Comparing Risk

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M Yes, it’s biblical to build wealth.  Our culture encourages taking risks and being impulsive.

Proverbs 13:11, Dishonest money dwindles away, but whoever gathers money little by little makes it grow.

Working diligently to gather money is applauded.  Once you have it, determine where to invest.

V An important concept here is risk.     Whether as a couple or individual, determine your risk tolerance.  How quickly might you need that money?  Educational expenses, vehicle.  Money needed quickly should not be in stocks--it might be a down day--or real estate that might languish in a down market.   

M Proverbs repeatedly advises us to plan.  Know where and when you likely need funds before you invest them. That’s good stewardship.