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
1
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
2
3 Steps To Financial Peace & Freedom
Learn & Apply Biblical Relationships & Principles
Where Am I?
Where Do I
Want To Go
And Why?
• Establish Your
Current Situation –
Spiritually, Financially
• Understand
The Generous
Heart Of God
• Earning, Giving
• Set Godly
Goals And
Priorities
• Be A Good
$$$ Manager
Spending, Saving &
Investing For Last 12
Months
3
How Do I
Get There?
• Develop 1 Year
Budget Plan
• Follow The Plan
• Change Habits
• Adapt Plan
• Manage Money
God’s Way
• $$ Peace, Freedom
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)
4
Typical Symptom Treatment
Yell About
The
Problems
Ignore The
Problems
Borrow Your
Way Out Of
Problems
Depression
Avoid The
Problems
5
Divorce
The
Problem
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
6
Learn How To Distinguish Between
Symptoms and Problems
Symptom
Excessive
Spending,
No Saving
Jealous Of
What Others
Have
Hoarding
Typical Solution
• 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
7
Real Problem
Lack Of
Planning
And
Discipline
Covetousness
Fear, Don’t
Trust God
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
Fathers
of the heart.” (Heb 4:12 NIV)
Young Men
Children
Infants
Try To Teach
@ Father Level
1 Cor 3:1, 1 Jn 2:12-14
8
What is God’s #1 Concern For
Your Finances?
"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)
9
God’s Simple Plan
1. God Owns
2. I Manage
(Give, Save, Live)
3. God Provides
(God’s Generous Heart)
10
11
Intellectual,
Mental
Spiritual
Physical
Family,
Friends
Planning
Personal
Ministry
Recreation, Rest
Financial
Career,
Education
Social
12
Goal Planning
(Notebook Pg B3)
Goal Planning Sheet
Category: • Spiritual
• Intellectual
• Physical
• Family
• Career
• Social
• Financial
• Personal Ministries
• Recreation
• Planning
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:
13
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: ____________
14
What Does God Want
Me To Do Financially?
15
Short Range Planning
Income, Expense, Saving, And Investment Planning
For The Next 12 Months
Income
Giving
Utilities
Medical
Transportation
Taxes
Social Security,
Medicare
Insurance
Clothing
Savings, Investing
Credit Cards
Mortgage
Food
Food
16
Hobbies
Entertainment,
Recreation
New
Purchases
Details Of Short Range Planning
What You
Earn
What You
Spend
Budget
Analysis
Where
You Want
To Go
Where
You Are
One Year
Plan
How To
Get
There
Begin With End
In Mind
What You
“Own”
What You
Owe
17
Goals,
Priorities
Book
Keeping
System
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
18
What!! Me Budget?
• 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
Our Finances To Achieve Our Goals And Priorities
X
• No One Likes Budgeting, But Everyone Likes The Results
• The Real Purpose Of A Budget Is To:
Provide Peace & Freedom
And Keep Us Safe
19
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
What You
“Own”
What You
Owe
Assets
Liabilities (Debts)
MASTER CARD
20
Debt List
(Notebook Pg C1)
Name: ________________
List
List Debts In Order Of Largest To Smallest
Owed
To
Owed
For
Total Left
To Pay
Of Debts
Monthly
Payment
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Column Totals
$ __________ $ ________
Total Debt Total Payment
Monthly
21
Date: ______________
%
Interest
Amount Of
Balloon
Sample Debt List
Owed To
Inlaws
Happy Auto Repair
Last Chance Auto
Last Ditch Finance
Desperate Home
Loan
VISA
TOTAL
Owed For
Total Owed
Monthly
Payment
Amount of
% Interest Balloon
Big Screen TV
Car Repairs
Car
Furniture
$
$
$
$
1,000.00
1,000.00 $
6,000.00 $
6,000.00 $
???
50.00
300.00
250.00
???
18%
21%
19%
$ 1,000.00
None
None
$ 1,000.00
House
???
$ 78,529.00 $
$ 450.00 $
736.00
55.00
11%
19%
$ 5,000.00
None
$ 92,979.00 $
1,391.00
22
$ 7,000.00
Net Worth Statement
(Notebook Pg C2)
Net Worth
Statement
Value
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Cash, currency, coins, uncashed checks
Checking accounts
Savings accounts: banks, credit union, etc.
Money market accounts
Certificates of deposit
Treasury bills, bonds, notes, savings bonds
Other assets to be received (tax refund, etc)
Personal property: furniture, appliances, etc.
Jewelry, furs, collectibles, antiques, etc.
Vehicles: autos, boats, motorhomes, trailer, etc.
Other miscellaneous personal property
Personal residence (current market value)
Vacation homes, recreational property, etc.
Investment real estate: rentals, land, etc.
a. Property 1 _________________________
b. Property 2 _________________________
c. Property 3 _________________________
d. Property 4 _________________________
e. Property 5 _________________________
Stocks
Mutual funds
Bonds
Options, Warrants, etc.
Other (eg annuities)
Pensions plans, retirement plans, etc.
Individual retirement accounts
401K, 403B, etc. plans
Keoughs
Life insurance cash value
Businesses owned
Partnerships
Mortgages, loans, notes owed to me
Other _______________________________
Other _______________________________
Other _______________________________
Column Totals
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
$ ___________
Owe, Taxes, Net Value
Costs
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
$ __________ $ __________
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
______ %
$ ___________ $ __________ $ __________
1
Subtract total consumer debt (total from debt list minus debts from lines 1 - 30 above. $ __________
2
True Net Worth (after taxes, sale expenses, debt payof) $ __________
3
23
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.
24
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
25
How I Have Been Earning & Spending $
(My Old Ways) Notebook Pg D1
•“As Is” Budget - Compile From Records For Last Year
• Homework – Do A Thirty (30) Day Expense Diary
$$$ Income $$$
Net Spendable Income
Computation
$$$ Giving & Taxes $$$
$$$ Expenses $$$
Budget Surplus / Deficit
Record Monthly Averages, Based On Last 12 Months
26
Income – What God Has Provided
List Equivalent Average Monthly Income
(E.G. $900 Bonus = 900/12 = $75 Per Month)
$$$ Income $$$
Wages, Tips $___________
Interest
$____________
Overtime
$___________
Loans
$____________
Bonuses
$___________
Retirement $____________
Total Gross Income $ ___________
• Gross Income = Total Monthly Income Before Any
Deductions Or Expenses
• Includes Average Monthly Equivalent Of Any Irregular,
But Dependable, Income
27
I Manage: How I Have Been Spending
$$ - Giving & Taxes
$$$ Income $$$
$$$ Giving & Taxes $$$
Charitable
Giving
Taxes
• Church
• Missions
• Others
•
•
•
•
Total Giving
Total Taxes
Net Spendable Income
Computation
Federal
State, Local
Social Sec.
Medicare
$$$ Expenses $$$
Budget Surplus / Deficit
28
Net Spendable Income – Save, Live
$$$ Income $$$
Net Spendable Income
Computation
$$$ Giving & Taxes$$$
Gross Income
Total Giving
Minus Giving
Total Taxes
Minus Taxes
Total Giving & Taxes
Net Spendable Income
$$$ Expenses $$$
Budget Surplus / Deficit
29
How I Have Been Spending $$ Save, Live Monthly
$$$ Income $$$
$$$ Giving & Taxes $$$
Net Spendable Income
$$$ Expenses $$$
Housing
Transportation
Debts
Insurance
Food
Clothing
Entertainment
Medical
Savings
Total Expenses ________
Budget Surplus / Deficit
30
Miscellaneous
How I Have Been Spending $$ Budget Surplus / Deficit
$$$ Income $$$
Net Spendable Income
$$$ Giving & Taxes $$$
$$$ Expenses $$$
Budget Surplus / Deficit = Net Spendable – Total Expenses
31
Now You Know Where
You Are Financially !
Debts
Net Worth
What
You
Earn
What
You
Spend
What
You Own
What
You
Owe
“As Is” Budget
32
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
33
Tips, Tricks & Traps Section G
Disclaimer: No Magic Solutions
34
How To Have A Financial Disaster
Start To
Accumulate
Feel $
Pressure
Develop Need
For Things
Develop
Discipline,
Balanced
Spending
Yes
Financial
Peace &
Freedom
No
Eviction
Repossession
Bankruptcy
Divorce
Borrow
Too
Much
Problems- 1. Competing, “Need” For Things
2. Trying To Accumulate Too Quickly
3. Inadequate Planning & Discipline
35
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 BudgetPaying Interest Isn't Fun
• Abuse Of Credit Can Enslave You
• Don't Be A Credit Frog
36
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
37
How Long To Pay Off?

How Long Does It Take To Pay Off Your Credit
Card If You Make Just The Minimum Payment?
38
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)
Owed To
Inlaws
Happy Auto Repair
Last Chance Auto
Last Ditch Finance
Desperate Home
Loan
VISA
TOTAL
Owed For
Total Owed
Monthly
Payment
%
Interest
Amount of
Balloon
Big Screen TV
Car Repairs
Car
Furniture
$
$
$
$
1,000.00
1,000.00 $
6,000.00 $
6,000.00 $
???
50.00
300.00
250.00
???
18%
21%
19%
$ 1,000.00
None
None
$ 1,000.00
House
???
$ 78,529.00 $
$ 450.00 $
736.00
55.00
11%
19%
$ 5,000.00
None
$ 92,979.00 $
1,391.00
40
$ 7,000.00
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
45
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% !!)
46
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
47
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)
48
Steps To Get Out Of Debt
Cont..
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 …
49
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 CounselorThey 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
50
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
51
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.
52
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
53
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
Date
Item
Cost # 1
Jun 21 VCR
Sep 10 Laptop Computer
Dec 11 Big Screen TV
Cost # 2
$250.00
$165.00
$1,200.00
$2,250.00
$1,150.00
$1,650.00
• Only One Item On The List At A Time
• Married - Three Lists: His, Hers, Ours
54
Cost # 3
$ 75.00
$675.00
$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
Birthday
Anniversary
Christmas
Birthdays
Wedding
Mar 22
Mar 30
Dec 25
Various
Jan 26
Bob Jones ... Cousin
Susan …Wife
Susan …Wife
Children 4 @ $25 ea.
Beth…Daughter
Total For Year
Total Per Month
55
$ ALLOCATED
$ 15.00
$ 50.00
$ 50.00
$ 100.00
$ 1,000.00
$ ______
$ ______
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
56
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
57
What God Says About Where
His Money Goes
Phil 4:19
Prov 3:9
Prov 28:27
Prov 21:20
Emergencies,
Unemployment
Matt 22:17-21
Taxes
Provision for
the Gov’t.
God’s Generous Heart -
Income
God’s Provision For Us
Our Generous Heart –
Giving
Savings
Our Provision For God’s Work
& Others
Investments
I Tim 5:8
Living
Expenses
Provision for
the Family
58
Prov 21:5
Deu 8:17-18
Sow/Reap, Multiply
For Future
Prov 22:7
Debt
Pay-off
To Become Free (One
Master Vs Two)
Receive
Give
Save
Live
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)
59
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)
60
Typical Balanced Budget
$40,000 Income
~ 28 % To God And Government
~ 72 % To Spend & Save
Net
Spendable
Income
72%
61
GOD
10%
Government
18%
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)
62
Giving And Sharing
Cont’d
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?
63
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)
64
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)
65
Analyzing How You Have
Been Spending Your Income
You're Right. There
Are Some Changes
We Should Make.
66
Expense Guidelines,
$40,000 Gross, Max Housing
MISC
MEDICAL
5%
SAVINGS
6%
5%
CLOTHING
MAX
HOUSING
40%
5%
RECREATION
4%
DEBTS
5%
INSURANCE
5%
10%
15%
AUTO
FOOD
67
Ballpark Budget Guidelines
Family Of 4 (Notebook Pg E2)
Annual Gross Income
Charitable Giving
Taxes
Up to $40,000
Range
Avg.
10-12%
10%
10-18%
18%
$40,000 to $60,000
Avg.
Range
10-15%
10%
10-25%
19%
$60,000 and Up
Range
Avg.
10-25+% 10%
10-30%
21%
Net Spendable
Income = 100%
70-80%
72%
70-80%
71%
70-80%
69%
Savings
Housing
Food
Transportation
Medical
Clothing
Entertainment
Insurance
Miscellaneous
Debts
Investments
Retirement
5-8%
28-40%
15-18%
10-15%
2-5%
3-5%
4-6%
4-5%
4-8%
0-6%
0-6%
5-10%
5%
36%
12%
14%
4%
4%
5%
5%
5%
2%
3%
5%
5-10%
25-35%
10-14%
10-14%
2-5%
3-6%
4-7%
4-6%
4-8%
4-9%
4-10%
5-10%
5%
26%
11%
12%
4%
5%
7%
6%
7%
6%
5%
6%
5-10%
20-30%
8-15%
8-15%
2-5%
3-6%
5-8%
4-7%
8-10%
5-10%
7-10%
5-10%
5%
24%
9%
9%
3%
5%
7%
5%
8%
8%
10%
7%
100% 80-136%
100%
TOTAL
80-132%
100% 83-135%
School/Childcare
8%
68
6%
5%
Ballpark Budget Guidelines
Single Adult (Notebook Pg E7)
69
Budget Analysis Worksheet
(Notebook Pg E9)
CATEGORY
(1) OLD
DIFFERENCE NEW
BUDGET GUIDELINE (2) (1) - (2)
BUDGET
% NET
Monthly Gross Income
Charitable Giving
Taxes
$
$
$
%$
%$
$
$
$
$
$
Net Spendable
Income =100%
$
%$
$
$
100 %
$
$
$
$
$
$
$
$
$
$
$
$
%$
%$
%$
%$
%$
%$
%$
%$
%$
%$
%$
%$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
%
%
%
%
%
%
%
%
%
%
%
%
Savings
Housing
Food
Transportation
Medical
Clothing
Entertainment
Insurance
Miscellaneous
Debts
Investments
Retirement
TOTAL
70
Balance, The Key To Success
Hoarding
Overspending
God & Family
Church &
Career
Income
Outgo
Danger!
Outgo
Income
71
A Most Important Principle
You Absolutely Cannot Spend
More Than You Earn!!!
ABSOLUTELY!!!
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"
72
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
73
Case Study – Single,
Renter $20,000 Income
Clothing 3.0%
Medical 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%
74
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%
75
Case Study
Maximum Housing, No Debt, Newlywed’s
FIRST YEAR
2ND YEAR
NET CHANGE
GIVING
10%
11%
1%
TAXES
10%
10%
0
NET SPENDABLE
80%
79%
-1%
HOUSING
45%
44%
-1%
AUTO
10%
15%
+5%
FOOD
9%
10%
+1%
INSURANCE
1%
1%
0
DEBT
9%
0%
-9%
ENTERTAINMENT
65
6%
0
CLOTHING
3%
2%
-1%
SAVINGS
2%
2%
0
MEDICAL
1%
1%
0
MISCELLANEOUS
10%
9%
-1%
BUSINESS
4%
2%
-2%
SURPLUS
0
8%
+8%
76
COMMENTS
1% Giving Challenge
Try Increasing Your Giving 1% See What God Does To Bless You
77
Case Study
Maximum housing (48%), Accelerated Mortgage Payoff
Retirement 5.6%
Savings 4.7%
Misc
11.2%
Medical
1.4%
Clothing
3.1%
Housing 34.9%
Recreation
10.4%
Debts 13.1%
Insurance 1.8%
Auto 6.1%
Food 7.6%
78
Accelerated
Mortgage
Payoff
Case Study
Married 15 Years, 2 Young Children, $60,000 Income, “Own” Home,
Investing For Early Retirement
CATIGORY
Category
%
GIVING
20%
TAXES
10%
NET SPENDABLE
70%
HOUSING
49%
AUTO
7%
FOOD
10%
INSURANCE
1%
ENTERTAINMENT
9%
CLOTHING
3%
MEDICAL
1%
DEBTS
0%
MISCELLANEOUS
7%
SAVINGS
6%
INVESTMENTS
7%
DISCRIPTION
Comment
Giving and taxes used to be reversed but God worked it out.
Higher Giving, Lower Taxes.
Total About The Same !
Includes extra 17% of extra principle to totally eliminate debt.
Payoff Mortgage By Age 45
No Credit Card Or Auto Debt
Christian Schools
13% Total Savings Investment. Goal –
Early Retirementc 13%
79
Biggest Mistakes To Avoid

No Savings

Overspend Using Debt
• House, Furnishings
• Cars

Abuse Credit Cards,
Car Loans, Mortgage

Fail To Invest Early & Wisely
80
Develop New Habits
Saving
Planning
Giving &
Sharing
Investing
Resisting
Impulse Buying
Becoming
Debt Free
81
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”
82
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
83
Fluctuating Income
90
80
Surplus
70
52.5% Average
60
50
40
INCOME
Deficit
30
20
10
0
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Tip…Totally Segregate Business Income From Home Finances
84
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
Year 1
Year 2
Year 3
Year 4
Year 5
5-yr Total
Depreciation
$4,359
$2,237
$1,970
$1,746
$1,566
$11,878
Financing
$1,637
$1,327
$991
$625
$228
$4,808
Insurance
$1,420
$1,470
$1,521
$1,574
$1,598
$7,583
Taxes & Fees
$1,950
$307
$257
$216
$181
$2,911
Fuel
$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
$39,404
Maintenance
Repairs
Yearly Totals
85
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)
Year 1
Year 2
Year 3
Year 4
Year 5
5-yr Total
Depreciation
$8,662
$2,454
$2,160
$1,915
$1,718
$16,909
Financing
$2,093
$1,697
$1,266
$799
$291
$6,146
Insurance
$1,870
$1,935
$2,003
$2,033
$2,146
$9,987
Taxes & Fees
$2,488
$393
$329
$276
$231
$3,717
Fuel
$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
Maintenance
Repairs
Yearly Totals
86
$57,564
True Cost To Own A Car
Source: www.Edmonds.com Oct 2007
Year
Type
Manuf.
Model
2008 Subcompact Honda
Fit
2008 Subcompact Kia
Rio
Used Is 30%
Cheaper
2008 Compact
2004 Compact
Toyota
Toyota
2008 Compact
2004 Compact
Prius
Prius
Purchase
Price
$15,896
$11,568
Cost To
Own 5 Cost Per
Years
Mile
$32,122
$0.43
$32,418
$0.43
•
•
•
$23,485
$17,248
$38,534
$31,756
$0.51
$0.42
Chevrolet Malibu
Chevrolet Malibu
$17,964
$8,617
$38,163
$28,366
$0.51
$0.38
•
2008 Mid Size
2008 Mid Size
2008 Mid Size
Hyundai
Toyota
Ford
Sonata
Camry
Fusion
$19,933
$21,527
$20,439
$40,691
$39,414
$39,652
$0.54
$0.53
$0.53
•
2007
2007
2007
2007
2004
Chevrolet
Dodge
Toyota
Kia
Chevrolet
Uplander
Grand Caravan
Sienna
Sedona
Venture
$24,385
$23,267
$24,854
$21,796
$9,774
$45,686
$44,497
$45,469
$44,989
$32,416
$0.61
$0.59
$0.61
$0.60
$0.43
2008 SUV
2004 SUV
Lincoln
Lincoln
Navigator
Navigator
$44,220
$25,364
$62,955
$60,768
$0.84
$0.81
2008
2004
2008
2008
Chevrolet
Chevrolet
Porsche
BMW
Corvette Z06
Corvette Z06
911
650i
$80,630 $112,139
$32,154 $60,938
$94,717 $112,805
$91,284 $112,068
$1.50
$0.81
$1.50
$1.49
Minivan
Minivan
Minivan
Minivan
Minivan
Sports
Sports
Sports
Sports
87
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
5-Year Loan (60 mo)
AUTO vs. LOAN VALUES
100%
90%
80%
Car Life Expectancy
70%
Value Remaining
60-month Loan @ 5.9%
60%
50%
60-month Loan @0.00%
40%
American Car Value
30%
20%
10%
0%
Underwater 3 Years !!!
(Owe More Than Car
Is Worth)
0
1
2
3
4
5
6
7
Years
Life Expectancy
Loan Bal@0%/60 mo
American Car Value
LoanBal@5.9%/60 mo
88
Make A Dream List
(Notebook Pg G3)
Dream List
Candidate Item
To Buy
Date Priority Price Price Price
#1
#2
#3
New Computer
Leather Couch
Quad ATV
Big Screen TV
Vacation Home
89
Comments
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? Kids90 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)91
Summary - Steps To Becoming
Totally 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
Payoff Home, Invest For Long Term Needs –
College, Retirement … Debt Free !!!
Spend For College, Weddings
Fund More Kingdom Work
Enjoy Income From Investments
Enjoy, Fund Even More Kingdom
Work
92
Wealth Building Secrets –
Four Cornerstones
Expense Avoidance / Elimination
Paid
Off Home
Pension,
Social Security,
Medicare
(Maybe, Maybe Not)
Debt Free,
Adequate Savings
Minimize Recurring
Expenses
Nestegg of
Diversified
Investments
(IRA, 401k, 403B …)
$$$ Cash Flow To Last Rest of Your Life!
1 - 93
Power of Eliminating or Reducing Small Recurring
Expenses – How To Increase Your Nest Egg By $95,000

$10 Pizza Once A Month Age 20-65
Spend $120x40= $4,800
 Gain Some Weight?


Invest $10/Month @ 10% Per Year Annual
Average Family
Return (Tax Deferred)
$ 7,680 At Age 40
 $21,833 At Age 50

Spends $100/Month
On Credit Card
Interest. Real Cost ?
 $95,015 At Age 65 – That’s A Lot of Pizza In
Retirement. Cost – Gave Up $4,800 of Pizza
 Moral – Be Careful About Squirreling Your $ Away

Tip –
Reduce Or Eliminate Recurring Expenses Wherever
You Can. Compounded Expenses Work Against You (9th
Horror ($$$ Cancer) of the World)
Source – Retire Early, Sleep Well Pg 108
1 - 94
Power of Eliminating Larger Recurring
Expenses – How To Increase Your Nest Egg By $725,000

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
1 - 95
Section “F”... My plans For Next 12 Months
MyTHE
New
Habits
MY BUDGET PLAN FOR
NEXT
12 MONTHS
Instructions - After reviewing your records for the last 12 months, determine the amount
for each category you elect to use. This plan should be updated and reviewed periodically.
19__ MONTHLY BUDGET
Wages, Tips
Overtime
Bonuses
Commissions
Other _______
$_____
$_____
$_____
$_____
$_____
Interest
Dividends
Pensions
Social Security
Disability
$$$ GROSS INCOME $$$
$_____
Rents
$_____
Loans & Notes
$_____
Child Support
$_____
Alimony
$_____
Other _______
TOTAL GROSS INCOME (1)
$_____
$_____
$_____
$_____
$_____
Tax Refunds
Inheritance
Gifts
Items Sold
Other _______
$_____
$_____
$_____
$_____
$_____
$ ________
$$$ GIVING & TAXES $$$
$ CHARITABLE GIVING $
Local Church
$_____
Missions
$_____
Other _______ $_____
Other _______ $_____
TOTAL
GIVING (2)
$_____
$ HOUSING $
Rent
Mortgage
2nd Mortgage
Extra Principal
Taxes
Insurance
Homeowners
Cable TV
Cleaning
Electricity
Natural Gas
Gardening
Pest Control
Pool
Telephone
Trash
Water/Sewer
Home Fixup
Furniture
Appliances
Other _______
Other _______
TOTAL
HOUSING
$ FOOD $
Groceries
Board
Lunches Out
Coffee Pool
Other _______
Other _______
TOTAL
FOOD
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$ TAXES $
Federal Income
State Income
Social Security
Unemployment
TOTAL
TAXES
(3)
$_____
$_____
$_____
$_____
NET SPENDABLE
INCOME COMPUTATION
GROSS INCOME
(1)
MINUS GIVING
(2)
MINUS TAXES
(3)
$_____
$_____
$_____
$_____
NET SPENDABLE INCOME (4)
$_____
$$$ EXPENSES $$$
$ TRANSPORTATION $
$ ENTERTAINMENT $
Gas, Oil
$_____
Restaurants, Enter.
Licenses
$_____
Babysitters
Maintenance
$_____
Vacations, Trips
Loan Payments
$_____
Classes, Lessons
Insurance
$_____
Man's Hobbies
Parking
$_____
Woman's "
Busses, Etc.
$_____
Nongift Toys
Car Replacement
$_____
Recreation Vehicles
$100-$200 per
Vacation Homes
1,000 miles/yr
Other _______
Other _______
$_____
Other _______
Other _______
$_____
Other _______
TOTAL
TOTAL
TRANSPORTATION $_____
ENTERTAINMENT
$ MEDICAL $
$ INSURANCE $
Doctors
$_____
Medical
Dentists
$_____
Disability
Eye Care
$_____
Life
Therapy
$_____
Umbrella
Drugs, Presc.
$_____
Other _______
Other _______
$_____
Other _______
Other _______
$_____
TOTAL
TOTAL
INSURANCE
MEDICAL
$_____
$ SAVINGS $
$ CLOTHING $
Emergencies
Man
$_____
Retirement
Woman
$_____
IRA'S
Child ________
$_____
KEOUGH
Child ________
$_____
401K Plan
Child ________
$_____
Stock Plan
Other _______
$_____
Other _______
TOTAL
TOTAL
CLOTHING
$_____
SAVINGS
TOTAL EXPENSES (SUMOF SUBTOTALS)
(5)
$$$ BOTTOM LINE $$$
BUDGET SURPLUS OR DEFICIT (4) minus (5)
96
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$ DEBTS $
Credit Cards
Rec. Vehicle Loans
Personal Loans
Medical Debts
Dept Stores
Other _______
Other _______
Other _______
TOTAL
DEBTS
$ MISCELLANEOUS $
Toiletries
Cosmetics
Beauty
Barber
Laundry,Cleaning
Lunches- Man
Lunches- Woman
Lunches- Children
Books, Subscr.
Gifts
Christmas
Mad $- Man
Mad $- Woman
Allowances
Film. Photo
Pets
Other _______
Other _______
Other _______
Other _______
TOTAL
MISCELLANEOUS
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
$_____
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
97
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
98
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?
99
Can You Buy A New Couch?
100
Can They Buy A New Couch?
Bill And Nancy Spender’s Check Book
Check
Number
884
886
887
Amount Of
Transaction
Date Description
9/23/97 Smith’s - Groceries
9/27/97 Pep Boys - Auto Repair
9/30/97 Deposit Bob’s Paycheck
$ 159.00
$ 239.00
T Fee
Amount
Of Dep
Balance
$ 1,215.60
$1,056.60
$ 817.60
$ 854.58 $1,672.18
• 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?
101
The Control System - The Key
To Making Your Finances Work
102
Control System - Allocation & Control
Keep It Simple!
Food $400 Per Month
Auto $600 Per Month
Food
Auto
Housing $1100 Per Month
Housing
103
Budget Account Sheet One Sheet Per Budget Item
(Workbook Pg I2)
Budget Account: Entertainment
Yearly Allocation: $ 1,300
Date
1-May
3-May
4-May
6-May
8-May
9-May
9-May
October 1998
Monthly Allocation: $108 ($25/Week)
Transaction
Deposit
Deposit
$
25.00
Date with Sally
Ice cream w/Sally
Dinner w/Sally
Deposit
$
25
Date W/Sally-Play
Work Overtime
$
20
Withdraw
$
$
$
7.95
3
13
$
30
$
$
$
$
$
$
$
Balance
25.00
17.05
14
1
26
(4)
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
104
Budget Account Sheet One Per Budget Item
(Workbook Pg I2)
Budget Account: Food
Yearly Allocation: $ 4,800
Date
1-May
3-May
4-May
10-May
19-May
29-May
31-May
October 1998
Monthly Allocation: $400
Transaction
Deposit
Smith’s
Abco
Osco
Safeway
Frys
Costco
Deposit
$
400
Withdraw
$
$
$
$
$
$
68
82
13
49
87
127
$
$
$
$
$
$
$
Balance
400
332
250
247
198
111
(16)
• 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
105
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
106
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
107
Monthly Summary Sheet
(Notebook Pg H1)
End Of Month Balances
Category
Allocation Jan
Giving
800 161
House Mortgage
1600
0
House Maintenance
25
18
House Insurance
40
3
House Taxes
139 139
Feb
421
0
-1
33
278
Mar
366
0
5
63
407
Apr
666
0
3
93
546
• 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”.
108
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 !
109
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
110
Learn To Distinguish Between
Needs
Wants
Desires
111
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
112
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
113
Our Part – Believe, Manage Well

Do We Believe God?
God Owns
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.
God Provides
He provides for us
by giving to us in
order to care for
us and to minister
to our needs.
We gratefully
receive from God
and respond to
His generosity
by:
God Provides
Beliefs
Sowing/
Reaping
 Giving
 Saving
 Living
FAITH CRISIS
Decisions
114
Actions
I Manage
Giving to honor God,
minister to the needs of
others, and to support the
church as she
evangelizes the lost and
matures disciples
Saving and
Multiplying for the
future
Living contentedly
within the limits of
God’s provision
Results,
Blessings
© Casas Church – Used By Permission.
Minor Mods By Author
Financial Freedom Notebook - Use It !
Yearly
Summary
Monthly
Summary
Account Sheets
Budget Plan
Spending
Guidelines
Budget Analysis
Impulse List
“As Is” Budget
Purchase List
Net Worth
Goals
Gift List
115
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
116
God’s Simple Plan
1. God Owns
2. I Manage
(Give, Save, Live)
3. God Provides
(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
SAVING
GIVING &
SHARING
BECOMING
DEBT FREE
INVESTING
RESISTING
IMPULSE BUYING
118
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
119
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
120
Supplementary Charts
121
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
122
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
• www.DaveRamsey.com
Crown Financial Ministries
Southern Arizona Crown Area Director – Ron Staub
email: Crowntuc@Comcast.net
Phone: 866-280-8260
Dave Ramsey – Christian Talk Radio Host
123
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?
?
124
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.
X
Do You Have a Good Understanding of What the Bible Says
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?
?
125
126
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)
127
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
Fathers
of the heart.” (Heb 4:12 NIV)
Young Men
Children
Infants
1 Cor 3:1, 1 Jn 2:12-14
128
God’s Secret Success Formula

Commit to the Lord whatever you do and your
plans will succeed. Proverbs 16:3
129
What is God’s #1 Concern For
Your Finances?
"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)
130
God’s Simple Plan
1. God Owns
2. I Manage
(Give, Save, Live)
3. God Provides
(God’s Generous Heart)
131
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?
132
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?
133
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.'"
134
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?
135
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."
136
Our Part – Believe, Manage Well

Do We Believe God?
God Owns
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.
God Provides
He provides for us
by giving to us in
order to care for
us and to minister
to our needs.
We gratefully
receive from God
and respond to
His generosity
by:
God Provides
Beliefs
Sowing/
Reaping
 Giving
 Saving
 Living
FAITH CRISIS
Actions
Habits
137
I Manage
Giving to honor God,
minister to the needs of
others, and to support the
church as she
evangelizes the lost and
matures disciples
Saving and
Multiplying for the
future
Living contentedly
within the limits of
God’s provision
Results,
Blessings
© 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
142
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
143
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
144
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
145