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“Plans fail for lack of counsel, but with many advisers they succeed.” (Proverbs 15:22, NIV84) 

What an incredible verse to learn, apply and memorize as we dive into understanding the difference between knowledge and wisdom!  And, it fits well into today’s episode as we discuss this wonderful stewardship topic of “wisdom vs. knowledge.” There is a huge difference between these two words, and more so, the end result of the application of the proper understanding of both of them. This episode will help us see and understand the differences between wisdom and knowledge along with its practical application to our everyday stewardship.

 

The Difference Between Knowledge & Wisdom

Knowledge:

Webster’s dictionary states it this way: “The fact or condition of knowing something with familiarity gained through experience or association. (2) : acquaintance with or understanding of a science, art, or technique.”

Knowledge is knowing facts about the way the world works. Facts are objective and universally true. We usually gain knowledge through experience, observation, and instruction. “Knowledge” or “Knowing” has a benchmark, a fact or objective, that is outside of oneself and true for all.  Knowledge is not for me or just for you, but it is universally true for each one of us, whether you agree to it or not.

 

Wisdom:

Webster’s defines wisdom this way:

  • a: ability to discern inner qualities and relationships : INSIGHT
  • b: good sense : JUDGMENT

I like those two keywords, INSIGHT and JUDGMENT. It is not just “knowing something, but it is THE RIGHT APPLICATION of that knowledge!

The difference between knowledge and wisdom is simple. Knowledge is knowing facts about the world. Wisdom is knowing how to use these facts to improve the world and your life. 

So many of the financial decisions that we make demand wisdom, not just knowledge.

For example, one of the things that ruins a budget is not knowing exactly what expenses are going to be demanded for that month. There is no way you can have perfect knowledge when looking to the future. However, wisdom steps in asking this question: How do I use what I know to help me through this time? 

Sometimes knowledge gets the best of us.  We process, analyze, process, and analyze again!  We know a handful of people in our years of ministry and we called what they had as “analysis paralysis”  When this happens, they continually are second guessing themselves, and they cannot find their way forward. There is no action, just inaction.  

The difference between knowledge and wisdom is simple. Knowledge is knowing facts about the world. Wisdom is knowing how to use these facts to improve the world and your life. 

 

Do we need knowledge or wisdom?

So when it comes to stewardship, money and finances, do we need knowledge more than wisdom, or wisdom more than knowledge?

  • We need WISDOM because we can’t KNOW the future. 
  • We can be the smartest people in the world, but the reality is, we can’t be certain about what the future holds. That is why we need wisdom. 
  • Wisdom helps us make good stewardship decisions which keeps us moving forward, especially when the future is uncertain!

 

Jesus is Wisdom Personified

We need wisdom, but more specifically, we need the wisdom of Jesus Christ. We need HIM to help us walk through the different choices that we have to make, and it’s not just “Jesus, pick an option.” He gives us the wisdom to make the best choice when there is more than one ‘right’ answer. There are multiple ‘right answers’ for many things in life, especially when it comes to finances and stewardship. The question is, are we taking those choices before the Lord? Or are we just running for the ‘sweetest’ option? This does two things:

  • DANGER: The danger of this is that people can choose foolishness and say it wasn’t wrong. We don’t want people to blame God for their foolish choices. There is objective right and wrong. But in the area of ‘right,’  there could be multiple options! In this, we need the “multitude of counselors”
  • BENEFIT: On the other hand, one of the things this does for you is that it helps prevent paralysis analysis.  If there are multiple ways to go, you can pray over a decision and seek wise counsel, and at the end of the day, you can keep on moving! You don’t need to get bogged down with fear!

Wisdom in our finances means making choices about how to use our money to glorify God, meet our needs, and trust in Him with the results.

 

Stewardship Application

  • Apply wisdom when it comes to taking jobs, investing, etc…
  • When it comes to budgeting, we can trust Jesus when financial surprises happen! We can calmly adjust our budget without freaking out, and without becoming angry or frustrated. We can allow our budgets to be in the services of others, rather than in the service of my perfectly imagined month. 
  • Talk to wise people that God has placed into your life! Your spouse, your pastor, your parents. In the counsel of the Godly, there is wisdom!  It is then that you sit down…and make some choices!
  • There is a great opportunity today that will afford you multiple choices when it comes to investing what the Lord has put into your care.  Instead of just using the “dartboard” method of picking something, or passing the responsibility 100% over to a financial expert, consider learning what is out there, how you can invest and the various avenues that you can put what you are stewarding for the Lord in.  Be involved, learn, ask questions, and move forward and utilize wisdom in investing!  

 

For some of you listening today, it may be time to pick up the phone and email or call an experienced, Christian financial advisor! 

If you do not know one, we have a team of people to choose from, and all of them have Godly wisdom about stewardship that they would love to share with you.  Consider reaching out and let one of them connect with you for a free personal stewardship review, and talk through how you can become an even better steward.

We leave you with three verses to ponder:

  • So if you have not been faithful with the unrighteous money, who will trust you with what is genuine? – Luke 16:11
  • Whatever you do, work at it with all your heart, as working for the Lord, not for men, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving. (Colossians 3:23–24, NIV84)
  • “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!’ (Matthew 25:21, NIV84)

 

Next Steps

 

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The topics discussed in this podcast are for general information only and are not intended to provide specific investment advice or recommendations.  Investing and investment strategies involve risk including the potential loss of principal. Past performance is not a guarantee of future results.

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