If you’re a regular listener of Chris Brown’s Life, Money and Hope podcast , you hear a few key verses mentioned a lot. That’s because the Bible is full of wisdom on topics like marriage, parenting, faith—and money. There are hundreds, even thousands, of verses that tell us how to handle our resources. For instance, Ecclesiastes 11:2 and how it applies to Baby Step 4.
First, take a look at the verse: “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land” Ecclesiastes 11:2 (NIV). Now, keep in mind that Solomon, King David’s son and a pretty smart guy, wrote Ecclesiastes. He was renowned for not only his wisdom, but also for his wealth, too. He ran a fairly big and successful kingdom, and people traveled from far and wide to ask for his advice on difficult subjects. It’s safe to say he knew a thing or two about stewarding God’s resources for God’s glory.
Next, ask yourself: What does this verse mean—and how does it apply to us today?
To put it simply, Ecclesiastes 11:2 challenges us to avoid placing all of our eggs in one basket. We all know what happens if that basket comes crashing down—all of the eggs break and there’s nothing to eat! It’s much better to reduce the chances of disaster by spreading things around.
Pretty easy to see how this fits into the topics of investing and retirement, right? The last thing you want to do is reach Baby Step 4 (investing 15% of your income for retirement) and start sticking all of your hard-earned money into a single investment. What if it goes bad? Suddenly all that progress you made is gone—just like that. Talk about discouraging!
Plus, if we’re really honest with ourselves, that just isn’t good stewardship.
Psalm 24:1 (KJV) says, “The earth is the Lord’s and the fulness thereof.” That includes our paychecks and our retirement accounts. It isn’t our money; it’s God’s money. And if He puts us in charge of His resources, we need to make sure we know what we’re doing. Otherwise, we’re poor managers—and that’s not a good reflection on His kingdom!
That’s what makes diversification so important. Now, don’t get tripped up with the $10 word. Diversification just means spreading your investments around. Or you can think of it like this: You’re dividing your eggs among a bunch of different baskets instead of putting them all in one. Diversification, and a hefty dose of patience, helps you ride out the market’s ups and downs without losing all of your money. Spreading investments out across a lot of funds reduces risk, which protects your eggs.
Even though the Bible was written more than two thousand years ago, it’s just as relevant to us today as it was back then. We all know what it’s like to make plans that, for whatever reason, don’t always work out. Solomon was smart, but he couldn’t predict the future—and neither can we. Ecclesiastes 11:2 reminds us to be intentional about handling money wisely.
So when you wrap up the first three Baby Steps and move on to Baby Step 4, remember Solomon’s advice: Practice good stewardship by diversifying your investments.