Biblical hermeneutics is the study of the principles and methods of interpreting the text of the Bible. The purpose of hermeneutics is to help us know how to properly interpret, understand, and apply the Bible.
Second Timothy 2:15 commands believers to be involved in hermeneutics (Bible study): “Do your best to present yourself to God as one approved, a worker who has no need to be ashamed, rightly handling the word of truth.” The purpose of biblical hermeneutics is to help us to know how to properly interpret, understand, and apply the Bible.
Pastor John MacArthur said, "The task of hermeneutics is to discover the meaning of the text in its proper setting; to draw meaning from Scripture rather than reading one’s presuppositions into it."
Though they might seem similar, there’s a slight difference between hermeneutics and exegesis ("to explain"). Hermeneutics focuses on principles of interpretation—how the interpretive process works, the “rules” necessary for searching out meaning. Exegesis applies those principles to explain the text.
One of the first goals of biblical hermeneutics is to identify the genre (category) of the passage under study. The 66 books of the Bible are not rigid or inflexible, so specific strategies help us better interpret each genre of Scripture. Genres include law, history, wisdom, poetry, narrative, letters, and prophecy.
The hermeneutical process often involves three steps: observation, interpretation and application. Observation focuses on what the text says—the who, what, where, when, why, and how? Put yourself in the scene—what do you see? Interpretation seeks to understand what the passage meant in its original setting. Key principles include literal interpretation, the historical (cultural) and grammatical setting, and the context, or how the passage relates to the whole Bible. The application then asks the question: How does it work? Is there an example to follow, a command to obey, or a sin to avoid?
Rather than asking, "What do these words mean to me?" proper biblical hermeneutics first seeks to understand what the passage meant to the original audience. Then we look for the underlying principle (universal truth) that we can apply today. Principles should speak to the needs, interests, questions, and problems of real life today. Principles should indicate a course of action.