personal finances

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Post on 21-Jun-2015




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  • 1. What to Expect Once Youre Out of School & Tips for Living Well

2. Whats on the Horizon? Graduation Congratulations! Some options: Continue education (e.g.- college, vocational school) Go straight into the work force Increased Responsibilities: Possible marriage & starting a family Job/Income Bills/Expenses Food, Rent, Car, Clothes, Fun, etc. 3. Now What? Wisdom has built her spacious house To those without good judgment, she says, Leave your foolish ways behind, and begin to live; learn how to be wise. (Proverb 9:1-6, NLT) Give me a stock clerk with a goal and I will give you a man who will make history. Give me a man without a goal, and I will give you a stock clerk. J.C. Penney You need a plan! 4. The Purpose of Money Give Tithes & Offerings Less fortunate Good causes Save Emergencies Large Purchases Long-term goals (e.g.- retirement) Spend Needs (e.g.- food and clothing) Wants (e.g.- movies, vacations, smartphones) 5. First Things First (Gods Ownership) The earth is the LORD's, and everything in it. The world and all its people belong to him. (Psalm 24:1, NLT) We have to effectively manage what God has entrusted to us 6. Have a Written Cash Flow Plan For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it? (Luke 14:28, NASB) We must maintain an on purpose written cash flow plan that is agreed upon by spouses or reviewed by accountability partners if single 7. Giving Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:7, ESV) Because we are created in Gods image the image of the ultimate Giver we find our greatest fulfillment in giving 8. Saving Money In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. (Proverbs 21:20, NIV) We save money for three things: Emergencies Purchases Long-term goals 9. Four Walls But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever. (1 Timothy 5:8, NASB) We should always maintain the Four Walls Food, Shelter, Transportation and Clothing before using any money for anything else, including debt reduction Food Shelter Transportation Clothing 10. Living on Less Than We Make But godliness actually is a means of great gain when accompanied by contentment. (1 Timothy 6:6, NASB) We must learn to be content with what we have and develop power over purchase Wants that become Needs are Weeds 11. Life Without Debt The rich rules over the poor, and the borrower is the slave of the lender. (Proverb 22:7, ESV) We need to avoid debt whenever possible Saving and going into debt both require setting money aside, except going into debt takes away your choice and is more expensive in the long run 12. The Baby Steps $1,000 Baby Emergency Fund Debt Snowball Fully Funded Emergency Fund (FFEF) Retirement College Funding Pay Off the House Early Build Wealth and Give 12 13. Drive Free Retire Rich 14. Never Stop Learning Anyone who stops learning is old, whether at twenty or eighty. Henry Ford Learning is a treasure that will follow its owner everywhere. Chinese Proverb The man who doesnt read good books has no advantage over the man who cant read them. Mark Twain Mans mind, once stretched by a new idea, never regains its original dimensions. Oliver Wendell Holmes 15. Comments or Questions? Thank you! Contact Information: DNE Financial Coaching Eric Johansen