The bible contains a principle for spreading your risk. Proverbs 11:14 shows there's safety in the multitude of counselors. Ecclesiastes 11:2 shows you should give a portion to seven or eight to handle future troubles and costs that will arise. Matthew 25:15 shows the Master giving different amounts of money for investment to three different servants according to their different abilities. Luke 19:13 shows Him giving the same amount of money to ten different servants.
Scripture guides, encourages, and motivates each person to diversify talent, mind, time, and money in order to get the most out of them and to help protect against inevitable emergencies and catastrophes that will take place in life. Jesus diversified by choosing twelve very different men with different traits and talents who would work together to share the gospel with the world. One chose to follow the tempting of satan who thought he would be the inevitable emergency / catastrophe to destroy the investment Father God made to establish the only pathway to salvation and eternal life. This did not destroy the plan because remainder went on to become ministers investing gospel seeds in every region of the world they could reach. The safety of mission and huge return that continues to be harvested from Jesus starting with an investment in twelve different men and then incorporating every believer into communicating and living according to the gospel resulted in almost half the people currently on earth naming Jesus Christ as Savior and LORD.
The diversification principle also applies to the financial stewardship arena leading you to invest through several different financial institutions, brokerage houses, or financial advisors. Brokerage accounts, 401k’s, 403b’s, IRA’s, Roth’s, etc. give you a low-cost way to invest in several different vehicles such as company stock, bond, and REIT mutual funds. Many institutions no longer require big deposits to open accounts and you can often invest as little as $25 per month or paycheck and automate regularly scheduled investment deposits via your employer or bank / credit union. Also, for many people, these instruments allow investment that exceeds 25% of your gross annual income at the point you are situated to do so. You certainly will be able to invest more, and should be so inclined, once you eliminate all your non-mortgage debt and establish your $10,000+ emergency fund per steps two and three of my seven step plan.
Another form of diversification you should engage is to cover with insurance areas that traditionally bring major loss when uncovered by huge saving / investment funds or insurance, such as health, disability, long-term care, life (when you care for dependents), home, and automobiles. This greatly stops resulting liability for loss / costs from putting / keeping you in financial bondage and positions you to continue building wealth. It can also be rewarding to diversify (in a debt-free manner) into other vehicles such as real estate, gold, silver, and entrepreneurial endeavors that create increasing long-term value and passive streams of income. Be careful not to overdo it buying insurances or amounts thereof and warranties or investing in things that provide very little or no real benefit because this will impede your ability to build wealth, give abundantly, and serve in the way the LORD’s desires.
The benefits of employing diversification are (a) the LORD’s blessing and reward poured upon those who obey scriptural guidance, (b) Peace experienced by greatly reducing risk of total or majority investment loss during economic downturns or via unscrupulous institutions or financial advisors, and (c) Joy expe-rienced by allowing you to enjoy great long-term investment growth the market has historically displayed.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, Ecclesiastes 11:2, Matthew 25:14, Luke 19:13
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