• "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has" (Proverbs 21:20). It's worth knowing that maintaining a proper balance between current spending and long-term saving is a sign of wisdom.
• "The plans of the diligent lead to profit as surely as haste leads to poverty" (Proverbs 21:5). It's worth knowing that we should consistently invest from a carefully considered strategy rather than impulsively on a case by case basis.
• "Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth" (Ecclesiastes 11:2). It's worth knowing that we should rely on diversification-rather than a preoccupation with market cycles-as a means of controlling risk and protecting our capital.
• "Do not wear yourself out to get rich; have the wisdom to show restraint" (Proverbs 23:4). It's worth knowing that we must be on guard against greed and spending our energies in a futile attempt to get the highest possible returns.
As we continually "renew our minds" with these guiding principles, we can apply them to help us make the day to day financial decisions we each face. When followed consistently, we can have confidence that, whatever the short-term sacrifices may be, we are making wise spending, saving, and investing choices. That frees us to leave the results with God, knowing that "Godliness with contentment is great gain" (1 Timothy 6:6).
© Sound Mind Investing
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