Презентация на тему «Маленькие секреты транспорта»

The Generous Heart Of God Budget Workshop

A Practical Workshop In Achieving True Financial Peace & Freedom

© 1988, 1995, 1998, 1999, 2001, 2007 R. D. Henry

Financial Freedom Notebook - Workbook Contents

Yearly Summary

Monthly Summary

Account Sheets

Budget Plan

Spending Guidelines

Budget Analysis

Impulse List

“As Is” Budget

Purchase List

Net Worth

Goals

Gift List

3 Steps To Financial Peace & Freedom

Where Do I Want To Go And Why?

How Do I Get There?

Where Am I?

Develop 1 Year Budget Plan Follow The Plan Change Habits Adapt Plan Manage Money God’s Way $$ Peace, Freedom

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

Learn & Apply Biblical Relationships & Principles

What Are Some Symptoms Of Financial Bondage

Feel Distant From God, Fear, Worry, … Growing Credit Card Balances Bounced Check Charges Late Charges A Feeling Of Helplessness….. Depression Personal, Marital Problems Excessive Borrowing

2 Pet 2:19b ... for a man is a slave to whatever has mastered him. (NIV)

Typical Symptom Treatment

What Are The Real Problems

Lack Of Biblical Training, Weak / No Relationship With God … Spiritual, Financial Ignorance Poor Planning Or No Plan At All Lack Of Discipline – Knowing Is Not Doing Deception (Wrong Beliefs) Greed, Pride, Self Indulgence Poor Communication

Learn How To Distinguish Between Symptoms and Problems

Symptom Typical Solution Real Problem

• Borrow More, Consolidate • 2nd Job, Work Overtime • Spouse Goes To Work

• Buy More • Buy The “Best” I Am What I Own

• Stingy, Spend Less • Save More Than Needed

Four Levels Of Maturity

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)

God’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)

Try To Teach @ Father Level

1 Cor 3:1, 1 Jn 2:12-14

What is God’s #1 Concern For Your Finances

Attitude

"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)

God’s Simple Plan

1. God Owns 2. I Manage 3. God Provides

(Give, Save, Live)

(God’s Generous Heart)

GOAL SETTING

Godly Life Goals

Intellectual, Mental

Spiritual

Physical

Family, Friends

Planning

Personal Ministry

Recreation, Rest

Financial

Career, Education

Social

Goal Planning (Notebook Pg B3)

Goal Planning Sheet

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:

Category:

• Spiritual • Intellectual • Physical

• Family • Social • Personal Ministries

• Career • Financial

• Recreation • Planning

Goals Questionaire (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: ____________

SHORT RANGE PLANNING

What Does God Want Me To Do Financially?

Short Range Planning

Income, Expense, Saving, And Investment Planning For The Next 12 Months

Income

Utilities

Giving

Medical

Taxes

Transportation

Social Security, Medicare

Insurance

Clothing

Savings, Investing

Credit Cards

Hobbies

Mortgage

Entertainment, Recreation

Food

Food

New Purchases

Details Of Short Range Planning

Begin With End In Mind

We All Need Boundaries

Prov 27:12 The prudent see danger and take refuge, but the simple keep going and suffer for it.

Shelt Elementary

What!! Me Budget

Provide Peace & Freedom And Keep Us Safe

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:

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

Assets

Liabilities (Debts)

MASTER CARD

Debt List (Notebook Pg C1)

Sample Debt List

Net Worth Statement (Notebook Pg C2)

Value Owe, Taxes, Net Value Costs

Computing Net Worth Of 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.

Where Are You

Your “As Is” Budget

What You Have Earned, Saved, And Spent The Last 12 Months

What You Earn

What You Spend

Where You Are

How I Have Been Earning & Spending $ (My Old Ways) Notebook Pg D1

Budget Surplus / Deficit

“As Is” Budget - Compile From Records For Last Year Homework – Do A Thirty (30) Day Expense Diary

Record Monthly Averages, Based On Last 12 Months

$$$ Income $$$

Net Spendable Income Computation

$$$ Giving & Taxes $$$

$$$ Expenses $$$

Income – What God Has Provided

List Equivalent Average Monthly 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)

$$$ Income $$$

Wages, Tips $___________ Interest $____________ Overtime $___________ Loans $____________ Bonuses $___________ Retirement $____________ Total Gross Income $ ___________

I Manage: How I Have Been Spending $$ - Giving & Taxes

Net Spendable Income – Save, Live

How I Have Been Spending $$ - Save, Live Monthly

How I Have Been Spending $$ - Budget Surplus / Deficit

Now You Know Where You Are Financially

Debts

Net Worth

“As Is” Budget

What You Owe

God’s Financial Principles

• 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

Disclaimer: No Magic Solutions

Tips, Tricks & Traps -Section G

How To Have A Financial Disaster

Start To Accumulate

Develop Discipline, Balanced Spending

Yes

Financial Peace & Freedom

Feel $ Pressure

No

Eviction Repossession Bankruptcy Divorce

Borrow Too Much

Problems- 1. Competing, “Need” For Things 2. Trying To Accumulate Too Quickly 3. Inadequate Planning & Discipline

Credit Is A Big Trap

• 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

How We Get Trapped By Over Borrowing

• 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 Long To Pay Off

How Long Does It Take To Pay Off Your Credit Card If You Make Just The Minimum Payment?

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 Credit

39

Debt List (Notebook Pg C1)

AMERICANS ARE DROWNING IN A SEA OF CREDIT CARD DEBT

41

Credit Cards Are Like Drugs

They Give Short-term Pleasure Followed By Long-term Pain

It Takes More And More To Keep Us 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 $100/Month In Interest Alone

42

God’s View of Debt

Debt is slavery!

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.

There are over 2350 verses in the Bible about finances.

43

What About Credit

Debt Presumes Upon Tomorrow!

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.

44

Guidelines For Credit Use

• 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

Credit Card Guidelines

DESTROY THEM! OR…..

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% !!)

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

Steps To Get Out Of Debt

1. Stop 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 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 Owed As Quickly As Possible 4. Pay 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 Debt

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 …

Cont..

How To Get Help With Creditors

• Use Volunteer Budget Coach To Help – Contact Casas Budget Coach Coordinator: Chris Baird chris@automatit.net, 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

Advertising Can Be A Trap

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 Trap

Cont’d..

4. God Says: Beware, Be On Your Guard Against Every 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 consist 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.

Impulse Buying 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

Controlling Impulse Buying Notebook Pg G1

• 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

Impulse List

Only One Item On The List At A Time Married - Three Lists: His, Hers, Ours

Item

Cost # 2

Cost # 3

Date

Cost # 1

Jun 21

$250.00

VCR

$ 75.00

$165.00

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

Controlling Gifts (Notebook Pg G2)

• Make A Gift Spending Plan And Stick To It • No Credit Buying, Make Gifts To Save Money (Show Love)

Gift List

EVENT

DATE

PERSON

$ ALLOCATED

Bob Jones ... Cousin

Birthday

Mar 22

$ 15.00

Susan …Wife

$ 50.00

Anniversary

Mar 30

Dec 25

$ 50.00

Susan …Wife

Christmas

Various

Birthdays

Children 4 @ $25 ea.

$ 100.00

Beth…Daughter

Wedding

Jan 26

$ 1,000.00

Total For Year $ ______ Total Per Month $ ______

Savings Create Freedom

• 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

The Goal Of Budgeting

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

What God Says About Where His Money Goes

What God Says About Where His Money Goes

Income - "And my God will meet all your needs according to his glorious riches in Christ Jesus." (Phil 4:19 NIV) Giving - "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) Taxes - "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 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 Where His Money Goes

Savings - "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 Payoff - "The rich rule over the poor, and the borrower is servant to the lender." (Prov 22:7 NIV) "No 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 serve both God and Money." (Mat 6:24 NIV) Investments - "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)

Typical Balanced Budget $40,000 Income

Net Spendable Income

72%

~ 28 % To God And Government ~ 72 % To Spend & Save

Giving & Sharing Principles

• Recognize 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 Attitude - 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 Grateful • Give The First Part Of All - Honor the LORD with your wealth, with the firstfruits of all your crops; (Prov 3:9 NIV) • How Much Should You Give? 10%? 20% ? 90%?: Lev 37:30 A 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 LORD. (Lev 27:30 NIV)

Giving And Sharing Principles

• How & When To Give - With, Planning And Premeditation - Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Cor 9:7 NIV) Give 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- 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?

Cont’d

Giving And Sharing Principles Cont’d …

• Sometimes God Asks Us To Give Sacrificially - 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 poverty, put in everything-- all she had to live on.” (Mk 12:41-43 NIV)

Giving And Sharing Principles Cont’d

• The Bottom Line: Give Cheerfully And Generously Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for 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 thanksgiving to God. (2 Cor 9:6,7 NIV)

Analyzing How You Have Been Spending Your Income

You're Right. There Are Some Changes We Should Make.

Expense Guidelines, $40,000 Gross, Max Housing

MISC

MEDICAL

6%

5%

SAVINGS

5%

CLOTHING

MAX

5%

HOUSING

RECREATION

4%

40%

5%

DEBTS

5%

INSURANCE

10%

15%

AUTO

FOOD

Ballpark Budget Guidelines Family Of 4 (Notebook Pg E2)

School/Childcare 8% 6% 5%

Ballpark Budget Guidelines Single Adult (Notebook Pg E7)

Budget Analysis Worksheet (Notebook Pg E9)

Balance, The Key To Success

Danger!

Success!

Hoarding

Overspending

Church & Career

God & Family

Income

Outgo

Outgo

Income

A Most Important Principle

ABSOLUTELY!!!

You Absolutely Cannot Spend More Than You Earn!!!

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 content with your pay"

Case Studies

• 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 Study – Single, Renter $20,000 Income

Medical 3.0%

Clothing 3.0%

Misc 2.3%

Investments 3.0%

Recreation 7.0%

Debts 4.8%

Insurance 5.0%

Housing 36.1%

Auto 26.5%

How Does This Budget Compare To The Guidelines On Pg E7?

Food 9.3%

Case Study Maximum Housing, No Debt, Newlywed’s

Retirement 8.0%

Business 2.0%

Misc 9.0%

Housing 44.0%

Medical 1.0%

Savings 2.0%

Clothing 2.0%

Food 10%

Recreation 6.0%

Insurance 1.0%

Case Study Maximum Housing, No Debt, Newlywed’s

1% Giving Challenge Try Increasing Your Giving 1% - See What God Does

To Bless You

Case Study

Maximum housing (48%), Accelerated Mortgage Payoff

Retirement 5.6%

Savings 4.7%

Misc 11.2%

Housing 34.9%

Medical 1.4%

Clothing 3.1%

Recreation 10.4%

Debts 13.1%

Accelerated Mortgage Payoff

Insurance 1.8%

Auto 6.1%

Food 7.6%

Case Study

Married 15 Years, 2 Young Children, $60,000 Income, “Own” Home, Investing For Early Retirement

Higher Giving, Lower Taxes. Total About The Same !

Payoff Mortgage By Age 45

No Credit Card Or Auto Debt

Christian Schools

13% Total Savings Investment. Goal – Early Retirementc 13%

Comment

Category

Biggest Mistakes To Avoid

No Savings Overspend Using Debt House, Furnishings Cars Abuse Credit Cards, Car Loans, Mortgage Fail To Invest Early & Wisely

Develop New Habits

Saving

Planning

Giving & Sharing

Investing

Resisting Impulse Buying

Becoming Debt Free

US 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”

Windfall 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

Fluctuating Income

Tip…Totally Segregate Business Income From Home Finances

Surplus

52.5% Average

Deficit

Cars - 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

Depreciation

Financing

Insurance

Taxes & Fees

Fuel

Maintenance

Repairs

Yearly Totals

$39,404

Year 1

Year 2

Year 3

Year 4

Year 5

5-yr Total

$4,359

$2,237

$1,970

$1,746

$1,566

$11,878

$1,637

$1,327

$991

$625

$228

$4,808

$1,420

$1,470

$1,521

$1,574

$1,598

$7,583

$1,950

$307

$257

$216

$181

$2,911

$1,554

$1,601

$1,649

$1,698

$1,749

$8,251

$288

$540

$405

$1,168

$840

$3,241

$0

$0

$105

$254

$373

$732

$11,208

$7,482

$6,898

$7,281

$6,535

Family 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)

Depreciation

Financing

Insurance

Taxes & Fees

Fuel

Maintenance

Repairs

Yearly Totals

$57,564

Year 1

Year 2

Year 3

Year 4

Year 5

5-yr Total

$8,662

$2,454

$2,160

$1,915

$1,718

$16,909

$2,093

$1,697

$1,266

$799

$291

$6,146

$1,870

$1,935

$2,003

$2,033

$2,146

$9,987

$2,488

$393

$329

$276

$231

$3,717

$2,874

$2,960

$3,049

$3,140

$3,234

$15,257

$469

$829

$541

$2,173

$804

$4,816

$0

$0

$105

$254

$373

$732

$18,456

$10,268

$9,453

$10,590

$8,797

True Cost To Own A Car Source: www

Edmonds.com Oct 2007

Tips Used Is Cheaper Smaller Is Cheaper Minimize/Eliminate Loans Make Sure You Can Afford What You Buy Wise Car Decisions Can Fund College, Weddings, Retirement

Used Is 30% Cheaper

5-Year Loan (60 mo)

Underwater 3 Years !!! (Owe More Than Car Is Worth)

88

0 1 2 3 4 5 6 7

Make A Dream List (Notebook Pg G3)

Dream List

Date

Priority

Price

Price

Price

Comments

#1

#2

#3

New Computer

Leather Couch

Quad ATV

Big Screen TV

Vacation Home

Candidate Item

To Buy

How To Get Totally Out Of Debt

Including 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?

How To Pay A Little More And 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)

Summary - Steps To Becoming Totally Debt Free

Payoff Home, Invest For Long Term Needs – College, Retirement … Debt Free !!!

$1,000 Emergency Savings, Stop Borrowing, Meet Monthly Payments

Payoff Consumer Credit Debts, Save 3 To 6 Months Expenses

Payoff Car Loans, Save To Buy Cars For Cash

Spend For College, Weddings Fund More Kingdom Work

Enjoy Income From Investments Enjoy, Fund Even More Kingdom Work

Wealth Building Secrets – Four Cornerstones

$$$ Cash Flow To Last Rest of Your Life!

Expense Avoidance / Elimination

Debt Free, Adequate Savings Minimize Recurring Expenses

Paid Off Home

Expenses

Nestegg of Diversified Investments (IRA, 401k, 403B …)

Pension, Social Security, Medicare (Maybe, Maybe Not)

Income

1 - 93

$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

Power of Eliminating or Reducing Small Recurring Expenses – How To Increase Your Nest Egg By $95,000

Average Family Spends $100/Month On Credit Card Interest. Real Cost ?

1 - 94

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

Power of Eliminating Larger Recurring Expenses – How To Increase Your Nest Egg By $725,000

1 - 95

Section “F”

.. My plans For Next 12 Months My New Habits

My Plan To Be A Better Manager

Establish A Maximum 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

Fix Your Spending Level

Surplus – More Than Enough

Maximum

Enough

Not Totally Content

Minimum

Not 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

Spending 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?

Can You Buy A New Couch

Can They Buy A New Couch

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?

Check

Amount Of Transaction

Amount Of Dep

Number

Date

Description

T

Fee

Balance

$

1,215.60

884

9/23/97

Smith’s - Groceries

$ 159.00

$1,056.60

886

9/27/97

Pep Boys - Auto Repair

$ 239.00

$ 817.60

887

9/30/97

Deposit Bob’s Paycheck

$ 854.58

$1,672.18

The Control System - The Key To Making Your Finances Work

Control System - Allocation & Control

Keep It Simple!

Food

Auto

Housing

Food $400 Per Month

Auto $600 Per Month

Housing $1100 Per Month

Budget Account Sheet - One Sheet Per Budget Item (Workbook Pg I2)

Budget Account: Entertainment October 1998 Yearly Allocation: $ 1,300 Monthly Allocation: $108 ($25/Week)

Date

Transaction

Deposit

Withdraw

Balance

1-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 Spend

Budget Account Sheet - One Per Budget Item (Workbook Pg I2)

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

Budget Account: Food October 1998 Yearly Allocation: $ 4,800 Monthly Allocation: $400

Date

Transaction

Deposit

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

$

31-May

Costco

$

(16)

$

111

127

Budget 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

Budget 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

Monthly Summary Sheet (Notebook Pg H1)

Category Allocation Jan Feb Mar Apr Giving 800 161 421 366 666 House Mortgage 1600 0 0 0 0 House Maintenance 25 18 -1 5 3 House Insurance 40 3 33 63 93 House Taxes 139 139 278 407 546

End Of Month Balances

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 Working. Do One Time Transfers Or “Loans”.

Develop Discipline, Which Will Lead 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 !

Keeping 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

Needs Wants Desires

Learn To Distinguish Between

Financial 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

Financial Decision Making Tips

Make Decisions To Maximize The Amount Of Peace 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

Our Part – Believe, Manage Well

Do We Believe God?

Beliefs Decisions Actions

I Manage

Sowing/ Reaping

God Owns

God Provides

God Provides

Results, Blessings

Giving to honor God, minister to the needs of others, and to support the church as she evangelizes the lost and matures disciples

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.

Giving Saving Living

We gratefully receive from God and respond to His generosity by:

Saving and Multiplying for the future

Living contentedly within the limits of God’s provision

FAITH CRISIS

© Casas Church – Used By Permission. Minor Mods By Author

Financial Freedom Notebook - Use It

Yearly Summary

Monthly Summary

Account Sheets

Financial Freedom Notebook

Budget Plan

Spending Guidelines

Budget Analysis

Impulse List

“As Is” Budget

Purchase List

Net Worth

Goals

Gift List

God’s Secret Success Formula

Commit to the Lord whatever you do and your plans will succeed. Proverbs 16:3 May he give you the desire of your heart and make all your plans succeed. Psalm 20:4

God’s Simple Plan

1. God Owns 2. I Manage 3. God Provides

(Give, Save, Live)

(God’s Generous Heart)

Develop New Habits

“Changing Behavior Starts With Changing Beliefs.”

Isa 43:18 NIV "Forget the former things; do not dwell on the past. See, I am doing a new thing!

PLANNING

PLANNING

SAVING

SAVING

GIVING & SHARING

GIVING & SHARING

INVESTING

INVESTING

BECOMING DEBT FREE

BECOMING DEBT FREE

RESISTING IMPULSE BUYING

RESISTING IMPULSE BUYING

True Riches, Honor, And Life

..

… do not come by our striving after them. They come when we walk humbly before a holy God and become accountable for 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

True Riches

The resources which God entrusts to us after we surrender our desire to be rich. “But they that will be rich fall into … many foolish and hurtful lusts… “ 1 Timothy 6:9 Bill Gothard and Staff

Supplementary Charts

Resources

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

Resources

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: Crowntuc@Comcast.net Phone: 866-280-8260 • www.DaveRamsey.com Dave Ramsey – Christian Talk Radio Host

Financial Questionnaire

1. Do You Think Your Finances Are Well Planned and Managed? 2. Are You Content With Money Matters? 3. Do You Have Written Personal, Family, and Financial Goals? 4. Do You Have Long Range Plans for Saving, Investing and X Retiring? 5. Do You Know How Much You Owe on All of Your Debts?

Financial Questionnaire

6. Do You Never Pay Late Charges, Bounced Check Charges or Interest for Credit Card Charges? 7. Do You Have a Written Personal or Family Budget and Are X X You Following It? 8. Do You Have a Good Understanding of What the Bible Says X About Your Finances? 9. Do You Have a Current Will? 10. If You Are Married, Are Finances One of the Best Areas of X X Communication in Your Marriage? 11. Do You Want to Learn How to Be a Better Money Manager?

How To Build Your Financial House

The 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 plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. (NIV) (God’s Generous Heart)

Four Levels Of Maturity

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)

God’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)

1 Cor 3:1, 1 Jn 2:12-14

God’s Secret Success Formula

Commit to the Lord whatever you do and your plans will succeed. Proverbs 16:3

What is God’s #1 Concern For Your Finances

Attitude

"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)

God’s Simple Plan

1. God Owns 2. I Manage 3. God Provides

(Give, Save, Live)

(God’s Generous Heart)

Step 1 - God Owns

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?

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?

Step 2 - I Manage (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.'"

Some 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?

Step 3 - God Provides

Mat 6:25 NIV ""Therefore I tell you, do 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 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 worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own."

Our Part – Believe, Manage Well

Do We Believe God?

I Manage

Sowing/ Reaping

God Owns

God Provides

God Provides

Results, Blessings

Giving to honor God, minister to the needs of others, and to support the church as she evangelizes the lost and matures disciples

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.

Giving Saving Living

We gratefully receive from God and respond to His generosity by:

Saving and Multiplying for the future

Living contentedly within the limits of God’s provision

FAITH CRISIS

© Casas Church – Used By Permission. Minor Mods By Author

Credit Cards

Automobiles

Housing

138

Gimmick Mortgages

ARM – Adjustable Rate Mortgage Interest Only Mortgage Balloon Payment Mortgage 40 to 50-yr Mortgage Teaser-Rate Mortgage Reverse Mortgage Home Equity Loan

139

Rules of the House

NO ARM’s - Fixed Rate Only Obtain a “Par quote” Mortgage Use Manual Underwriting Get Shortest Term Possible – 15-yr Don’t buy “too much” house Pre-Pay Mortgage No Debt Consolidation Loans

140

Is this the Financial Direction You’re Getting from the World

141

Teaching Children Financial Responsibility

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

Include Your Kids In Setting Up Your Financial 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

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

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