Managing Your Money
Introduction
It is how you spend -- not how much you make.
No quick fix
Work
Discipline (delayed gratification)
Financial principles take a lifetime to learn
Budgeting
Debt should not be a way of life.
Debt places money not God (or you) in control
Proverbs 22:7 – The rich rule over the poor, and the borrower becomes the lender’s slave.
Biblical principals of money management (Burkett, 1999)
Debt is not normal, investing is normal
Deut. 28:12 – The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.
Do not accumulate long-term debt
Deut. 15:1 – At the end of every seven years you shall grant a remission of debts.
Jewish law set a limit of seven years on any debt.
Avoid surety
Surety is the accepting an obligation without having collateral.
Co-signing for the loan of another
Credit Cards
The borrower a moral obligation repay
Eccles. 5:5 – It is better that you should not vow than that you should vow and not pay.
Factors that lead to debt (Burkett, 1999)
Ignorance
Not knowing how to handle money
We learn our financial skills from our parents.
Getting involved in things you don’t understand.
Don’t take financial risks in fields you know little about
Ignoring the thoughts or feeling of your spouse
Married couples must be in unity when it comes to finances.
Indulgence
Don’t live beyond your means
Discipline
Poor Planning
Not having financial goals.
Making hasty decisions.
Reality check.
Where are you financially?
Assets
Something that produces income is an asset.
Business tools
The best assets work for you when you are not there
Rental and investment income (producing)
Stocks, mutual funds, business investments
Debts and liabilities
Anything that does not produce income is a liability
Your home
Your car
Your toys
Where do you want to be?
Set goals
Be persistent and keep trying
Buy assets
Maximize spending on income producing assets
Reduce spending
Minimize spending on liabilities
The financial plan (budgeting)
Plan
Tithe
God – 10% +
Your savings and investments – 10% +
Budget
Be honest
Delayed gratification
The discipline to wait
Construct a budget
Track expenses
Set budget within your income.
Stick with it.
budget worksheet (Dayton, 1996)
Budget building suggestions (Dayton, 1996)
Think and be positive
Ask how can we afford this
Don’t say we can’t afford it -- because you quit thinking
No borrowing
Can’t meet your needs?
Get help
Be honest
Don’t wait and make it worse
Debt consolidation ministries
"Scaling back"
The two ways out of the situation
Increase income often doesn’t work due to lack of discipline
Reduce expenses and increase investments and savings
Prepare for the future
Accept the responsibility for your life.
Have a good reputation
Be honest
Help others
Be persistent (don’t give up)
Learn all you can about money and finances
Read and study
Mentor with those you respect and have been successful
The wealthy have a different attitude about money than the lower and middle class (Kiyosaki w/ Lechter, 1997)
The wealthy don’t work for money; money works for them
Principle 2
Principle 3
Principle 4
Principle 5
Principle 6
Prepare to work on your own: the real key to financial success is not having to work for someone else.
Work hard and work smart starting now.
Service is still the key
Possess something others are willing to pay for.
Skills
Intellectual property (ideas)
Education
Experience
Put your money to work for you
Savings
Investments
Sending the wife to work doesn’t work financially.
The family gains little for a high price
Expenses increase
Stress increases
The family loses much
Time
Focus
Perhaps even money
Priorities
Family
Or "keeping up with the Jones"
Instruct your children on the value of money.
Instruct them
As they mature explain in increasing detail how your household works.
Modeling behavior
Experiences
Income and the value of work
No allowances
Not from chores – chores are for learning to cooperate in the effort of making a family successful.
Income is from work you might hire out.
Encourage your children to work for themselves and others.
Babysitting
Mowing lawns
Paper route
Budgeting
Tithing and giving
Saving
Delayed gratification
Debt – better to learn from the parents than the world
The "New Bicycle Loan" lesson
Instruct against over indulgence
Pray
Summary
Use money – don’t let money use you.
Buy assets
Delayed gratification