personal finances lunch & learn
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DESCRIPTIONPersonal Finances Lunch & Learn. Sojourn Campus Church April 30, 2011. Outline. Beyond Dollars & Cents (God’s Values) [Keith] Six Things Your Really Need to Know: Debt: Get out and Stay Out [Mike Wang] Home buying and selling – a word to the wise [Keith] - PowerPoint PPT Presentation
Personal Finances Lunch & Learn
Personal FinancesLunch & LearnSojourn Campus ChurchApril 30, 2011
Outline Beyond Dollars & Cents (Gods Values) [Keith] Six Things Your Really Need to Know: Debt: Get out and Stay Out [Mike Wang] Home buying and selling a word to the wise [Keith] Budgeting: Wheres my money going? [Kathy Witte] Giving: Whats your Plan? [Keith] Retirement: American Dream?? [Keith]
Personal Experiences: Best and Worst [Mike, Kevin] Discussion, Sharing, Questions [All]Interests TodayWhat is My Purpose?Worlds LieGods TruthMaximize my pleasureMaximize Gods pleasureMake as much $ as possibleGive as much $ as possibleAmass and hoard things To share, give things awayImpress others w/ my stuffTo love serve othersRetire and travel the worldIncreasing engagement with those in needAttain superior std of livingTheology of enoughLet not the wise man boast of his wisdomlet 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? What single factor creates a desire for more? Seeing others who have more. Example: Parade of Homes US Advertising Goal: Create new desires for things we dont have. Youll be cool, life will be better, you deserve it Lie TruthThis gadget, trip will fulfillDiscovering Gods Purpose will fulfillYour value is in thingsYour value is in peopleI am poor (miserly)I am rich (grateful)Portfolio (treasures here)Giving (treasures in heaven
IllusionsOursociety encourages competitionrather than contentment. Someone who isnt climbing the social ladder is regarded as a fool and a failure. Were taught to climb to the top of the heap. What were 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! Had no possessions except clothes on his back Peoples response to Jesus in Scripture: Zacchaeus: gave away his wealth, paid back 4x Disciples: left careers (fishing, tax collectors, etc) Early Church: shared everything, sold land, gave to poor Gods expectations: Bless and receive children (Math 19:14) Take care of orphans & widows (James 1:27) Feed, clothe, care for poor (Math 25) Dont lay up treasures on earth (Math 6:19)
Our ResponseSurrender completely everything we are and everything we have to GodGraduated Tithe: 10% base, then increase as God provides Above threshold give 100%. Avoid luxuries (I want) Focus on true needs (food, clothing, shelter, medicine) Purpose to live by Gods standards i.e. serving poor, orphans, children, abusedWhat does the Lord require of you? To act justly, to love mercy, and to walk humbly with your God. Micah 6:8 Video -- CrownDebt:Getting Out and Staying Out
Homes, Mortgages:A Word to the Wise When is it wise to purchase a house: You have a stable job with regular income Your PITI is not greater than 28% of net income You understand all other costs: utilities, garbage, maintenance, etc. You will be able to handle unexpected costs such as new roof, new furnace, new appliances, etc. You plan on staying in the home for a long time (maintenance, realtor fees, etc.) If any of above are iffy, dont buy. Housing market may stay down or decline for a long time.
Tips in purchasing How much house can you afford? Save for a down payment. 20% no PMI. Or 80-10-10 Closing costs ($3000 for $200K home with 10% down)Get a fixed rate mortgage. No balloons or surprises. Interest rates will only go up. Get pre-approved for a loan prior to looking Pick neighborhood / city where you want to live. Consider neighborhood, street traffic, schools, work, church Consider ease of re-sell: BRs, fit in neighborhood, etc. Wait until your other loans are paid off. Do not add debt to debt. Have home inspected for structural integrity. Title history search. Anything that looks too good to be true, probably is. Buy simply, within your means, preferably on one income if married.
Budgeting: Wheres all my money going? No Shame! No Pain?
The Road to Freedom
Steps to Creating A BudgetRecord all of your sources of income.Create a list of monthly expenses.Break expenses into two categories:Fixed and Variable.Total your monthly income and expenses.Make adjustments to expenses.Review your budget monthly.
Video SNLDiscuss at Your TableOne Challenge Youre Facing in Your Financial JourneyOr Question that You Have for the Group10 Minutes
Giving: Whats Your Plan? Strategic Areas for Giving: Church, Missions Poverty Family Needs (Trafficking, Teens, Pregnancy Crisis Center, Prison Ministry, etc.) Major Sectors for Giving: Local, National, Global Reached, Unreached Nations Specific Ministries Known, Accountable, Strategic vs Tactical Percent of Income vs. Salary, Time
Note to Self: 2/3 of World is reached 80% of missionaries 99% of funds
1/3 of World is unreached 20% of Missionaries 1% of Funds
Savings: Who? Me?Some Goals Short Term: Car Repair, Ins Premiums, Car Savings Giving Medium Term: College Savings Home Down Payment Savings Giving Long Term: Retirement (more on this later) Giving
Investment Options Banks (S&L, Std & On-Line Banking) Money Market Accounts Certificate of Deposits Bonds (T Bills . Junk) Index Mutual Funds (SP500, Wilshire 5000, International, Small Cap, Industry, etc.) Managed Mutual Funds, ETFs Stocks (Income, Growth, Lg Cap, Sm Cap) Commodities (Metals, Fuels, Food, etc.)
RA T E OF RETURN
Practical Tips Short Term in Secure, Liquid Investments: Bank, MM, CDs Avoid Life Insurance Annuities for Savings Balance, Diversity, Diversity Reduces Risk, Evens out Cycles, Long Term Do not Focus on USA. Look at Countrys Debt, Long Term Growth Potential Stocks, ETFs, Mutual Funds: Buy Low, Sell High Resist high value stars (peaking out) Wait for downturns, corrections (on sale) Convert to Cash 5 years prior to needRetirement: Whats Wrong with the American Dream The dream:Travel, indulge, eat, drink, be merryyouve 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 PointsRe-Commit Your Finances to the Lord. Commit to live a simple, giving lifestyleIf in debt, make getting out #1 priorityMake a budget and stick to it
Join a small group, class, or other get a mentor. Dont do it alone!Personal Experiences Best and Worst Financial Decisions How We Saved $200 per Month Medical Costs How we survived
Other Comments, Stories, Questions.ResourcesCrown Financial Ministries (Crown.org)Quicken managing money, budgetingMint.com Living More with Less (Doris Longacre)Rich Christians in an Age of Hunger (Ronald Sider)365 Ways to Live Cheap (Trent Hamm)*TheSimpleDollar.com* Discussion Time:
Other Comments, Stories, Questions.