The Biblical principle of steady plodding

Investing is a tool that each of us should use to accomplish financial objectives. We  can accumulate wealth by spending less than we earn and invest the difference over a long time period. We preserve wealth by following the Biblical principles of diversification, professional advice, and by having a long time horizon. Investment speculation should only be done after asking the question “Can I afford to lose this money with no adversarial effect on my long-term goals?” Using investments to build wealth so to make a statement of faith and to provide for your family are legitimate reasons to invest.

Dollar cost averaging is a wonderful way to follow the Biblical principle of “steady plodding.” With this type of investing strategy, the investor does not have to worry about timing the market. Many Christians ask “Is now a good or bad time to invest.” Dollar cost averaging answers that question by making market conditions work for you not against you. Regular, periodic purchases of the same dollar amount each week, month or quarter will render you purchasing more shares of stock or mutual fund when the price is low and fewer shares when its price is high. Thus the average share price will be averaged down, reducing the risk of putting money into stocks at the top of the market.

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