If you’ve read the economic reports for 2015 so far, then you know that the predictions are not very positive. However, as Christians we are commanded not to worry about tomorrow’s problems, so many of us erroneously believe that this means we don’t have to worry about what the financial predictions say. This is true to an extent, because we are not relying upon what they say in order to trust that God will provide all our needs. Instead of just ignoring these reports, we should still at least glance upon these often-boring pages in order to gauge investments more thoroughly.

If you buy stocks/shares or managed/mutual funds…

Not all of us buy intentionally buy shares, managed funds and bonds and similar things (as this happens for us as a result of investing through our retirement savings plans/superannuation), but if you do, the best advice is to buy monthly and pay close attention to numbers.  By investing on a monthly basis we are not trying to pick the market and will simply gain an average price over the course of a year.  This is often known as Dollar Cost Averaging.

Before making any investment pray, pray, pray, and before you buy, pray some more. Sometimes that still, small voice that never gives you a peace about a transaction is keeping you from a potential disaster, and you literally cannot afford to ignore it.

Ideally you’ll be looking to build an investment portfolio over a long period of time with quality assets that provide you passive income (otherwise known as portfolio income).   Don’t be too focused on Capital Growth – it is long-term income that is critically important.  Remember that when you buy a share or a stock on the share market you are buying a small ‘share’ of a business.  Ask yourself… do I like what the business does, how it operates etc.?  Would I own 100% of this business if I could?  Does it actually make money – and make it ethically?

Living Inside Your Means

One of the most important things to remember as you review the yearly economic report is that it’s a basic guideline—no one can predict what will happen even for a week, let alone a month or a year, when it comes to finances and the world around us. These reports are based on dozens of factors, some of them easy to understand and some of them very complex:

• Historic figures. Finance and economy experts discuss what the dollar has done and predict what it will do accordingly.
• World events. The value of any nation’s currency is partially dictated by that nation’s stability, so nations that have entered into serious conflict or are devastated by national disasters and so forth may see a big drop in the value of their respective currencies. Sometimes this number bounces back quickly, but sometimes it does not rise for a long time, depending partially upon how fast that nation recovers.
• Natural disasters. One big factor in predicting economy, but also the least predictable, is natural disasters. A hard-hit area will see a very drastic drop in the value of goods, services, and products, and if the impact covers a significant portion of the nation, then the currency value will reflect the negative crash. Ability to recover, for instance third-world opportunities versus a technologically-advanced nation, often dictates how long it will take for the nation—and the economy—to recover.

All this said, the key is to remember to live within your means when it comes to the economy. Never invest more than you can afford to lose if things do not progress as you or your financial advisor have predicted. A big loss often leads to more impulsive investing in hopes of a big recovery, but emotional investing is always a bad idea. Spend wisely, cut losses gracefully, and move on to the next opportunity when necessary.

Where to get Information

Now, you can’t just scroll to any website that offers an outlook for the next fiscal year in order to determine investment opportunity. Be smart with your information, just like you would be when it comes to your money. Use sources that are reputable, such as government pages or information offered by your investment advisory. Above all, pray some more, and don’t do anything until you feel a peace from God about the investment. He’ll never steer you wrong if you just take time to listen.

“My sheep hear my voice, and I know them, and they follow me.” ~John 10:27