05/11/2023
Financial Verse of the Day!
“The servant who received the five bags of silver began to invest the money and earned five more. The servant with two bags of silver also went to work and earned two more. But the servant who received the one bag of silver dug a hole in the ground and hid the master’s money. ” Matthew 25:16-18 NLT
This passage is part of a parable known as the "Parable of the Talents." While it is a spiritual and moral lesson, it does contain principles that can be related to the concept of investing:
Active Use of Resources: In the parable, the first two servants are commended for taking the money (talents) they were entrusted with and actively using it to generate a return. This can be seen as an endorsement of using one's resources wisely and not letting them sit idly.
Multiplication: The parable highlights the fact that the servants who invested their talents were able to multiply them, thereby increasing their value. This mirrors the concept of investing money in financial assets with the goal of generating a return and increasing one's wealth.
Responsibility and Stewardship: The parable conveys the idea of being responsible stewards of the resources we are given. Just as the servants were entrusted with the master's money, individuals are encouraged to be responsible stewards of their financial resources, including investing them to achieve growth and achieve financial goals.
In today's day and age, having a savings account in a bank that earns less than 1% per year and let the annual inflation rate of 2%-6% eat its purchasing power, is worse than than the servant who dug a hole into the ground and hid the silver. Why? Because the money you are saving in a bank is increasing in quantity through excessive money printing by the government or central bank and that’s called monetary inflation. While Silver is fixed in quantity and has many uses, it becomes more valuable over time as it’s getting more and more expensive to extract silver from the ground. Concerning the servants who doubled their money through wise investments, there exists a wide array of contemporary investment opportunities that not only have the potential to outperform inflation but can also yield significant returns over time. These financial instruments encompass assets such as stocks, bonds, exchange-traded funds (ETFs), mutual funds, real estate investment trusts (REITs), and variable-unit linked insurance, to mention a few. And when navigating this diverse landscape of investment options, it is advisable to seek the guidance of a professional financial advisor just like consulting a doctor if you are not feeling well. They can provide personalized insights, tailored strategies, and expert advice to help you make informed decisions and achieve your financial goals.
"Grow the money God has given us, not by saving but by investing." - Ecoinology
