Myth Busting-Money Issues
for
McLean Bible Church
Prince William Campus
February 2011
By Bud Moeller
Top 10 New Year’s Resolutions
Lose weight/get fit
Pay off debt
Save more money
Quit smoking/drinking
Get a better job/education
Enjoy life more/take a trip or vacation
Reduce stress
Volunteer to help others
Learn something new
Get organized
Weight/Food Wisdom
Miss Piggy: “Never eat more than you can lift”
Jay Leno: I went into a McDonalds and said, “I’d
like some fries. The girl at the counter said,
‘Would you like some fries with that?’”
Jackie Gleason: “The second day of a diet is
always easier than the first. By the second day,
you’re off it.”
Even overweight cats instinctively know the
cardinal rule: when fat, always arrange yourself
in slim poses.
The Reality of Money?
If you think no one cares if you’re alive, try
missing a couple of car payments
The Lottery: A tax on people who are bad
at math
“We can loan you enough money to get
you completely out of debt.” (Bank sign)
In A Perfect World, You’d Have Been
Prepared For This Stormy Time
3-6 months of emergency savings
Credit cards paid off
Consumer debt (auto, student, etc.) gone
Savings banked for major future events
(vacation, next auto, education, etc.)
Home ownership, with equity cushion
Retirement accumulating well
(At least the essence of a good plan!)
But Priorities Were Messed Up?
Giving
Saving
Debt Payment
Spending
Earning
Many Famous People
Messed Up Too
Mike Tyson—Earned $300+ MM, filed
bankruptcy in 2003, owing $27 MM
Scottie Pippen—Lost $120 MM in career
earnings w/ poor planning and bad ideas
Evander Holyfield—Made $250+ MM, now
broke
Many others—John Daly, Nicholas Cage,
Kim Basinger, Mick Fleetwood, Don
Johnson, MC Hammer
Maybe You Just Got
Trapped In Myths
Money (earning and management) is a topic
that’s
Intensely private yet much in the public eye
Intrinsically complex yet quite simple
Over-published yet difficult to find sound advice
In our hands daily yet far out of mind
And there are way too many myths that
hinder us from moving to freedom
Earning & Accumulating Myths
I can do what I enjoy rather than work for
the money.
If I only had 10% more income . . .
Money is the root of all evil
Money brings security
Money can’t buy happiness
Most people become wealthy through
inheritance, special talent, or good fortune
Giving & Savings Myths
When you give, you’re hindering yourself
I’m too poor to give anything away
I have a savings account so I’m saving $
My home equity is my retirement plan
Renting is just like throwing money away
I need the tax deduction of mortgage
interest and property tax so home
ownership is a good thing all around
I’m too young to worry about saving for
retirement
Investing Myths
Selling something for a higher price in the
future is always a profit
The stock market is too risky, like gambling
Buy this book and you can consistently beat
the market
I can time the market—know when to hold
‘em and when to fold ‘em
I’m nearing retirement age so should move
my money into fixed investments (e.g.,
bonds, money funds)
Credit & Debt Myths
Using a debit or credit card (if I manage it
well) is just like using cash
Carrying a balance on my credit card will
build credit and improve my credit score
I’ve saved money by consolidating all my
debt into one large payment plan
I’m saving money by using this 0% card
Spending Myths
I saved so much because this was on sale
The low interest rate on this new car
made it so affordable—and I’ll drive it ‘til it
dies
I can’t save because all my income just
goes to pay my bills
But I have to have . . .
And Some Final Myths
I’ll be able to retire someday
I’m not wealthy so I don’t need a will
Management of family finances should be
handled by the spouse most comfortable
or skilled in financial matters
It’s bad to check your credit score too
often
God’s Priorities--Reverse of the World’s!
Spending
Debt
Saving
Giving
Earning
Four Financial Situations--Yours Is?
In crisis
One paycheck from disaster
Good “financial” shape
God-honoring lifestyle
Back to Resolutions--Making them Stick
Pick realistic goals
Define the goals (specifically)
Set a schedule (or deadline)
Don’t be upset by setbacks
Enlist additional help or support
(… and, of course, you’ve got to get started!)