how to biblically manage finances. yam – money management planning for a lifetime

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How to biblically manage finances. YAM Money Management Planning for a Lifetime Slide 2 How to biblically manage finances. Introduction (What you will learn) The importance of saving money. Lifetime costs by category + Grand Total. A word on financial-based divorce. Some final words. Slide 3 How to biblically manage finances. The importance of saving money (The FUTURRRE!) What are some things we need to save up money for? A short list of the big ticket items: Marriage, children, house, cars, emergencies, school, retirement, inheritance, funeral. A short list of smaller ticket items: Refrigerator, stove, furnace, A/C, washer, dryer, furniture, roof repair, computers/tech. gadgets, remodeling. Slide 4 How to biblically manage finances. Now for some Scripture (Hope you brought your Bible) We are to plan for the future. Examples: Genesis 41:33-40, 41:47-49, 41:53-57 Proverbs 13:16 Luke 14:28-30 1 Corinthians 16:1-3 Matthew 25:1-13 Slide 5 How to biblically manage finances. Break it down! (Costs by category) How much does it cost toget married? Time for a game! (Note to self: Traditional). The ring can be from $100 to $3,500 (rule of thumb: One months income). Average $800. Wedding and reception: Average cost in the U.S. is $20,398. Average range is $15,299 to $25,498. The honeymoon is another $3,000 to $10,000. Average $3,400. Total: $24,598. Roughly $25,000. Slide 6 How to biblically manage finances. Break it down! (Costs by category) How much does it cost tohave a baby? About $5,000 if well insured. Check your insurance policy. If not insured, $2,000 per ultrasound (3 per pregnancy), 12 prenatal visits at $150 each, $5,000 OB fee (whatever that is), and $8,000 to $15,000 for delivery in the hospital + stay. Roughly $22,000. Extra cost if problems develop. Lets say $10,000 to be on the safe side. Slide 7 How to biblically manage finances. Break it down! (Costs by category) How much does it cost toraise one child? The first year is supposedly the most expensive. But, on average, per year (until college age): Housing - $4,400Healthcare - $730 Food - $2,000Transportation - $1,700 Clothing - $550Education - $1,300 Misc. - $1,200 Average total per year: $11,880 Total cost for 18 years: $213,840 Slide 8 How to biblically manage finances. Break it down! (Costs by category) How much does it cost toget a house? Decent houses range from $80,000 to $200,000 with the nicer ones kicking in around the $130,000 range. Rule of thumb is: Minimum 20% down the more, the better. But reserve some money for emergencies. Property taxes, community fees, insurance, etc. = More per month. A bit of history: 40 years old + lawyer. Slide 9 How to biblically manage finances. Break it down! (Costs by category) How much does it cost toown a car? Average cost of a used car with low miles is $7,000 to $11,000. Assume insurance at $200 per month, total repairs and maintenance at $6,000, gas every week at $25. Roughly $16,700 to $20,700. Slide 10 How to biblically manage finances. Break it down! (Costs by category) How much does it cost foremergencies? $1,000. Break an arm? $1,000. Car trouble? $1,000. Leaky roof? $1,000. You get the picture. Always have $1,000 on hand for real emergencies. Slide 11 How to biblically manage finances. Break it down! (Costs by category) How much does it cost toretire? Social Security? Yeah, right. Assume retirement at 65 and death at 85. You need 20 years worth of income. Assume $16,000 per year in expenditures. Roughly $320,000. Slide 12 How to biblically manage finances. Break it down! (Costs by category) How much does it cost todie? Brace yourself Last two years of life via Govt. programs: $28,616 Family out-of-pocket medical: $5,700 Funeral and burial: $8,000 $42,000. You pick up $13,700 of that. Slide 13 How to biblically manage finances. The Grand Total (Welcome to America!) Over your lifetime: Marriage: $25,000 Baby: $10,000 Raising one child: $213,000 House: $120,000 6 cars: $108,000 30 emergencies: $30,000 Retirement: $320,000 Death: $13,700 Grand Total: $839,700 or $1,627.32 per month or $10.17 an hour @ 40 hour work weeks, avg. Slide 14 How to biblically manage finances. A word on divorce (An ugly, ugly word) Mark 10:1-12 Yet, today, 50% of all marriages end in divorce. AND there is no statistical difference between Christians and non-Christians! Half is due to lack of communication. Half is due to financial troubles. Resolve now to never utter the word divorce and to work through your problems. The moment the word escapes your mouth, it becomes an option in any conversation. Slide 15 How to biblically manage finances. Oops. Got carried away. (More immediate future) So let me answer the most immediate question that should be on your mind: How much do I need to save to completely avoid finance-based divorce from the get-go? Quick quiz: Who here requires financial stability to be satisfied, happy, safe? Slide 16 How to biblically manage finances. More immediate future (The formula) Cost of marriage in the first five years: Marriage - $25,000 Baby - $5,000 Child - $11,880 * 3 = $35,640 New House - $56,000 (Down payment + monthly) Total: $121,640 Average: $14,328 per year after $50,000 up front. $50,000 + 1 year buffer = $64,328 liquid assets. $80,000 desirable in total combined assets up front. Compare: $45,000 total up front living with in-laws. Slide 17 How to biblically manage finances. Some final words (Ending on a positive note) The big numbers are just that - big numbers. Start small. Financial management is hard for some people. Everyone needs help but we are all afraid to ask. But this is why we need to support each other. We do this by encouraging one another to come out of our financial shells and be accountable to each other and to God. One last note (if there is time) Combine arranged marriage with dating-based marriage. Slide 18 How to biblically manage finances. YAM Money Management End of Lesson