slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Stewardship of God’s Money in Difficult Times For McLean Bible Church Prince William Campus February 2011 By Bud Moell PowerPoint Presentation
Download Presentation
Stewardship of God’s Money in Difficult Times For McLean Bible Church Prince William Campus February 2011 By Bud Moell

Loading in 2 Seconds...

play fullscreen
1 / 50

Stewardship of God’s Money in Difficult Times For McLean Bible Church Prince William Campus February 2011 By Bud Moell - PowerPoint PPT Presentation


  • 85 Views
  • Uploaded on

Stewardship of God’s Money in Difficult Times For McLean Bible Church Prince William Campus February 2011 By Bud Moeller. 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

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Stewardship of God’s Money in Difficult Times For McLean Bible Church Prince William Campus February 2011 By Bud Moell' - wylie


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Stewardship of God’s Money in Difficult Times

For

McLean Bible Church

Prince William Campus

February 2011

By Bud Moeller

the reality of money
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)
  • Happiness is not having what you want but wanting what you have
the usual problems
The Usual Problems
  • More month than money
  • If I only made 10% more money . . .
  • I’ll use this new credit card to pay off this other credit card
  • I’ll be dead before I can afford to retire
  • How can I be overdrawn, I still have checks left!
  • The problem lies in reconciling my gross habits with my net income
the new problems
The New Problems
  • If I can keep making this money . . .
  • Where did all those credit card offers go?
  • What retirement account? Oh, that $64,000?
  • How can I be overdrawn . . . oh those extra banking fees for . . .
  • But inflation is low, why can’t I make ends meet now?
the real problem competing masters
The Real Problem--Competing Masters

Matthew 6:24 (NLT): “No one can serve two masters. For you will hate one and love the other, or be devoted to one and despise the other. You cannot serve both God and money.

the average american doesn t do very well when it comes to
The “Average American” Doesn’t Do Very Well When It Comes to $$
  • 34% pay credit cards off each month
  • 48% pay only the minimum each month
  • Low savings rate vs. rest of world => no cushion when recession came
  • People have dipped into 401(k) and other retirement assets
  • 43% spend more than they earn
  • Greed => Housing Crisis => Foreclosures and bankruptcies
  • Money #1 cause of marital conflict
  • Average family credit card debt $16,000 (of those who carry a balance)
the world s priorities

Giving

Saving

Debt Payment

Spending

Earning

The World’s Priorities
the steward s mindset
The Steward’s Mindset
  • God created everything.
  • God owns everything.
  • We are merely trustees.

1 Chronicles 29:11-12 “Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. Riches and honor come from you alone, and you are the Ruler of all mankind; your hand controls power and might, and it is at your discretion that men are made great and given strength.”

what does the bible say
What Does The Bible Say?
  • Work--was before the fall. Genesis 2:15 “The Lord God took the man and put him into the garden of Eden to cultivate it and keep it.”
  • Giving is an act of worship and recognition
  • Saving is wise
  • Debt is really bad
  • Spending is where we really lose it!
earning our role
Earning--Our Role
  • Work hard--Ecclesiastes 9:10 “Whatever your hand finds to do, do it with all your might.”
  • Be diligent--Proverbs 18:9 “He who is slack in his work is brother to him who destroys.”
  • Be purposeful--Colossians 3:23 “[Work] as though you were working for the Lord rather than for people.”
  • Be grateful--Deuteronomy 8:17-18 “You may say to yourself, ‘My power and the strength of my hands have produced this wealth for me.’ Remember the Lord your God, for it is he who gives you the ability to produce wealth.”
so what questions should we be asking re giving

Giving

So What Questions Should We Be Asking Re Giving?
  • Do I have the right attitude?—2 Cor 9: 6-7, Prov 11:24, Luke 6:38, 1 Tim 6:10 and 17
  • What do I care about?—Luke 12:34 “For where your treasure is, there your heart will be also.”
  • To whom should I give?—Galatians 6:6, Matthew 25: 35-40
  • What does God really want from us? Does He need our money?
what questions should we be asking re saving

Saving

What Questions Should We Be Asking Re Saving?
  • Why should I save?—Prov 21:20 and 6:6-8;
  • How much should I save?—Matt 25:14-29, 1 Timothy 6:9-10, Luke 12:15-21, Prov 23:4-5, Phil 4:11-13
  • What should I save for my kids?—Prov 13:22, 1 Tim 5:8
  • When should I give it to them?—Prov 20:21
save for
Save For . . .
  • Avoiding debt on major purchases
  • Reducing/eliminating debt
  • Your future (retirement, whatever that means)
  • Your children’s future
  • Being able to bless others generously
how much to save to retire
How Much to Save to Retire?
  • Assume a spending pattern requiring $60,000/year for the rest of your life
  • Most planners would agree you should pull no more than 4%/year from your retirement or you’ll outlive your money
  • So, would require $1,500,000 to retire
  • And, if you want to live better than this, just ratio this number up or down to fit
  • Inflation? Earnings rate? Social Security?
how to invest
How to Invest?
  • With plans and persistence--Prov 21:5
  • With honesty--Proverbs 21:6
  • With a watchful eye--Prov 27:23-27
  • With diversification--Ecclesiastes 11:2,6
  • With much prayer and God’s input-- Isaiah 48:17-18
debt even worse than you think
Debt--Even Worse Than You Think
  • Debt is considered slavery--Proverbs 22:7 “Just as the rich rule the poor, so the borrower is servant to the lender.”
  • Debt was considered a curse
  • Debt presumes on tomorrow
  • Debt may deny God an opportunity

Debt

spending a personal choice

Spending

Spending--A Personal Choice
  • Beware of idols--Romans 1:25 They “worshiped and served created things rather than the creator.”
  • Guard against greed--Luke 12:15 “Beware! Don’t be greedy for what you don’t have. Real life is not measured by how much we own.”
  • Be content--Philippians 4:12 “I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.”
in a perfect world you d have been prepared for this storm
In A Perfect World, You’d Have Been Prepared For This Storm
  • 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 pretty well covered
  • (At least the essence of a good plan!)
most likely you re struggling
Most Likely, You’re Struggling
  • Average credit card debt ~ $8,000
  • Car loan higher than car value
  • Student loans still lingering
  • Savings—minimal, or not very liquid
  • Home equity erased or below 20%
  • Insufficient retirement savings
  • Little else to leverage other than time
if you want to get in financial shape
If You Want to Get in Financial Shape …
  • Need to know where you’re starting from
  • Need to know how much to change
  • Need to figure out what to change
  • Need to decide how long to take
  • Essentially, you need a plan!
measurement tools finances
Measurement Tools--Finances
  • Balance Sheet
  • Income Statement
  • Credit Report
the balance sheet
Checking account

Savings

Car

“General Stuff”

“Valuable Stuff”

House

Retirement

Investments

Credit cards

Car loan

Other loans

IRS Debt

Mortgage

Home Equity loan

401(k) loan

Obligations payable

The Balance Sheet

I Have …

I Owe …

Have - Owe = Net Worth

balance sheet
Checking $500

Savings $500

Car $20,000

“Valuables” $2,000

“Stuff” $20,000

House $600,000

Retirement $65,000

Investments $30,000

TOTAL $738,000

Credit cards $12,000

Car loan $25,000

Edu loan $60,000

IRS Debt $2,000

Mortgage $550,000

Home Eq loan $95,000

401(k) loan $5,000

Obligations $1,000

TOTAL $760,000

Balance Sheet

I Owe …

I Have …

Have - Owe = Net Worth ($12,000)

spending plan
Spending Plan
  • Fundamental tool that enables us to control our money so that it doesn’t end up controlling us
  • Plan for how we will allocate our financial resources
  • A way to reach our financial goals and live out our values and priorities
  • Produces freedom--there is no true freedom without limits
building a spending plan
Building a Spending Plan
  • What are your life goals?
  • What things have changed recently?
  • What financial goals to set, in support?
  • Set some near-term (e.g., 6 months, 1 year, 2 years) objectives and targets
  • Build a balanced plan to get there
income statement overview
Income Statement--Overview
  • What you make--Income
  • Minus your Giving
  • Minus your Taxes
  • = Net available for other uses
    • Saving (current, retirement, etc.)
    • Debt reduction
    • Spending
the savings page
Long Term Priorities

Retirement

Children’s education

Special trip (anniversary, etc.)

Other (furniture, remodeling, etc.)

Short Term Priorities

Emergency fund (3-6 mos)

Investments

House purchase downpmt

1st Child prep

Car Replacement/Repair

Medical

Insurances

Vacation this year

Gifts

Other this year (e.g., TV, appliances, etc.)

The “Savings” Page
savings elements
Savings Elements
  • Emergency--should be 3-6 months of “spending,” held in a liquid account (i.e, not tied up for a lengthy period where unavailable)
  • Replacement--money you accumulate for periodic spending on major items that are wearing out (e.g, car, appliances, furniture)
savings continued
Savings--continued
  • Long-Term--for items that will take years to accumulate and/or use
    • College fund for children’s education
    • Retirement
    • Down-payment for home purchase
    • Etc.
page 3 all the spending and debt reduction
Housing--biggest cost

Food

Auto/Transport

Children’s costs

Clothing

Entertainment & Recreation

Personal Care

Misc/cash

Debt Reduction

Credit cards

School loans

Personal/bank loans

IRS debt

Cash advances

Etc.

Page 3--All the “Spending” and Debt Reduction
reducing expenses
Reducing Expenses
  • Is this an optional expense that can be eliminated?
  • Is this a variable expense that can be controlled and reduced?
  • Is this an expense that has wrongly been assumed as being “fixed”?
debt reduction
Debt Reduction
  • Should be your goal after giving and saving
  • “Just as the rich rule the poor, so the borrower is servant to the lender.” Proverbs 22:7
  • Move from paying interest to earning interest!
debt example
Debt Example

You owe $7,200 @ 18.1%

(Minimum payment = 2% of the balance or $10/month whichever is greater.)

You PayTotal PaidTime

$Minimum/month $23,049 23+ years

debt example1
Debt Example

You owe $7,200 @ 18.1%

(Minimum payment = 2% of the balance or $10/month whichever is greater.)

You PayTotal PaidTime

$Minimum/month $23,049 23+ years

$144/month $13,387 8 years

debt example2
Debt Example

You owe $7,200 @ 18.1%

(Minimum payment = 2% of the balance or $10/month whichever is greater.)

You PayTotal PaidTime

$Minimum/month $23,049 23+ years

$144/month $13,387 8 years

$144 + $100/month $ 9,570 3 years

other keys to debt reduction
Other Keys to Debt Reduction
  • Be sure the plan is realistic.
  • Incur no new debt!
  • Modify the plan when unexpected windfalls or pay raises come into play.
  • As each debt is retired, celebrate!
but it doesn t balance
“But, It Doesn’t Balance . . .”
  • Increase income--tough to do without a significant shift something (job, spare time, location)
  • Reduce expenses--go back and force your lifestyle to rebalance
  • Sell assets--something with enough value to make a dent in your debt or payment load
so suggested priorities
So, Suggested Priorities
  • Keep working!
  • Continue to give, of course
  • Go on a lifestyle diet to free up more $$
  • Focus on your future needs vs. others
  • Put a high priority on retirement savings (put away a whole dollar, grows tax free)
  • Balance that with reducing high cost debt
  • Think “cash flow” too
  • Work the spread (cost of money vs. yield)
  • Make big purchases with cash vs. debt
in huge trouble
In Huge Trouble?
  • Give. . . Something, sacrificially
  • Save. . . a little (at least)
  • Debt. . . maximize repayment
  • Lifestyle. . . spartan
you need a short term plan
You Need A Short-Term Plan!
  • Forget the life goals—this is about survival
  • Take inventory—savings, spendable assets, leverage, liquidation potential, income, debt, etc.
  • Know your bottom line and squeeze it
  • Call your creditors before they call you
  • Forecast the future—know what will hit you and when. Set priorities and sequence—be proactive not reactive!
your credit report fico score
Your Credit Report--FICO Score
  • Not something you usually see, unless you request it
  • It’s how the world of lenders sees you
  • Therefore determines the rates you get for any credit or loans
  • Anything over 720 is “So what?”
  • A couple of mess-ups can stain your record for many years
  • Sometimes you’re stained and don’t even know it
want your credit report
Want Your Credit Report?
  • Go to www.annualcreditreport.com It is the only authorized source to get your free credit report under federal law
  • It will show your accounts, payment history, balances, dates, etc.
  • What it won’t do is show your FICO score. For that, you have to pay a fee. Go to www.myfico.com (Equifax and TransUnion scores. Experian availability was discontinued in February) or go straight to the rating agencies.
impact on you monthly payment
Impact on You--Monthly Payment

Assumes $450,000 mortgage, 30 years

making change stick
Making Change 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!)
some encouragement and challenge
Some Encouragement and Challenge
  • Action springs not from thought but from a readiness for responsibility
  • Obstacles are those frightening things you see when you take your eyes off your goal
  • A little knowledge that acts is worth infinitely more than much knowledge that is idle
  • “Do or do not. There is no such thing as ‘Try’” Yoda (Empire Strikes Back)
  • Billy Graham: “The test of a preacher is that his congregation goes away saying, not, “What a lovely sermon!” but, “I will do something.”
the commercial
The Commercial
  • If this topic is striking a chord with you and you want to get started, call:
    • Nancy Hall (MBC coordinator) 703-770-4397
  • There’s no cost for financial counseling--except your “investment” of time to do the work
  • If you want the Biblical foundation (more than counseling), sign up for McLean University 501 A (Bible Study) or B (Small Group).