SerpApi.Org
This article adheres to strict editorial standards. Some or all links may be monetized.
Dave Ramsey has spent decades encouraging Americans to give generously (1). The personal finance personality says he tithes 10% of his own income to his local church and frequently speaks about the importance of charitable giving.
But when one caller to his show said church leaders were encouraging members to focus less on retirement investing and more on giving to the church, Ramsey didn’t hold back.
Must Read
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
JP Morgan sees gold hitting $6,000/oz before 2027 — and a gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Goldco
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
“The way you presented this, it sounds like crazy,” Ramsey said on an episode of The Ramsey Show (2), which has garnered new attention after a clip (3) recently went viral.
Ramsey described the advice as “not biblical” and argued that Christians should not stop saving for retirement in order to fund their local church.
The caller, who identified himself as Daniel from Oklahoma, said his church leadership had encouraged congregants not to focus on retirement investing because market-based investments can rise and fall, while investments in the church and God’s word would “always prosper.”
In response, Ramsey argued that generosity and long-term financial planning aren’t mutually exclusive. While he defends the practice of tithing, he also pointed to biblical passages that encourage saving, diligence and preparation for future needs.
Can tithing hurt your retirement?
For many Americans, tithing is an important expression of faith rather than a purely financial decision. In fact, it’s so important that the Lead Pastor (4) claims 40% of American Christians tithe, collectively totaling tens of billions of dollars a year.
But are those charitable donations crowding out other financial priorities such as saving for retirement, building emergency funds or paying down high-interest debt?
According to a study (5) led by Ashley LeBaron-Black, currently a professor at Brigham Young University, high levels of religious involvement significantly affect family finances. The data from the study showed that religious obligations are something of a double-edged sword for personal finance — faith community provides a social safety net, leading to more pressure to give back for families living paycheck to paycheck.
For instance, a household earning $75,000 per year that tithes 10% would contribute roughly $7,500 annually to its church. Given today’s rising cost of living (6), that’s a difficult sum to part with for low-income homes.
And if those same households aren’t saving for retirement, building an emergency fund or addressing expensive debt, the long-term consequences can become significant.
When faith leaders cross into financial advice
Religious leaders often provide guidance on stewardship, generosity and personal values. But planning for retirement planning, devising investment portfolios and developing tax strategies are specialized topics that may benefit from professional expertise.
However, working with a financial advisor can help households build a plan that reflects both their financial goals and their personal beliefs. Rather than choosing between generosity and retirement security, many advisors focus on creating sustainable budgets that account for both. In this way, a qualified advisor can help determine how much to allocate toward charitable giving, retirement accounts, emergency savings and debt repayment — while keeping long-term goals on track.
Plus, research from Vanguard (7) shows that working with a financial advisor can add about 3% to net returns over time. That difference can become substantial as more years pass. For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.
These days, finding the right advisor is simpler than ever with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance. A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building a stable portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
Should you tithe before investing for retirement?
There isn’t a single answer to this question.
Some households choose to tithe first and invest what’s left. Others prioritize retirement contributions before making charitable donations. Many do both simultaneously, allocating a portion of each paycheck to giving and investing.
What financial experts generally agree on is the importance of starting early so that you can build habits. For instance, a 25-year-old who invests $200 per month and earns an average annual return of 8% could accumulate roughly $300,000 by age 65. But waiting even a decade to start can dramatically reduce the benefits of compound growth.
The lesson isn’t necessarily to give less. It’s that delaying retirement savings can become costly over time. However, with apps like Acorns, you can make it a lot easier on yourself by automating the whole process using just the spare change from your everyday purchases.
Here’s how it works: All you have to do is link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock. That way, even a small purchase automatically becomes an investment in your future
Plus, if you sign up today, you can get a $20 bonus investment.
Finding your next long-term winner
Consistent investing is important, but investors doing it themselves still face another challenge: deciding where to put their money.
That’s why apps like Moby offer expert research and recommendations, so that you can identify strong, long-term investments backed by advice from former hedge fund analysts. In four years and across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
Moby’s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
Of course, even the best stock pickers get it wrong sometimes. That’s one reason why many investors pair their growth-focused stock-and-bond investments with assets that help cushion against market volatility.
Diversification beyond stocks
“Don’t put all your eggs in one basket,” the Financial Industry Regulatory Authority (FINRA) (8) cautions. No matter how optimistic you might be about the state of your investments, market downturns can come out of nowhere.
Diversification can help reduce portfolio risk by spreading assets across multiple investments that may respond differently to changing economic conditions. Depending on an investor’s goals, that could include bonds, real estate, commodities or precious metals.
Of all the so-called safe haven assets, gold remains one of the most widely recognized hedges, particularly since gold has a low correlation with many major financial assets, meaning that it’s more stable during tough times, according to the World Gold Council (9). For this reason, many retirement savers are incorporating it into their broader financial plans by opening a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty. And if you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping and free storage for up to five years.
To learn more, download Priority Gold’s free investor guide, which also includes information on how qualifying purchases may be eligible to get up to $10,000 in free silver.
Prepare for life’s surprises
Whether you’re prioritizing charitable giving, retirement investing or both, unexpected expenses can quickly disrupt even the best financial plans.
Medical bills, job losses, car repairs and home emergencies can force households to take on debt or withdraw investments at inopportune times if they don’t have accessible cash reserves. For this reason, many financial planners recommend maintaining an emergency fund that can cover at least several months of living expenses.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.
That’s eight times the national deposit savings rate, according to the FDIC’s February report.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.
You May Also Like
Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
'Gold still crashing!': Robert Kiyosaki admits he was wrong — but doubles down on his $35K prediction
Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes
Enjoyed this Moneywise story? Click Follow above for more. To get our best content and exclusive interviews first, join 250,000+ readers who subscribe to our weekly newsletter.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Ramsey Solutions (1); YouTube (2), (3); The Lead Pastor (4); American Psychological Association (5); Reuters (6); Vanguard (7); FINRA (8); World Gold Council (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
