I have been asked many times where to invest the money folks have saved. In other words, after you have been following the instructions God gives on how to handle the funds He trusted you with by giving and saving and you have a few funds saved, where do you invest these funds?

Learning to invest is another step in the growth process. First, I am not an investment advisor. I am not licensed, so it would be illegal for me to advise on any particular type of investment. Nothing in this blog should be taken as advice on what to invest in. Talk to your spouse, pray and study to come to a conclusion. Having said that, many people ask me about how to invest some of their saved funds. What are some good investments?

I feel that many people fear the loss of their hard-earned savings. Fear is a great detriment to prosperity. God says about 365 times: “Fear Not” or “Do not be afraid.” Some simply want someone to tell them what to do partly out of fear of making a wrong decision and assuming that I would know how to invest their money better than they would.

Psalm 62:10 Trust not in oppression and become not vain in robbery: if riches increase, set not your heart upon them…

Proverbs 11:28  He that trusteth in his riches shall fall: but the righteous shall flourish as a branch.

So here God tells us to NOT trust in our money and not to set our heart upon riches. If we keep prosperity in its proper order, we have no reason to be afraid. As last week’s blog, “It All Belongs to Him,” showed, all the wealth of the earth and the earth itself belong to God. Our Father is well able to take care of us no matter what happens. Prosperity from God is one of the benefits of being part of His family. God simply trusts us to manage the money for Him. And He reminds us not to set our heart on the money but to keep our eyes fixed on Him — to worship Him, to walk with Him, to pray to Him, and to put our trust in Him.

It is also interesting that God tells us that riches can just disappear.

Proverbs 23:5 Wilt thou set thine eyes upon that which is not? for riches certainly make themselves wings; they fly away as an eagle toward heaven.

The righteous people that survived the Babylonian captivity and that were carried away captive to Babylon probably lost all their wealth. The Babylonians spoiled the city and took the wealth for themselves. But the righteous ones that were spared from death still had their lives and their relationship with God. That is the most important part of our lives as well. But if they did lose their wealth the thing that could not be taken away was the knowledge and wisdom they had acquired concerning wealth. This is why wisdom is more valuable that money. They can steal your money but not your acquired wisdom.

Proverbs 27:24 For riches are not for ever: and doth the crown endure to every generation?

For some of us, this truth from God’s Word that we are to save money was a new level of understanding. But after you have the habit of saving worked into your life, we are ready for the next level of the prosperity journey: Investing!! Now we are growing up a notch!!

Most of us did not grow up saving or investing. So, learning to invest can be a daunting task. What to invest in?

Some people have their investments in 401K’s or in an IRA. Here, most of the investing is done for you.

Some people bury their wealth under the floor, in milk cans in the back yard, etc. The problem here is that even though the robbers can’t get it nor perhaps the government, inflation eats away at its value until it is practically worthless. So, to be good managers or stewards of what God has given us we need to LEARN how to invest. We need to send ourselves back to school!!

The first lesson to learn in investing is this from the prayer of Jabez and also from the book of Proverbs.

1Chronicles 4:10 And Jabez called on the God of Israel, saying, Oh that thou wouldest bless me indeed, and enlarge my coast, and that thine hand might be with me, and that thou wouldest keep me from evil, that it may not grieve me! And God granted him that which he requested.

Psalm 1:3 And he shall be like a tree planted by the rivers of water, that bringeth forth his fruit in his season; his leaf also shall not wither; and whatsoever he doeth shall prosper.

Remember, the money you have saved really belongs to God, and as you endeavor to invest it, He will be right there with you helping you. But we have an obligation to learn how to invest. Like the verse says: the horse is prepared against the day of battle, but safety is of the Lord. We do our best and, in the end, God is the one that fills our storehouses. And in the end, sometimes that work/that wealth just flies away. This is part of why God says not to set your heart on the money. What you have left is the wisdom you obtained in the process. That is worth more that the money. You could do it over again much quicker.

(A side note here is this: many people prosper without believing God and His Word. That is because God causes it to rain on the just and the unjust. Prosperity is available to all.  We are endeavoring to use what God gives us according to His Word. His promise is whatever we do will prosper, and I suspect we will be rewarded when Christ returns.)

So, let’s look at investing. What are the main reasons for investing?

• Make your money work for you to increase your wealth — to be good managers.
• Achieve self-determination and independence. In other words, freedom.
• Leave a legacy to your heirs as Dave Ramsey suggests.
• Support causes that are important to you.
• Fund your retirement.

I had a designer years ago who invested her profits in art from current popular artists that she liked. She felt the art work would increase in value and that it would fund her retirement. This was an area she knew about and was interested in.

Some people buy:

• Stocks, bonds or mutual funds and reinvest the dividends that result; in compounding.
• Art
• An interest in racehorses.
• Tax-free utilities.
• Certificates of Deposit.
• Real estate (you pay cash for) or REITs.
• Mobile home parks
• Farmland or harvestable forests
• Annuities
• Gold and silver
• Car washes
• Oil and gas leases
• Government bonds

The list could be endless. I have known people who bought and sold golf courses, people who bought companies that the IRS took over for nonpayment of taxes, made them profitable and then sold them, and companies like the investors of Shark Tank.

One of the builders I work for explained to me that one of the reasons so many houses are being built is that some folks have the money, but the banks won’t pay any interest, so they build houses and sell them to see a return on their funds. If they don’t know how to build houses themselves, they work together with an experienced builder and pay him or split the profit with them.

I have read that some mutual funds go broke because of bad stock picks. In the book, The Simple Path to Wealth, the author, J. L. Collins, recommends investing in index funds. That would be a fund that buys some of each stock in an index like the S&P 500. These index funds generally average about 11½ % per year over the long term. This is probably one of the safest ways to invest if you don’t have the time or inclination to study. But remember, I am not recommending this.  This is just for information only.

One of the greatest investments you can make is in yourself — reading or listening to good books on personal development. Read books on different types of investments — their pros and cons.  Expand your understanding of the financial world. Don’t fall for the trick that you are too old to learn and invest. You have a whole lifetime of experience to draw from. Some great businesses were started by people of retirement age. Do an internet search for people that started businesses late in life.

But don’t just find something you like and jump in.  You may need to spend a couple of years learning about the field. Read books, join local groups that are like-minded, etc. Jumping in to anything on the advice of a friend or on an impulse is a great way to lose your money. Send yourself to school!!

I have known people who bought into a group of restaurants just as investors because someone in the group wanted to sell their interest. If you consider this or anything like it, learn about the business, hire an accountant and a lawyer, look at the books, the legal documents, perhaps a real estate agent to look at surrounding real estate. With empty land nearby, someone could build a bigger, fancier car wash across the street from the one you just bought. Send yourself to school.

There are many types of “investment incomes” including: interest, rents, royalties, dividends, capital gains, and other income derived from an asset.

Remember that most financial advisement businesses charge a percentage of your account like 1% to 2% per year or they charge fees to get in an investment and or fees to get out. Mutual funds are like that. Front end loaded or back end loaded. There may be a penalty for early withdrawal. These funds make money no matter what the market does. The fund manager makes money no matter what happens to your money. These fees can really cut into your account and your profits over time.

A good place to start may be to put money into CDs while you learn or put it in index funds. Then study a field you think you might be interested in. I am not recommending this, just throwing it out there for your consideration.

Find a good program that will help you keep track of your money.

Once you have started to become wealthy, remember this verse.

1Timothy 6:17-19  Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy; That they do good, that they be rich in good works, ready to distribute, willing to communicate; Laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life.

God reminds us here not to become prideful, and He tells us He gives us this wealth to enjoy as well to be able to give and to invest or save.

All this learning is part of our duty, our privilege, and our heritage as stewards/managers of God’s wealth. As we are willing to obey His Word and love Him above all else, He is willing to fill our storehouses. This is all part of The Prosperous Life.