BIBLE STUDY FAMILY LIFE MINISTRY Theme Effective Family

BIBLE STUDY FAMILY LIFE MINISTRY Theme: Effective Family Finance Management Topic: Planning, Budgeting and Saving MAY , 22 ND 2012

OPENING PRAYER

Text: Matthew 25: 14 -31 14"For the Kingdom of Heaven is as a man traveling into a far country, who called his own servants and delivered unto them his goods. 15 And unto one he gave five talents, to another two, and to another one, to every man according to his several ability, and straightway took his journey. 16 Then he that had received the five talents went and traded with the same, and made them another five talents. 17 And likewise he that had received two, he also gained another two. 18 But he that had received one went and dug in the earth and his lord's money. 19 After a long time the lord of those servants came and reckoned with them. 20 And so he that had received five talents came and brought the other five talents, saying, `Lord, thou deliveredst unto me five talents. Behold, I have gained beside them five talents more. ‘ 21 His lord said unto him, `Well done, thou good and faithful servant. Thou hast been faithful over a few things; I will make thee ruler over many things. Enter thou into the joy of thy lord. ‘ 22"He also that had received two talents came and said, `Lord, thou deliveredst unto me two talents; behold, I have gained two other talents beside them.

Text: Matthew 25: 14 -31 23 His lord said unto him, `Well done, good and faithful servant. Thou hast been faithful over a few things; I will make thee ruler over many things. Enter thou into the joy of thy lord. ‘ 24"Then he that had received the one talent came and said, `Lord, I knew thee, that thou art a hard man, reaping where thou hast not sown, and gathering where thou hast not strewed. 25 And I was afraid, and went and hid thy talent in the earth. Lo, there thou hast what is thine. ' 26 His lord answered and said unto him, `Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strewed. 27 Thou ought therefore to have placed my money with the exchangers, and then at my coming I should have received mine own with interest. 28 Take therefore the talent from him, and give it unto him that hath ten talents. 29 For unto every one that hath shall be given, and he shall have abundance; but from him that hath not, shall be taken away even that which he hath. 30 And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth. ‘ 31"When the Son of Man shall come in His glory and all the holy angels with Him, then shall He sit upon the throne of His glory.

Financial Freedom Financial Literacy: Knowing What You Need To Know To Achieve Your Financial Goals. Opportunity cost of a decision is the value of the next best alternative that must be forgone Allows you to analyze the consequences of choices to decide which trade-offs to make What’s entail in family finance? • Budget • Education • Health care • Child care • Managing risk, insurance • Create wills • Instill financial literacy Budgeting Savings Planning Basic Finance Management is required to move the “Upward Way” Don’t get entangled in the “ 21 st Century Slavery Syndrome” CREDIT FACILTIES The LORD shall increase you more and more, you and your children. Psalm 115: 14

Causes of Financial Stress WHAT ARE THE COMMON REASONS WHY PEOPLE OVERSPEND? – Individual financial behaviors • • • Emotions Personality Individual attitudes about money Impulsive buying Excessive materialism Preoccupation with status or social image – Lack of financial understanding • • No family budget Where there is a budget, actual expenses not tracked for follow-up Low understanding of investment options & strategy The “Other People’s Money” syndrome. (Credit mentality – The ability to borrow, that allow you to buy things you can really afford to buy. SATAN Antics – “Live now and pay later. ” (Master Deception)

Consequences of financial stress What are the consequences? • • • Unnecessary stress/strain through debt Foreclosure Sickness and Depression - May lead to Suicide Premature death Imprisonment due to funding of expensive lifestyle Divorce Murder Stealing/Robbery Illicit sex Drugs (Usage and Trafficking) Be sober, be vigilant; because your adversary the devil, as a roaring lion, walketh about, seeking whom he may devour 1 Peter 5: 8

Planning What is planning? Definition: a plan or drawing produced to show the look and function or workings of a building, garment, or other object before it is made: Ø To formulate a scheme or program for the accomplishment, enactment, or attainment of: plan a campaign. ( plan of attack, course of action Ø To have as a specific aim or purpose; intend: plan to buy a house, pension plan Ø To draw or make a graphic representation of a design, structure, configurations etc. § Planning is bringing the future into the present so that you can do something about it now. (Lakein, Alan - American Time Management Expert Author Trainer) § You win not by chance, but by preparation. (Maris, Roger 1934 -1985 American Baseball Player)

Planning § Success or failure is often determined on the drawing board. (Mckain, Robert J. ) § Strategic planning will help you fully uncover your available options, set priorities for them, and define the methods to achieve them. (Mckain, Robert J. ) § When you're dying of thirst it's too late to think about digging a well. (Proverb, Japanese Sayings of Japanese Origin ) § If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much. (Rohn, Jim - American Businessman Author Speaker Philosopher) "Which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it? " (Luke 14: 28)

Budgeting What is budgeting? Your budget is the heart of your personal finance life. Effective budgeting starts with understanding how you spend your money and evaluating your current spending habits. (Goals and Objectives) Having a written budget is essential to getting your finances under control. If you do not have a written budget it is hard to know if you are living within your means and saving enough money for your long term goals. Budgeting Tips • Budgets are a necessary evil. • Creating a budget generally requires three steps. • Identify how you're spending money now. • Evaluate your current spending and set goals that take into account your long-term financial objectives. • Track your spending to make sure it stays within those guidelines.

Budgeting • • Use software to save grief. (Simple Excel Spreadsheet) Don't drive yourself nuts. Watch out for cash leakage. Spending beyond your limits is dangerous. Beware of luxuries dressed up as necessities. Pay yourself. Don't count on windfalls. Beware of spending creep. 5 Deliver thyself as a roe from the hand of the hunter, and as a bird from the hand of the fowler. 6 Look to the ant, thou sluggard! Consider her ways and be wise, 7 which, having no guide, overseer or ruler, 8 provideth her meat in the summer and gathereth her food in the harvest. Prov. 6: 5 -8

Saving What is saving? Definition: http: //www. thefreedictionary. com/saving 1. Preservation or redemption – The activity of protecting something from loss or danger. Self-preservation - preservation of yourself from harm; a natural or instinctive tendency 2. Conservation - Economy or avoidance of waste The preservation and careful management of the environment and of natural resources. Avoidance of excess expenditure; economy. 3. Reduction in cost or expenditure e. g. a saving of 20 cent. 4. Anything saved (Plural) money saved for future use. Reservation the act of keeping back or setting aside for some future occasion

Saving “A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained. It requires some training, perhaps, to accomplish this economy, but when once used to it, you will find there is more satisfaction in rational saving than in irrational spending. ” ~ The Art of Money Getting, by P. T. Barnum “The habit of saving is itself an education; it fosters every virtue, teaches selfdenial, cultivates the sense of order, trains to forethought, and so broadens the mind. ” ~ T. T. Munger “On the first day of every week each one of you is to put aside and save, as he may prosper, so that no collections be made when I come. ” 1 Corinthians 16: 2 “For whosoever hath, to him shall be given, and he shall have more abundance. But whosoever hath not, from him shall be taken away even that which he hath. ” Matt. 13: 12

Gods Minimum Financial Standards (1/2) God requires minimum financial standards of finance in marriage for His people. They will, without a doubt, lay a strong foundation for a healthy and balanced marriage/family. • God owns everything. It's how we faithfully manage what He has given us that will determine whether He will give us greater things to manage. "Well done, good and faithful slave. You were faithful with a few things, I will put you in charge of many things" (Matthew 25: 23) • Think ahead and avoid problems. Writing down goals and objective. Ensuring they have a yearly balanced budget "Which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it? " (Luke 14: 28)

Gods Minimum Financial Standards (2/2) • Keep good records. "By wisdom a house is built, and by understanding it is established; and by knowledge the rooms are filled with all precious and pleasant riches" (Proverbs 24: 3 -4). • Get educated. "The simple believes everything, but the sensible man considers his steps" (Proverbs 14: 15). “The simple believes everything, but the prudent gives thought to his steps” (Proverbs 14: 15). ESV Couples need to learn financial management and budgeting and use that information to avoid debt or financial problems. “If you fail to plan, you plan to fail” “If ye be willing and obedient, ye shall eat the good of the land. Isaiah 1: 19

Quick Tips • Have regular meetings about money – communication about money is always a good defense against cost and unforeseen expenses. – Set up a regularly scheduled family financial meeting with your spouse to plan, discuss spending and review your goals. – Having a healthy discussion about money and working together will improve your marriage and your saving account balance. • Spend time each day looking at your spending – Folks, just spend 10 minutes a day tracking your spending! – Review purchases, record them against budget categories and know your balances.

Quick Tips • Control spending – Very good defensive strategies – Every good budget will have common categories of entertainment, food, transportation, etc. Your job? Go download the spending guidelines from internet and compare to what you’re spending. - See Typical Example • Useful Links http: //www. mymoney. gov/myresources. html http: //www. imdb. com/video/imdb/vi 4268949529/ - Confessions of a Shopaholic Trailer (Confessions of a Shopaholic: Trailer #1)

Typical Spending /Budget Guideline Spreadsheet PERCENTAGE GUIDE FOR FAMILY INCOME Gross Income 25, 000 or Less 35, 000 45, 000 55, 000 65, 000 Tithe 2500 10% 3, 500 10% 4, 500 10% 5, 500 10% 6, 500 10% Taxes 575 2. 3% 336 9. 6% 473 10. 5% 759 13. 8% 1, 047 16. 1% NET SPENDABLE INCOME 21, 925 28, 140 35, 775 Housing 8, 331. 50 38% 10, 693. 20 38% 12, 163. 50 34% 13, 830. 30 33% 15, 371. 20 32% Food 3, 288. 75 15% 4, 221. 00 15% 5, 008. 50 14% 5, 867. 40 14% 6, 724. 90 14% Auto 3, 069. 50 14% 3, 939. 60 14% 4, 293. 00 12% 5, 029. 20 12% 5, 283. 85 11% Insurance 1, 096. 25 5% 1, 407. 00 5% 1, 788. 75 5% 2, 095. 50 5% 2, 401. 75 5% Debts 1, 096. 25 5% 1, 407. 00 5% 1, 788. 75 5% 2, 095. 50 5% 2, 401. 75 5% Entertainment/Recreation 877. 00 4% 1, 125. 60 4% 1, 788. 75 5% 2, 514. 60 6% 2, 882. 10 6% Clothing 1, 096. 25 5% 1, 407. 00 5% 2, 146. 50 6% 2, 514. 60 6% 3, 362. 45 7% Savings 1, 096. 25 5% 1, 407. 00 5% 1, 788. 75 5% 2, 095. 50 5% 2, 401. 75 5% Medical/Dental 1, 096. 25 5% 1, 407. 00 5% 1, 788. 75 5% 2, 095. 50 5% 2, 401. 75 5% Miscellaneous 877. 00 4% 1, 125. 60 4% 2, 146. 50 6% 2, 514. 60 6% 2, 882. 10 6% Investments - 1, 073. 25 3% 1, 257. 30 3% 1, 921. 40 4% School/Child Care 2, 192. 50 - 100% 10% 2, 251. 20 100% 8% 2, 146. 50 41, 910 100% 6% 2, 514. 60 48, 035 100% 6% 2, 401. 75 100% 5%

Conclusion 1/2 God's Word provides standards for managing money that are essential for marital unity. If couples study these biblical principles, learn them and put them into practice in their marriage, and adhere to those standards no matter how tempted they are to adopt the world's standards, their marriages will be strong and will remain sound. “I will give them singleness of heart and action, so that they will always fear me for their own good and the good of their children after them. ” Jeremiah 32: 39 good of their children after them. ” Planning without action is futile, action without planning is fatal - Unknown, Source The person who doesn't know where his next dollar is coming from usually doesn't know where his last dollar went. - Unknown, Source

Conclusion 2/2 • Set Goals! – Goal setting helps you think about your future self. – Remember - Today’s self has an impact on future self. – “The hardest work of all is to do nothing

SECULAR WORLD TIPS FEW TIPS FOR GETTING COUPLES BACK ON THE RIGHT TRACK GOOD FINANCIAL MANAGEMENT & REDUCING HIC-CUPS ü If you are already knee-deep in a financial conundrum, seek out a professional financial advisor to help you develop a workable budget and financial plan toward meeting your daily and long-term needs. ü If you are newly married, sit down with your spouse and create a monthly budget that separates personal expenses from necessities. ü Consider opening both a joint and personal account to keep personal expenses from draining valuable funds used for monthly bills, emergencies, etc. ü Be open and honest from the beginning and throughout the process about your personal debts. Don’t hide anything, ever! Nasty financial surprises can strain a marriage greatly and precipitate a marriage crisis, so keep the conversation aboveboard.

SECULAR WORLD TIPS FEW TIPS FOR GETTING COUPLES BACK ON THE RIGHT TRACK GOOD FINANCIAL MANAGEMENT & REDUCING HIC-CUPS ü Develop a savings plan to set aside money solely for the purpose of paying down debt and meeting unforeseen medical and other emergencies. ü Consider low-interest credit cards and consolidation loans ONLY if the interest rates and terms will allow you to aggressively pay down high-interest debt. ü Passionately avoid spontaneous spending on unbudgeted items or pleasures. ü Make commitments to each other, and keep them faithfully. ü Again, don’t hide anything, EVER!