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PCW and Personal Finances. Bloom where you are planted. Today's topic is puzzling to some PCWs. Question of the day. - PowerPoint PPT Presentation

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  • PCW and Personal Finances

  • Bloom where you are planted

  • Today's topic is puzzling to some PCWs.

  • Question of the daySince Health Care reform is stalled in congress, costs continue to rise. You become ill and needed emergency surgery one day before starting your new Call. Your health insurance took effect but since this prior condition occurred before your coverage and your parents stopped coverage on you the week before your surgery. (Thinking nothing would happen) you are responsible. The $60,000 surgery, hospital and rehab bill steals your breath. Your old CUAA Roommate says declare bankruptcy. What should you do?

  • TomorrowA fellow staff member (Assistant Pastor) does not like the Principal. They tell you they are going to send their child to a neighboring Lutheran School instead of yours. They also inform you their child wont be in your midweek school because of a dance class conflict. How do you respond?

  • Why teachers hate parents? Is this the reality in 2009?Is this the reality in Lutheran Schools?Is this the reality for those who work with parish youth?If we answer yes to any of the above, how do we prevent it from being your reality?Is this good for children?

  • I follow a written budget?YesNo

  • I believe that I will not be able to save any money next year?YesNo

  • I think I will need financial assistance next year?YesNo

  • Doctor Locke talked about 10 month Call vs. 12 month Call yesterday. What is one difference applicable to income in considering the type of call you receive?Can you receive pay checks over the summer? (20 pays vs 24)Can you line up summer employment?

  • If you have budget challenges, you really have two options. They are:Reduce SpendingCheaper apartment/houseRoommateCutting back on wants/needsAdditional income streams (Craft, baby sitting, tutoring, music lessons)Second JobSummer JobSide Job like Officiating, Wedding CoordinatorSell on EBay

  • Some Key Concepts to consider in handling personal finances:DebtInterest RatesBudgetsCompound InterestChurch Agencies to AssistLCEFCEFTHRIVENT (?)

  • What are the pros and cons of a written budget?Strategy to follow (P)You know where your $ goes.Takes Discipline*Not Spontaneous*Hard Work to Follow Guides Decisions and Behavior

  • What are sample %s in a Budget?Charitable Giving 10%Taxes 15-25%Total Housing 30-36%Food 12-17%Auto 15-20%Insurance 3-7%Debt 3-7%Entertainment 3-7%Clothing 5%Savings 5%Medical Expenses 4-9%Misc. 5%Total 110%- 143%

  • $27,000 Salary$2,700 Tithe (10%)$5,400Taxes (30%)$8,100 Rent ($675 monthly) (60%)$3,240 Food (72%) ($270 Monthly)$5,400 Auto Expenses ($450 monthly) 92%$1,350 Insurance 97%$1,350 Debt 102%$1,350 Clothing 107%$1,350 Savings 112%$1,350 Entertainment 117%$1,350 Medical 122%$1,350MISC 127%

  • What do the totals tell you about your budget?Fluid Document Constantly ChangingPrioritizeHard WorkYou must know your incomeTempting to Cut Charitable GivingEasy Fix- Bring in more income

  • Can you divide your expenses by pay period?$27,000 divided by 24 pay periods = $1125 each check$112.50 Charitable Giving$225.00 TaxesTime when Due amount of expenses per pay period

    Source Get a Grip on Your Money by Larry Burkett

  • What happens to your raises?A 4% Raise on $27,000

  • Savings vs. Charging $1825 Saved

  • When should you start saving?Saving $100 monthly for the first 15 years and nothing after for the next 25 years =$431,702 at 10%.Saving nothing the first 15 years and then $100 for the next 25 = $123,332 at 10%.

  • Home Expenses making a larger payment $100,000 7% x 30 Yrs.

  • If you are in debtEstablish a Spartan LifestyleList debts Smallest to LargestPay Minimum on everything and max possible on SmallestAs Each Item paid off Amount rolls over to next itemContinue until all are paid

  • Is there a place for cash payments?Advantages vs. Disadvantages

    CEF Housing LoanShould you buy a house right away? Advantages vs. Disadvantages

  • What does scripture say about money management?

  • What does scripture say about attitudes towards money?

  • You live near a casino. Should you regularly be seen supporting this local business?Should you borrow from a church friend?Should you accept free doctors visits from a parishioner who offers?Concordia Ann Arbor has a future opening Professor Freudenberg tells you about. He assures you that you are the candidate. Should your congregation pay 100% for your advanced degree, which once you receive you know you will leave there for CUAA?

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