Escolar Documentos
Profissional Documentos
Cultura Documentos
PRINCIPLES
1
INTRODUCTION
Contentment
The Real Owner?
Family Finances
Giving & Receiving
The Lowdown on Debt
Short-term Planning—The Budget
Long-range Planning--Savings
Fundamentals of Investing
THE BIBLE AND MONEY
• 51% of African Americans are “personally
struggling with finances” (Barna, 2001).
• Is the Bible able to advise us into the
second millennium ?
• Will we trust the Bible when we disagree
with it ?
• There are many “experts”--who will you
believe ?
WHAT IS A CHRISTIANS’
FIRST COMMITMENT ?
What do we commit to
God ?
Matt.
6:33; Mark 12:30;
Rom. 12:1-2; Col. 1:16
The Macedonian example
(2 Cor. 8:1-5)
Few resources, first
commitment, giving (9:8-
11), grace
Does my spending reflect
trust in God ?
FINANCES TEST OUR
COMMITMENT to GOD
• There are two masters—Luke
16:9-13
• The “Rich Young Ruler” illustrates
—Luke 18:18-23
• $ is stronger than blood and
friendship—Prov. 19:7
• Money offers pleasure, prestige,
power
• We can’t love God and the world—1
John 2:15; Demas tried--2 Tim.
4:10
6
FINANCES TEST COMMITMENT
• Honestly, do you want to be rich?
• If we “go for the gold” & choose
money and affluence as Master
• Temptation, traps, grief,
destruction—1 Tim. 6:9-10
• Dissatisfaction—Ecclesiastes
5:10
• Chokes the Word of God—
Matthew 13:22
• Riches take wings—Prov. 23:4-5
7
Where Is Your
Treasure?
• Are we trying to build heaven
on earth?
• We cannot manipulate God by
giving, or by praise or by
claiming something. God is
too smart for that.
• Beware of greedy teachers
who exploit you with false
words (2 Pet. 2:3). If some
really believed in “seed
money,” they would send you
the money.
8
Where Is Your Treasure?
• The “prosperity gospel” preaches
materialism and greed in the name
of super-spirituality.
• Some teach that Jesus was rich,
“justifying” a Rolls Royce.
• According to the NT, riches are
instead a spiritual liability, making it
harder to enter heaven (Matt: 19:23-
24). Riches tend to choke the Word
of God (Matt. 13:22).
9
The Creator and The Creation
Material riches are not to be our goal, but things
material are not evil in themselves. The good
God created very good things out of matter—
stars and people and butterflies and whales
(Gen. 1:31).
The focus is to be on the Creator, instead of upon His
creation.
Matthew 6:21 “For where your treasure is, there
your heart will be also.” NIV
If God is our treasure, He can entrust to us the good things
of His creation, knowing that they will not become idols—
i.e. become more important to us than is God.
Psalm 37:4 “Delight yourself in the LORD and he
will give you the desires of your heart.” See also Ps.
16:11; 84:11b; Rom. 8:32. The more we love God,
the more He is free to bless us, and I suspect we
place less and less intrinsic value upon those gifts.
10
Wealth and Christians
God blessed Abraham, Job, David, Solomon,
Hezekiah, etc. with much wealth (Gen. 24:35; Job 1:3; I
.
Chron. 29:3-5; 2 Chron. 1:12; 2 Chron. 32:27)
13
FINANCES TEST COMMITMENT
If you go for the crown and the Lord
All your basic needs will be met—Matt.
6:25-34 (sometimes these will be met by
others, James 2:14-17).
All other needs will be met—Phil. 4:19,
Rom. 8:32
Can you buy a policy that meets ALL your
needs?
We’ll have enough to share
Our lives will find balance between work
and rest—Eccles. 4:5-8.
Is my trust in my Master or in my
MasterCard®? 14
Security
• If your security is in wealth,
you will never have enough
wealth to be fully secure. A
man who has given away over
11 million dollars freely
admits this, since wealth is
quickly lost.
• God is enough. When you
have Him, you are secure no
matter what happens
financially.
15
CONTENTMENT
Are you content right now ? 1 Tim. 6:6
Debt often indicates lack of contentment.
What are the minimums? 1 Tim. 6:8
Will Christians always have them? (2
Cor. 11:27; Matt. 8:20; 2 Pet. 1:3).
How was Paul content? Phil. 4:13
What would it take to make you
content, if you’re not ?
What is abundant life? (John 10:10)
Life = possessions? Luke 12:15
Life = Christ? Colossians 3:4
Loss = despair? Job 1:20-21; Hab. 3:16
CONTENTMENT
DIS-CONTENTMENT
• Advertisements-- $850 @ American in
2000
• Materialism & the shopping mall temple
• Giving fights materialism
• The prosperity of the wicked—Psalm
73:3- 5,12
• The prosperity of other believers—Acts
20:33
• Is God enough right now? Psalm 73:25
18
WHO IS THE OWNER ?
28
GIVING
1 George Barna, “Americans Were More Generous in 2001 Than in 2000,” 4/9/02, accessed at
www.barna.org on 2/7/03
31
BIBLICAL FINANCIAL
PRINCIPLES
32
Jim’s Badboy 13 Omens
n If you missed a paycheck, you’d
qualify for federal disaster aid.
n You hit-up your friends for a loan
until payday, or you’ve gotten a
check-advance loan.
n Your first strategy to meet an
unexpected bill for $1000 is the
Lotto 5.
n You owe more than you own. If you
died, your family would need help.
33
Jim’s Badboy 13
n You skimp on groceries and work
clothes.
n You have no plan to (1 save for your
children’s education (2 pay off your
home (3 have enough for retirement.
n Because of debt, your paycheck is
already spent. But you might be able
to rent a movie.
n You try to stay one-jump ahead of
disaster by rolling over credit card
34
Jim’s Badboy 13
1. Dollars stick to you like Superglue
®
35
DEBT
The Problem:
“33% of born again adults say it is
impossible for them to get ahead in life
because of the financial debt they have
incurred.” Barna.com BarnaPageStats.htm accessed 8/20/98
“For at least a half century, household debt
has been rising faster than income, as ever-
higher levels of discretionary income have
increased the proportion of income spent on
assets partially financed with debt.” Alan
Greenspan (Oct. 2004)
www.federalreserve.gov/boarddocs/speeches/2004/20041019/default.htm
36
DEBT
The Problem:
“Throughout the 1960s, '70s, '80s, and '90s,
households showed a surplus of varying
degrees. It wasn't until 1999 — for the first
time in about 50 years — that U.S.
households started spending more than they
took in. What started as a small deficit of
about $50 billion among households quickly
spiked to a deficit of more than $350 billion
in the second quarter of [2004].” U.S. Consumer Credit
Card Debt May Crash Economy, 12/31/04 By Susan C. Walker
ww.foxnews.com/story/0,2933,143037,00.html
37
DEBT
The Problem:
On average, we carry eight cards per person and
have a balance of $8,400 in credit card debt.
Twenty percent of our cards are maxed out,
reports CardWeb.com, which tracks the lending
industry's machinations. And just 40% of
Americans pay off their accounts in full at the
end of the month. The average line of credit is
around $3,500. (A decade ago it was just
$1,800.) The average household pays their
lender $1,000 a year in finance charges. “Our Credit
Crunch” Dayana Yochim www.fool.com/ccc/secrets/secrets01.htm accessed 8/20/05
38
DEBT
The Problem:
Home equity loans are more popular than ever
as people borrow against their home to feed their
spending binge. Today, average homeowners
owe nearly 50% of their home's value. Twenty
years ago that figure stood at 30%. Can't you
just picture the modern-day needlepoint plaque?
"Home, Sweet Credit Line." “Our Credit Crunch” Dayana Yochim
http://www.fool.com/ccc/secrets/secrets01.htm accessed 8/20/05
The US government owes over 8.2 trillion dollars in
2/06. (www.brillig.com/debt_clock accessed 2/10/06)
What is your debt/income ratio—more than
10% (non-household debt to monthly income)?
39
DEBT IS DISCOURAGED
The Bible discourages debt (Rom. 13:8; Prov. 22:7; Dt.
28:44), but it isn’t sin (Matt. 5:42; Dt. 23:20)
Bankruptcy should be avoided and all debts satisfied
(Ps. 37:21).
Debt is usually poor stewardship
Paying only the balance due (2%) on $2,000 at 18%
would take 30 years and cost $8,000 in interest (Cardweb). A
mortgage may triple the face amount borrowed
Average debt for 4-year private schools:
$17,500 (1998-Nellie Mae)
Debt may be lack of self-control--Gal. 5:23.
40
Debt and Dissatisfaction
• Our consumer debt (debt other than for
our home, but including home equity
debt), is generally an excellent
indicator of our level of discontent.
– We step outside the circle of God’s
provision, to get more, by borrowing.
– Lack of contentment is a spiritual issue.
41
How Can I Get Out of Debt?
■ You must be serious about it. As Larry
Burkett said, getting into debt is fun, but
getting out of debt isn’t. It will likely take
years.
■ If you are spending much more than your
income, you must go on a survival lifestyle.
◆ Before every purchase you need to ask
yourself, “Do I need to purchase this in order
to survive?”
■ You’ll need to determine if cutting back will
enable you to get out of debt, or if you’ll
need to increase income to meet your
commitments.
Getting Out of Debt
■ If you have cable, or a cell phone, cut them
off. Buy out your contract if necessary. Stop
eating out. Tell your family that you won’t be
able to give gifts as you would like to do, until
you’re back on your feet.
■ But don’t stop giving to God. That would be a
bad solution.
■ Determine ALL your debts and pay off the
highest interest rate debt first. When that is
paid off, use the same payment, plus what you
don’t have to pay on the first debt, to tackle
the second debt, etc.
Start Budgeting
■ You must go on a strict budget.
■ See the “How to Budget” and “Philosophy of
Budgeting” paper at
www.RMNI.org/financial
■ You may need to go to Consumer Credit
Counseling Service to negotiate lower
interest rates and penalties.
■ In over 20 years of personal financial
counseling have I seen a completely
hopeless situation, and none that would
justify bankruptcy.
Her Money—His Money
You are one in God’s sight (Matt. 19:5).
Don’t let money divide you.
The husband is the head of the wife (Eph.
5:23). With separate money, the wife can
develop an independent spirit and ditch
the husband.
Have complete financial openness
between you. Each should know the total
assets of the union. You should have joint
ownership of those assets. Both names
should be on the deeds and financial
accounts.
45
Exceptions:
If the man directs the inheritance from
his family, the wife, in fairness, should
be able to direct the assets of her
family, under the final authority of the
husband.
If one of the partners has an
addiction, then it is not prudent to
hold all assets jointly. Additions
include drugs, gambling and
shopping.
46
Avoid Separate Bank Accounts
But have one person balance the books
and reconcile the statements.
This person should be the one with the
greater aptitude, discipline and interest in
financial matters.
A husband is wise to obtain the counsel
of the wife in financial matters. She
does not want your half of the boat to
sink. Many husbands regret not
listening to that counsel. One husband
told me that he’d now be in “Fat City” if
he’d have listened to his wife when she
suggested buying specific pieces of
property many years ago.
47
Pre-nuptial Agreements
48
What Are Your Savings Goals?
52
Reasons not to
save:
• Laziness
– I’ll start when things aren’t as tight.
53
Reasons to do nothing:
• I can’t budget.
– You can budget. Only my wife likes to budget. The
alternative is to spend without a plan. Only the very
wealthy can afford that.
• I can’t save.
– Unless you are devoured by debt, you can save, if
you want something in the future badly enough.
• I’m beyond hope.
– I’ve never seen anyone in about 20 years of
financial counseling who was beyond hope, or who
had to file bankruptcy.
54
Saving
55
1 http://www.bea.doc.gov/bea/newsrel/pi1201.htm, Department of Commerce, accessed 2/5/02
Saving
• The Spirit can put to death the desires
of the flesh (Rom. 8:13).
Irresponsible spending is a
“spiritual” problem.
• We save against future “evils” (Prov.
22:3, 27:12) such as breakdowns and
disability.
• An emergency fund of at least 3-6
months income is prudent.
56
Saving
• Know why you are saving.
• You need an emergency fund to cover potential major
expenses. They should be expected.
• Appliance or major system failure in the home.
• Medical, dental and other un-reimbursed expenses.
• Cash for national emergencies
• Large auto costs/replacement costs
• Track how much in savings is for a particular purpose
• Other savings goals:
• Inheritance for children/grandchildren (Prov. 13:22)
• Retirement and old age care—The average SS
payment is about $10,500/year
http://moneycentral.msn.com/content/Retirementandwills/Playingcatchup/P34625.asp 7/24/04
• Kingdom funding
57
Saving
• To make it harder to “raid” your savings,
make it harder to access.
• Automatically debit your checking account to
savings at a bank account hard to access.
• Automatically debit your checking account to
invest in the stock of a solid company
through a dividend reinvestment plan (DRIP).
Such stock purchases may cost little or
nothing. Visit www.DirectInvesting.com for
details on how to establish this account.
58
Saving
• Establish a “ladder” of savings.
• Begin with a passbook savings account.
• When you have sufficient funds, transfer it to an
out-of-town money market account with low fees
(such as Vanguard Prime Money Market Fund).
• From there move into higher-paying investments—
bonds, CD’s if interest rates are high, mutual funds
and stocks, or into tangible investments such as
land.
• Try to save at least 10% of your gross
income. You only think you are saving if it is
not there at the end of the month.
59
Saving
• Social Security is solvent only until
20411. Expenses will exceed income
by 2017. Today 3.3 workers contribute
per 1 retiree—it will be 2.2 by 2030.
1 Dean O. Webb, “Don’t delay, start saving today,” Christian Financial Concepts, Money Matters, 10/99, p. 3
61
Retirement
The only mention of retirement is at
Numbers 8:25-26a, where priests were to
retire at age 50, probably due to physical
depletion (see Eccles. 12).
If you live to 65, you’ll probably live to 831.
First, be “rich toward God” (Lk. 12:21),
unlike the rich fool who tried to construct
heaven on earth.
Ask God what standard of retirement living
He wants you to have, then plan toward it.
62
1 www.cdc.gov/nchs/fastats/lifeexpec.htm, accessed 4/17/02
PLANNING WITH
YOUR SURPLUS
• God’s plans never fail (Is. 14:27; Ps. 33:11),
so we need to try to understand God’s will
(Eph. 5:17; Jer. 9:23-24).
• Planning is “spiritual” (Prov. 12:5; 16:3)
• Get good counsel (Prov. 12:15; 13:10)
• God can will in our will (Phil. 2:12-13)
• “What has God given you faith to believe
Him for ?” Bill Gothard
• Try constructing a financial timeline, using 70
years.
63
TWO APPROACHES
TO SPENDING
65
HOW TO BUDGET--
7 STEPS
Budget busters:
www.rmni.org/financial/income_and_expense.pdf
Typical Budget Problems -1
Spending over 40% of net spendable income
(gross income, less taxes and giving) for
housing & utilities
Long distance/cell phone bills too high
Tip: use www.OneSuite.com
Food category out-of-control, including eating
out Tip: shop from menus
“Over-recreating,” including cable, trips and
fitness clubs Tip: spend from envelope
Paying too much for auto insurance & having
inadequate life insurance
69
Typical Budget Problems -2
High debt load and failure to even list and
total all debt Tip: debt list at
www.rmni.org/financial/debt_list.pdf
Little or no savings—failure to plan for
future needs and goals
“Miscellaneous” spending out-of-control
Unable to pay for private schooling
Putting too much or too little into
retirement investments
70
Typical Budget Problems -3
71
Budget Balancing
How do Americans try to balance their
budgets?
• Cutting down on take-away meals—
66%
• Saving on gas and electricity—61%
• Cutting back on out-of-home
entertainment—60%
• Spend less on new clothes—54%
• Not driving as much—47%
• Switching to less expensive grocery
brands—42% ACNielson Online Consumer Confidence Survey—Global
Survey, 11/2005
72
BUDGETING TIPS
At year’s end, total all expenses for each
category and divide by the number of months
included, to refine your budget figures.
You will probably have to adjust your budget
each month if your income varies (using a
computer spread-sheet helps). See:
www.rmni.org/financial/budgetsheet.asp
73
More BUDGETING TIPS
• Expect UNEXPECTED expenses. Satan
will try to discourage you. This is the
reason for an emergency fund. The budget
may take at least 6 months to begin to work
smoothly.
• If you use software (Quicken™,
Money Matters™, or MS Money™), use
both a checking account (checks & debit
cards) AND a “cash” account, then combine
them when running reports. You may also
need a credit card account (if you pay them
off each month), and again, combine
accounts for a report. Using software
makes tax season fairly simple. 74
FINANCIAL STATEMENT
As of_________________
Invested Assets[3]
___________________ $____________
___________________ ____________
___________________ ____________
___________________ ____________ NET WORTH $__________
___________________ ____________ (Total Assets less Total Liabilities)
___________________ ____________
Total invested $____________
Use Assets[4]
___________________ $____________ TOTAL LIABILITIES
___________________ ____________ AND NET WORTH $___________
___________________ ____________
___________________ ____________
___________________ ____________
___________________ ____________
Total use assets $____________
TOTAL ASSETS $____________
76
Are You Ready to Invest?
• Is consumer debt (non-mortgage)
paid? We should not tell creditors to
wait for their money (Prov. 3:27-28).
• How is your emergency fund?
• Are you adequately insured (auto,
home, health, life)?
• Can you invest without debt?
• Do you know your investment goals?
• What is your toleration for risk and
your freedom to risk?
Pre-investment Principles
• The best investment is in God’s
Kingdom. The return is guaranteed
and nothing can diminish the
principal (Luke 12:33).
– Do I believe that God will reward the
generous, or am I building my own
heaven on earth?
• By application, the parable of the
talents indicates that we should try
for the best return on investments,
consistent with biblical
ethics (Matt. 25:14-28).
Solomon’s Principles
1 www.fool.com/school/Glossary
Buying Stocks
• “Sector” funds invest in specific
areas, such as technology, real
estate, energy, pharmaceuticals,
etc. Risk increases as the breadth
of investment decreases.
• “No-load” funds do not charge a
commission, but do have
administrative expenses, and are
preferable to “loaded” funds.
Buying Stocks