Download Money Week #3 - The Organized Wife

A Biblical Study
of Personal Finances
Ai Jia
愛家
April 13, 2011
Week #3: Saving and the
Spending Record
Review the Spending Record
• Did everyone start tracking your
spending this week?
• Questions about the form?
• Where are you keeping your receipts?
• Who is responsible for recording
spending?
Spending Plan Guidelines
• Each category should follow these
basic percentages of monthly income:
– Giving
10%
– Housing
33%
– Food
9%
– Transportation 15%
– Debt
5% (hopefully less!)
Saving
• Saving is a crucial part of a
successful financial plan!
Types of Saving
• Emergency – short term savings
in cash. Initially $1000US or
30,000NT. Goal is 6 months of
total living expenses in cash or a
liquid account
Types of Saving
• Replacement – This is the money
you save to replace a specific
item. Your Spending Plan and
Spending Record will have an
entry for Savings – Car or
Savings – Refrigerator or
Savings – Computer.
Types of Saving
• Retirement – This is long-term
savings for your retirement and
should be a very diversified
investment.
Types of Saving
• Retirement – When you are
young, a greater percentage is in
higher risk investments
(stocks).The older you get, your
portfolio should change so that
more and more of your
investment is in cash and cash
equivalents.
Types of Saving
• College – If you have children, and
once you have saved for yourself,
begin building a college fund for
each child. But remember, you have
other options to pay for college, but
you cannot finance or get
scholarships to cover emergencies or
retirement!
The Enemy of Savings
• Debt is the enemy of savings.
You cannot save until you are
debt-free.
From Financial Planners
“If you want to be wealthy, you need
a healthy income and you must
invest wisely. But neither of these
are enough unless you’re saving
enough. Financial advisors often say
convincing clients to save is their
most challenging task …
From Financial Planners
“…At the end of every month, even
clients with six-figure incomes can
find themselves short of cash to
invest. So much money can walk out
the door without us realizing where
it’s going….
From Financial Planners
“…Luxuries are fine, but very often
we don’t distinguish between which
are worthwhile and which are
wasteful. Every dollar spent now is a
dollar you can’t invest toward longterm goals…
From Financial Planners
“…And, with gas prices rising and
the economy precarious, there is an
added impetus to set aside more
cash for a rainy day.”
~Business Week,
July 22, 2008
From the Wise
“A bank is a place that will lend you
money if you can prove that you
don’t need it.”
~ Bob Hope
(American Comedian)
From the Wise
“Make all you can,
save all you can,
give all you can.”
~ John Wesley (1703 – 1791)
From the Wise
Annual income twenty pounds,
annual expenditure nineteen six,
result happiness.
Annual income twenty pounds,
annual expenditure twenty pound ought
and six (26), result misery
~ Charles Dickens,
(British Author, 1812-2870)
From the Wise
“Never spend money before you
have it.”
~ Thomas Jefferson
(American President, 1743-1826)
From the Bible
Proverbs 6:6-8
Go to the ant, you sluggard; consider
its ways and be wise! It has no
commander, no overseer or ruler,
yet it stores its provisions in summer
and gathers its food at harvest.
From the Bible
Proverbs 21:20
The wise store up choice food and
olive oil, but fools gulp theirs down.
From the Bible
The Bible clearly tells us
to save for the future.
From the Bible
Luke 12:24
Consider the ravens: They do not
sow or reap, they have no storeroom
or barn; yet God feeds them. And
how much more valuable you are
than birds!
From the Bible
Matthew 6:19
Do not store up for yourselves
treasures on earth, where moths and
vermin destroy, and where thieves
break in and steal.
From the Bible
The Bible clearly tells us not to
hoard our money.
Three Kinds of People
• The Squanderer – this person
spends all their money on things
that will fade away.
• The Hoarder – this person “oversaves”, never spending money or
giving it away.
Three Kinds of People
• The Saver – This person balances
giving, saving, and spending in a
responsible financial plan.
Hoarder
Saver
Squanderer
The Spending Record
• Keeping track of our expenses is
the only way to know if we are
following our Spending Plan, if we
need to adjust our Spending Plan,
and if we are meeting our financial
goals.
Keep Track of Your Finances
Proverbs 27:23
Be diligent to know the state of your
flocks, and attend to your herds.
Group Discussion
• What are barriers in our lives to
saving?
• Simple ideas to cut costs and save
money.
Homework
• Discuss the current state of your savings.
– Do you have $1000US/30,000NT in an
emergency fund?
– Is your debt paid off?
– Do you have 6 months of living expenses in
cash?
– Do you need to save to replace anything?
– Are you saving for retirement? College?
• Keep recording your spending this week!
A Biblical Study
of Personal Finances
Ai Jia
愛家
April 13, 2011
Week #3: Saving and the
Spending Record