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Personal Financial Management. Bringing It All Together. Personal Finance Workshops. Budgeting and Debt Reduction Saving and Investing Personal Financial Management Stewardship Charitable Giving. Our mission today. Financial planning Overcoming the fear factor!

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Personal financial management

Personal Financial Management

Bringing It All Together


Personal finance workshops
Personal Finance Workshops

  • Budgeting and Debt Reduction

  • Saving and Investing

  • Personal Financial Management

  • Stewardship

  • Charitable Giving


Our mission today
Our mission today

  • Financial planning

    • Overcoming the fear factor!

  • Building a solid foundation

  • Where to go for more help


People don t plan to fail they fail to plan
People don’t plan to fail…..they fail to plan!

  • Only 28% of households have a comprehensive financial plan

  • Only 19% express an interest in having a financial plan

    • Don’t understand the value

    • Don’t know what a comprehensive plan is

    • Believe the cost of having such a plan developed by a financial professional is high


Did you know
Did you know?

  • God provides us with the knowledge and tools in the bible for sound money management.

  • New testament:

    • 215 verses pertaining to faith

    • 218 verses pertaining to salvation

    • 2084 versus dealing with stewardship of and accountability for money and finance


How do we create a financial plan
How do we create a financial plan?

  • Define financial planning

  • Structure of a sound financial plan

  • Commit to action

  • Who can help?


What is financial planning
What is financial planning?

  • Where you are today?

    • Examine your personal finances

  • Where you want to go?

    • Define short and long-term goals

  • Creating the plan to get you from today into tomorrow

    • Action steps to reach those goals



Key components of a plan

Speculation

Financial Goals & Priorities

Protecting Financial Security

Key components of a plan


Key components of a plan1

Speculation

Financial Goals & Priorities

Protecting Financial Security

Key components of a plan


Key components of a plan2
Key components of a plan

Speculation

Financial Goals & Priorities

Protecting Financial Security


Pharaoh s dream
Pharaoh's dream

Genesis 41:25-36:

“...seven cows, fat and sleek came up out of the Nile; and they grazed in the marsh grass…, seven other cows came up after them, poor and very ugly and gaunt…; and the lean and ugly cows ate up the first seven fat cows. Yet when they had devoured them, it could not be detected that they had devoured them; for they were just as ugly as before….I saw also in my dream seven ears, full and good, came up on a single stalk; and lo, seven ears, withered, thin, and scorched by the east wind, sprouted up after them; and the thin ears swallowed the seven good ears.”


Personal financial management

Savings and Investments for Retirement Goals, Education, etc.

Long Term Care to preserve dignity and family ties at old age (stream of income)

Disability Insurance for income preservation while living (stream of income)

Life Insurance for income and estate protection on death (lump-sum)

Risk Management


Life insurance
Life insurance etc.

Financial protection for:

Your family and loved ones

  • Can supplement lost income

  • Provide funding for child’s education

  • Debt relief – mortgage, credit cards

  • Money for funeral and final expenses and taxes


Critical illness facts
Critical Illness Facts etc.

Over 70,000 heart attacks in Canada each year

73,000 died of Heart Disease and Stroke in 2003

159,900 new cases of cancer diagnosed and 72,700 deaths in 2007

Statistics Canada, Canadian Cancer Society, Heart and Stroke Foundation


The need advances in medicine
The need – advances in medicine etc.

We are more likely to survive critical illnesses:

  • Today 59% of people diagnosed with cancer will survive as compared to 1 in 3 in the 1960’s

  • 80% of heart attack victims survive when admitted to hospital

  • 75% of stroke victims will survive the initial event, but 60% will be left with a disability

    We are survivors!

Sources: Statistics Canada; Canadian Cancer Society; Heart and Stroke Foundation of Canada


Critical illness insurance
Critical Illness Insurance etc.

Pay the bills and more!

  • Provides you with options

  • Allows you to focus on getting well

  • Eliminates money worries

  • Return of premium option


Wills and power of attorney
Wills and Power of Attorney etc.

  • A Will helps ensure your personal wishes are followed. If you own a personal asset or have children, you should have a Will.

  • A property power of attorney will make financial decisions on your behalf.

  • A healthcare power of attorney will take care of your healthcare needs.


Truth about savings and debt
Truth about savings and debt etc.

Trend #1: Less Saving

  • Savings rates: 20.2% in the 1982 to 1.2% in 2005

  • Half of all Canadians have less than $2500 in savings

    Trend #2: More Debt

  • Canadians spend, on average 127% of their income every year

  • Money is the #1 cause of marital conflict

    Source: www.crowncanada.ca / Statistics Canada


Key components of a plan3
Key components of a plan etc.

Speculation

Financial Goals & Priorities

Protecting Financial Security


The parable of the talents
The Parable of the Talents etc.

Matthew 25:14:

  • 5 talents – put his money to work and gained 5 more

  • 2 talents – put his money to work and gained 2 more

  • 1 talent – went out, dug a hole and hid the money

    For the 2 who put the money to work… “Well done, good and faithful servant! You have been faithful with a few things. I will put you in charge of many things.

    For the 1 who didn’t…. ‘Evil and lazy servant!.... Then you should have deposited my money with the bankers, and on my return I would have received my money back with interest!’


Wealth creation
Wealth creation etc.

  • The Power of Time

  • The Power of Compounding

  • The Importance of Rate of Return


Time compounding and return

2% etc.

4%

6%

72 / % Interest

8%

10%

Time, Compounding and Return

Rule of 72

  • Dramatic effect of time, compounding and rate of return.

  • Your money will approximately DOUBLE at a point in time determined by dividing 72 by the percent interest you earn.

Values are for illustrative purposes only and may be subject to applicable taxes.


Putting money to work
Putting money to work etc.

Who Has More at 65?

  • Investor “A” invests $1,000/year from age 40 to 50 and stops to let it grow

    or

  • Investor “B” invests $1,000/year from age 50 to 65?


Retirement savings
Retirement savings etc.

Most people begin their career with the hope of a good retirement. However by age 65:

  • 25% have died

  • 19% have incomes less than $10,000

  • 49% have incomes of $10,000 - $35,000

  • 7% have incomes of over $35,000

Source – National Council of Welfare, Canada Customs and Revenue Agency, 2001


If you fail to plan
If you fail to plan… etc.

  • Inefficient use of resources

  • Risk of not meeting financial objectives

  • Unprepared for the storms of life

  • Pay higher taxes than necessary

  • Delay retirement; live on less money

  • May be difficult fulfilling God’s purpose for your life


Commit to action
Commit to action etc.

Concrete steps for action

  • Set goals – spiritual and practical

  • Assess current situation

  • Develop action plans

  • Put your plan into action

  • Track your progress

  • Celebrate your successes


Who can help
Who can help? etc.

“Plans fail for lack of counsel, but with many advisors they succeed”

Proverbs 15:22


Want to go deeper
Want to go deeper? etc.

To review or start your plan

– consider FaithLife Financial

Go Green - www.faithlifefinancial.ca

  • download financial tools

  • view seminars

  • calculators

  • great financial articles