Personal FinancesLunch & LearnSojourn Campus Church

April 30, 2011

OutlineO Beyond Dollars & Cents (God’s Values) [Keith]O Six Things Your Really Need to Know:

O Debt: Get out and Stay Out [Mike Wang]O Home buying and selling – a word to the wise

[Keith]O Budgeting: Where’s my money going? [Kathy Witte]O Giving: What’s your Plan? [Keith]O Retirement: American Dream?? [Keith]

O Personal Experiences: Best and Worst [Mike, Kevin]

O Discussion, Sharing, Questions [All]

Interests Today

What is My Purpose?World’s Lie God’s Truth

Maximize my pleasure Maximize God’s pleasure

Make as much $ as possible

Give as much $ as possible

Amass and hoard things

To share, give things away

Impress others w/ my stuff

To love serve others

Retire and travel the world

Increasing engagement with those in need

Attain superior std of living

“Theology of enough”

“Let not the wise man boast of his wisdom…let not the rich man boast in his riches, but let him who boasts, boast in this, that he understands and knows me, that I am the Lord who exercises kindness, justice, and righteousness in the earth….” Jeremiah 9:23-24

Keeping Up withthe Jones’?

O What single factor creates a desire for more?O Seeing others who have more.

O Example: Parade of HomesO US Advertising Goal: Create new

desires for things we don’t have.O You’ll be cool, life will be better, you

deserve it Lie TruthThis gadget, trip will fulfill

Discovering God’s Purpose will fulfill

Your value is in “things”

Your value is in people

I am poor (miserly) I am rich (grateful)Portfolio (treasures here)

Giving (treasures in heaven

Illusions“Our…society encourages competition…rather than contentment. Someone who isn’t climbing the social ladder is regarded as a fool and a failure. We’re taught to climb to the top of the heap. What we’re not taught is that the heap is a garbage heap.”Peter Kreeft, Back to the Virtue.

“One of the most astounding things about the affluent minority is that we honestly think we have barely enough to survive in modest comfort.”Ronald Sider, Rich Christians in an Age of Hunger

“There is great gain in godliness through contentment… if we have food and clothing we will be content with that. People who want to get rich fall into a trap that plunge men into ruin and destruction.” Apostle Paul I Timothy 6:6-9

What would Jesus Do…. Really!

O Had no possessions except clothes on his backO People’s response to Jesus in Scripture:

O Zacchaeus: gave away ½ his wealth, paid back 4xO Disciples: left careers (fishing, tax collectors,

etc)O Early Church: shared everything, sold land, gave

to poorO God’s expectations:

O Bless and receive children (Math 19:14)O Take care of orphans & widows (James 1:27)O Feed, clothe, care for poor (Math 25)O Don’t lay up treasures on earth (Math 6:19)

Our Response…O Surrender completely everything we are and

everything we have to GodO Graduated Tithe:

O 10% base, then increase as God providesO Above threshold give 100%.

O Avoid luxuries (I want)O Focus on true needs (food, clothing,

shelter, medicine)O Purpose to live by God’s standards

O i.e. serving poor, orphans, children, abused

“What does the Lord require of you? To act justly, to love mercy, and to walk humbly with your God.” Micah 6:8

Video -- Crown

Debt:Getting Out and Staying Out

Homes, Mortgages:A Word to the Wise

O When is it wise to purchase a house:O You have a stable job with regular incomeO Your PITI is not greater than 28% of net incomeO You understand all other costs: utilities,

garbage, maintenance, etc.O You will be able to handle unexpected costs such

as new roof, new furnace, new appliances, etc.O You plan on staying in the home for a long time

(maintenance, realtor fees, etc.)O If any of above are iffy, don’t buy. Housing

market may stay down or decline for a long time.

Tips in purchasingO How much house can you afford?

O Save for a down payment. 20% no PMI. Or 80-10-10O Closing costs ($3000 for $200K home with 10% down)O Get a fixed rate mortgage. No balloons or surprises.

Interest rates will only go up.O Get pre-approved for a loan prior to looking

O Pick neighborhood / city where you want to live.O Consider neighborhood, street traffic, schools, work,

churchO Consider ease of re-sell: BRs, fit in neighborhood, etc.

O Wait until your other loans are paid off. Do not add debt to debt.

O Have home inspected for structural integrity. Title history search. Anything that looks too good to be true, probably is.

O Buy simply, within your means, preferably on one income if married.

Budgeting: Where’s all my money going?

No Shame!  No Pain?

The Road to Freedom

Steps to Creating A Budget

1. Record all of your sources of income.

2. Create a list of monthly expenses.3. Break expenses into two categories:

Fixed and Variable.4. Total your monthly income and

expenses.5. Make adjustments to expenses.6. Review your budget monthly.

Video SNL

Discuss at Your TableO One Challenge You’re Facing in Your

Financial JourneyO Or Question that You Have for the

GroupO 10 Minutes

Giving: What’s Your Plan?O Strategic Areas for Giving:

O Church, MissionsO PovertyO Family Needs (Trafficking, Teens,

Pregnancy Crisis Center, Prison Ministry, etc.)

O Major Sectors for Giving:O Local, National, GlobalO Reached, Unreached Nations

O Specific MinistriesO Known, Accountable, Strategic vs Tactical

O Percent of Income vs. Salary, Time

Examples

22%

7%

43%

28%

Giving Breakdown -- 2008

Poverty Families in Need

Church Missions

Examples

30%

11%

36%

24%

Giving Breakdown 2010

PovertyFamilies in NeedChurchMIssions

2006 2007 2008 2009 2010

Giving Dollars

Note to Self:O 2/3 of World is “reached”

O 80% of missionariesO 99% of funds

O 1/3 of World is “unreached”O 20% of MissionariesO 1% of Funds

Savings: Who? Me?Some Goals

O Short Term: O Car Repair, Ins Premiums, Car

SavingsO Giving

O Medium Term:O College SavingsO Home Down Payment SavingsO Giving

O Long Term:O Retirement (more on this later)O Giving

Investment OptionsO Banks (S&L, Std & On-Line

Banking)O Money Market AccountsO Certificate of DepositsO Bonds (T Bills …. Junk)O Index Mutual Funds (SP500,

Wilshire 5000, International, Small Cap, Industry, etc.)

O Managed Mutual Funds, ETF’sO Stocks (Income, Growth, Lg Cap,

Sm Cap)O Commodities (Metals, Fuels,

Food, etc.)

RA T E OF RETURN

SAFETEY

Practical TipsO Short Term in Secure, Liquid Investments:

O Bank, MM, CD’sO Avoid Life Insurance Annuities for SavingsO Balance, Diversity, Diversity

O Reduces Risk, Evens out Cycles, Long TermO Do not Focus on USA. Look at Country’s

Debt, Long Term Growth PotentialO Stocks, ETF’s, Mutual Funds: Buy Low,

Sell HighO Resist high value stars (peaking out)O Wait for downturns, corrections (on sale)O Convert to Cash 5 years prior to need

Retirement: What’s Wrong with the American Dream

The dream:Travel, indulge, eat, drink, be merry…you’ve deserved it. Sit back, relax, and enjoy your final days.

The reality:Boredom, laziness, apathy, sickness, stress, divorce, death

“…researchers concluded that employees who retired at age 55 had almost double the mortality risk of those who continued working into their 60s…” British Medical Journal, May 2005

What does God Say?

For me to live is Christ and to die is

gain.” Phl 1:21

Whatever your hand finds to do, do it with all your might. Ecc

9:10

On the seventh day God had finished the

work he had been doing; so on the seventh day he

rested from all his work. Gen 2:2

Jesus said to them, "My Father is always at his work to this very day, and I, too, am working.” John 5:17

Take Home Points1. Re-Commit Your Finances to the

Lord. Commit to live a simple, giving lifestyle

2. If in debt, make getting out #1 priority

3. Make a budget and stick to it

Join a small group, class, or other get a mentor. Don’t do it alone!

Personal ExperiencesO Best and Worst Financial

DecisionsO How We Saved $200 per MonthO Medical Costs – How we

survived

O Other Comments, Stories, Questions….

ResourcesO Crown Financial Ministries (Crown.org)O Quicken – managing money, budgetingO Mint.com O Living More with Less (Doris

Longacre)O Rich Christians in an Age of Hunger

(Ronald Sider)O 365 Ways to Live Cheap (Trent Hamm)*O TheSimpleDollar.com*

Discussion Time:

Other Comments, Stories, Questions….