Leveraging Temporal Wealth for Eternal GainSample

Day 8: Reverse Compounding

Albert Einstein once said that compounding is the eighth wonder of the world. Investors crave it, and mathematicians stand in awe of it. But it’s not rocket science. The well-known principle of compounding says that one dollar invested today is worth multiple dollars in the future. The longer the compounding period, the longer you must multiply your return. In projecting our potential investment account balance, we choose whichever compounding periods and returns we want, mindful that the longer the period, the higher the account balance at the end of that period.

The Bible suggests a second compounding principle: reverse compounding. A Christian’s compounding period is unknown, but it declines every day as we age. We know the range of returns (Matthew 19:29) but not the period (Matthew 24:36). We do know that however unbelievably large those returns may be, they can only compound over a shorter and shorter period as our death, or the return of Christ, draws closer.

The conclusion is clear but sobering: The future value of our giving declines each day as our time on earth lessens. One dollar given today is worth more than one dollar given tomorrow because money given sooner has more time to compound for the recipient. God is not limited to the power of compounding, and His ways are higher than ours. But the human logic of giving now rather than later seems rational and compelling.

Why should we think about compounding? After all, our giving should be an act of worship and obedience to God. We shouldn't give for the benefits of compounding. The reality is that most people do not think very much about the eternal rewards of their earthly giving, even though the Bible is replete with reminders of those rewards.

Whatever our belief about rewards, no one will be able to say in heaven, “God, you never told me about the rewards of giving.”

Scripture suggests that when Christians delay giving, the principle of reverse compounding works against them twice: in this life and the life to come. Jesus commands us to lay up treasure in heaven. What we often overlook is that the sooner we do so, the longer God has to compound that treasure―for His glory and our good. This doesn’t mean we live financially irresponsible lives on earth. But waiting to give does not make sense either eternally or mathematically.

Some people think, “When the stock market hits this number, I’ll give,” or, “I’ll give when I die.” As tempting as that mindset is, when we hold on to our wealth, the implication is that we think we can invest it better than God can. It’s choosing earthly compounding over eternal compounding.

Jesus was keenly aware that our compounding period shortens each day: “We must work the works of Him who sent Me while it is still day; for night is coming when no man can work” (John 9:4).

May we heed His warning, always living with the end in mind.

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Was this plan helpful? We adapted its content from Leverage Using Temporal Wealth for Eternal Gain by Kenneth Boa and Russ Crosson (Trinity House Publishers, 2022). You can read more in-depth discussion of this plan’s principles and practices by purchasing the book at https://trinityhousepublishers.org/leverage.