Tag: Human Flourishing

by Ron Bare

When did you decide you wanted to change the world? In 2009, at my first Kingdom Advisors conference, I realized for the first time that I was being called to be a “pastor of finance.” The Bible is full of so much truth about money – over 2,300 verses in fact! As I watched various people in my life apply these verses, I saw that each of these people had produced contentment, generosity, freedom, clarity, purpose, and ultimately faithfulness as a result of some of these practices. I knew that if I could use my passion to help others grasp a deeper understanding in this area, we could change the world together.

This was my story but ask others how to change the world and you’ll get answers all over the board. End world hunger, commit your life to cancer research, or live overseas as a missionary? These are all admirable. Yet, as I’ve grown and learned more about the financial world, I’ve learned that investing can have a huge impact on the world. So, why should we invest? What is this impact I’m talking about? I’m glad you asked.

Many would say that investing is a great way to grow wealth and that it provides a good rate of return – both of which can be true. These are two potential benefits to the investor. But what if I argued that investing really isn’t just about you, but that there can be a redemptive purpose for investing? Tim Macready, of Brightlight Capital, says it well. “Redemptive investing is moving unproductive capital to productive capital to make goods and services to promote human flourishing.”

Investing is not simply the act of setting money aside to someday see a return. Investing, at its core, is about supplying capital to businesses in exchange for ownership in the company and rights to profit and growth. Now this kind of investing will influence your community – if it is productive for human flourishing, because it impacts businesses and allows growth to happen. How does this apply as we look for companies to invest in?

Believing that we are stewards of God’s money forces us to consider what kinds of companies, properties, or businesses we choose to own or profit from. We are reminded of this higher responsibility in Luke 12:48; “When someone has been given much, much will be required in return; and when someone has been entrusted with much, even more will be required.” Are there then ‘good’ or ‘bad’ profits? Might a good profit be tied to a company that serves others ? And a bad profit be related to an investment that harms others?

As we each decide where, how, and when to invest, mistakes are normal. But we believe some of these mistakes are avoidable when the definition and purpose of investing are crystal clear.

One of the biggest mistakes we see is with those who do not have a purpose nor an end goal. Without purpose or clarity, accumulation is natural, but becomes hard to distinguish from hoarding. When we create parameters and know how much is enough, our investments are wise and purposeful.

Secondly, sometimes the primary purpose of investing becomes saving money on taxes. Saving money on taxes is a nice bonus, but leading with that motivation is not a great long-term plan. When focusing on solely saving taxes you may become stuck in frustrating long-term commitments or may not be able to meet your goals in the way that you could have otherwise.

Lastly, many non-liquid investments are highly leveraged . This certainly potentially increases the rate of return but also increases risk. If investing means supplying capital to fund a company we’re passionate about, yet we are obsessed with finding a high rate of return, we may take on unnecessary risk when investing in companies with high debt levels.

Investing doesn’t have to be complicated or stressful. It can be a beautiful picture of committing your resources to provide capital to companies that promote human flourishing and then enjoying the benefits of those companies’ successes.

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