4 bonus lunch session updated
TRANSCRIPT
What God’s Word says about money
• Proverbs 22:7
“Just as the rich rule the poor, so the borrower is servant to the lender.”
So… Who which side of the coin are you on???Borrower OR Lender
Slave to Lender
Cars the right way• Keep your current car 3 years longer than
your payment.
• Make the car payment to an account to prepare for your next car
• That account pays cash for the next car – how much you have is how much car you get
Cars the right way
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
Auto Depreciation Schedule
Resa
le V
alue
RED ZONE - STAY AWAY! GREEN ZONE
Cost of Ownership
** Cost per 10,000 miles 2500 HD Nissan P/U Variance
Oil Change $ 100.00
$ 30.00
$ 70.00
Tires $ 200.00
$ 71.00
$ 129.00
Fuel $ 2,100.00 $ 1,300.00 $ 800.00
TOTAL $ 2,400.00 $ 1,401.00 $ 999.00
Fun Facts• Only 30% of homeowners own their homes
outright
• 65 to 74 year olds are most likely to own their home outright followed by 74 to 84 years old
• 33% of ALL borrowers are upside down in their homes (this locks you into a location by the way)
Mortgage Plans30 Year Rate - 90% of home
buyers
15 Year Rate - 8% of home buyers
Adjustable Rate (ARM) - 3% of home buyers
0 Year Rate - 1%of home buyers
So – Why a 15 year fixed?• More of your payment goes towards
principal than interest on day one• It set’s a realistic goal for your “Net
Worth”
Spreadsheet Example
Why so much down?• PMI – (Private Mortgage Insurance)
Insurance taken out on a property by the lender to cover any costs incurred as a result of foreclosure.
• Interest expense – Amortization schedules are designed to equal out around the 15 year mark.
• You get closer to financial independence
American’s top 5 causes for housing stress
1. Buying too much house
2. Loss or Dip in Income
3. No Savings
4. Not making repairs
5. Too much debt
When should I buy a house• Your house purchase should fit your Debt-Free plan• Have a minimum of 6 months of living expenses in
the bank• Have 10% down payment (20% is better to save PMI)• If you are married – you should be married for at least
1 year• 25% of your NET MONTHLY INCOME must cover your
mortgage• Have properly allocated monthly savings to
retirement• When you can afford the 15 year fixed rate