Essay Example on Money & Savings in the Bible: Risk, Return & Opportunity Cost

Introduction

Money and savings are not a story of the modern world alone, but they trace their origin back in the early times; thus, the Bible records a few things about money, savings, and investments. In other words, several points can be drawn in the Bible that relates to the money-saving concepts of risk, return as well as the opportunity cost of capital. This paper aims to discuss how saving and investing are related to the Bible, and this is done with reference to some verses in the Bible.

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In financial investment, the risk is always a key matter that everyone has to be careful with when they are investing. The relating risk to the Bible, the bible verse in Ecclesiastes 5:13-14 describes the risk of wealth loss through misfortunes of the owners; thus, they leave children with nothing to inherit (Baumer, 2016). This verse urges people to try and reduce their financial risks as they age to avoid problems in their old age.

Return is what one gains after saving and investing in terms of profit or so. This can relate to the Bible by the verse in Galatians 6:7, which says that whatever one sows is what he reaps (Beed, 2017). Therefore, the return of a person and the profit they realize will depend on what they choose to invest.

Opportunity Cost of Capital

In the Bible, the opportunity cost of capital can be taken and related to what God gives the people and expects them to give back or multiply it to get more over time. A good example is the story of the servant who had been given a bag of gold but wasted the opportunity (Brueggemann, 2016). People are given a chance by God to make out of them what they want for their benefit, so it is up to them to waste or utilize the opportunity well.

Conclusion

The Bible has so many relations to the concept of savings in the real world. Drawing from the various verses in the Bible, one can get to understand the savings concepts of cost, the opportunity cost of capital as well as the return on investment. Savings, as used in the accounting world, can, therefore, be said to be a biblically-based aspect with reference to the ideas that the bible scriptures gave on money and wealth saving.

References

Baumer, G., & Cortines, J. (2016). God and money: How we discovered true riches at Harvard business school. Rose Publishing, Inc. https://books.google.com/books?hl=en&lr=&id=dAWMDAAAQBAJ&oi=fnd&pg=PT4&dq=Baumer,+G.,+%26+Cortines,+J.+(2016).+God+and+money:+How+we+discovered+true+riches+at+Harvard+business+school.+Rose+Publishing,+Inc.&ots=82QS0mD4U1&sig=e_Dyhmt1-dGycdFiFBS1MHig0-Y

Beed, C., & Beed, C. (2017). Biblical Interpretation of Gary North's Theonomy. Journal of Biblical Integration in Business, 20(2). http://cbfa-cbar.org/index.php/jbib/article/view/467

Brueggemann, W. (2016). Money and Possessions: Interpretation: Resources for the Use of Scripture in the Church. Westminster John Knox Press. https://books.google.com/books?hl=en&lr=&id=1588DQAAQBAJ&oi=fnd&pg=PP1&dq=Brueggemann,+W.+(2016).+Money+and+Possessions:+Interpretation:+Resources+for+the+Use+of+Scripture+in+the+Church.+Westminster+John+Knox+Press.&ots=BI8Dh6xkHT&sig=VwoLkNnE-oskBstEdyErGD16Tt8