1 a practical workshop in achieving true financial peace & freedom © 1988, 1995, 1998, 1999,...
TRANSCRIPT
1
A Practical Workshop In Achieving TrueFinancial Peace & Freedom
© 1988, 1995, 1998, 1999, 2001, 2007 R. D. Henry
The Generous Heart Of GodThe Generous Heart Of God Budget WorkshopBudget Workshop
2
Financial Freedom Notebook - WorkbookWorkbook Contents
Goals
Net Worth
“As Is” Budget
Budget Analysis
Spending Guidelines
Budget Plan
Account Sheets
Monthly Summary
Yearly Summary
Impulse List
Purchase List
Gift List
3
3 Steps To Financial Peace & Freedom3 Steps To Financial Peace & Freedom
Where Am I?Where Do I Want To Go And Why?
How Do I Get There?
• Establish Your Current Situation – Spiritually, Financially
• Earning, Giving Spending, Saving & Investing For Last 12 Months
• Understand The Generous Heart Of God • Set Godly Goals And Priorities• Be A Good $$$ Manager
• Develop 1 Year Budget Plan• Follow The Plan• Change Habits• Adapt Plan• Manage Money God’s Way• $$ Peace, Freedom
Learn & Apply Biblical Relationships & PrinciplesLearn & Apply Biblical Relationships & Principles
4
What Are Some Symptoms Of What Are Some Symptoms Of Financial Bondage?Financial Bondage?
Feel Distant From God, Fear, Feel Distant From God, Fear, Worry, …Worry, …
Growing Credit Card BalancesGrowing Credit Card Balances Bounced Check ChargesBounced Check Charges Late ChargesLate Charges A Feeling Of Helplessness…..A Feeling Of Helplessness….. DepressionDepression Personal, Marital ProblemsPersonal, Marital Problems Excessive BorrowingExcessive Borrowing
2 Pet 2:19b ... for a man is a slave to whatever has mastered him. (NIV)
5
Divorce The
Problem
Ignore The Problems
Depression
Yell About The
Problems
Avoid The Problems
Borrow Your Way Out Of Problems
Typical Symptom TreatmentTypical Symptom Treatment
6
What Are The Real Problems?What Are The Real Problems?
Lack Of Biblical Training, Weak / No Lack Of Biblical Training, Weak / No Relationship With God … Spiritual, Financial Relationship With God … Spiritual, Financial IgnoranceIgnorance
Poor Planning Or No Plan At All Poor Planning Or No Plan At All
Lack Of Discipline – Knowing Is Not DoingLack Of Discipline – Knowing Is Not Doing
Deception (Wrong Beliefs)Deception (Wrong Beliefs)
Greed, Pride, Self IndulgenceGreed, Pride, Self Indulgence
Poor CommunicationPoor Communication
7
Learn How To Distinguish Between Learn How To Distinguish Between Symptoms and ProblemsSymptoms and Problems
SymptomSymptom Typical SolutionTypical Solution Real ProblemReal Problem
Excessive Spending,No Saving
• Borrow More, Consolidate• 2nd Job, Work Overtime• Spouse Goes To Work
Lack Of Planning
And Discipline
Jealous Of What
Others Have
• Buy More• Buy The “Best”• I Am What I Own
Covetousness
Hoarding• Stingy, Spend Less• Save More Than Needed
Fear, Don’t
Trust God
8
God’s Word Is Living And ActiveGod’s Word Is Living And Active "For the word of God is living and active. Sharper than any double-edged sword, it penetrates even to dividing soul and spirit, joints and marrow; it judges the thoughts and attitudes of the heart.” (Heb 4:12 NIV)
Four Levels Of MaturityFour Levels Of Maturity
We Are New Creations…This Includes Our Finances We Are New Creations…This Includes Our Finances "Therefore, if anyone is in Christ, he is a new creation; the old has
gone, the new has come!" (2 Cor 5:17 NIV)
Infants
Children
Young Men
Fathers
1 Cor 3:1, 1 Jn 2:12-14
Try To TeachTry To Teach@ Father Level@ Father Level
9
What is God’s #1 Concern For What is God’s #1 Concern For Your Finances?Your Finances?
"Love the LORD your God with all your heart and with all your soul and with all your strength." (Deu 6:5 NIV)
Why???
“For God so loved the world that he gave his only Son … (Jn 3:16 NLT)
10
God’s Simple PlanGod’s Simple Plan
1. God Owns1. God Owns
2. I Manage2. I Manage
3. God Provides3. God Provides
(God’s Generous Heart)(God’s Generous Heart)
(Give, Save, Live)(Give, Save, Live)
11
12
SpiritualSpiritual Intellectual,Intellectual,MentalMental
Family, Family, FriendsFriends
Personal Personal MinistryMinistry
FinancialFinancial
Career, Career, EducationEducation
SocialSocial
Recreation, RestRecreation, Rest
PlanningPlanning
PhysicalPhysical
GodlyGodly
Life Goals
Life Goals
13
Goal PlanningGoal Planning(Notebook Pg B3)(Notebook Pg B3)
Goal Planning SheetCategory:
My Goal:
My More Detailed Description of the Goal:
How I Will Achieve the Goal: 1. 2. 3.
Schedule of When I Will Do Each Step: 1. 2. 3.
My Budget:
• Spiritual• Intellectual• Physical
• Family• Social• Personal Ministries
• Career• Financial
• Recreation• Planning
14
Goals QuestionaireGoals Questionaire(Notebook Pg B4, B5)(Notebook Pg B4, B5)
• The Purpose for My Life Is: ____________________________________
• The Highest Priorities in My Life Are: ___________________________
• The Life Purpose For My Family Is: _____________________________
• My Greatest Life Achievements Are: ____________________________
• The Best Things That Happened the Last Year Were: _____________
• The Worst Things That Happened the Last 12 Months Were: _______
• Things I Want to Do Differently Are: ___________________________
• God’s Goals For Me The Next Year Would Include: _______________
• My Three Most Important Goals For The Next Year Are: __________
• I Spend Too Much/too Little Time Doing the Following: ____________
15
What Does God WantMe To Do Financially?
16
Short Range PlanningShort Range Planning
Income, Expense, Saving, And Investment Planning For The Next 12 Months
Food
Credit Cards
Savings, Investing
Social Security,Medicare
Taxes
Giving
IncomeUtilities
Medical
Transportation
Insurance
Clothing
Hobbies
Entertainment, Recreation
Food
Mortgage
New Purchases
17
Details Of Short Range PlanningDetails Of Short Range Planning
How To Get
There
One Year Plan
Budget Analysis
What You Spend
What You Earn
Where You Want
To Go
Where You Are
Book Keeping System
Goals, Priorities
What You Owe
What You “Own”
Begin With EndBegin With EndIn MindIn Mind
18
We All Need BoundariesWe All Need Boundaries
Prov 27:12 The prudent see danger and take refuge, but the simple keep going and suffer for it.
Shelt Elementary
19
What!! Me Budget?What!! Me Budget?
• What Is The Purpose Of A Budget?
• To Constrain & Enslave You?
• Tool For The Husband To Punish The Wife?
• No!!!
• Budgeting Is A Simple, Effective Way Of Planning X
Our Finances To Achieve Our Goals And Priorities
• No One Likes Budgeting, But Everyone Likes The Results
• The Real Purpose Of A Budget Is To:Provide Peace & Freedom
And Keep Us SafeProvide Peace & Freedom
And Keep Us Safe
20
Where Am I?Where Am I?
• Assets Minus Liabilites (Debts) = Net Worth
• Your Net Worth Is The Cash You Would Have If You Sold Everything And Paid Debts, Selling Expenses & Taxes Owed
Net Worth Statement
What You “Own”
Assets Liabilities (Debts)
MASTER CARD
What You Owe
21
Debt ListDebt List(Notebook Pg C1)(Notebook Pg C1)
Name: ________________ Date: ______________List Of Debts
Owed Owed Total Left Monthly % Amount Of To For To Pay Payment Interest Balloon
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Column Totals
$ __________ $ ________ Total Debt Total Payment
Monthly
List Debts In Order Of Largest To Smallest
22
Sample Debt ListSample Debt List
Owed To Owed For Total OwedMonthly Payment % Interest
Amount of Balloon
Inlaws Big Screen TV 1,000.00$ ??? ??? 1,000.00$ Happy Auto Repair Car Repairs 1,000.00$ 50.00$ 18% NoneLast Chance Auto Car 6,000.00$ 300.00$ 21% NoneLast Ditch Finance Furniture 6,000.00$ 250.00$ 19% 1,000.00$ Desperate Home Loan House 78,529.00$ 736.00$ 11% 5,000.00$ VISA ??? 450.00$ 55.00$ 19% None
TOTAL 92,979.00$ 1,391.00$ 7,000.00$
23
Net Worth StatementNet Worth Statement(Notebook Pg C2)(Notebook Pg C2)
1. Cash, currency, coins, uncashed checks $ ___________ $ __________ $ __________ ______ % 2. Checking accounts $ ___________ $ __________ $ __________ ______ % 3. Savings accounts: banks, credit union, etc. $ ___________ $ __________ $ __________ ______ % 4. Money market accounts $ ___________ $ __________ $ __________ ______ % 5. Certificates of deposit $ ___________ $ __________ $ __________ ______ % 6. Treasury bills, bonds, notes, savings bonds $ ___________ $ __________ $ __________ ______ % 7. Other assets to be received (tax refund, etc) $ ___________ $ __________ $ __________ ______ % 8. Personal property: furniture, appliances, etc. $ ___________ $ __________ $ __________ ______ % 9. Jewelry, furs, collectibles, antiques, etc. $ ___________ $ __________ $ __________ ______ %10. Vehicles: autos, boats, motorhomes, trailer, etc. $ ___________ $ __________ $ __________ ______ %11. Other miscellaneous personal property $ ___________ $ __________ $ __________ ______ %12. Personal residence (current market value) $ ___________ $ __________ $ __________ ______ %13. Vacation homes, recreational property, etc. $ ___________ $ __________ $ __________ ______ %14. Investment real estate: rentals, land, etc. $ ___________ $ __________ $ __________ ______ % a. Property 1 _________________________ $ ___________ $ __________ $ __________ ______ % b. Property 2 _________________________ $ ___________ $ __________ $ __________ ______ % c. Property 3 _________________________ $ ___________ $ __________ $ __________ ______ % d. Property 4 _________________________ $ ___________ $ __________ $ __________ ______ % e. Property 5 _________________________ $ ___________ $ __________ $ __________ ______ %15. Stocks $ ___________ $ __________ $ __________ ______ %16. Mutual funds $ ___________ $ __________ $ __________ ______ %17. Bonds $ ___________ $ __________ $ __________ ______ %18. Options, Warrants, etc. $ ___________ $ __________ $ __________ ______ %19. Other (eg annuities) $ ___________ $ __________ $ __________ ______ %20. Pensions plans, retirement plans, etc. $ ___________ $ __________ $ __________ ______ %21. Individual retirement accounts $ ___________ $ __________ $ __________ ______ %22. 401K, 403B, etc. plans $ ___________ $ __________ $ __________ ______ %23. Keoughs $ ___________ $ __________ $ __________ ______ %24. Life insurance cash value $ ___________ $ __________ $ __________ ______ %25. Businesses owned $ ___________ $ __________ $ __________ ______ %26. Partnerships $ ___________ $ __________ $ __________ ______ %27. Mortgages, loans, notes owed to me $ ___________ $ __________ $ __________ ______ %28. Other _______________________________ $ ___________ $ __________ $ __________ ______ %29. Other _______________________________ $ ___________ $ __________ $ __________ ______ %30. Other _______________________________ $ ___________ $ __________ $ __________ ______ %
Column Totals $ ___________ $ __________ $ __________ 1
Subtract total consumer debt (total from debt list minus debts from lines 1 - 30 above. $ __________ 2
True Net Worth (after taxes, sale expenses, debt payof) $ __________ 3
Net WorthStatementValue Owe, Taxes, Net Value
Costs
24
Computing Net WorthComputing Net WorthOf Each AssetOf Each Asset
Column 1 Value (What I Can Sell It It For) - This is the amount you could sell the asset (house, car, etc.) for in a reasonable amount of time.
Column 2 Owed + Sell Expenses + Taxes - This is the total of the costs to cash out of the asset. Simply add the amount you owe (mortgage e.g.) plus the selling expenses (real estate commission, escrow costs, etc e.g.) plus the taxes you would owe (capital gains tax to the state and federal governments).
Column 3 Net Worth - This is the cash value, after paying debts, expenses, taxes on the sale of the asset. Compute by subtracting column 2 from column 1.
25
Where Are You?Where Are You?Your “As Is” BudgetYour “As Is” Budget
What You Have Earned, Saved, And Spent The Last 12 Months
What You Earn
What You
Spend
Where You Are
26
How I Have Been Earning & Spending $How I Have Been Earning & Spending $(My Old Ways) Notebook Pg D1(My Old Ways) Notebook Pg D1
•“As Is” Budget - Compile From Records For Last Year
• Homework – Do A Thirty (30) Day Expense Diary
$$$ Income $$$
$$$ Giving & Taxes $$$Net Spendable Income Computation
$$$ Expenses $$$
Budget Surplus / Deficit
Record Monthly Averages, Based On Last 12 MonthsRecord Monthly Averages, Based On Last 12 Months
27
Income – What God Has ProvidedIncome – What God Has Provided
List Equivalent Average Monthly Income
Wages, Tips $___________ Interest $____________
Overtime $___________ Loans $____________
Bonuses $___________ Retirement $____________
Total Gross Income $ ___________
• Gross Income = Total Monthly Income Before Any Deductions Or Expenses
• Includes Average Monthly Equivalent Of Any Irregular, But Dependable, Income
(E.G. $900 Bonus = 900/12 = $75 Per Month)
$$$ Income $$$
28
I Manage: How I Have Been Spending I Manage: How I Have Been Spending $$ - Giving & Taxes $$ - Giving & Taxes
$$$ Income $$$
$$$ Giving & Taxes $$$
Charitable Giving
• Church• Missions• Others
Total Giving
Taxes
• Federal• State, Local• Social Sec.• Medicare
Total Taxes
Net Spendable Income Computation
$$$ Expenses $$$
Budget Surplus / Deficit
29
Net Spendable Income – Save, LiveNet Spendable Income – Save, Live
$$$ Income $$$
$$$ Giving & Taxes$$$
Total Giving
Total Taxes
Total Giving & Taxes
Net Spendable Income Computation
Gross Income
Minus Giving
Minus Taxes
Net Spendable Income
$$$ Expenses $$$
Budget Surplus / Deficit
30
How I Have Been Spending $$ -How I Have Been Spending $$ - Save, Live MonthlySave, Live Monthly
$$$ Income $$$
$$$ Giving & Taxes $$$ Net Spendable Income
$$$ Expenses $$$
Housing Transportation Entertainment
Debts Food Medical
Insurance Clothing SavingsSavings Miscellaneous
Total Expenses ________
Budget Surplus / Deficit
31
How I Have Been Spending $$ -How I Have Been Spending $$ - Budget Budget SurplusSurplus / / DeficitDeficit
$$$ Income $$$
$$$ Giving & Taxes $$$ Net Spendable Income
$$$ Expenses $$$
Budget Surplus / Deficit = Net Spendable – Total Expenses
32
Now You Know WhereNow You Know WhereYou Are Financially !You Are Financially !
What You
Spend
What You Own
What You Owe
Net Worth
“As Is” Budget
What You Earn
Debts
33
• Be A Good Manager - Matt 25 14-30
• Seek Financial Freedom - Prov 10:22
• Be A Good Planner - Prov 24:3-4, Prov 16:3
• Establish Priorities -
• Needs- 1 Tim 6:8
• Wants- 1 Pet 3:3-4
• Desires- 1 John 2:16
God’s Financial PrinciplesGod’s Financial Principles
34
Tips, Tricks & Traps -Tips, Tricks & Traps -Section GSection G
Disclaimer: No Magic Solutions
35
EvictionRepossessionBankruptcy
Divorce
Start ToAccumulate
Start ToAccumulate
Develop NeedFor Things
Develop NeedFor Things
Feel $Pressure
Feel $Pressure
Problems- 1. Competing, “Need” For Things 2. Trying To Accumulate Too Quickly
3. Inadequate Planning & Discipline
BorrowToo
Much
BorrowToo
Much
No
Yes FinancialFinancialPeace &Peace &FreedomFreedom
How To Have A Financial DisasterHow To Have A Financial Disaster
DevelopDisciplin
e,BalancedSpendin
g
DevelopDisciplin
e,BalancedSpendin
g
36
• Credit Is Very Dangerous If Abused
• Credit Can Destroy Your Future
• Credit Encourages Overspending
• Credit Encourages Indulgence
• Credit Is Expensive And Puts The Squeeze On The Rest Of Your Budget- Paying Interest Isn't Fun
• Abuse Of Credit Can Enslave You
• Don't Be A Credit Frog
Credit Is A Big TrapCredit Is A Big Trap
37
• What Happens If You Overspend A Mere 5%?
• $40,000/year Income - Overspend $174 Per Month Using Credit Cards Costing 18% Per Year Interest
• By The End Of The 5th Year You Owe $10,000 (25% Of A Year's Income) And Have Paid $4,574 In Interest
• To Stay Even You Must Pay Interest Of $1,800/year And Stop Overspending By $2,088/year, A Total Change Of $3,888 (Almost 10% Of Your Income)
• By Comparison, If You Invested The Same Amount You Would Have $12,278 (@ 8% Return After Taxes)
• Would You Rather Have $12,278 In Savings Or Be $10,000 In Debt?? That's A Difference Of $22,278 In Only 5 Years
• A Mere 5% Makes A Critical Difference
How We Get Trapped By How We Get Trapped By Over BorrowingOver Borrowing
38
How Long To Pay Off?How Long To Pay Off?
How Long Does It Take To Pay Off Your Credit How Long Does It Take To Pay Off Your Credit Card If You Make Just The Minimum Payment?Card If You Make Just The Minimum Payment?
39
The True Cost of Credit $1999 Sofa, Financed On A 19.8% APR
Credit Card, Making Only Minimum Payments Of $46 Per Month ------
Will Be Paid Off In Just 31 Years! Total Cost ---- Over $10,200!! That’s Over $8200 In Interest!! That Interest, Invested At 10% Will Yield
Over $45,500 In The Same 31 Years A Difference Of Over $53,700!!!
You Can’t Afford To Buy Using CreditYou Can’t Afford To Buy Using Credit
40
(Notebook Pg C1) (Notebook Pg C1)
Owed To Owed For Total OwedMonthly Payment
% Interest
Amount of Balloon
Inlaws Big Screen TV 1,000.00$ ??? ??? 1,000.00$ Happy Auto Repair Car Repairs 1,000.00$ 50.00$ 18% NoneLast Chance Auto Car 6,000.00$ 300.00$ 21% NoneLast Ditch Finance Furniture 6,000.00$ 250.00$ 19% 1,000.00$ Desperate Home Loan House 78,529.00$ 736.00$ 11% 5,000.00$ VISA ??? 450.00$ 55.00$ 19% None
TOTAL 92,979.00$ 1,391.00$ 7,000.00$
41
AMERICANS AREAMERICANS ARE
DROWNINGDROWNING
IN A SEA OF CREDIT CARD IN A SEA OF CREDIT CARD DEBT!DEBT!
42
Credit Cards Are Like Drugs!Credit Cards Are Like Drugs!They Give Short-term Pleasure They Give Short-term Pleasure Followed By Long-term PainFollowed By Long-term Pain
It Takes More And More To Keep It Takes More And More To Keep Us SatisfiedUs Satisfied
1995 - Average Family Credit Card Balance Was $1825
By June Of 1996, Average Balance Jumped To $3900
End 2005 - Average Balances Reached Over $9000!
Average Family Spends Average Family Spends $100/Month$100/Month In Interest Alone In Interest Alone
43
There are over 2350 verses in the Bible about finances.
God’s View of Debt
Prov. 22:7 Just as the rich rule over the poor, so the borrower is servant (slave) to the lender.
1 Cor. 7:23 God purchased you at a high price. Don’t be enslaved by the world.
Debt is slavery!Debt is slavery!
44
What About Credit?
Proverbs 22:26,27 Do not co-sign another person’s note or put up a guarantee for someone else’s loan. If you can’t pay it, even your bed will be snatched from under you.
Proverbs 22:16 A person who gets ahead by oppressing the poor or by showering gifts on the rich will end in poverty.
Debt Presumes Upon Tomorrow!Debt Presumes Upon Tomorrow!
45
• Don't Borrow For Depreciating Items
• What Items Depreciate???
• Don't Borrow More Than You Can Afford To Repay Psalm 37:21- The wicked borrow and never repay, but the godly are generous givers.
• Use Cash Or A Check Whenever Practical, So You Will "Count The Cost"
• Don't Use Credit To Buy On Impulse
Guidelines For Credit UseGuidelines For Credit Use
46
Credit Card GuidelinesCredit Card Guidelines
1. Be Accountable To Someone
2. Commit To Eliminating Impulse Buying
- Don’t Go Out As Often
- Make A List Of Things You Need
3. Use Credit Cards Properly
Pay The Bills Off Each Month
4. Use Cash Whenever Possible
( ( You Will Decrease Purchases By Up To 33% !!)You Will Decrease Purchases By Up To 33% !!)
DESTROY THEM! OR…..
47
More Guidelines For Credit Use
• Don't Use Credit To Buy Gifts
• Don't Use Credit To Meet Monthly Bills
• Don't Use Credit Cards To Avoid Developing Discipline
• Do Use Credit Cautiously, Or Not At All
• Do Use Cash Or Debit Instead Of Credit
48
1. Stop BorrowingStop Borrowing And/Or Charging With Credit Cards – Use One Of 3 Credit Card Prescriptions Or Recipes: A. Bake B. Slice C. Freeze
2. Set Up A Budget2. Set Up A Budget To Save $1,000 For Emergencies & At Least Pay The Interest Owed Every Month. Eat Rice &Beans For A While
3. Start Paying Off What Is Owed3. Start Paying Off What Is Owed As Quickly As Possible
4. Pay All You OwePay All You Owe - Prov 3:27,28... Do Not Withhold Good From Those Who Deserve It, When It Is in Your Power to Act. Do Not Say to Your Neighbor, "Come Back Later; I'll Give It Tomorrow"-- When You Now Have It With You. (NIV)
Steps To Get Out Of DebtSteps To Get Out Of Debt
49
Steps To Get Out Of DebtSteps To Get Out Of Debt Cont..
5. Pay Off The High Interest Debts First
6. Also, Pay Off Some Of The Smaller Debts First, So You Will Feel Success
7. Use Monthly Payment From Paid Off Debts To Accelerate Payoff Of Remaining Debts
8. Use All Or Part Of Windfall Income To Pay Debts 9. Create Some Extra Debt Payoff Income - Sell Things (Garage Sales, Ebay, Craigs List), Work Overtime, Extra Jobs, Rent A Room In Your House, Eat More Beans & Rice …
50
• Use Volunteer Budget Coach To Help – Contact Casas Budget Coach Coordinator: Chris Baird [email protected], Nancy Prentiss (520-297-7238) (No fees. This is a free ministry.)
• Contact A Non Profit Credit Counselor- They Have Experience Dealing With Bill Collectors
• Consumer Credit Counselors Atlanta, Ga. Phone: 1-888-771-Hope (Toll Free)
• Caution ! - May Advise Bankruptcy, Which Is Not Scriptural
How To Get Help With CreditorsHow To Get Help With Creditors
51
1. Advertising Is Designed To Create Discontentment
2. Advertising Creates An Attitude That “More Is Better”
3. Advertising Promotes Selfishness And Greed And Discontentment
Advertising Can Be A TrapAdvertising Can Be A Trap
52
4. God Says: Beware, Be On Your Guard Against Be On Your Guard Against Every Every Form Of Greed Form Of Greed: Luke 12:15 Then he said to them, "Watch out! Be on your
guard against all kinds of greed; a man's life does not a man's life does not consist in the abundance of his possessionsconsist in the abundance of his possessions.” (NIV)
5. Tip - Throw Junk Mail And Advertisements Away So You Won't Be Tempted
6. Buy What You Need On Sale, But Don't Buy Anything Else, Unless You Really Planned On Buying It. Sale Items Are Designed To Get You To Spend Lots More Than You Planned To Spend.
Advertising Can Be A Trap Advertising Can Be A Trap Cont’d..
53
Impulse BuyingImpulse BuyingFROM THE WALL STREET JOURNAL; ARTICLE ENTITLED “BIG SPENDERS”FROM THE WALL STREET JOURNAL; ARTICLE ENTITLED “BIG SPENDERS”
Statistics
• 53% Of All Groceries Are Impulse
• 47 % Of All Hardware Purchases Are Impulse
• Only 25% Of Shoppers Have A List Or Research Purchases
• You Are Exposed To 100 + Advertisements Per Day
• You Can Decrease Your Spending By 25 - 33% If You Gave Up Your Plastic
54
• Who Are The Big Impulsive Spenders In America?
• Use An Impulse List To Control Impulse Buying
• Get At Least 3 Prices Before Buying
• Wait A Day, A Week, A Month
Controlling Impulse BuyingControlling Impulse BuyingNotebook Pg G1Notebook Pg G1
Item Cost # 1 Cost # 2 Cost # 3
Sep 10 Laptop Computer $1,200.00 $1,150.00 $675.00 Dec 11 Big Screen TV $2,250.00 $1,650.00 $2300.00
Jun 21 VCR $250.00 $165.00 $ 75.00
Date
• Only One Item On The List At A Time
• Married - Three Lists: His, Hers, Ours
Impulse ListImpulse List
55
• Make A Gift Spending Plan And Stick To It
• No Credit Buying, Make Gifts To Save Money (Show Love)
Gift ListGift List
Controlling GiftsControlling Gifts(Notebook Pg G2)(Notebook Pg G2)
EVENT DATE PERSON $ ALLOCATED
Birthday Mar 22 Bob Jones ... Cousin $ 15.00 Anniversary Mar 30 Susan …Wife $ 50.00 Christmas Dec 25 Susan …Wife $ 50.00
Children 4 @ $25 ea. $ 100.00Wedding Jan 26 Beth…Daughter $ 1,000.00Birthdays Various
Total For Year $ ______Total Per Month $ ______
56
• Why Save? Prov 6:6-8 Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. (NIV)
• Save To Avoid Worry - Savings Allow Us To Smile When Small Emergencies Come Along … And They Always Do
• How Much “Emergency” Savings Is Enough?• Start With Minimum of $1,000 Then Build From There• One Months Expenses In Highly Liquid Form• 3 To 6 Months Savings In Liquid Form
• Purpose Of Savings - Cover Noncatastrophic Unexpected Expenses
• Repairs, Medical Expenses• Unemployment
Savings Create FreedomSavings Create Freedom
57
• Be A Godly Manager - Live Within Our Means With Balance And Freedom, And To Provide For Others, Kingdom Work And Our Future Long Term Needs
• Budgeting Is A Useful Planning And Control Process That Can Help You To Achieve Your Goals And Live In Freedom
The Goal Of BudgetingThe Goal Of Budgeting
58
What God Says About WhereWhat God Says About WhereHis Money GoesHis Money Goes
IncomeGod’s Generous HeartGod’s Generous Heart - God’s Provision For Us
Phil 4:19
GivingOur Generous HeartOur Generous Heart –
Our Provision For God’s Work & Others
Prov 3:9 Prov 28:27
SavingsProv 21:20Emergencies,Unemployment
Prov 21:5Deu 8:17-18Sow/Reap, Multiply For Future
Investments
Taxes Living Expenses
Debt Pay-off
Provision for the Gov’t.
Provision for the Family
To Become Free (One Master Vs Two)
Matt 22:17-21 I Tim 5:8 Prov 22:7
ReceiveReceiveGiveGiveSaveSaveLiveLive
59
• IncomeIncome - "And my God will meet all your needs according to his glorious riches in Christ Jesus." (Phil 4:19 NIV)
• GivingGiving - "Honor the LORD with your wealth, with the firstfruits of all your crops;" (Prov 3:9 NIV)
"He who gives to the poor will lack nothing, but he who closes his eyes to them receives many curses." (Prov 28:27 NIV)
• TaxesTaxes - "Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not? But Jesus, knowing their evil intent, said, "You hypocrites, why are you trying to trap me? Show me the coin used for paying the tax." They brought him a denarius, and he asked them, "Whose portrait is this? And whose inscription?” Caesar's," they replied. Then he said to them, "Give to Caesar what is Caesar's, and to God what is God's." (Mat 22:17-21 NIV)
• Living ExpensesLiving Expenses - "If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever.“ (1 Tim 5:8 NIV)
What God Says About WhereWhat God Says About WhereHis Money GoesHis Money Goes
60
• SavingsSavings - "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has." (Prov 21:20 NIV)
• Debt PayoffDebt Payoff - "The rich rule over the poor, and the borrower is the borrower is servant to servant to the lender the lender." (Prov 22:7 NIV)
"No one can serve two mastersNo one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot You cannot serve both God and Money serve both God and Money." (Mat 6:24 NIV)
• InvestmentsInvestments - "The plans of the diligent lead to profit as surely as haste leads to poverty." (Prov 21:5 NIV)
"You may say to yourself, "My power and the strength of my hands have produced this wealth for me. But remember the LORD your God, for it is He who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today." (Deu 8:17-18
NIV)
What God Says About WhereWhat God Says About WhereHis Money GoesHis Money Goes
61
GOD10%
Government18%
NetSpendable
Income 72%
Typical Balanced BudgetTypical Balanced Budget $40,000 Income$40,000 Income
~ 28 % To God And Government~ 72 % To Spend & Save
62
• • Recognize God As The OwnerRecognize God As The Owner - … the world is mine, and all that is in it. (PS 50:12b NIV)
• Give And Expect God To Bless The Right Give And Expect God To Bless The Right AttitudeAttitude - Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. ( 2 Cor 9:6
NIV) We Give Because We Are GratefulWe Give Because We Are Grateful
• Give The Give The FirstFirst Part Of Part Of AllAll - Honor the LORD with your wealth, with the firstfruits of all your crops; (Prov 3:9 NIV)
• How Much Should You Give? 10%? 20% ? How Much Should You Give? 10%? 20% ? 90%?: 90%?: Lev 37:30 Lev 37:30 A tithe of everythingA tithe of everything from the land, whether grain from the soil or fruit from the trees, belongs to the LORD; it is holy to the LORDbelongs to the LORD; it is holy to the LORD. (Lev 27:30 NIV)
Giving & Sharing PrinciplesGiving & Sharing Principles
63
Cont’d
• How & When To Give - With, Planning How & When To Give - With, Planning And And Premeditation Premeditation - Each man should give what he has give what he has decided in decided in his heart to give, not reluctantly or under compulsion his heart to give, not reluctantly or under compulsion, for God God loves a cheerful giverloves a cheerful giver. (2 Cor 9:7 NIV)
• Give WeeklyGive Weekly - I Cor 16:2 On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up, so that when I come no collections will have to be made. (NIV) Giving Weekly Yields a Blessing Weekly.
• Give Proportionately-Give Proportionately- Luke 12:48 From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked. (NIV) Have You Been Given Much? How Much Is Expected Of You?
Giving And SharingGiving And Sharing PrinciplesPrinciples
64
• Sometimes God Asks Us To Give Sometimes God Asks Us To Give SacrificiallySacrificially - 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 fraction of a penny. Calling his disciples to him, Jesus said, "I tell you the truth, 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 They all gave out of their wealth; but she, out of her poverty, put in everything-- all she had to live on.” poverty, put in everything-- all she had to live on.” (Mk 12:41-43 NIV)
Giving And SharingGiving And Sharing Principles Principles Cont’d Cont’d …
65
• The Bottom Line: Give Cheerfully And The Bottom Line: Give Cheerfully And GenerouslyGenerously Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giverfor God loves a cheerful giver. You will be made rich in every way so that you can be generous on every occasion, and through us your generosity will result in your generosity will result in thanksgiving to God. thanksgiving to God. (2 Cor 9:6,7 NIV)
Giving And SharingGiving And Sharing PrinciplesPrinciples Cont’d..
66
You're Right. ThereAre Some ChangesWe Should Make.
Analyzing How You Have Analyzing How You Have Been Spending Your IncomeBeen Spending Your Income
67
Expense Guidelines, Expense Guidelines, $40,000 Gross, Max Housing$40,000 Gross, Max Housing
MAX
HOUSING
40%
MISC
6%MEDICAL
5%SAVINGS 5%
CLOTHING 5%
RECREATION 4%
DEBTS 5%
FOOD
15%AUTO
10%
INSURANCE5%
68
Ballpark Budget GuidelinesBallpark Budget GuidelinesFamily Of 4 (Notebook Pg E2)Family Of 4 (Notebook Pg E2)
Annual Gross Income Up to $40,000 $40,000 to $60,000 $60,000 and Up Charitable Giving 10-12% 10% 10-15% 10% 10-25+% 10%Taxes 10-18% 18% 10-25% 19% 10-30% 21%
Net Spendable Income = 100% 70-80% 72% 70-80% 71% 70-80% 69%
Savings 5-8% 5% 5-10% 5% 5-10% 5%Housing 28-40% 36% 25-35% 26% 20-30% 24%Food 15-18% 12% 10-14% 11% 8-15% 9%Transportation 10-15% 14% 10-14% 12% 8-15% 9%Medical 2-5% 4% 2-5% 4% 2-5% 3%Clothing 3-5% 4% 3-6% 5% 3-6% 5%Entertainment 4-6% 5% 4-7% 7% 5-8% 7%Insurance 4-5% 5% 4-6% 6% 4-7% 5%Miscellaneous 4-8% 5% 4-8% 7% 8-10% 8%Debts 0-6% 2% 4-9% 6% 5-10% 8%Investments 0-6% 3% 4-10% 5% 7-10% 10%Retirement
TOTAL 80-132% 100% 83-135% 100% 80-136% 100%
Range Range RangeAvg. Avg. Avg.
5-10% 5-10% 5-10%5% 6% 7%
School/Childcare 8% 6% 5%
69
Ballpark Budget GuidelinesBallpark Budget GuidelinesSingle Adult (Notebook Pg E7)Single Adult (Notebook Pg E7)
70
CATEGORY(1) OLD
BUDGET GUIDELINE (2) DIFFERENCE
(1) - (2)NEW
BUDGET % NET
Monthly Gross Income $ $ Charitable Giving $ % $ $ $ Taxes $ % $ $ $
Net Spendable Income =100% $ % $ $ $ 100 %
Savings $ % $ $ $ %Housing $ % $ $ $ %Food $ % $ $ $ %Transportation $ % $ $ $ %Medical $ % $ $ $ %Clothing $ % $ $ $ %Entertainment $ % $ $ $ %Insurance $ % $ $ $ %Miscellaneous $ % $ $ $ %Debts $ % $ $ $ %Investments $ % $ $ $ %Retirement $ % $ $
$
%
TOTAL
Budget Analysis WorksheetBudget Analysis Worksheet(Notebook Pg E9)(Notebook Pg E9)
71
Hoarding Overspending
God & Family Church &Career
Income Outgo
Income
Outgo
Balance, The Key To Success
DangeDanger!r!
DangeDanger!r!
SuccessSuccess
!!SuccessSuccess
!!
72
A Most Important A Most Important PrinciplePrinciple
You You AbsolutelyAbsolutely Cannot Cannot SpendSpend
More Than You Earn!!!More Than You Earn!!!
You You AbsolutelyAbsolutely Cannot Cannot SpendSpend
More Than You Earn!!!More Than You Earn!!!ABSOLUTELY!!!ABSOLUTELY!!!
Remember What John The Baptist Said:
Luke 3:14"And us,” asked some soldiers, "what about us?”John replied, "Don't extort money by threats and violence; don't accuse anyone of what you know he didn't do; and be be content with your pay"content with your pay"
73
• Purpose Is To Illustrate Application Of Principles To Real Budgets
• Case Studies Differ From Guideline Budget, But Are Balanced Budgets For These People
• Each Case Is Unique, Just As Your Situation Is Unique
• Case Studies Show High Allocation For Housing, Which Is Typical Of High Housing Cost Area Or Newly Weds Or Singles Buying First Home
Case StudiesCase Studies
74
Case Study – Single,Case Study – Single,Renter $20,000 IncomeRenter $20,000 Income
Housing 36.1%
Food 9.3%
Auto 26.5%
Insurance 5.0%
Debts 4.8%
Recreation 7.0%
Clothing 3.0%
Investments 3.0%
Misc 2.3%Medical 3.0%
How Does ThisHow Does ThisBudget CompareBudget CompareTo The GuidelinesTo The Guidelines
On Pg E7?On Pg E7?
75
Case StudyCase StudyMaximum Housing, No Debt, Newlywed’sMaximum Housing, No Debt, Newlywed’s
Housing 44.0%
Food 10%
Insurance 1.0%
Recreation 6.0%
Clothing 2.0%
Savings 2.0%
Medical 1.0%
Misc 9.0%
Retirement 8.0%
Business 2.0%
76
Case StudyCase StudyMaximum Housing, No Debt, Newlywed’sMaximum Housing, No Debt, Newlywed’s
FIRST YEAR 2ND YEAR NET CHANGE
GIVING 10% 11% 1%
TAXES 10% 10% 0
NET SPENDABLE 80% 79% -1%
HOUSING 45% 44% -1%
AUTO 10% 15% +5%
FOOD 9% 10% +1%
INSURANCE 1% 1% 0
DEBT 9% 0% -9%
ENTERTAIN-MENT
65 6% 0
CLOTHING 3% 2% -1%
SAVINGS 2% 2% 0
MEDICAL 1% 1% 0
MISCELLA-NEOUS
10% 9% -1%
BUSINESS 4% 2% -2%
SURPLUS 0 8% +8%
77
1% Giving Challenge1% Giving ChallengeTry Increasing Your Giving 1% -Try Increasing Your Giving 1% -See What God Does To Bless YouSee What God Does To Bless You
78
Housing 34.9%
Debts 13.1%
Food 7.6%Auto 6.1%
Insurance 1.8%
Recreation 10.4%
Clothing 3.1%
Medical 1.4%
Misc 11.2%
Savings 4.7%
Retirement 5.6%
Case StudyCase StudyMaximum housing (48%), Accelerated Mortgage PayoffMaximum housing (48%), Accelerated Mortgage Payoff
Accelerated Mortgage
Payoff
79
CATIGORY % DISCRIPTION
GIVING 20% Giving and taxes used to be reversed but God worked it out.
TAXES 10%
NET SPENDABLE 70%
HOUSING 49% Includes extra 17% of extra principle to totally eliminate debt.
AUTO 7%
FOOD 10%
INSURANCE 1%
ENTERTAINMENT 9%
CLOTHING 3%
MEDICAL 1%
DEBTS 0%
MISCELLANEOUS 7%
SAVINGS 6%
INVESTMENTS 7%
Case StudyCase StudyMarried 15 Years, 2 Young Children, $60,000 Income, “Own” Home, Married 15 Years, 2 Young Children, $60,000 Income, “Own” Home,
Investing For Early RetirementInvesting For Early Retirement
Category Comment
Higher Giving, Lower Taxes. Total About The Same !
13% Total Savings Investment. Goal – Early Retirementc 13%
Christian Schools
Payoff Mortgage By Age 45
No Credit Card Or Auto Debt
80
Biggest Mistakes To AvoidBiggest Mistakes To Avoid
No SavingsNo Savings
Overspend Using DebtOverspend Using Debt• House, FurnishingsHouse, Furnishings• CarsCars
Abuse Credit Cards,Abuse Credit Cards,Car Loans, MortgageCar Loans, Mortgage
Fail To Invest Early & WiselyFail To Invest Early & Wisely
81
Giving &Giving &SharingSharing
ResistingResistingImpulse BuyingImpulse Buying
PlanningPlanning
BecomingBecomingDebt FreeDebt Free
SavingSaving
InvestingInvesting
Develop New HabitsDevelop New Habits
82
US Government Form W-4US Government Form W-4
Employee’s Federal Withholding
Allowance Certificate
File W4 Form To Adjust Your Witholding To Avoid Giving
Governments A Big “Free Loan”
83
Windfall IncomeWindfall Income
• Consciously Manage Windfall Income, Whether Irregular or One Time $
• Allocate It To:
• Payoff Debts
• Replenish Accounts Running Low
• Add to Savings
• Entertainment
• Education
• Investments
• Don’t Let “Miscellaneous” Get It!
• Don’t Set Up Your Budget Based On Windfall Income
84
Fluctuating IncomeFluctuating Income
0
10
20
30
40
50
60
70
80
90
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
INCOME
52.5% Average
Surplus
Deficit
Tip…Totally Segregate Business Income From Home Finances
85
Cars - Detailed Ownership Cost ExampleCars - Detailed Ownership Cost Example
2008 Honda Accord - $23,745 Purchase Price, LX 4 Door Sedan, 2.4L 4 Cyl 5A
True Cost to Own 5 Years - $39,404 Average Cost Per Mile (15,000 miles/Year) - $0.53
Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
Depreciation $4,359 $2,237 $1,970 $1,746 $1,566 $11,878
Financing $1,637 $1,327 $991 $625 $228 $4,808
Insurance $1,420 $1,470 $1,521 $1,574 $1,598 $7,583
Taxes & Fees $1,950 $307 $257 $216 $181 $2,911
Fuel $1,554 $1,601 $1,649 $1,698 $1,749 $8,251
Maintenance $288 $540 $405 $1,168 $840 $3,241
Repairs $0 $0 $105 $254 $373 $732
Yearly Totals $11,208 $7,482 $6,898 $7,281 $6,535 $39,404
86
Family Truck - Detailed Ownership Cost ExampleFamily Truck - Detailed Ownership Cost Example
2008 Nissan Titan SE 4 Door King Cab- $25,351 Purchase Price, LX 4 Door Sedan, 2.4L 4 Cyl 5A
True Cost to Own 5 Years - $57,564 Average Cost Per Mile (15,000 miles/Year) - $0.77 (45% /
$18,160 > Mid Size 4 Door) Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
Depreciation $8,662 $2,454 $2,160 $1,915 $1,718 $16,909
Financing $2,093 $1,697 $1,266 $799 $291 $6,146
Insurance $1,870 $1,935 $2,003 $2,033 $2,146 $9,987
Taxes & Fees $2,488 $393 $329 $276 $231 $3,717
Fuel $2,874 $2,960 $3,049 $3,140 $3,234 $15,257
Maintenance $469 $829 $541 $2,173 $804 $4,816
Repairs $0 $0 $105 $254 $373 $732
Yearly Totals $18,456 $10,268 $9,453 $10,590 $8,797 $57,564
87
True Cost To Own A CarTrue Cost To Own A CarSource: www.Edmonds.com Oct 2007Source: www.Edmonds.com Oct 2007
Year Type Manuf. ModelPurchase
Price
Cost To Own 5 Years
Cost Per Mile
2008 Subcompact Honda Fit $15,896 $32,122 $0.432008 Subcompact Kia Rio $11,568 $32,418 $0.43
2008 Compact Toyota Prius $23,485 $38,534 $0.512004 Compact Toyota Prius $17,248 $31,756 $0.42
2008 Compact Chevrolet Malibu $17,964 $38,163 $0.512004 Compact Chevrolet Malibu $8,617 $28,366 $0.38
2008 Mid Size Hyundai Sonata $19,933 $40,691 $0.542008 Mid Size Toyota Camry $21,527 $39,414 $0.532008 Mid Size Ford Fusion $20,439 $39,652 $0.53
2007 Minivan Chevrolet Uplander $24,385 $45,686 $0.612007 Minivan Dodge Grand Caravan $23,267 $44,497 $0.592007 Minivan Toyota Sienna $24,854 $45,469 $0.612007 Minivan Kia Sedona $21,796 $44,989 $0.602004 Minivan Chevrolet Venture $9,774 $32,416 $0.43
2008 SUV Lincoln Navigator $44,220 $62,955 $0.842004 SUV Lincoln Navigator $25,364 $60,768 $0.81
2008 Sports Chevrolet Corvette Z06 $80,630 $112,139 $1.502004 Sports Chevrolet Corvette Z06 $32,154 $60,938 $0.812008 Sports Porsche 911 $94,717 $112,805 $1.502008 Sports BMW 650i $91,284 $112,068 $1.49
TipsTips• Used Is CheaperUsed Is Cheaper• Smaller Is CheaperSmaller Is Cheaper• Minimize/EliminateMinimize/Eliminate Loans Loans• Make Sure You CanMake Sure You Can Afford What You Buy Afford What You Buy• Wise Car DecisionsWise Car Decisions Can Fund College, Can Fund College, Weddings, Retirement Weddings, Retirement
Used Is 30%Used Is 30%CheaperCheaper
88
5-Year Loan (60 mo)AUTO vs. LOAN VALUES
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Years
Va
lue
Re
ma
inin
g
Life Expectancy American Car ValueLoan Bal@0%/60 mo [email protected]%/60 mo
Car Life Expectancy
American Car Value
60-month Loan @ 5.9%
60-month Loan @0.00%
0 1 2 3 4 5 6 70 1 2 3 4 5 6 7
Underwater 3 Years !!!(Owe More Than Car
Is Worth)
89
Make A Dream ListMake A Dream List(Notebook Pg G3)(Notebook Pg G3)
Candidate Item To Buy
Date Priority Price #1
Price #2
Price#3
Comments
New Computer
Dream ListDream List
Leather Couch
Quad ATV
Big Screen TV
Vacation Home
90
How To Get Totally Out Of Debt!How To Get Totally Out Of Debt!Including Your MortgageIncluding Your Mortgage
• Get A 15 Year Loan Instead Of A 30 Year Loan
• The Total Cost Of A Typical 30 Year Home Loan Is 2.25 Times The Loan Amount, A $100,000 Loan Costs Roughly $225,000
• A $100,000 Loan At 6.5% For 30 Years Costs $629 Per Month
• By Paying 38% More Per Month ($238) You Will Pay Off The Loan In 15 Years And Save $70,364!
• At The End Of The 15th Year You Will Have $867 Per Month Extra To Invest Or Spend
• What Can You Fund With $867/Month? Giving, Early Retirement? Kids College? Weddings? Vacations?
91
How To Pay A Little More AndHow To Pay A Little More AndGet Totally Out Of Debt!Get Totally Out Of Debt!
• Buy Used Car Instead Of New Car – Payoff House Early With $$$ Saved
• Convert To A Bi-weekly Mortgage (Pay Half Your Mortgage Payment Every Two Weeks)
• Make Extra Principal Payment Each Month (Small In Beginning, Large At End Of Mortgage)
• Use Windfall Income (Bonus, Inheritance …)
• Refinance Mortgage When Interest Rates Drop, Refinances Again If Rates Drop More
• Defer Saving For Kids’ College. Pay For College Using What Used To Be Mortgage Payment (After Mortgage Is Paid Off)
92
Summary - Steps To Becoming Summary - Steps To Becoming Totally Debt FreeTotally Debt Free
$1,000 Emergency Savings, Stop Borrowing, Meet Monthly Payments$1,000 Emergency Savings, Stop Borrowing, Meet Monthly Payments
Payoff Consumer Credit Debts, Save 3 To 6 Months ExpensesPayoff Consumer Credit Debts, Save 3 To 6 Months Expenses
Payoff Car Loans, Save To Buy Cars For CashPayoff Car Loans, Save To Buy Cars For Cash
Payoff Home, Invest For Long Term Needs – Payoff Home, Invest For Long Term Needs – College, Retirement … College, Retirement … Debt Free !!!
Spend For College, WeddingsSpend For College, WeddingsFund More Kingdom WorkFund More Kingdom Work
Enjoy Income From InvestmentsEnjoy Income From InvestmentsEnjoy, Fund Even More KingdomEnjoy, Fund Even More Kingdom
WorkWork
1 - 93
Wealth Building Secrets –Four Cornerstones
PaidPaidOff HomeOff Home
Debt Free,Debt Free,Adequate SavingsAdequate Savings
Minimize RecurringMinimize RecurringExpensesExpenses
Pension,Social Security,
Medicare(Maybe, Maybe Not)
Nestegg ofNestegg ofDiversifiedDiversified
InvestmentsInvestments(IRA, 401k, 403B …)(IRA, 401k, 403B …)
Expense Avoidance / EliminationExpense Avoidance / Elimination
$$$ Cash Flow$$$ Cash Flow To Last Rest of Your Life!
Exp
ense
s
Inco
me
Inco
me
1 - 94
Power of Eliminating or Reducing Small Recurring
Expenses – How To Increase Your Nest Egg By $95,000
$10 Pizza Once A Month Age 20-65 Spend $120x40= $4,800 Gain Some Weight?
Invest $10/Month @ 10% Per Year Annual Return (Tax Deferred) $ 7,680 At Age 40 $21,833 At Age 50$95,015 At Age 65 – That’s A Lot of Pizza In
Retirement. Cost – Gave Up $4,800 of Pizza Moral – Be Careful About Squirreling Your $
Away
Tip – Reduce Or Eliminate Recurring Expenses Wherever You Can. Compounded Expenses Work Against You (9th Horror ($$$ Cancer) of the World)
Source – Retire Early, Sleep Well Pg 108
Average FamilyAverage FamilySpends $100/MonthSpends $100/Month
On Credit CardOn Credit CardInterest. Real Cost ?Interest. Real Cost ?
1 - 95
Power of Eliminating Larger Recurring Expenses – How To Increase Your Nest Egg By
$725,000
Example - Buy A Car That Is $10,000 More Expensive Every 5 Years, Age 30 To Age 65 ($35,000 Vs $25,000 Or $25,000 Vs $15,000) Spend $10,000 x 8 Cars = $80,000 Real Cost Is Much, Much Higher (Opportunity Cost)
$10,000 Cheaper Car Every 5 Years. Invest $10,000 Saved Every 5 Years @ 10% Per Year Annual Return (Tax Deferred) $ 10,000 At Age 30 $ 52,043 At Age 40 $161,090 At Age 50
$724,955 At Age 65
Tip – Driving A Nice Used Car And/Or Driving A New Car A Long Time Will Help Fund Your Nest Egg, And You Can Drive A Very Nice Car In Retirement
Source – Retire Early, Sleep Well Pg 108
96
MY BUDGET PLAN FOR THE NEXT 12 MONTHS
19__ MONTHLY BUDGET$$$ GROSS INCOME $$$
Wages, Tips $_____ Interest $_____ Rents $_____ Tax Refunds $_____Overtime $_____ Dividends $_____ Loans & Notes $_____ Inheritance $_____Bonuses $_____ Pensions $_____ Child Support $_____ Gifts $_____Commissions $_____ Social Security $_____ Alimony $_____ Items Sold $_____Other _______ $_____ Disability $_____ Other _______ $_____ Other _______ $_____
TOTAL GROSS INCOME (1) $ ________
$$$ GIVING & TAXES $$$$ CHARITABLE GIVING $ $ TAXES $ NET SPENDABLELocal Church $_____ Federal Income $_____ INCOME COMPUTATIONMissions $_____ State Income $_____ GROSS INCOME (1) $_____Other _______ $_____ Social Security $_____ MINUS GIVING (2) $_____Other _______ $_____ Unemployment $_____ MINUS TAXES (3) $_____
TOTAL TOTALGIVING (2) $_____ TAXES (3) $_____ NET SPENDABLE INCOME (4) $_____
$$$ EXPENSES $$$$ HOUSING $ $ TRANSPORTATION $ $ ENTERTAINMENT $ $ DEBTS $Rent $_____ Gas, Oil $_____ Restaurants, Enter. $_____ Credit Cards $_____Mortgage $_____ Licenses $_____ Babysitters $_____ Rec. Vehicle Loans $_____2nd Mortgage $_____ Maintenance $_____ Vacations, Trips $_____ Personal Loans $_____Extra Principal $_____ Loan Payments $_____ Classes, Lessons $_____ Medical Debts $_____Taxes $_____ Insurance $_____ Man's Hobbies $_____ Dept Stores $_____Insurance $_____ Parking $_____ Woman's " $_____ Other _______ $_____Homeowners $_____ Busses, Etc. $_____ Nongift Toys $_____ Other _______ $_____Cable TV $_____ Car Replacement $_____ Recreation Vehicles $_____ Other _______ $_____Cleaning $_____ $100-$200 per Vacation Homes $_____ TOTALElectricity $_____ 1,000 miles/yr Other _______ $_____ DEBTS $_____Natural Gas $_____ Other _______ $_____ Other _______ $_____ $ MISCELLANEOUS $Gardening $_____ Other _______ $_____ Other _______ $_____ Toiletries $_____Pest Control $_____ TOTAL TOTAL Cosmetics $_____Pool $_____ TRANSPORTATION $_____ ENTERTAINMENT $_____ Beauty $_____Telephone $_____ $ MEDICAL $ $ INSURANCE $ Barber $_____Trash $_____ Doctors $_____ Medical $_____ Laundry,Cleaning $_____Water/Sewer $_____ Dentists $_____ Disability $_____ Lunches- Man $_____Home Fixup $_____ Eye Care $_____ Life $_____ Lunches- Woman $_____Furniture $_____ Therapy $_____ Umbrella $_____ Lunches- Children $_____Appliances $_____ Drugs, Presc. $_____ Other _______ $_____ Books, Subscr. $_____Other _______ $_____ Other _______ $_____ Other _______ $_____ Gifts $_____Other _______ $_____ Other _______ $_____ TOTAL Christmas $_____
TOTAL TOTAL INSURANCE $_____ Mad $- Man $_____HOUSING $_____ MEDICAL $_____ $ SAVINGS $ Mad $- Woman $_____
$ FOOD $ $ CLOTHING $ Emergencies $_____ Allowances $_____Groceries $_____ Man $_____ Retirement $_____ Film. Photo $_____Board $_____ Woman $_____ IRA'S $_____ Pets $_____Lunches Out $_____ Child ________ $_____ KEOUGH $_____ Other _______ $_____Coffee Pool $_____ Child ________ $_____ 401K Plan $_____ Other _______ $_____Other _______ $_____ Child ________ $_____ Stock Plan $_____ Other _______ $_____Other _______ $_____ Other _______ $_____ Other _______ $_____ Other _______ $_____
TOTAL TOTAL TOTAL TOTALFOOD $_____ CLOTHING $_____ SAVINGS $_____ MISCELLANEOUS $_____
TOTAL EXPENSES (SUM OF SUBTOTALS) (5) $_____ $$$ BOTTOM LINE $$$BUDGET SURPLUS OR DEFICIT (4) minus (5) $_____
Instructions - After reviewing your records for the last 12 months, determine the amount for each category you elect to use. This plan should be updated and reviewed periodically.
Section “F”... My plans For Next 12 MonthsSection “F”... My plans For Next 12 MonthsMy New HabitsMy New Habits
My Plan ToMy Plan ToBe A BetterBe A Better
ManagerManager
97
Establish A Establish A MaximumMaximum Lifestyle Lifestyle
• Don’t You Mean Minimum?
• No, I Mean Maximum!
• Why?
• Use A Standard To Let You Know You Have Arrived And Can Be Content
• To Know You’ve Achieved The Goal
• With A Minimum, Most People Are Not Content
• Are You Content With The Maximum?“Godliness With Contentment Is Great Gain” I Timothy 6:6
98
Fix Your Spending LevelFix Your Spending Level
MaximumMaximum
Minimum
Not Totally Content
Not Enough
Surplus – More Than Enough
Enough
If We Are Not Content With What We Have, We Will Not Be Happy With What We Want. We Are
Not Born With Contentment. It Must Be Learned. Adam And Eve Failed To Be Content
Even In A Perfect Environment. Bill Gothard
99
Spending Decisions - TipsSpending Decisions - Tips
• Is This A Need, A Want Or A Desire?
• Can I Afford It Right Now?
• Is This The Best Price?
• Is This The Right Model And Quality?
• Have I Researched This Purchase To Make A “Best Buy”?
• Have I Trusted God To Provide Or Not Provide?
• Will I Have Peace After I Buy This Item?
• How Will This Purchase Affect Relationships?
100
Can You Buy A New Couch?Can You Buy A New Couch?
101
Can They Buy A New Couch?Can They Buy A New Couch?
Check Number Date Description
Amount OfTransaction T Fee
AmountOf Dep Balance
1,215.60$ 884 9/23/97 Smith’s - Groceries $ 159.00 $1,056.60886 9/27/97 Pep Boys - Auto Repair $ 239.00 $ 817.60887 9/30/97 Deposit Bob’s Paycheck $ 854.58 $1,672.18
Bill And Nancy Spender’s Check Book
• It Is The End Of The Month And All Bills Have Been Paid And There Is $1,672.18 Left In The Check Book
• The $1200 Couch Bill And Nancy Have Been Wanting Goes On Sale For $800
• Can Bill And Nancy Buy The Couch? Why Or Why Not?
102
The Control System - The KeyThe Control System - The KeyTo Making Your Finances WorkTo Making Your Finances Work
103
Control System - Allocation & ControlControl System - Allocation & Control
Keep It Simple!Keep It Simple!
Food
Auto
Housing
Auto $600 Per Month
Food $400 Per Month
Housing $1100 Per Month
104
Budget Account Sheet - Budget Account Sheet - One Sheet Per Budget ItemOne Sheet Per Budget Item
(Workbook Pg I2)(Workbook Pg I2)
Date Transaction Withdraw Balance1-May Deposit 25.00$ 25.00$ 3-May Date with Sally 7.95$ 17.05$ 4-May Ice cream w/Sally 3$ 14$ 6-May Dinner w/Sally 13$ 1$ 8-May Deposit 25$ 26$ 9-May Date W/Sally-Play 30$ (4)$ 9-May Work Overtime 20$ 16$
• Tip - Round To The Nearest Dollar
• Before You Spend Money, Check The Budget Account Sheet To Make Sure You Can Afford The Expense
• Record Expenses Promptly, Mark Up Receipts To Show What Budget Account Was Used For Each Item
• Look At Balance In The Account Before You SpendBefore You Spend
Budget Account: Entertainment October 1998Yearly Allocation: $ 1,300 Monthly Allocation: $108 ($25/Week)
Deposit
105
Budget Account Sheet - Budget Account Sheet - One Per Budget Item One Per Budget Item
(Workbook Pg I2)(Workbook Pg I2)
Date Transaction Withdraw Balance 1-May Deposit 400$ 400$ 3-May Smith’s 68$ 332$ 4-May Abco 82$ 250$ 10-May Osco 13$ 247$ 19-May Safeway 49$ 198$ 29-May Frys 87$ 111$ 31-May Costco (16)$
Budget Account: Food October 1998Yearly Allocation: $ 4,800 Monthly Allocation: $400
Deposit
127$
• Small Amounts Over At End Of Month Will Usually Average Out
• Use The Budget Account Balance To Control Your Spending. Know The Balance Before You Go Shopping
• One Account Per Item - Gives Good Control
• In The Beginning, Error On The Side Of Too Many Accounts
106
Budget Accounts - TipsBudget Accounts - Tips
• Mad Money - Everyone Should Have A Small Amount Of “Mad” Money Allocated That They Can Spend In Cash Without Having To Keep Track Of It
• Love Tokens - Allocate A Small Amount To Buy An Occasional Love Token For Your Loved Ones
• Allocate Money For A “Beauty” Budget For Your Lady
• Have Separate Hobby Budgets For Each Person
• Develop A Plan For “Our Money”, Not “His $” & “Her $”
• Work Some Small Indulgences Or Luxuries Into Your Budget
• Segregate Business Finances From Home Finances
107
Budget Accounts - TipsBudget Accounts - Tips
• You Will Need Two To Three Dozen Different Accounts
• Be Flexible And Willing To Change Your Plan
• Your Plan Won’t Be Perfect, Fix It As You Go - Use The Monthly Summary To Detect And Correct Problems
• To Start, Do Book Keeping Every Week
• After Things Are Running Smoothly, You Can Do Book Keeping Every Two Weeks Or Monthly If You Wish
• Make Sure To Have A Few Fun Accounts, Even If You Are Deeply In Debt
108
Category Allocation Jan Feb Mar AprGiving 800 161 421 366 666House Mortgage 1600 0 0 0 0House Maintenance 25 18 -1 5 3House Insurance 40 3 33 63 93House Taxes 139 139 278 407 546
Monthly Summary SheetMonthly Summary Sheet(Notebook Pg H1)(Notebook Pg H1)
• At The End Of The Month, Complete All Your Book Keeping, Then Record The Amount Left In Each Budget Account On The Monthly Summary Sheet
• When You Are Well Rested & Mellow, Analyze The Summary To See What Worked, Problem Areas, Month To Month Trends
• Discuss Observations With Your Spouse Or A Trusted Friend
• Change Plan If Not WorkingChange Plan If Not Working. Do One Time Transfers Or “Loans”.
End Of Month BalancesEnd Of Month Balances
109
Develop Discipline, Which WillDevelop Discipline, Which WillLead To Freedom, No DebtLead To Freedom, No Debt
Spend Money Based On The Bottom Line Of The Budget Account Sheet And NOT The Bottom Line Of The
Checkbook, Or Your Wallet Or Your Credit Limit !
110
Keeping Good BooksKeeping Good Books
• Record All Transactions As Soon As Practical
• Write Down Cash Expenditures On 3 By 5 Card, Or Save The Receipt & Mark It Up So You Will Know What Account To Record The Expense In (For Example, Husband’s Clothing $25, Wife’s Clothing $21)
• If Married, Play To Your Strengths - Have The Person With Good Math Skills Keep The Books
• Write Down All Checks, Debit Or Credit Card Uses In Detail. Tip - Carbonless Check Register
• Balance Your Check Book Every Month - The Sooner, The Better
111
Learn To Distinguish BetweenLearn To Distinguish Between
NeedsNeeds
WantsWantsDesiresDesires
112
Financial Decision Making TipsFinancial Decision Making Tips
• Put God At The Center Of Your Decisions
• Develop A Balanced Giving, Saving, Spending, Investing, Debt Payoff Plan
• Plan For Major Purchases, Avoid Impulse Buying
• Develop A Long Range Investment Plan – Get Educated In Biblical Approaches To Investing
• Do Retirement Planning To Help You To Decide How Much To Save & Invest For The Future
113
Financial Decision Making TipsFinancial Decision Making Tips
• Make Decisions To Maximize The Amount Of
PeacePeace You Will Have, Not Necessarily The
Most Profit
• If You Don’t Have Peace, Don’t Do It!
• Decide In Advance To Be Totally Honest
114
Our Part – Believe, Manage WellOur Part – Believe, Manage Well
Do We Believe God?Do We Believe God?
God is Creator and Owner of
Everything.The essence of His nature is love. He provides for us by
giving to us in order to care for
us and to minister to our needs.
He provides for us by giving to us in order to care for
us and to minister to our needs.
We gratefully receive from God
and respond to His generosity
by:
GivingGiving to honor God, minister to the needs of others, and to support the church as she evangelizes the lost and matures disciples
SavingSaving and MultiplyingMultiplying for the future
LivingLiving contentedly within the limits of God’s provision
Giving
Saving
Living
FAITH CRISISFAITH CRISIS
GodGod Owns Owns
God ProvidesGod Provides
I ManageI Manage
BeliefsBeliefs DecisionsDecisions Actions Actions
© Casas Church – Used By Permission.Minor Mods By Author
God ProvidesGod Provides
Results,Results,BlessingsBlessings
Sowing/Sowing/ReapingReaping
115
Financial Freedom Notebook - Use It !
Financial
Freedom
Notebook
Goals
Net Worth
“As Is” Budget
Budget Analysis
Spending Guidelines
Budget Plan
Account Sheets
Monthly Summary
Yearly Summary
Impulse List
Purchase List
Gift List
116
God’s Secret Success FormulaGod’s Secret Success Formula Commit to the Lord whatever you do and your plans will succeed. Proverbs 16:3Commit to the Lord whatever you do and your plans will succeed. Proverbs 16:3
May he give you the desire of your heartMay he give you the desire of your heartand make all your plans succeed. Psalm 20:4and make all your plans succeed. Psalm 20:4
God’s Simple PlanGod’s Simple Plan
1. God Owns1. God Owns
2. I Manage2. I Manage
3. God Provides3. God Provides
(God’s Generous Heart)(God’s Generous Heart)
(Give, Save, Live)(Give, Save, Live)
118
Develop New HabitsDevelop New HabitsDevelop New HabitsDevelop New Habits
GIVING &GIVING &SHARINGSHARING
RESISTINGRESISTINGIMPULSE BUYINGIMPULSE BUYING
PLANNINGPLANNING
BECOMINGBECOMINGDEBT FREEDEBT FREE
SAVINGSAVING
INVESTINGINVESTING
Isa 43:18 NIV "Forget the former things; do not dwellon the past. See, I am doing a new thing!
“Changing Behavior Starts With Changing Beliefs.”
GIVING &GIVING &SHARINGSHARING
RESISTINGRESISTINGIMPULSE BUYINGIMPULSE BUYING
PLANNINGPLANNING
BECOMINGBECOMINGDEBT FREEDEBT FREE
SAVINGSAVING
INVESTINGINVESTING
119
True Riches, Honor, And Life ...True Riches, Honor, And Life ...True Riches, Honor, And Life ...True Riches, Honor, And Life ...
… do not come by our striving after them. They come whenwe walk humbly before a holy God and become accountablefor every thought word, attitude, and action
“By humility and fear of the lord are riches, and honour, and life.” Proverbs 11:4 Bill Gothard and Staff
120
True RichesTrue RichesTrue RichesTrue Riches
The resources which God entrusts to us after we surrender ourdesire to be rich.
“But they that will be rich fall into … many foolish and hurtful lusts… “ 1 Timothy 6:9 Bill Gothard and Staff
121
Supplementary ChartsSupplementary Charts
122
ResourcesResourcesResourcesResources
Short Range Planning • Your Money- Frustration Or Freedom? Howard Dayton • Total Money Makeover – Dave Ramsey • The Complete Financial Guide For Young Couples - Larry Burkett • The Complete Financial Guide For Single Parent - Larry Burkett • Debt Free Living- How To Get Out Of Debt (And Stay Out) - Larry Burkett • What Husbands Wished Their Wives Knew About Money - Larry Burkett • God’s Guide Through The Money Jungle (For High Schoolers) – Larry Burkett • Teaching Your Children How To Handle Money- Ron & Judy Blue
Biblical Principles • Using Your Money Wisely (2 Pages Per Biblical Principle)- Larry Burkett • How To Manage Your Money (Bible Study)- Larry Burkett • What The Bible Says About Money (Topical Concordance) - Larry Burkett • Crown Small Group Study – 12 week www.Crown.org
123
ResourcesResourcesResourcesResources
Long Range Planning- Investing & Retirement • Retire Early, Sleep Well – Steve Davis • Investing For The Future- Larry Burkett • Preparing For Retirement- Larry Burkett • Master Your Money- Ron Blue • Business By The Book - Larry Burkett (How To Run A Business Using Biblical Principles) • BOGLE On MUTUAL FUNDS- JOHN C. Bogle 800-634-3966
Other Resources • www.Crown.org Crown Financial Ministries Southern Arizona Crown Area Director – Ron Staub email: [email protected]
Phone: 866-280-8260
• www.DaveRamsey.com Dave Ramsey – Christian Talk Radio Host
124
Financial QuestionnaireFinancial Questionnaire
1. Do You Think Your Finances Are Well Planned and Managed?1. Do You Think Your Finances Are Well Planned and Managed?
2. Are You Content With Money Matters?2. Are You Content With Money Matters?
3. Do You Have Written Personal, Family, and Financial Goals?3. Do You Have Written Personal, Family, and Financial Goals?
4. Do You Have Long Range Plans for Saving, Investing and 4. Do You Have Long Range Plans for Saving, Investing and X Retiring?Retiring?
5. Do You Know How Much You Owe on All of Your Debts?5. Do You Know How Much You Owe on All of Your Debts?
?
125
Financial QuestionnaireFinancial Questionnaire
6. Do You Never Pay Late Charges, Bounced Check Charges 6. Do You Never Pay Late Charges, Bounced Check Charges or Interest for Credit Card Charges? or Interest for Credit Card Charges?
7. Do You Have a Written Personal or Family Budget and Are 7. Do You Have a Written Personal or Family Budget and Are X X You Following It?You Following It?
8. Do You Have a Good Understanding of What the Bible Says 8. Do You Have a Good Understanding of What the Bible Says X About Your Finances?About Your Finances?
9. Do You Have a Current Will?9. Do You Have a Current Will?
10. If You Are Married, Are Finances One of the Best Areas of 10. If You Are Married, Are Finances One of the Best Areas of X X Communication in Your Marriage?Communication in Your Marriage?
11. Do You Want to Learn How to Be a Better Money Manager?11. Do You Want to Learn How to Be a Better Money Manager?
?
126
127
The Foundation – God’s PrinciplesThe Foundation – God’s Principles
1 Cor 3:11 For no one can lay any foundation other than the one already laid, which is Jesus Christ. (NIV)
Jer 29:11 For I know the plansplans I have for you," declares the LORD, "plansplans to prosper you and not to harm you, plansplans to give you hope and a future. (NIV) (God’s Generous Heart)
128
God’s Word Is Living And ActiveGod’s Word Is Living And Active "For the word of God is living and active. Sharper than any double-edged sword, it penetrates even to dividing soul and spirit, joints and marrow; it judges the thoughts and attitudes of the heart.” (Heb 4:12 NIV)
Four Levels Of MaturityFour Levels Of Maturity
We Are New Creations…This Includes Our Finances We Are New Creations…This Includes Our Finances "Therefore, if anyone is in Christ, he is a new creation; the old has
gone, the new has come!" (2 Cor 5:17 NIV)
Infants
Children
Young Men
Fathers
1 Cor 3:1, 1 Jn 2:12-14
129
God’s Secret Success FormulaGod’s Secret Success Formula
Commit to the Lord whatever you do and your Commit to the Lord whatever you do and your plans will succeed. Proverbs 16:3plans will succeed. Proverbs 16:3
130
What is God’s #1 Concern For What is God’s #1 Concern For Your Finances?Your Finances?
"Love the LORD your God with all your heart and with all your soul and with all your strength." (Deu 6:5 NIV)
Why???
“For God so loved the world that he gave his only Son … (Jn 3:16 NLT)
131
God’s Simple PlanGod’s Simple Plan
1. God Owns1. God Owns
2. I Manage2. I Manage
3. God Provides3. God Provides
(God’s Generous Heart)(God’s Generous Heart)
(Give, Save, Live)(Give, Save, Live)
132
Step 1 - God OwnsOwns
Psalm 24:1 NIV “The earth is the Lord's, and everything in it, the world, and all who live in it;”
• God Created Everything - God Is The Owner
• Commandments
• Exodus 20:3 NIV “You shall have no other gods before me.”
• You cannot serve two masters… Why?
133
Step 2 – I Manage
Psalm 9:6-8 NLT “You put us in charge of everything you made, giving us authority over all things – the sheep and the cattle and all the wild animals, the birds in the sky, the fish in the sea, and everything that swims the ocean currents.
• God the Creator put us in charge of managing His creation
• We are His managers (stewards)
• What is expected of a steward?
134
Step 2 - I Manage Step 2 - I Manage (Parable Of The Talents)(Parable Of The Talents)
Mat 25:14-30 NIV ""Again, it will be like a man going on a journey, who called his servants and entrusted his property to them. To one he gave five talents of money, to another two talents, and to another one talent, each according to his ability. Then he went on his journey. The man who had received the five talents went at once and put his money to work and gained five more. So also, the one with the two talents gained two more. But the man who had received the one talent went off, dug a hole in the ground and hid his master's money. After a long time the master of those servants returned and settled accounts with them. The man who had received the five talents brought the other five. 'Master,' he said, 'you entrusted me with five talents. See, I have gained five more.’ 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!’ The man with the two talents also came. 'Master,' he said, 'you entrusted me with two talents; see, I have gained two more.’ 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!’ Then the man who had received the one talent came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.’ His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest. Take the talent from him and give it to the one who has the ten talents.For everyone who has will be given more, and he will have an abundance. Whoever does not have, even what he has will be taken from him.And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.'"
135
Some ObservationsSome Observations
• God Is The Master And Owner
• We Are God’s And We Belong To God
• All We Have Belongs To God
• We Aren’t Asked If We Want The Job To Be God’s Manager
• The Question Is: Am I A Good Manager, Or A Bad Manager?
• God Gives To Us According To Our Abilities
• How Will We Answer When God Asks: What Have You Done x With Your Talents I Entrusted To You?
• God Uses Money To Teach Us And To Put Us To The Test. How x Are you Doing At Managing God’s Resources?
136
Step 3 - God ProvidesStep 3 - God Provides
Mat 6:25 NIV ""Therefore I tell you, do not worrydo not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes?"
Mat 6:27 NIV "Who of you by worrying can add a single hour to his life ?”
Mat 6:31-34 NIV "So do not worrydo not worry, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?'"
"For the pagans run after all these things, and your heavenly Father knows that you need them."
"But seek first his kingdom and his righteousness, and all these things will be given to you as well."
"Therefore do not worrydo not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own."
137
Our Part – Believe, Manage WellOur Part – Believe, Manage Well
Do We Believe God?Do We Believe God?
God is Creator and Owner of
Everything.The essence of His nature is love. He provides for us by
giving to us in order to care for
us and to minister to our needs.
He provides for us by giving to us in order to care for
us and to minister to our needs.
We gratefully receive from God
and respond to His generosity
by:
GivingGiving to honor God, minister to the needs of others, and to support the church as she evangelizes the lost and matures disciples
SavingSaving and MultiplyingMultiplying for the future
LivingLiving contentedly within the limits of God’s provision
Giving
Saving
Living
FAITH CRISISFAITH CRISIS
GodGod Owns Owns
God ProvidesGod Provides
I ManageI Manage
BeliefsBeliefs ActionsActions Habits Habits
© Casas Church – Used By Permission.Minor Mods By Author
God ProvidesGod Provides
Results,Results,BlessingsBlessings
Sowing/Sowing/ReapingReaping
138
Credit Cards
Automobiles
Housing
139
Gimmick Mortgages• ARM – Adjustable Rate MortgageARM – Adjustable Rate Mortgage
• Interest Only MortgageInterest Only Mortgage
• Balloon Payment MortgageBalloon Payment Mortgage
• 40 to 50-yr Mortgage40 to 50-yr Mortgage
• Teaser-Rate MortgageTeaser-Rate Mortgage
• Reverse MortgageReverse Mortgage
• Home Equity LoanHome Equity Loan
140
Rules of the House•NO ARM’s - Fixed Rate OnlyNO ARM’s - Fixed Rate Only
•Obtain a “Par quote” MortgageObtain a “Par quote” Mortgage
•Use Manual UnderwritingUse Manual Underwriting
•Get Shortest Term Possible – 15-yrGet Shortest Term Possible – 15-yr
•Don’t buy “too much” houseDon’t buy “too much” house
•Pre-Pay MortgagePre-Pay Mortgage
•No Debt Consolidation LoansNo Debt Consolidation Loans
141
Is this the Financial Direction You’re Getting
from the World?
142
Teaching Children Financial Teaching Children Financial ResponsibilityResponsibility
• Give Children A Modest Allowance, So They Will Have Money To Manage. An Allowance Is A Privilege Of Being Part Of The Family.
• Expect Children To Do Defined Chores. Helping Do Work Is Part Of The Responsibility Of Being Part Of The Family
• Help Children Learn How To Set Up A Spending Plan
• Giving
• Saving
• Spending
• Investing – Yes, Teach Your Children How To Invest
143
Include Your Kids In Setting Up YourInclude Your Kids In Setting Up YourFinancial Goals, And In Doing The BudgetFinancial Goals, And In Doing The Budget
• Every Person In The Family Should Have Budget Accounts To Manage - Toys, Clothing, Hobby, Etc.
• When Your Kids Get Married, They Will Imitate You
• Training Your Child To Be A Good Money Manager Could Save Their Marriage In The Future
144
Teaching Children Financial Responsibility
• Teach Kids God’s 3 Step $ Plan & Biblical Principles
• God Owns, I Manage, God Provides
• Teach Kids To Give Generously To God
• Teach Kids To Spend Wisely
• Teach Needs Vs Wants Or Desires
• Resist Impulses
• Buy On Sale, Buy Used Items, Trade For Items
• Buy Quality That Will Last
• Be A Good Steward
• Teach Kids To Save And Invest - Defer Gratification
145
Teaching Children Financial Responsibility
• Trust Them
• Let Them Make Mistakes - They Will Learn More
• Provide Them Paid Jobs To Earn Extra Money
• Discourage Them From Borrowing
• Train Them To Work To Buy Things, Don’t Spoil Them
• Share Expenses With Them - For Example, You Pay For Half Of An Item If They Will Pay For Half
• Volunteer To Match Funds For Investing (50/50)
• Show Kids Your Budget Summary Every Month
• Set A Good Example For Your Kids - Be A Good Manager