ASSEMBLIES OF THE GLORIOUS CHURCH

BUDGETING AND FINANCE

A.O.T.G.C Family Month 2013

FAMILY MONTH 2013

Important Questions
What is Budgeting? What is the importance of planning? Is Planning Biblical? Is Budgeting Biblical? Does God wants us to plan?
A.O.T.G.C Family Month 2013

A Budget
A Budget is a financial plan of expected inflows and
outflows for a specified period.

Inflows are also known as income or revenue Outflows are know as expenses or expenditure It does not always comprise of money that we have
A.O.T.G.C Family Month 2013

God and Planning

Revelation 13:8 Jeremiah 1:5 Jeremiah 29:11
One advantage that God has over us is that he knows the future, we dont
A.O.T.G.C Family Month 2013

Gods Advice on Planning/Budgeting

Luke 14:18 Matthew 7:24
If God knows the future and he plans then we who dont know the future should ensure that we plan.

A.O.T.G.C Family Month 2013

Sample Monthly Budget

Income $ Expenditure $

Husbands Salary, Wifes Salary

Rental Income Remittances Other Income

4,000 Tithes & Offerings 3,500 Mortgage

800 Utilities 200 Food (including cooking gas) Transportation/Vehicle Expenses Insurance Savings

910 1,800
600 700 600 125 3,765 8,500 0

Total Income

8,500 Total Expenditure

Surplus/(Deficit)
A.O.T.G.C Family Month 2013

Sample Monthly Budget

Income $ Expenditure $

A.O.T.G.C Family Month 2013

Finance
Finance is the study of funds management, or the
allocation of assets and liabilities over time under conditions of certainty and uncertainty. A key point in finance is the time value of money.

Finance can be broken into three different categories:

public finance, corporate finance and personal finance.
A.O.T.G.C Family Month 2013

Personal Finance
Savings Retirement Planning Mortgage Planning Investment Planning
A.O.T.G.C Family Month 2013

Retirement Planning
Involves a calculation of the amount of monies you would receive on a
monthly basis by the National Insurance Scheme and whether it would be adequate to support your lifestyle.

A.O.T.G.C Family Month 2013

Tools used in Credit Analysis

Monthly Budget Debt Service Ratio Statement of Affairs

A.O.T.G.C Family Month 2013

Debt Service Ratio (DSR)

Details
Total Income (A) Debt: Hire Purchase Credit Union Loan Bank Loan This Debt Total Loan (B) 400 1,200 1,100 2,100 4,800 100 0 0 1,000 1,100 100 120 0 350 570

Applicant 1
7,450

Applicant 2
3,000

Applicant 3
1,500

DSR (Debt/Total Income)

A.O.T.G.C Family Month 2013

64%

37%

38%

Clients Information
Items House Vehicle Mortgage Loan Value Items 340,000 Land 45,000 Credit union loan 550,000 Value 120,000 60,000

Hire Purchase Debts Animals

Cash Credit Card Debts Furniture Fishing Boat

5,000 6,000
2,000 6,000 4,000

A.O.T.G.C Family Month 2013

Statement of Affairs
Assets $ Liabilities $

A.O.T.G.C Family Month 2013

Technical Methods of Saving

Buy in bulk/wholesale Bargain before you buy

Avoid hire purchase unless it is absolutely unavoidable

Avoid credit cards or pay them off within one month Avoid overseas calls on home phones
A.O.T.G.C Family Month 2013

Technical methods of saving (contd)

Do medical checks annually Eat healthy and exercise Avoid all forms of wastage

Avoid unnecessary expenses

Take only necessary features/channels on your phone/cable

A.O.T.G.C Family Month 2013