Why Before How and What

When I teach investing classes, like an options class I am teaching on Saturday, I want students to understand motivations for investing. It is helpful to understand why you are investing because that perspective will transform your decisions.

Your motivation for investing quietly shapes almost every decision you make, from what you buy to how you react under pressure. Therefore, knowing the “why” you invest can help you make good decisions about what you buy, when you buy, and if or when you might sell an investment. Most people have a very limited view of the “why.” For many  it is “retirement income” or “not having to work” or “to live a life of leisure.”

Start with Why – Simon Sinek

“Start with Why” by Simon Sinek is a book that emphasizes the importance of understanding the purpose behind actions, particularly in leadership and business. Sinek argues that inspiring others begins with clearly communicating the “Why” before addressing the “How” and “What,” which can lead to greater loyalty and success.

Many communicate from the “outside in” (what → how → why), but inspiring leaders communicate from the “inside out” (why → how → what). Sinek talks about “The Golden Circle” and introduces a model with three layers: 1) Why (purpose, cause, belief); 2) How (process or values); and 3) What (products or services). He suggests that people buy why, not what. In fact, much of good marketing is done focused on the “WHY” you should take a current action, buy a product, or accept some service. Here is an image from his book:

People are drawn to beliefs and purpose. They choose brands and leaders that reflect their own values, not just features or price. In the same way many life choices are based on the why. We say “no” to some of our children’s requests because of the why.

Bottom line: Simon Sinek says you should start with your purpose. If you clearly define and communicate why you do what you do, you’ll inspire trust, loyalty, and action far more effectively than focusing on features or tactics alone.

Artificial Intelligence About the “Why”

I asked ChatGPT this question: “Why do people invest in the stock market?” Of course I was expecting to see things like building wealth (putting up bigger barns for more stuff), income generation, and retirement planning. Some invest like gamblers and others like to be connected to the companies they buy.

Here are the things AI told me: People invest in the stock market for a mix of practical and psychological reasons—but most of them come down to growing wealth over time. Here are the main drivers:

1. Long-term growth (building wealth) – Stocks have historically provided higher returns than cash or bonds over long periods. By owning shares of companies, investors participate in business growth.

2. Compounding returns – Reinvested gains can generate their own gains. Over time, this “snowball effect” can significantly increase wealth—even with modest returns.

3. Beating inflation – Inflation erodes purchasing power. Investing in stocks helps money grow faster than inflation, preserving and increasing real wealth.

4. Income generation – Some stocks pay dividends, providing a stream of income in addition to price appreciation.

5. Ownership in businesses – Buying a stock means owning a piece of a company. Many investors like the idea of participating in the success of businesses they believe in.

6. Retirement planning – Vehicles like 401(k)s and IRAs are heavily invested in the stock market because of its long-term growth potential.

7. Liquidity and accessibility – Compared to things like real estate, stocks are easy to buy and sell quickly, making them flexible.

8. Psychological factors like optimism about the future, a desire for financial independence and even for speculation (gambling) and the excitement of “winning.”

While none of these strikes me as wrong or misguided, there seems to be something lacking. If this life is all there is, then the why should be focused on me and my needs. If there is something after this life, then the why should change.

Are there spiritual reasons for investing?

Again, ChatGPT offered some helpful reasons. I was pleased to see some of the reasons Cindie and I invest. ChatGPT said, “Yes—many people see spiritual or values-based reasons for investing, especially when they think of money as something entrusted to them rather than just owned. These ideas show up across different faiths and philosophies, even if they’re expressed differently.

Here are some of the main spiritual themes:

1. Stewardship –  Investing can be viewed as managing resources responsibly. Instead of letting money sit idle, it’s put to work in ways that can grow and serve future needs. In traditions like Christianity, this idea is often connected to the Parable of the Talents, which emphasizes using what you’ve been given wisely.

2. Provision and care for others – Investing isn’t just about personal gain—it can help provide for family, support causes, and reduce the burden on others. That aligns with a broader spiritual principle of caring for others and planning ahead.

3. Alignment with values – Many investors choose to avoid companies or industries that conflict with their beliefs and instead support those that promote good—this is often called ethical or values-based investing. It’s a way of making money decisions consistent with one’s convictions.

4. Generosity and impact – Growing wealth can increase one’s ability to give. For some, investing is a tool that enables greater generosity—whether through charity, community support, or philanthropy.

5. Discipline and patience – Long-term investing requires restraint, patience, and resisting fear or greed—qualities that many spiritual traditions encourage. It can actually be a training ground for character.

6. Detachment and perspective
At the same time, many traditions warn against becoming too attached to wealth. Investing with a healthy mindset means recognizing money as a tool—not an ultimate purpose.

The Scriptures Provide Clarity for True Worshippers

For those who think God is the owner, then there is an element of stewardship when it comes to investing. Gambling is not stewardship. We are also expected to work, even in retirement. Finally, those who are entrusted much are accountable for much. That includes being generous to individuals and to organizations that are focused on the eternal purposes.

  • Stewardship of resources: The Bible repeatedly portrays humans as stewards of God‑given resources who must manage them responsibly (Parable of the talents — invest and produce return).
  • Generosity and using gains for good: Wealth is repeatedly presented as a means to help others and support God’s work (Proverbs 19:17; 2 Corinthians 9:6–8),  so investing to generate resources for generosity is consistent with biblical teaching.
  • Diligence and hard work: Proverbs praises planning, skillful work, and wise management that lead to prosperity, which supports putting resources to productive use rather than idle (Proverbs 10:4; 12:11; 21:5).
  • Planning for the future and family provision: Scripture commends preparing for future needs and providing for one’s household (Proverbs 13:22; 1 Timothy 5:8).
  • Diversification and risk awareness: Ecclesiastes 11:2 advises dividing investments (ships) and accepting that some will succeed and some fail — a biblical endorsement of not putting everything in one place.
  • Earning honest returns: The Bible affirms gaining profit through honest, lawful means (e.g., Proverbs 14:23; Luke 19:13–26 shows expectation of return on entrusted resources).
  • Avoiding love of money and greed: While supporting prudent investment, Scripture warns against making wealth an idol (1 Timothy 6:9–10; Matthew 6:24), implying motives must be right.

In the end, your view of God will likely greatly  influence your reasons for investing. The why will help you navigate the choices including the how and the what.

All scripture passages are from the English Standard Version except as otherwise noted.

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