moved in and closed them. The FED then called the loans due that had been loaned out to drill wells. In other words, the borrowers had to pay the loans off in full immediately. If they could not, and most could not, the FED took the wells and the collateral used for the loan, usually the person’s home. One banker told me they were repossessing homes at the rate here in the city of 400 houses per month. That was just one bank. The FED made the banks resell those houses immediately. They were not allowed to hold them until the economy improved. Some homes were sold for half the value of the year before. I knew of a friend at that time that bought a house in a wealthy neighborhood that was valued at $350,000 the year before, and he paid about $175,000.

With repossessed houses being sold so cheap, new construction could not compete with that pricing, and it soon shut down all together. Because of all this, the oil workers moved out of town, and the construction workers moved to Tennessee and Dallas where there was still work. This left rental apartments at about 50% vacancy. The apartments were giving away two- and three-months free rent if you would just move in. This caused a lot of folks with rental property, us included, to have their properties repossessed. Times were hard.

God said if you follow the wisdom of the world – vain person, real estate gurus – and are hasty to be rich you will get into trouble and come to poverty.

Some people may have gotten out in time, but most did not. Just like you hear of the lucky soul that made a fortune in the casino or the lottery, but most do not. God has a better way.

What can you do with the money you have saved? In one of the parables Jesus told, he talked about the householder giving his servant talents, and they went and TRADED with them and doubled their money. He did not tell then to get a loan and trade with the borrowed money. The servants started their trading from a position of cash. Trading is a lost art in our day and time, but some still do it. I have met people that buy and sell golf courses or businesses they bought from the IRS and made them profitable and then sold them. People buy and sell everything from antiques, storage buildings full of junk, boats, and cars. Some buy and sell stocks and bonds and crypto.

I learned a few years ago that wealthy people wait until what they want is at a price that is at rock bottom. Then they buy. I have a builder that will buy empty lots to build on from other builders at times but only just before the other builder goes bankrupt.

The wealthy may wait years for silver to get to a price point where they are willing to buy. When it does, they pay cash and do not borrow. Warren Buffet has said, “Cash is a position.”

In times like we are having right now, good economy and rising inflation, you see many people hawking, “Make your fortune in real estate!”  Classes, seminars, books, and short video clips are being touted. Yet as I wrote earlier, nothing stays the same. The economy will change and when it does, one thing those classes never talk about is where does the money come from to make those mortgage payments when the houses are empty. Or as we have had recently when the government declares a moratorium on rent. You must make your payment on how many houses or apartments and no money coming in. You make those payments out of your savings, or they take everything you own. These gurus never cover that subject. Just like the rest of society, they assume property values and rent will continue to rise forever. That is not reality. That is the wisdom of the world, the wisdom of vain persons.

In our pursuit of The Prosperous Life, we want to know and walk upon the wisdom of God.

I wanted to leave you with this wisdom that God has given us in the Book of Psalms. Notice, it says here lending the same as it did in Deuteronomy.

Psalm 112:5-9 A good man sheweth favour, and lendeth: he will guide his affairs with discretion. Surely he shall not be moved for ever: the righteous shall be in everlasting remembrance. He shall not be afraid of evil tidings: his heart is fixed, trusting in the LORD. His heart is established, he shall not be afraid, until he see his desire upon his enemies. He hath dispersed, he hath given to the poor; his righteousness endureth for ever; his horn shall be exalted with honour.