…. Taking ‘steps to change’ in my finances

“Steps to Change” …. Taking ‘steps to change’ in my finances Session 1: Money!!! and Me

Right Track R eal I deas G iving H elp T oday T ools R esources A ttitude C onfidence K nowledge Learning how to get back on the RIGHT TRACK with your money and to be a STAR. Steps To Achieve Results

Course Overview Session 1: Money!!! And Me Session 2: Money!!! Getting It Session 3: Money!!! Gaining Control Session 4: Money!!! Growing What I Have Session 5: Money!!! My Plan Session 6: Money!!! Giving It To Others #1

#1 – Money!!! and Me “The earth is the Lord’s, and everything in it, the world, and all who live in it.” Psalm 42:1a (NIV) Purpose of this lesson: • To help us admit where we are with money. • Is it: Controlling me? • Out of control? • Being used in a God honoring way?

#1 – Money!!! and Me “The earth is the Lord’s, and everything in it, the world, and all who live in it.” Psalm 42:1a (NIV) Points we will learn: • Where we are currently spending our money. • What the difference is between needs, wants and desires. • How to understand making choices and the consequences of our choices.

#1 – Money!!! and Me “The earth is the Lord’s, and everything in it, the world, and all who live in it.” Psalm 42:1a (NIV) Putting into practice: • A money tracking and goal setting system using a: • Weekly, monthly and annual summary sheet • Bill payment system

#1 – Money!!! and Me “The earth is the Lord’s, and everything in it, the world, and all who live in it.” Psalm 42:1a (NIV) Promise from God’s word: • “For God did not give us a spirit of timidity, but a spirit of power, of love and self-discipline.” 2 Timothy 1:7

#1 – Money!!! and Me You are a STAR Because you are taking Steps To Achieve Results How did this past week go? Say your first name and either pass, pray (ask for prayer), or share.

Steps to Change “Steps To Change” Most of us want to make changes that will improve our life, that will be more pleasing to God; but many of us don’t know where to begin. The ABC’s of ‘Steps to Change’ explains the process: Admit where I am Believe God can change my situation Change is difficult Discipline will be necessary Effort will be high Freedom will come

“Steps To Change” You will learn where each step will help you get on the RIGHT TRACK with your spending plan and making those ‘Steps to Change’ habits. By doing these things each week, your goal can be reached. At the end of six weeks I’d like to accomplish: Small steps to Success Each week write down three goals that you want to accomplish for that week.

A Understanding Needs, Wants and Desires Admit where I am “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him and He will make your path straight.” Proverbs 3:5-6 (NIV) NEEDS “A necessity; something required that is lacking; an urgent requirement of something essential.” Examples: basic foods, shelter, heating, water, used clothing, etc. What are some of your needs?

A Understanding Needs, Wants and Desires Admit where I am WANTS “Crave, wish or long for.” Examples: DVD’s, TV’s, new clothing, eating out, cigarettes, pets, soda pop, cell phone, used car/truck What are some of your wants?

A Understanding Needs, Wants and Desires Admit where I am DESIRES “A strong wish or craving; an unreasonable longing.” Examples: expensive vacations, unaffordable home, high-end restaurants, designer clothing, illegal drugs, alcohol, new car/truck, big screen TV, cable, etc. What are some of your desires?

A Understanding Needs, Wants and Desires Admit where I am NEEDS DESIRES WANTS Proper Choices + Positive Attitude = Powerful Success  We must understand what really are Needs . . . Wants and Desires have to wait until money is available. 

B What is Important To Me? “No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it.”Hebrews 12:11 (NIV) Believe God can change my situation Discuss with your family members and write down your spending priorities Choices you make in spending money should agree with the things you say are most important

C Needs, Wants, and Desires “He (God) will instruct him in the way he should choose.” Psalm 25:12b (NIV) Change is difficult My life is a series of choices. I am more conscious of some choices than others. I make the choice to brush my teeth in the morning. I make the choice to accept my circumstances. I can also make the choice to change. Not choosing really is a choice. What are my current choices? List three things you are thinking of buying this month. Choices happen all day long; we must look for the options & choices. There are many things that influence our choices and what we think are Needs, Wants, & Desires.

Using the AAA Plan “The wisdom of the wise keeps life on track; the foolishness of fools lands them in the ditch.” Proverbs 14:8 (The Message) The AAA Plan Awareness – Having all the information needed Assessment – Evaluating the worth and consequences of something Action – What you do, based on the information, evaluation and goal. • Awareness – examine every situation to see the choices • Assessment – consider what might happen with each choice • Action – make your decision based on what is best for your spending plan and your future How does the AAA Plan relate to your finances?

D Debts Discipline will be necessary Use this sheet to record all debts owed including money owed to family and friends. To make progress and see results it is important to not create any more debt.

Causes of Overspending Causes of Overspending “Keep your lives free from the love of money and be content with what you have.”Hebrews 13:5a (NIV) Which reasons for overspending have you seen cause other people to have money problems? Spending Desires Debt Bills

E Choice and Change “For God did not give us a spirit of timidity, but a spirit of power, of love and of self-discipline.” 2 Timothy 1:7 (NIV) Effort will be high • Changing unsuccessful spending habits must be immediate and drastic. • Plan for it to hurt a little or a lot! • To change my spending habits I need to choose to change my personal habits that cause me to overspend. • By choosing to keep my pride in check I will be able to make decisions on financial facts. • Choosing to sacrifice something will improve my financial situation. • I must understand that I am responsible for my financial situation; not my employer, family, friends, or the government. Key Points

Choice and Change • Make the decision to overcome the guilt I feel from failure and replace it with the peace that comes from the little daily victories that will lead to success. Celebrate these victories. • For some of us, overspending comes from using money to support our addictions. Then we lose twice. • If you like the way your finances are, keep doing the same thing. If you would like more money, make the choice to make better decisions. • Changing behavior takes time. If you miss a basket, learn from it and shoot again. Practice makes perfect – eventually you’ll make the shot. More Key Points Attitude is a huge factor in success and ‘moving on”. It’s your life . . . It’s your choice!

E Looking at Choices “Now choose life, so that you and your children may live and that you may love the Lord your God, listen to His voice.” Deuteronomy 30:19b-20a Effort will be high This is where the planning begins. Use this sheet to list your circumstances including possible choices, consequences and opportunity costs for each. Example Circumstance: Not enough money to pay both the cable TV and the electric bill. Choices: a) Pay cable TV bill b) Pay electric bill (better choice) Consequences: a) Overdue electric bill, electric shut-off, unfit living conditions b) Essential bills paid, basic living conditions maintained Opportunity a) Always depending on others for financial help and basic living needs Costs: b) Future financial freedom and success

F Bill-Paying System Freedom will come Be painfully honest when completing this sheet. This will help you identify areas for improvement. Organization and following a good process can help tremendously. The goal this week is to track all spending and learn to organize bills as they are received.

F Weekly Cash Spent Freedom will come Use this sheet to track what you spend your money on. Every time money is spent, record the amount on a large envelope and place the receipt inside. Then once a day, record on this sheet. Be sure to record everything you spend right away each day. This will allow you to be aware of what is spent and to see what better choices may be made in the future.

Summary and Homework God’s promise for the week is: “For God did not give us a spirit of timidity, but a spirit of power, of love and self-discipline.” 2 Timothy 1:7 (NIV) I will put into practice this week (homework) • Write down all spending (‘Weekly Cash Spent’ sheet pg. 12)  Turn in next week • As a family or with a friend, prioritize what is most important (‘What is important to me’ on pg. 4) • List your three goals for the week (‘Small steps to success’ pg. 2) Points I’ve Learned: What are some things that you learned today? This past week? Next week’s topic will be “Money!!! Getting It”

Questions? What Questions Do You Have ?

…. Taking ‘steps to change’ in my finances