If you know anything about investing, you know about the power of compound interest—a dollar today is worth multiple dollars in the future. Albert Einstein once described it as the eighth wonder of the world. Merriam-Webster's dictionary defines is as, “interest paid or to be paid both on the principal and on the accumulated unpaid interest.”
So, what in the world is reverse compounding?
According to Ken Boa and Russ Crosson, authors of the book, Leverage—Using Temporal Wealth for Eternal Gain, it is the fact that, “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, as well as for the future rewards of the giver (Philippians 4:17, Matthew 6:19-20).”
Have you ever considered anything like that? I hadn’t. It was a true paradigm shift for me and has reshaped how I view generosity.
You may be tempted to say, “That’s all well and good but I’m going to grow my money now and then I will be able to make a bigger impact later.” Are you sure? Let’s assume you have $100,000 today. Using the Rule of 72 (t=72/r), your $100,000 could become $200,000 in 12 years if you were to average 6% growth on an annual basis, which would make for a generous gift. However, what if you decided to give away the $100,000 today, in the hypothetical manner laid out below by Boa and Crosson, and not wait the 12 years?
- $10,000 – Distribute 1,000 Bibles
- $30,000 – Drill 20 wells for clean drinking water
- $10,000 – Provide meals and job training for 200 homeless people
- $15,000 – Train 200 pastors
- $15,000 – Fund a ministry that results in 2,000 new Christians
- $20,000 – Fund a marriage ministry that impacts 1,000 marriages
How many people were immediately helped by your generosity in the above example? And what type of a ripple effect did that generosity have on others? It’s nearly incalculable!
Heavenly compounding is giving now for maximum impact, both here on earth and throughout all of eternity. Although this concept runs counter to what the world often tells us, “Hold onto your money tightly and amass as much as you can because your security depends on it alone,” we must remember that money is not the currency of God’s Kingdom. Consider the example in Mark 12:41–44:
“Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a few cents. Calling his disciples to him, Jesus said, ‘Truly I tell you, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on.’”
Now that’s sacrificial giving! Each of us has been entrusted with different resources and different paths. Whether you steward billions or only pennies, generosity is a matter of the heart—not the size of the gift. The grand idea behind heavenly compounding is this: something that is temporary can be leveraged for eternal gain. Through faithful generosity, we wisely steward the wealth entrusted to us and make a lasting Kingdom impact—what a privilege it is to participate in God’s eternal plan!
“God is not limited by the power of compounding, but He invites us to participate in His work by giving now rather than later.” Ken Boa
At Harvest Point®, we believe financial planning isn’t just about growing wealth—it’s also about aligning your resources with your values. Generosity can be one of the most meaningful ways to do that. You shouldn’t take the journey alone though, as these types of decisions require prayer, wisdom, and counsel.
To start the conversation today, fill out our Discovery Questionnaire and schedule a 30-minute introductory call. We would love to learn more about you, your values, and your goals to determine if Harvest Point® would be a good fit to serve you.
Sources:
Boa & Crosson. Leverage – Using Temporal Wealth for Eternal Gain. 2023.
The Truth Network. Leveraging Financial Accountability with Ken Boa and Russ Crosson.Faith & Finance Podcast with Rob West, 2023.