Money Management tips from Mount Canaan Young Adult Ministry
Outline Brief Introduction Christ Taught about Finances Ways to Build Wealth Closing Remarks
Quotation "Over a lifetime, the average family will manage between $1.5 and $2 million. Imagine running a business that will gross a couple of million dollars and deciding that it is not necessary to write anything down - 'We'll just wing it.‘ Far too often this is exactly what families do"
John 13:15 (NLT) “I have given you an example to follow. Do as I have done to you.” We are bombarded with many forms of media today which are attempts to tell us what happiness is and how to be in control of ourselves and everything around us. The Christian lifestyle is not about happiness. Rather, we were made to bring glory to God in all we do and say. Introduction… The “Life” Style of the Christian
Christ taught about finances Approximately two-thirds of the parables that Christ used in teaching deal specifically with finances. That would be 66% of the parables. Is this is a lot? Does it surprise you? Christ never said money or material things were problems. He said that they were symptoms of the real problems. He constantly warned us to guard our hearts against greed, covetousness, ego, and pride, because these are the tools that Satan uses to control and manipulate this world. "He said to them, 'Beware, and be on your guard against every form of greed; for not even when one has an abundance does his life consist of his possessions‘” (Luke 12:15).
Christ taught about finances cont’d Hardly anyone wants to be poor; most people would like to be rich. Does anyone here NOT want to be rich? Wealth brings power, standing in the community, increased leisure and freedom from worry-so it is thought. Do you agree? Is this all that wealth brings? Not surprisingly, in the richest part of the world many Christians are preaching a "prosperity gospel"-that faithfulness to Jesus will lead to personal wealth.
1) Stay out of debt. When you don't owe anything to anyone, you keep your money with you. You also don't pay any interest. If you finance a $20,000 car at 5% over four years, you pay $22,108 for a $20,000 car. That would be like walking up to the dealer and saying you want to pay too much for the car, and you won't take no for an answer. It makes no sense. World View… 5 Ways to begin building wealth
Manage Your Money - Keep track of your money; stay organized – Save important documents, review your accounts online – Whether you balance a checkbook or review your accounts online, make sure you know how much money you have - Avoid credit card schemes – You really only need 1 credit card. – Pay balances on time and as much of the whole amount as possible; that will boost your credit score - Re-think credit cards – Think of your credit card as a loan. “Would I really go to the bank and take out a loan for this?” – Don’t use a cash advance unless for a SERIOUS emergency
2) Save money. Money gives you options. If you have $10,000 saved in a money market account for emergencies, then you're prepared when some idiot driving alongside you changes lanes without signaling. If you save money, you can get a deal on that used car or big-ticket item you want by flashing the cash. Saving money year after year in investments will also give you a very comfortable retirement. World View…World View… 5 Ways to begin building wealth
Saving - Learn about savings and investment options – Money market accounts, CDs, bonds, mutual funds, and Real Estate – Find an institution that will match savings deposits - Get into the habit of saving – Learn to set aside an amount every month into your savings to earn interest
"There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up“ ( Proverbs 21:20 ). The common attitude presented in the Bible is to save on a regular basis, and it is important that Christians develop good habits to replace bad habits. Every family should allocate something for savings. Saving: A Lesson from the Ant
Savings is a must Everyone in our society living above the poverty level probably has the capability to save money, yet many fail to do so because they believe that the amount they can save is so small it is meaningless. However, no amount is insignificant. Even $5 per month will add up.
Savings is a must This does not mean that large amounts of money should be saved while failing to pay creditors, but a good habit to develop is to save a small amount on a regular basis. This type of savings is not long-range savings for college or retirement; it is non-allocated short-term savings designed to help compensate for unexpected emergencies. About 5 percent of Net Spendable Income should be put aside in an emergency reserve savings, to take care of expenses that might arise. Is this the same as 5 cents of every dollar? Is this the same as $5 out of every $100?
Why Save? Savings allows families to purchase with cash and shop for the best buys, irrespective of the store Without savings, if there were an emergency, families would have to rely on credit and, ultimately, end up deeper in debt. Simply put, without an emergency savings borrowing would be a foregone conclusion, the use of credit would become a lifelong necessity, and debt would be a way of life.
3) Live on less than you make. How can you ever expect to be wealthy if you earn $4,000 a month but spend $5,000? When you spend more than you make, you dig yourself deeper into a hole. Not only do you have nothing, but you owe something. Live on less than you make, and you'll always have enough. World View…World View… 5 Ways to begin building wealth
Needs and Wants - Separate needs from wants – When it comes down to it, paying for family and mandatory bills (like rent) should be priority #1 - Resist peer pressure – You really don’t need the latest car or gadgets – If a friend wants an expensive night out, suggest a fun, cheap night in!
Cutting Expenses - Take advantage of discounts – No need to pay $11 for a movie when you can see it at Price Center for $3 - Plug everyday spending leaks – Cut back on the number of songs you download and stream music for free with programs like Pandora - Save on snacks – Bring your own food to work and avoid vending machines
4) Make a written budget each month. A spending plan is like a treasure map. It shows you what to avoid and what path you should take, and it leads you to riches. Before each month begins, write down what you are going to spend that month. Make your income and outgo equal zero. Do it every month because your spending is always different. An April budget won't do you much good in December. Making a plan and sticking to it will also prevent impulse spending, which will sink you in a flash. World View…World View… 5 Ways to begin building wealth
Take Charge of Your Life and Your Money - Stick to your budget – Know how much your monthly income is and your mandatory bills - Protect your personal information – Make sure to shred all documents with personal information like your SSN
Banking - Find the best deal for your checking account – Look for free checking and no minimum balance - Don’t bounce checks – These can hurt your credit history – Before paying bills or making purchases, check to make sure you have the funds for it
Non-Mainstream Financial Services About 37% of African American households are unbanked- they have no checking or savings accounts. Unbanked households depend on: Check-cashing outlets Short-term lenders: Payday loans Pawnshops Rent-to-own stores Unbanked families pay higher fees for using these financial services and face higher risk losses due to dealing in cash.
5) Be a giver. This is probably the one you didn't see coming. Doesn't giving mean you have less money? Technically yes, but giving has valuable benefits. For starters, giving to others makes you more appreciative of what you have, which can actually help curb your spending. Second, people who give tend to find blessings and attract people into their lives who cause them to be blessed more. The longer you apply these principles, the more you'll see that it's worth it—and then some. World View…World View… 5 Ways to begin building wealth
Simple Things Done Spectacularly Finish High School Fear God Full Time Job Get Married and Stay Married Have no ongoing credit card debt 98 % of Americans Fail in one or more of these. The greatest need in our generation is for God's Word to be taught clearly and undiluted. The next greatest need is for Christians to demonstrate that it works. 5 Things to Put You in the Top Group Financially
Understand that you will be persecuted for your beliefs. Do not allow others' attacks to weaken your faith. Have the courage of your convictions to do well but not for judging others. 2 Timothy 3: 12 – “In fact, everyone who wants to live a godly life in Christ Jesus will be persecuted.” Set aside time for effective and meaningful prayer. Make intercession for people who do not pray enough for their own development, i.e.: children, cousins, friends, enemies and family, etc. In Ephesians 1:16, Paul prays for a "Spirit of Wisdom and Revelation." Commit the prayer in Ephesians 1:16-23 to memory and God will open up your spirit and develop your understanding. The “Life” Style of the Christian Conclusion
Travis Bogan BA –Finance Mt. Canaan Deacon Richard Hilliard MBA - Mechanical Engineer Member - Mt. Canaan
Increase Your Income! - Take time now to prepare for your career – Find internships, prepare your resume, build a website - Turn a hobby or a skill into a money-making endeavor – Baby-sit, design your own clothes, fix computers, photograph a friend’s wedding or special event, or tutor!
“HELP!” - Get help if you get into debt trouble – A Financial planner can counsel you in your options – Ask your mentor; find one NOW if you do not have one (should have more than one mentor) – Use family and church resources
What happens when I have a bad credit report? You may not be able to rent an apartment. You won’t be able to buy a house. You may not be able to purchase or lease a car. You may not be able to obtain other forms of credit. If you are able to get credit, you will pay very high interest rates. You can be turned down for a job. It’s like getting a bad grade – it stays on your permanent record.