VICTORY BIBLE CHURCH
Financial Freedom Week!
Resources ▪ Inspiration ▪ Information
Dear Family and Friends,
We are excited to invite you on the journey with us to financial
freedom! Carrying the heart of Bishop Milton M. White, Sr.
Victory Bible Church is taking intentional steps towards
empowering the people of God to practically apply principles
proven to transition us all from being bound in our finances.
Freedom Is HERE! This packet is designed to give you a road
map that you can follow along with us to the promised financial
blessing that is due to us.
Together we can commit to living life abundantly, shackle free as
good stewards!
VBC Finance Team
Money can sometimes be emotional. If you feel out of control, stressed,
or maybe even guilty or ashamed about money choices, take control
back with a zero-based budget. Name every dollar, coming in and going
out. Leave the guilt and worry behind and move forward with
confidence! Tighten up your personal money management and create,
revise or revamp your personal budget with these 3 practical steps that
are sure to help!
Creating a budget generally requires three steps:
1
Identify how you're spending money now.
2
Evaluate your current spending and set goals that take
into account your long-term financial objectives.
3
Track your spending to make sure it stays within those
guidelines.
There’s a best-selling book out right now where the author has a skillful
way of making an impact on the way “financial responsibility” is
perceived amongst God’s beloved. The book starts off with this simple
sentence: “Make More [Money], Spend Less [Money].” That sentence
starts off the first and last page of the book!
Are you ready to take that turn off of debt road? Getting control of your
money is 80% behavior and 20% head knowledge (math). You CAN beat
debt and build wealth. Face the music head on. The practical steps below
actually help you visualize what's happening with your debt, and what to
do next.
Reducing/ Paying off debt requires focus on the following steps:
Get the snowball rolling by first listing the debt from smallest to largest:
Example…
$500 medical bill ($50 payment)
$2,500 credit card debt ($63 payment)
$7,000 car loan ($135 payment)
$10,000 student loan ($96 payment)
Pay minimum payments on all of the debts except the smallest one then attack that debt with a
vengeance. Once it’s gone, take the money you were putting toward that debt, plus any extra
money you find, and attack the next debt on the list. Once it’s gone, take that combined payment
and go to the next debt. Knock them out one by one, causing the snowball to grow bigger and
bigger.
By ditching the small debt first, you see progress in short time leading to a debt free life. That
one debt is out of your life forever. Soon the second debt will follow, then the next. When you
see that the plan is working, you’ll stick to it. By sticking to it, you’ll eventually succeed in
becoming debt-free!
The only time you might make an exception to the debt order is if one of the debts is to the IRS.
You do not want them in your life, so it would make sense to move a tax bill up in priority. Once
it’s gone, proceed with the debt snowball like normal.
By the time you are paying on the bigger debts, you have so
much more cash freed up from paying off the earlier debts that
it creates a “debt snowball” effect. You are putting hundreds of
dollars a month on your bills instead of a few bucks here and
there. You build momentum, which changes your behavior and
helps you get out of debt and stay that way.
Save your loose change. Putting aside fifty cents a day over the course of a year will allow you to
save nearly 40% of a $500 emergency fund.
Keep track of your spending. At least once a month, use credit card, checking, and other records
to review what you've purchased. Then, ask yourself if it makes sense to reallocate some of this
spending to an emergency savings account.
Never purchase expensive items on impulse. Think over each expensive purchase for at least 24
hours. Acting on this principle will mean you have far fewer regrets about impulse purchases,
and far more money for emergency savings.
Use debit and credit cards prudently. To minimize interest charges, try to limit credit card
purchases to those you can pay off in full at the end of the month. If you use a debit card, don't
rely on an overdraft feature to spend money you don't have. With either approach, you'll have
more money available for emergency savings.
Take advantage of discounts and/or incentive programs provided through your employer. For
example, if the company you work for offers discounted rates for computers, fitness center
memberships, movie tickets and passes to summer festivals, take advantage! And don’t forget
the best deal of all – investing in your 401(k)!
One way to establish a savings discipline is to “save” an amount equal to whatever is spent on
nonessential indulgences. Put a matching amount in a cookie jar for expenditures for beer, wine,
cigarettes, designer coffee, etc. If you can’t afford to save
the matching amount, you can’t afford the $4 super
almond low-fat latte.
Take the amount the item costs and divide it into your
hourly wage. If it’s a $50 pair of shoes and you make $10
an hour, ask yourself, are those shoes really worth five
long hours of work? It helps keep things in perspective.
Aim for short-term savings goals, such as setting aside
$20 a week or month rather than long term savings
goals, such as $200 over a year. People save more
successfully when they keep the short-term goal in sight.
Basement:
• Group old chemicals, paint together; call your city sanitation office for
proper disposal
• Move items off floors and package into boxes that you can put into
your storage container, or place items on shelves
• Organize items in basement by categories, e.g., group your tools
together, your games, etc.
Bathroom:
• Pull all items out from under the sink
and throw away old items or items you
don’t need anymore
• Organize the items under your sink by
putting the items you use the most in
front
• Call your city sanitation office if you are
unsure about disposing of certain
chemical agents
Bedroom:
• Pick up any clothes on your floor and find a spot for them in your
closet, dresser, storage container, or donate them
• If you haven’t worn it in a year, then it’s time to get rid of it
• Organize your dresser by pulling your articles out and deciding on
whether or not you plan on keeping them
• Our closets are an area that we sometimes forget about.
• Pull your items out of the closet and decide what’s a must keep, what
can be stored in a container, and what you no longer need
• Toss broken items
• Donate old clothing
PERSONAL MONTHLY BUDGET
Income 1
PROJECTED
Extra income
MONTHLY INCOME
Total monthly income
ACTUAL MONTHLY
INCOME
PROJECTED BALANCE
(Projected income minus expenses)
ACTUAL BALANCE
(Actual income minus expenses)
DIFFERENCE
(Actual minus projected)
Income 1
Extra income
Total monthly income
HOUSING
Projected Cost
Mortgage or rent
Phone
Electricity
Gas
Water and sewer
Cable
Waste removal
Maintenance or repairs
Supplies
Other
Subtotal
Actual Cost
Difference
TRANSPORTATION
Vehicle payment
Bus/taxi fare
Insurance
Licensing
Fuel
Maintenance
Other
Subtotal
Projected Cost
Actual Cost
Difference
INSURANCE
Home
Health
Life
Other
Subtotal
Projected Cost
FOOD
Groceries
Dining out
Other
Subtotal
Projected Cost
PETS
Food
Medical
Grooming
Toys
Other
Subtotal
Projected Cost
PERSONAL CARE
Projected Cost
Medical
Hair/nails
Clothing
Dry cleaning
Health club
Organization dues or fees
Other
Subtotal
Actual Cost
Actual Cost
Actual Cost
Actual Cost
ENTERTAINMENT
Video/DVD
CDs
Movies
Concerts
Sporting events
Live theater
Other
Other
Other
Subtotal
Projected Cost
Actual Cost
Difference
LOANS
Personal
Student
Credit card
Credit card
Credit card
Other
Subtotal
Projected Cost
Actual Cost
Difference
TAXES
Federal
State
Local
Other
Subtotal
Projected Cost
Actual Cost
Difference
Projected Cost
Actual Cost
Difference
Difference
SAVINGS OR INVESTMENTS
Retirement account
Investment account
Other
Subtotal
Projected Cost
Actual Cost
Difference
Difference
GIFTS AND DONATIONS
Charity 1
Charity 2
Charity 3
Subtotal
LEGAL
Attorney
Alimony
Payments on lien or judgment
Other
Subtotal
Projected Cost
Actual Cost
Difference
Difference
Difference
TOTAL PROJECTED COST
TOTAL ACTUAL COST
TOTAL DIFFERENCE
Super Saving
The Seven Baby Steps
There is a process for getting out of the mess that we created
without feeling overwhelmed. Getting out of debt will not
You can get anywhere
if you simply go one
step at a time.
“If you do the things
you need to do when
you need to do them,
then someday you
can do the things you
want to do when you
want to do them.”
happen overnight; it takes time. Here are the Baby Steps that will
get you started:
Step 1:
$1,000 in an emergency fund
($500 if your income is under $20,000 per year)
Step 2:
Pay off all debt except the house utilizing the debt
snowball (found in the Dumping Debt lesson)
– Zig Ziglar
Step 3:
Three to six months expenses in savings
Step 4:
Invest 15% of your household income into Roth IRAs
and pre-tax retirement plans
Step 5:
College funding
Step 6:
Pay off your home early
Step 7:
Build wealth and give!
If you will live like no one else,
later you can live like no one else.
Super Saving
The Story of Ben and Arthur
“If riches increase,
do not set your heart
on them.”
– Psalm 62:10
(NKJV)
Both save $2,000 per year at 12%. Ben starts at age 19 and stops
at age 26, while Arthur starts at age 27 and stops at age 65.
Age
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Ben Invests:
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,240
4,749
7,558
10,706
14,230
18,178
22,599
27,551
30,857
34,560
38,708
43,352
48,554
54,381
60,907
68,216
76,802
85,570
95,383
107,339
120,220
134,646
150,804
168,900
189,168
211,869
237,293
265,768
297,660
333,379
373,385
418,191
468,374
524,579
587,528
658,032
736,995
825,435
924,487
1,035,425
1,159,676
1,298,837
1,454,698
1,629,261
1,824,773
2,043,746
2,288,996
Arthur Invests:
0
0
0
0
0
0
0
0
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
0
0
0
0
0
0
0
0
2,240
4,749
7,558
10,706
14,230
18,178
22,599
27,551
33,097
39,309
46,266
54,058
62,785
72,559
83,506
95,767
109,499
124,879
142,104
161,396
183,004
207,204
234,308
264,665
298,665
336,745
379,394
427,161
480,660
540,579
607,688
682,851
767,033
861,317
966,915
1,085,185
1,217,647
1,366,005
1,532,166
Saving only
$167 a month!
$2,288,996
With only a
$16,000 investment!
$1,532,166
Arthur NEVER
caught up!
Super Saving
What do we learn from Ben and Arthur?
“Make all you can,
save all you can,
give all you can.”
– John Wesley
“Get Rich Quick” never
works. You will lose
your money. Saving
faithfully over time
will always build
wealth — it just takes
a little while.
Rate of return, or
rate, is important.
A simple, one-time investment of $1,000 could make a huge
difference at retirement...if you know how and where to invest it.
$1,000 One-Time Investment, No Withdrawal
Age 25 to Age 65 (40 years)
Where you put your money DOES MATTER!
Dumping Debt
Debt Snowball (Instructions)
Now it’s time to knock out that debt! List your debts in order, from the smallest balance to the
largest. Don’t be concerned with interest rates, unless two debts have a similar payoff balance.
In that case, list the one with the higher interest rate first. As you start eliminating debts, you’ll
start to build some serious momentum. These quick wins will keep you motivated, so you’ll be
able to stay on track.
The idea of the snowball is simple: pay minimum payments on all of your debts except for the
smallest one. Then, attack that one with gazelle intensity! Every extra dollar you can get your
hands on should be thrown at that smallest debt until it is gone. Then, you attack the second one.
Every time you pay a debt off, you add its old minimum payment to your next debt payments.
So, as the snowball rolls over, it picks up more snow. Get it?
Redo this sheet every time you pay off a debt so that you can see how close you’re getting to
total debt freedom. Keep the old sheets for encouragement—or to wallpaper the bathroom in
your debt-free house someday!
The “New Payment” is the total of the previous debt’s payment PLUS the current debt’s minimum.
As these payments compound, you’ll start making huge payments as you work down the list.
To factor in interest rates and calculate the exact date you will become DEBT FREE, use our
online debt snowball tool at daveramsey.com/fpumember (available throughout your
13-week FPU class).
Dumping Debt
Debt Snowball (Form 10)
Item
1.
Total
Payoff
Minimum
Payment
New
Payment
Super Saving
The Basic Quickie Budget (Instructions)
This form will help you get your feet wet in the area of budgeting. It is only one page and should
not be intimidating as you get started. The purpose of this form is to show you exactly how much
money you need every month in order to survive. We won’t get into the details of your credit card
bills, student loans, and other consumer debts here. This is just to give you a starting point as you
begin to take control of your money. You will learn how to create a full monthly cash flow plan in
the third class session.
There are four columns on this form:
1. Monthly Total
• This column shows you how much you are spending on necessities each month.
• If you do not know the amount, write down your best estimate.
• If an estimate is grossly inaccurate, then you may have never even noticed how
much you were spending in that area before now. Don’t beat yourself up about this!
2. Payoff Total
• Write down how much money is required to completely pay off that item.
• This line only appears in the relevant categories (mortgage, car debt, etc.).
3. How Far Behind?
• If your account is past due in any category, write down how many days you are behind.
• If you are up-to-date, simply write a zero or “N/A” (not applicable) here.
4. Type of Account
• Write in how this area is paid—by check, automatic bank draft, cash, etc.
• Early in the FPU course, you will see the benefits of using cash for certain items.
Challenge yourself by identifying categories for which you can use cash only.
• The asterisks ( * ) on the form indicate areas in which a cash-based approach
could be helpful.
Super Saving
The Basic Quickie Budget
Item
GIVING
SAVING
HOUSING
First Mortgage
Second Mortgage
Repairs/Mn. Fee
UTILITIES
Electricity
Water
Gas
Phone
Trash
Cable
*Food
TRANSPORTATION
Car Payment
Car Payment
*Gas & Oil
*Repairs & Tires
Car Insurance
*CLOTHING
PERSONAL
Disability Ins.
Health Insurance
Life Insurance
Child Care
*Entertainment
OTHER MISC.
TOTAL MONTHLY NECESSITIES
Monthly
Total
Payoff
Total
How Far
Behind
Type of
Account