four myths: z“ things bring happiness.” z“your possessions define who you are.” z“the more...

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Four Myths: THINGS bring happiness.” “Your possessions define who you are.” “The more you have, the more you should spend.” “Spending is a COMPETITION.”

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Page 1: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Four Myths:

“THINGS bring happiness.”“Your possessions define who

you are.”“The more you have, the more

you should spend.”“Spending is a COMPETITION.”

Page 2: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Current Behavior: Nothing

Total “Scale Back” Savings: $30 (thermostat) + $25 (share cell plan) + $20 (dial up internet) + $25 (limited basic cable) = $100/month!

Total “Spartan” Savings= $30 (thermostat) + $50 (no cell phone) + $20 (dial up internet) + $40 (no cable TV)= $140/month!

Finding $100

Page 3: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

The Prudent Consumer Is:

One who enjoys the fruits of their labor yet guards against materialism.

Page 4: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Three Biblical Financial Principles:

Beware of idols. Guard against GREED. Be CONTENT.

Page 5: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

When we practice MODERATION and learn contentment, we become free to be a blessing to others.

Page 6: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Key Question:

Are you willing to “drive your stake” lifestyle-wise?

Page 7: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Driving Your Stake Means:

There will be a point in time when you declare, “Enough is enough.”

You distinguish between your TRUE needs and what the culture says you need.

Page 8: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Tips for Mortgage/Taxes/Rent:

Consider the issue of renting vs. owning.Think PREPAYMENT of mortgage.Beware of basing a mortgage on TWO

INCOMES.Exercise caution toward equity loans.Consider an extended household.

Page 9: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Maintenance and Repairs:

Become a Mr. or Ms. “Fix-it”

Page 10: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Utilities:

Control the thermostat.Use phones wisely.Evaluate options for Internet and cable

services.

Page 11: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Spending Plan Application

Individual Activity:

Page 12: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Transportation QuizWhat is the least expensive car you can

own?

Page 13: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Transportation QuizWhat is the least expensive car you can

own?When is it economically wise to buy a new

(never-owned) car?

Page 14: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Transportation QuizWhat is the least expensive car you can

own?When is it economically wise to buy a new

(never-owned) car?What are the economic advantages to

leasing?

Page 15: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Transportation QuizWhat is the least expensive car you can

own?When is it economically wise to buy a new

(never-owned) car?What are the economic advantages to

leasing?What is the proper mileage at which it is

best to unload the old car?

Page 16: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Statistics:

Average Reliability Life = 10.2 years Mileage = 120,000

Average Trade-in Time = 4 years Mileage = 50,000

Page 17: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Pay Cash for Your Next Car!

.

Page 18: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Auto Insurance Tips:

Choose the highest deductible you can afford.

Shop for it.COMBINE policies.Look for other discounts.Consider eliminating COLLISION

coverage on an older car.

Page 19: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Life Insurance

Consider renewable term. Consider whether insurance is necessary.

Page 20: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Household/Personal

ClothingGambling

Page 21: Four Myths: z“ THINGS bring happiness.” z“Your possessions define who you are.” z“The more you have, the more you should spend.” z“Spending is a COMPETITION.”

Household/ Personal and Entertainment Ideas and Spending Plan Application

Individual Activity: