Are you a good steward of your money?

Recently I read this book Creating Wealth by Robert G. Allen; it talks about the seven principles of wealth. One of them I wish to highlight is Wealth Principle 4: Wealth seekers are always on the offensive, not defensive.

Most people are concerned with security, especially with money. Whenever when faced with risk, failure or debt, they tend to go for low-yielding “safe” investments. You need to understand that these kinds of investments don’t produce wealth. Most average investors believe that the worst thing that can happen to them is losing their capital, they are so afraid that they focus their money on the defensive. He is more concerned with saving money, buying ILP or Unit Trusts rather than more lucrative investments.

There is a famous parable in the Bible call “The Parable of the Talents” in Matthew 25:14-26:

14"Again, it will be like a man going on a journey, who called his servants and entrusted his property to them. 15 To one he gave five talents of money, to another two talents, and to another one talent, each according to his ability. Then he went on his journey. 16 The man who had received the five talents went at once and put his money to work and gained five more. 17 So also, the one with the two talents gained two more. 18 But the man who had received the one talent went off, dug a hole in the ground and hid his master's money.

19"After a long time the master of those servants returned and settled accounts with them. 20The man who had received the five talents brought the other five. 'Master,' he said, 'you entrusted me with five talents. See, I have gained five more.'

 21"His master replied, 'Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!'

 22"The man with the two talents also came. 'Master,' he said, 'you entrusted me with two talents; see, I have gained two more.' 

 23"His master replied, 'Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!' 

 24"Then the man who had received the one talent came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. 25 So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.' 

 26"His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? 

The Lord gives five talents to one servant, two talents to another and one talent to another. Upon returning, the master found out that two of his servants have done very well with their “investments.” But the last one was afraid, he took the talent and buried it in the ground, all because he did not want to take risk! God’s words are explicit, he reprimanded the last servant for not being a good steward of this money. Instead of making it grow, he chose to invest the money in bank, or maybe in his safe?

The profitable servants is on the offensive, they were willing to risk to make their money grow, the unprofitable servant is on the defensive. He only wish to preserve, to protect and therefore he did not grow his assets.

But is there a place for defence? Of course, any soccer coach can tell you that a good team must be balanced with both offensive and defensive units. But still, the best defence is a good offense.