Christian Home Finance: How Christian Couples Can Identify Worthwhile Investments

Finance is one topic that we always shy away from, even though it is an essential aspect of our daily lives. Many homes have hit the rocks or are on the verge of breaking up because of this topic. Couples need to be on the same page regarding finances to avoid unwanted chaos in their homes. 

One aspect of finances that we must discuss often is investments. Should Christian couples invest? If yes, how do they identify worthwhile investments these days with so many investment opportunities available? 

What is Investment?

An excellent place to begin this discussion is, “what is an investment?” This word is quite ubiquitous in its meaning since different schools of thought view it in different lights. However, this post will streamline the meaning to suit its context.

Investment is acquiring an item or asset for appreciation or generating income. It could also refer to putting money into property, shares, commercial ventures, or a financial product to achieve a profit. From these definitions, we can say that investment is committing funds to purchase assets with an expectation of profit generation.

How Couples Can Identify Worthwhile Investments

Marriage comes with several responsibilities, including attaining financial stability as a couple. For this reason, couples must work towards drawing up family wealth creation and management strategies. Doing this helps to achieve both long and short-term financial security.

One question couples seek to answer regarding investments is, “how do we identify worthwhile investments?” Different sectors of the economy present varieties of investment opportunities. All it takes to go broke or experience a financial boom is one wrong decision. 

Discuss

Couples must be on the same page about every investment opportunity before diving in headlong. Before then, you need to communicate your investment goals. A 2018 survey showed that about 20 per cent of couples don’t manage family finances together. If you don’t discuss investment goals and opportunities with your partner, you’d be having financial issues very soon.

You must understand that one individual cannot build a home. Both of you are stakeholders, so each person’s opinions matter. Even the Bible tells us that “two heads are better than one,” and there’s no better way to prove this than by identifying investment opportunities together.

Research

Discussing your investment goals and the available opportunities is just one step toward your investment journey. You shouldn’t just discuss, you need to research every opportunity properly. Gather as much information about every investment as there is out there. Please don’t assume that a prospect is worthwhile because someone said it is reliable.

Find out how much the investment costs, what the deal is like, who’s behind it, the returns, and everything else. Never dive into an investment on hearsay without taking time to research as a couple. Gathering sufficient information helps you to make the right decisions regarding the acquisition. Don’t forget that you need to keep discussing with your partner while you research the opportunity.

Consider the risk and reward

Every investment has risks attached. Even when it is worthwhile, there is always a risk of losing your investment capital. As you research an opportunity, you should gather information about the possible risks involved. Never invest in a venture without weighing the risks first.

Determine the associated risk and discuss with your partner whether the risk is worth taking or not. If you disagree with this, there is no point in going ahead with the investment. As you consider the risk, weigh it against the investment’s possible reward. Doing this gives a clear picture of whether the investment is worthwhile.

Investment is a game of risk and reward. An investment is only worthwhile if the reward outweighs the risk associated with the investment. How much would you make from the investment, all things being equal? Answer this question as a couple to see if you should go ahead with the investment or not.

Benefits of Worthwhile Investments to Couples

Why should couples seek out worthwhile investments? Investing presents every home with an array of benefits. Let’s discuss a few of these benefits below:

Investment returns

We expect to make some returns on every investment that we make. After all, an investment is a tradeoff, letting go of funds presently to enjoy higher future utility. Worthwhile investments bring a couple investment returns that they will enjoy in the nearest future, depending on the investment tenure. 

Investing in stocks, for example, brings returns in the form of capital gains or dividends. On the other hand, Bonds present coupons or regular payouts over a specific period. Real estate offers couples investment returns in the form of capital gains or rental income.

Attain family financial goals

Couples should set financial goals for themselves and their families. One way to attain family financial goals is to invest as a couple. Setting these goals helps you to determine what investment is worth the trouble. Some financial goals include:

  • Funds to purchase a house.
  • College education funds for your kids.
  • Retirement funds for yourselves.
  • Funds to set up new businesses.

Putting funds into an investment will help you attain your family’s financial goals more easily.

Overcome inflation

Inflation has become common in our society today. Leaving money in a joint, savings, or checking account causes it to decline over time. As a result, the money loses purchasing power due to inflation.

An easy way to overcome inflation is to invest. Even though reported inflation may not seem as high in different parts of the world, actual inflation is. Healthcare, education, and real estate are more expensive than ever. The easiest way your home can overcome this inflation is to find worthwhile investments.

Conclusion

The importance of discussing Christian home finance cannot be overemphasized. This post has discussed a very vital aspect, finding worthwhile investments. It has also shed some light on the benefits of finding suitable investments as a couple. Do you have any questions or suggestions? Kindly drop them in the comments section below. Also, don’t forget to check out GodKulture for exciting articles to help you improve your trade as a Christian creative.

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