Dave Ramsey is founder of the Lampo Group and one of the most widely recognized experts on the intersection of Christian principles and personal finance. He agreed to an e-mail interview about ethical financial decision-making for Christians.
Q: When it comes to financial decisions (entering into debt, investing, consumer choices), what is the proper ethical framework for Christians to use?
Dave Ramsey
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A: God has given us more than 800 Scriptures in the Bible about money and personal finance. These Scriptures include lessons on debt, budgeting and much more. You can see through the Scriptures how we are to handle money God’s way.
For example, God teaches us the importance of budgeting in Luke 14:28-30. He says, “For which of you, intending to build a tower, does not sit down first and count cost, whether he has enough to finish it—lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying ‘This man began to build and was not able finish’?”
Q: What are Christians in a capitalist, consumerist culture called to do in regard to financial decisions when following a counter-cultural Savior?
A: If you study God’s word and learn what he has to say about money and personal finance, you will be able to confidently make financial decisions. Proverbs 22:7 says, “The rich rules over the poor, and the borrower is slave to the lender.” We are taught here that debt is dumb, and we should not borrow money from others.
Q: When it comes to consumer and investment decisions, how closely are Christians called to scrutinize the practices of the companies they patronize or the funds/industries in which they invest?
A: When it comes to investing, you should never invest with anyone that you do not trust, and you should never invest in anything you do not understand thoroughly, and by that I mean upside down, frontward and backward.
Q: In the midst of a severe economic downturn, are Christians actually called to spend more and invest more to do their part to benefit the common good?
A: Proverbs 21:20 says, “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” People all over the country are struggling to make ends meet, and if you do not have the money to spend, whether it is investing or consumer spending, you should not feel obligated to do so. We got into this economic mess because people spent money they didn’t have and bought things they couldn’t afford. But if after doing your budget you find that you have extra money, you should look carefully at investing it, saving it, or even giving it away. You are responsible for taking care of your family, not the U.S. economy.