Myth Busting-- Money Issues for McLean Bible Church Prince William Campus February 2011 By Bud Moeller

1. Myth Busting-- Money Issues for McLean Bible Church Prince William Campus February 2011 By Bud Moeller

2. Top 10 New Year’s Resolutions • Lose weight/get fit • Pay off debt • Save more money • Quit smoking/drinking • Get a better job/education • Enjoy life more/take a trip or vacation • Reduce stress • Volunteer to help others • Learn something new • Get organized

3. Weight/Food Wisdom • Miss Piggy: “Never eat more than you can lift” • Jay Leno: I went into a McDonalds and said, “I’d like some fries. The girl at the counter said, ‘Would you like some fries with that?’” • Jackie Gleason: “The second day of a diet is always easier than the first. By the second day, you’re off it.” • Even overweight cats instinctively know the cardinal rule: when fat, always arrange yourself in slim poses.

4. The Reality of Money? • If you think no one cares if you’re alive, try missing a couple of car payments • The Lottery: A tax on people who are bad at math • “We can loan you enough money to get you completely out of debt.” (Bank sign)

5. In A Perfect World, You’d Have Been Prepared For This Stormy Time • 3-6 months of emergency savings • Credit cards paid off • Consumer debt (auto, student, etc.) gone • Savings banked for major future events (vacation, next auto, education, etc.) • Home ownership, with equity cushion • Retirement accumulating well • (At least the essence of a good plan!)

6. Giving Saving Debt Payment Spending Earning But Priorities Were Messed Up?

7. Many Famous People Messed Up Too • Mike Tyson—Earned $300+ MM, filed bankruptcy in 2003, owing $27 MM • Scottie Pippen—Lost $120 MM in career earnings w/ poor planning and bad ideas • Evander Holyfield—Made $250+ MM, now broke • Many others—John Daly, Nicholas Cage, Kim Basinger, Mick Fleetwood, Don Johnson, MC Hammer

8. Maybe You Just Got Trapped In Myths • Money (earning and management) is a topic that’s • Intensely private yet much in the public eye • Intrinsically complex yet quite simple • Over-published yet difficult to find sound advice • In our hands daily yet far out of mind • And there are way too many myths that hinder us from moving to freedom

9. Earning & Accumulating Myths • I can do what I enjoy rather than work for the money. • If I only had 10% more income . . . • Money is the root of all evil • Money brings security • Money can’t buy happiness • Most people become wealthy through inheritance, special talent, or good fortune

10. Giving & Savings Myths • When you give, you’re hindering yourself • I’m too poor to give anything away • I have a savings account so I’m saving $ • My home equity is my retirement plan • Renting is just like throwing money away • I need the tax deduction of mortgage interest and property tax so home ownership is a good thing all around • I’m too young to worry about saving for retirement

11. Investing Myths • Selling something for a higher price in the future is always a profit • The stock market is too risky, like gambling • Buy this book and you can consistently beat the market • I can time the market—know when to hold ‘em and when to fold ‘em • I’m nearing retirement age so should move my money into fixed investments (e.g., bonds, money funds)

12. Credit & Debt Myths • Using a debit or credit card (if I manage it well) is just like using cash • Carrying a balance on my credit card will build credit and improve my credit score • I’ve saved money by consolidating all my debt into one large payment plan • I’m saving money by using this 0% card

13. Spending Myths • I saved so much because this was on sale • The low interest rate on this new car made it so affordable—and I’ll drive it ‘til it dies • I can’t save because all my income just goes to pay my bills • But I have to have . . .

14. And Some Final Myths • I’ll be able to retire someday • I’m not wealthy so I don’t need a will • Management of family finances should be handled by the spouse most comfortable or skilled in financial matters • It’s bad to check your credit score too often

15. Spending Debt Saving Giving Earning God’s Priorities--Reverse of the World’s!

16. Four Financial Situations--Yours Is? In crisis One paycheck from disaster Good “financial” shape God-honoring lifestyle

17. Back to Resolutions--Making them Stick • Pick realistic goals • Define the goals (specifically) • Set a schedule (or deadline) • Don’t be upset by setbacks • Enlist additional help or support • (… and, of course, you’ve got to get started!)