Cash Flow, Budgeting, & Debt Elimination GOD HAS A PLAN FOR ALL OF US. WE HAVE A BRIGHT FUTURE.

Is this you before coming to church?

OK…The bills are washed, the laundry is paid, clothes are in the oven, and the last load of dinner is in the dryer…

It looks like I got my to-do list finished!

WHAT IS STEWARDSHIP?

The management of your family, time, money, body, house, car, and everything God entrusts to your care.

WHY STEWARDSHIP?

Wise and faithful stewardship is not an option; it is a command to the believer.

THE HOW OF STEWARDSHIP

Give thought to your ways, read, follow and obey the Scriptures. Pray and seek godly counsel.

JOSH. 1:8; PS. 1:1; I TIM. 6:6-19

Personal Testimony

CASH FLOW, BUDGETING, & DEBT ELIMINATION

Create a Spending Plan that Works

CREATE A SPENDING PLAN THAT WORKS

The Budget Worksheet

WORKBOOK PAGE 16 & 43

RECORD YOUR AVAILABLE INCOME

• Can you reduce tax withholding to increase cash-flow?

• Can you eliminate some unnecessary expenses or deductions?

• Can you sell some unneeded household items?

• Can you take a part-time job to pay off specific debts?

WORKBOOK PAGE 16 & 43

GIVING TO THE LORD (HONOR GOD)

• Starts at your local church

• Biblical examples were always 10% or above

SAVING FOR THE FUTURE (HONOR YOUR FAMILY)

• Recognize your need for discipline in spending

• Plan for the future

• Short-term and then long-term

• Keep your savings in balance (value money, but do not shift your dependence from God to money.)

SPENDING ON YOUR NEEDS (GUARD YOUR TESTIMONY)

• Paying your bills

• Knowing your income and spending less is wisdom (Prov. 21:20)

• Housing, groceries, insurance, personal allowance, debt, etc.

GIVING TO OTHERS (ABOVE THE TITHE)

• Give as the Lord directs in your heart

• God does not intend for you to meet everyone’s need, but He does want you to meet the need of some.

ENJOYING LUXURIES FOR PERSONAL PLEASURE

• Never place luxuries ahead of the necessities like giving, saving and bills.

• What are luxuries? (eating out, cable TV, new car, “smart” phones, internet, etc.)

CREATE A SPENDING PLAN THAT WORKS

Budgeting Tips

WORKBOOK PAGE 17

BUDGETING TIPS

• Visualize your cash flow

• Use saving methods and make them automatic

• Track and record your expenses so you can find the missing money

• Establish accountability and stick with it

WORKBOOK PAGE 17

WHAT IF IT DOESN’T WORK?

• Have I violated the financial principles of God?• Give and be financially blessed

(Prov. 11:24, Hagg. 1:1-15; Luke 12:19-21)

• Scorning correction – pride brings poverty (Prov. 13:18)

• Planning leads to profit – haste leads to poverty (Prov. 21:5)

• Stinginess (Prov. 21:13)

• Get-rich quick schemes (Prov. 28:19)

WHAT IF IT DOESN’T WORK?

• Does God have a deaf ear to my requests?• Living in sin (Prov. 5:29)

• Disobeying the law (Prov. 28:9)

• Sin hinders prayer (Is. 59:1)

• Idols in the heart (Ezek. 14:3)

• Unforgiving spirit (Mark 11:25)

• Selfishness (James 4:3)

• Good relationship with spouse (1 Pet. 3:7)

• Dishonoring parents (Ex. 20:12; Eph. 6:1-3)

WHAT IF IT DOESN’T WORK?

Do You Rely on God’s Will or MasterCard?

WHAT IF IT DOESN’T WORK?

“You do not have, because you do not ask. You ask and do not receive, because you ask wrongly, to spend it on your passions.”

JAMES 4:2b-3

CASH FLOW, BUDGETING, & DEBT ELIMINATION

Free to Serve –Accelerating Out of Debt

WORKBOOK PAGE 19

FREE TO SERVE

The First Law of Holes – When You’re in One, STOP DIGGING!

Do you pay off your credit cards each month?

46% CARRY A MONTHLY BALANCE(WHERE IS WISDOM?)

CONSUMER REPORTS MAGAZINE – NOVEMBER 2009

FREE TO SERVE

Debt Elimination Starts in the Heart

DEBT ELIMINATION STARTS IN THE HEART

• You may need to acknowledge your sin of poor stewardship

• Make a commitment to God to be a godly steward

• Seek wisdom and ask for help

FREE TO SERVE

Debt Elimination Requires Change

DEBT ELIMINATION REQUIRES CHANGE

• Do a financial audit so you know the details of your financial condition

• Stop the bleeding!

• Develop a spending system (most debt comes from overspending, rather than a lack of income)

DEBT ELIMINATION REQUIRES CHANGE

• Establish accountability with your spouse, close friend, pastor, or a trusted advisor

• Develop a repayment plan by reducing expenses and trying to increase your cash flow

• Work your debt snowball

The Debt SnowballName InterestRate Balance Minimum

Payment NewPayment

1 Sears 16% $450 $50 $50+$200=$250

2 MasterCard 18% $650 $30 $30+$250=$280

3 Parents 0% $1,600 $200 $200+$280=$480

4 Visa 23% $1,800 $30 $30+$480=$510

5 Car 10% $7,000 $400 $400+$510=$910

6 SchoolLoan 6% $9,000 $200 $200+$910=$1,100

EXTRA PAID ON DEBT: $200WORKBOOK PAGE 20

YOU NEED TO PLAN FOR THE FUTURE

“The prudent sees danger and hides himself, but the simple go on and suffer for it.”

PROVERBS 27:12

WHAT KIND OF PROBLEMS ARE HEADED YOUR WAY?

• Education & College

• Weddings

• Sickness

• Car Repairs or Replacement

• Forced Retirement

• Death of Spouse - loss of Social Security Income

CONCLUSION

Financial Freedom is Your Choice!

CONCLUSION

Money Buys Stuff, Not Happiness!

CONCLUSION

• When facing a financial need, loans are the lastoption, never the first!

• If you consolidate credit cards, learned behavior must change

• Never cosign a loan or ask for a cosigner

CONCLUSION

• Always pay bills on time and don’t be late

• Develop buyers resistance and learn to say NO!

• Never gamble, bet, or play the fool by trying to get rich quick. No lottery and no casino!

CONCLUSION

Life is Choices and Choices have Consequences, so Make the Right Choice!

CONCLUSION

Are You Ready?

LEARN MORE ABOUT US

www.LifeInstitute.org

978 Ben Franklin Hwy, EDouglassville, PA 19518

(610) 385-4500

DISCLAIMER

Securities & Advisory Services offered through Geneos Wealth Management. Member FINRA & SIPC.

Cash Flow, Budgeting, & Debt Elimination GOD HAS A PLAN FOR ALL OF US. WE HAVE A BRIGHT FUTURE.