The purpose of this article is to help you understand and practice biblically faithful investing. Faith-based investing is not simply a financial strategy or a trend within Christian wealth management. It is a conviction rooted in Scripture about how Christians should think about money, stewardship, profit, and the responsibility that comes with investing capital.
As Christians, we are called to be different than the world. Scripture teaches that God Himself transforms the way we think, including how we think about wealth, investing, and financial planning:
“Do not be conformed to this world, but be transformed by the renewal of your mind.” (Romans 12:2)
This principle undoubtedly applies to money and to the financial resources God has entrusted to us. These resources are not ultimately “our” money. Biblically speaking, God owns everything:
“The earth is the Lord’s, and everything in it.” (Psalm 24:1)
We are stewards, not owners. As Christian investors and financial stewards, we must care not only about how much money is earned, but how money is earned. Scripture repeatedly addresses the concept of good profit and warns against unjust gain:
These passages form a biblical foundation for faith-based investing and ethical portfolio construction.
As Christians, we live at the intersection of two big stories: a cultural story that shapes much of modern financial thinking, and the biblical story, which we are called to make our primary home.
There will always be two competing narratives: the world’s story and the Lord’s story. Each seeks to direct the meaning and purpose of our lives, including how we approach investing and wealth management. God’s path is lit by His Word:
“Your word is a lamp to my feet and a light to my path.” (Psalm 119:105)
By contrast, the world’s path is lit by its own torch (Isaiah 50:11).
“These two stories compete to narrate what is real and true in every facet of life, including business and investing.”
The world’s dominant investing narrative teaches that the primary purpose of investing is to maximize risk-adjusted returns. How those returns are generated does not matter, as long as returns are achieved. From a biblical perspective, this raises a critical question: Why would not knowing what you’re invested in be a problem?
Scripture makes clear that God cares deeply about how profits are generated (Proverbs 1:10–19; Deuteronomy 23:18). The Bible distinguishes between two types of profit:
As Christian investors, we are called to avoid schemes of bad profit, even when those schemes promise attractive returns.
When we invest, we supply capital to businesses. That capital enables products, services, and business practices that shape the world around us. In return, investors have a right to profits and growth, but they also bear a moral responsibility for the activities of the businesses they choose to clothe with capital.
Before examining how to assess whether a business’s activities are good or bad, it helps to understand the original meaning of the word invest.
The word invest literally means to clothe. Historically, it referred to clothing someone in the official robes of an office, ceremonially installing them into authority, or granting them power and legitimacy.
This meaning aligns closely with Scripture. In Genesis, we see God’s royal commissioning of humanity:
This is royal language. Psalm 8 reflects on Genesis 1, describing humanity as having been “crowned with glory and honor” and made “rulers over the works of [God’s] hands.”
After these blessings, Adam and Eve fell into sin. Yet God again chose to invest in humanity by clothing them with sacrificial garments. This marked the first death in God’s peaceful creation and foreshadowed Christ’s sacrifice:
“For all of you who were baptized into Christ have clothed yourselves with Christ.” (Galatians 3:27)
The promise of Scripture is that God’s final sacrifice enables us to once again become the royal priesthood He intended from the beginning.
Today, most investors focus almost exclusively on what they hope to get out of investing, namely financial return. The biblical standard, however, emphasizes clothing others for noble work. Faith-based investing asks whether businesses are worthy of being clothed with capital.
Jesus is the rightful King over every domain, including finance, markets, and Wall Street. Christians are sent into the world to bear His image and display His kingship through everyday decisions, including how they invest.
Practicing biblically faithful investing is a journey. In some cases, decisions will be clear. In others, they will require discernment and personal conviction.
A good business does not merely offer good products. It produces them using good practices. For a practice to be good, it must be just and stewardly.
The Golden Rule provides a helpful framework. We can ask:
Profit matters, but it is not everything:
“Remember the Lord your God, for it is he who gives you the ability to produce wealth.” (Deuteronomy 8:17–18)
Tim Keller observed that idolatry occurs when good things become ultimate things. This danger is especially present in modern financial culture, where profit is often treated as the sole purpose of business.
Milton Friedman famously argued that the only social responsibility of business is profit maximization. Scripture offers a more complete equation:
Good products + good practices = good profits
The primary purpose of investing is to supply capital that enables good businesses to grow and serve.
Investments in secondary markets still directly affect companies. Strong performance allows access to new capital, and shareholders retain governance power through voting rights.
As we move toward faith-based investing, we must place ethical responsibility ahead of profits, however large those profits may be.
A practical starting point for faith-based investing is avoiding companies involved in the most egregious harms. Commonly excluded industries include:
A faith-based financial advisor can help identify and exclude these companies from an investment portfolio.
Avoiding abortion-related investments includes companies involved in abortion procedures, abortifacient drugs, embryonic stem-cell research, and related products. Scripture affirms the sanctity of human life (Psalm 139:13–16; Jeremiah 1:5; Genesis 1:26–27).
While Scripture does not condemn moderate consumption, it strongly warns against drunkenness and addiction (Ephesians 5:18; Proverbs 23:29–35). Large-scale producers often depend on abuse for profit.
Gambling creates wealth through loss rather than value creation and often preys on desperation (1 Timothy 6:9–10; Proverbs 13:11).
Tobacco products are intentionally addictive and harmful when used as intended. Our bodies are temples of the Holy Spirit (1 Corinthians 6:19–20).
Pornography commodifies human beings, fuels exploitation, and distorts God’s design for sexuality (Matthew 5:27–28; 1 Thessalonians 4:3–5).
Avoiding these industries does not complete the biblical vision for investing, but it is a necessary early step.
Faith-based investing ultimately moves beyond avoidance toward intentional participation in good.
Two guiding questions help shape ethical portfolio construction:
Scripture emphasizes love of neighbor, stewardship, and wise development (Matthew 22:37–39; Genesis 2:15; Proverbs 16:8).
Taken together, these Scriptures suggest a biblical investment test:
This framework allows Christian investors to move beyond simple exclusion lists and toward a constructive vision of capital as a tool for human good and God-honoring development.
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brian@palosecowealthmanagement.com
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