Going Deeper

Money is an incredibly prickly topic which noone wants to touch! It’s okay to ask someone if they use low-energy light bulbs or recycle their plastic bags, but it is definitely not okay to ask what they spend their money on or how they invest it…

Psalm 24:1 states that ‘the earth is the Lord’s and everything in it’. This means that anything we own we own only on trust, and that includes our money. All things that are given to us are done so that we might bless others. John Wesley’s oft-used dictum of ‘earn all you can, give all you can, save all you can’ is a helpful reminder to us; particularly the second bit!

When we apply this to our money it means that God is concerned not only with how much we give away and where we give it to, but also with what we do with the money that we keep: how do we spend it? Where do we invest it? The ‘how do we spend it?’ question takes us into the shop category on this website so do look at the going deeper section there and at the many links that are in that category. But, the ‘where do we invest it?’ question requires looking at more deeply here because most of us will have savings and investments in one form or another. That might mean just a current account, or we may have invested in the stock market. We may have ISAs, National Savings or bonds. The majority of us will, at some point, have a mortgage and a pension.

Perhaps the key point to make is that so much of conventional saving today (whether through our bank accounts or other savings options) is in companies that exploit their customers, their workers and the created world. As Christians we have a responsibility to see where our money is going and to ensure that it is not being used to the detriment of God’s creation, both human and non-human.

Our money might be invested in a wide variety of ways. It might be being used for the production and sale of military hardware or nuclear power. It might be being donated to a political party or involved in pornography, the fur trade or tobacco production. It could be being used by an oppressive regime that tramples on human rights. It could be involved in intensive farming, environmentally destructive mining, illegal felling of tropical hardwoods, or water pollution. Our money could be used for currency speculation, which can damage a nation’s economy, or it might still be used to service a southern country’s debt. Our money has a lot of power, and there are so many things we can do with it. Because of this we must be aware of where our money might be going.

Thankfully, we can do something about this and we can control what happens with our money, if we are prepared to expend some time and thought. ‘Ethical’ or ‘socially responsible’ investments are on the rise and are increasingly easy to come by for all investment purposes, including mortgages and pensions.

The term ‘ethical investments’ covers a broad spectrum and we should always investigate each investment option. Some options work ‘negatively’ (by not investing in particular concerns such as the arms trade or tobacco) whereas other options work ‘positively’ (investing only in companies that are specifically working for social or environmental enhancement). A third option is what’s known as the ‘best of sector’ approach. This allows investment in every sector, but only on the basis of selecting the most ethical/environmental companies within them. So, for example, regarding oil companies, if BP are investing the most in renewable energy, then whilst it is a ‘dirty’ sector, it could be included. In general, one good point to look for is openness and transparency in how an investment option works. For example, Triodos Bank produces a regular newsletter for its investors that gives details of some of the different businesses and projects to which it is lending.

Some of us may own substantial sums of money. Remember, there are stockbrokers who have entire ethical/environmental research departments, who will sit down with a client and establish an individual ethical screen. Another option is to become a ‘Business Angel’; people who invest money and become shareholders in small businesses, and often are able to give advice and expertise too. This must be one of the best ways to invest any extra money we might have: there is a good balance of risk and return; close relationships are often fostered, helping us know exactly where our money is going, thus enhancing our role as stewards.

Another possibility is to use our money to help people in the increasingly difficult area of housing. Perhaps you could buy a second property which is then rented at a cheap rate to Christians and/or charitable workers, or to others who might need it. Or maybe you could make interest-free fixed-rate loans to help people get onto the property ladder, clear their debts etc.

Finally, another important thing to consider is what is going to happen to our money when we have died. Legacies are very important to charities because they provide them with the necessary core funding both to keep the current work on-going and to develop new areas of work. For more details about leaving a legacy to A Rocha, see [pdf document].

However we choose to play it, the key is that, whenever we put some money into an account, invest in an ISA, apply for a mortgage and so on, we have a direct opportunity to use our money to do some good in our world: and that can only be an exciting thing.

(This material has been adapted from Ruth Valerio’s, L is for Lifestyle:Christian living that doesn’t cost the earth)

Ruth Valerio, 10/05/2009