Session Four DEBT LEARN HOW TO ELIMINATE DEBT AND LIVE A FULLY FUNDED LIFE. DEBT IS OFTEN THE ANCHOR KEEPING PEOPLE FROM ACHIEVING THEIR GOD-GIVEN DREAMS. DURING THIS SESSION, YOU WILL LEARN: • HOW TO PREVENT DEBT • HOW TO CALCULATE YOUR DEBT FREEDOM DATE • 8 WAYS TO SPEED UP DEBT ELIMINATION 51
Session Four LISTENING GUIDE Proverbs 22:7 “The rich rule over the poor, and the borrower is slave to the lender.” Romans 13:8 “Let no debt remain outstanding, except the continuing debt to love one another...” Key SAVED MONEY HELPS . Key CALCULATE YOUR DEBT DATE. DEBT NAME Doctor 2 Doctor 1 Hospital Furniture Car Credit Card 1 Credit Card 2 TOTAL $320 $685 $1,300 $2,400 $5,000 $6,000 $7,500 $23,205 $50 $50 $50 $75 $140 $160 $115 $640 DEBT FREEDOM DATE CALCULATOR IN ONLINE PORTAL Debt Freedom Date Calculation Example BALANCE MONTHLY PAYMENT Key ELIMINATE DEBT USING THE DEBT . 52
Notes Ways to Eliminate Debt More Swiftly 1. REDUCE RATES 2. PAY 3. TAX 4. 5. FOUND MONEY FROM BUDGETING 6. SOME POSSESSIONS 7. WORK 8. EXTRA 8 53 Session Four LISTENING GUIDE
Session Four DISCUSSION QUESTIONS 1. What are some benefits of living without debt? 2. Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” If you currently have debt or have had debt in the past, describe what it feels like to be a “servant to the lender.” 3. If you have debt, which debt frustrates you the most and why? 4. Which of the “8 Ways to Eliminate Debt” could you employ to more swiftly achieve Rung #4 and Rung #7? 5. What’s the first thing you’ll do when you become debt free? 6. Describe how having an emergency fund (Rungs #2 & #5) helps prevent future debt. “LET NO DEBT REMAIN OUTSTANDING, EXCEPT THE CONTINUING DEBT TO LOVE ONE ANOTHER...” ROMANS 13:8 54
Session Four ACTION ITEMS ACTION ITEMS NOTES USING THE DEBT FREEDOM DATE CALCULATOR, CALCULATE YOUR DEBT FREEDOM DATE FOR RUNGS #4 & #7. OUTLINE A PLAN TO SPEED UP YOUR DEBT ELIMINATION UTILIZING THE TIPS SHARED IN THIS SESSION. USE THE EARLY DEBT PAY-OFF CALCULATOR TO SEE HOW YOU CAN MORE SWIFTLY ELIMINATE DEBT WITH ADDITIONAL MONTHLY PAYMENTS TOWARD YOUR PRINCIPAL LOAN BALANCES. RUNG #4: RUNG #7: CALCULATE IN YOUR ONLINE PORTAL APPLY FOR A 0% BALANCE TRANSFER CARD IF YOU ARE CURRENTLY PAYING MONTHLY INTEREST ON CREDIT CARD DEBT. LEARN MORE IN YOUR ONLINE PORTAL 55 √
Session Four AT HOME SELF-REFLECTION 1. How has your experience with debt influenced or affected your relationship with others? 2. Do you have “money wounds” associated with any past or current debt? 3. Read Proverbs 22:7 and Matthew 6:24-26. How can debt divide your devotion? “The rich rule over the poor, and the borrower is slave to the lender.” Proverbs 22:7 “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money. Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?” Matthew 6:24-26 56
Session Four AT HOME SELF-REFLECTION 4. Has debt ever affected your relationship with God? 5. How has your experience with debt impacted your view of God as Jehovah Jireh (Provider)? 6. Spend time reflecting on the truth that God is Jehovah Jireh, our Provider. What steps do you need to take to live in this truth? Preparation for Next Session • Read chapter 11 of I Was Broke. Now I’m Not. • Visit the I Was Broke. Now I’m Not. Group Study Portal to access bonus materials and content. 57
Session Thoughts 58
Proverbs 22:7 THE RICH RULE OVER THE POOR, AND THE BORROWER IS SLAVE TO THE LENDER. Memory Verse 59
LIST OF MY DEBTS √ DEBT NAME MORTGAGE CAR MEDICAL BILLS CREDIT CARD STUDENT LOAN FAMILY LOAN FURNITURE BUSINESS DEBT RENTAL PROPERTY AMOUNT NOTES 60 Debts
EXAMPLE OF Spectaculars Home Pay-Off Car Pay-Off 61 Access all Spectaculars in your online portal
JOE SANGL 62 “THERE IS NO harvest IF YOU DO NOT invest. ”
Session Five INVESTING INVESTING ALLOWS YOU TO ACCOMPLISH YOUR PLANS, HOPES, AND DREAMS. IT IS A NECESSITY IN ORDER TO LIVE YOUR FULLY FUNDED LIFE. DURING THIS SESSION, YOU WILL LEARN: • THE “OXEN” PRINCIPLE • THE POWER OF COMPOUND INTEREST • TYPES OF INVESTMENTS • 3 REASONS TO INVEST 63
Session Five LISTENING GUIDE Key INVESTING HELPS YOU FUND THE DREAMS IN YOUR LIFE. 2 Potential Outcomes 1. MANGER Oxen Examples • COMPANY • • FUNDS & TRADED FUNDS (ETFS) • REAL ESTATE: • REAL ESTATE • REAL ESTATE • RAW • SMALL • • PRECIOUS • Proverbs 14:4 “WHERE THERE ARE NO OXEN, THE MANGER IS EMPTY, BUT FROM THE STRENGTH OF AN OX COME ABUNDANT HARVESTS.” 1. MANGER 2. HARVESTS Produce Abundance FREE INVESTMENT VALUE CALCULATOR AND RETIREMENT NESTEGG CALCULATOR IN YOUR ONLINE PORTAL 64
Notes Key IT IS IMPORTANT TO YOUR INVESTMENTS. Key TARGET AT LEAST STREAMS OF INCOME. Key THERE IS NO IF YOU DO NOT . Additional Scripture PROVERBS 13:11 // PROVERBS 13:22 // ECCLESIASTES 11:2 Big Reasons to Invest 1. 2. 3 3. LONG-TERM 65 Session Five LISTENING GUIDE
Session Five DISCUSSION QUESTIONS 1. $100 a month at 12% annual growth equals $1,176,477 in just 40 years. Discuss the power of compound interest. Why is it so important to start investing money as early as possible? 2. Proverbs 13:11 says: “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” Discuss the impact of investing money little by little – all the time. 3. Have you ever put off investing because you felt the amount you could invest was insignificant? 4. What steps can you take to invest money every single month? 5. In Session Three you learned about plans, hopes, and dreams [PHDs]. Share some of your PHDs and goals that require an investment to achieve. How does this encourage you in your investment journey? 6. What are some causes that you want to start or continue supporting? How will investing allow you to do so? 7. How can achieving Rung #4 [Paying off all non-house, non-business debt] and Rung #7 [Paying off all house and business debt] allow you to increase your investment contribution each month? 8. After debt is paid off, why is it important to reallocate that money towards investing versus enhancing your lifestyle? 66
Session Five ACTION ITEMS ACTION ITEMS NOTES DISCOVER THE AMOUNT NEEDED FOR RETIREMENT. USE THE “RETIREMENT NEST-EGG REQUIRED CALCULATOR.” USE THE “INVESTMENT VALUE CALCULATOR” TO DETERMINE THE MONTHLY SAVINGS REQUIRED TO REACH YOUR RETIREMENT NEST-EGG GOAL. COMPLETE THE RETIREMENT SOURCE TABLE FOUND ON PAGE 73. CALCULATE IN YOUR ONLINE PORTAL 67 FIND BASIC RETIREMENT PLANNING TIPS ON PAGE 72. √
Session Five AT HOME SELF-REFLECTION 1. Examine your investments. Are you taking the appropriate amount of risk with them? Are any changes needed? Examples: diversify, be more conservative, be more aggressive, allocate amounts differently, etc. 2. During this week’s session, we spoke about how investing can help you accomplish your PHDs and goals. Reflect on this. What are some next steps that you need to take? 3. As you save, pay off debt, and invest, what are some causes that you want to continue or start supporting? Why? 68
Session Five AT HOME SELF-REFLECTION 4. Compound interest helps your investments grow year-over-year. How do your charitable “investments” (time, money, and resources) produce similar growth? 5. Proverbs 13:22 says: “A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.” At your current rate of investing, will you be able to leave an inheritance for your children’s children? 6. Review how much of your budget is allocated to Rung #4 and Rung #7 debt. Would you commit to reallocating that money to investments once you achieve Rung #4 & #7? If so, what steps are you willing to put in place to ensure you follow through on this commitment? Preparation for Next Session • Read chapter 12 of I Was Broke. Now I’m Not. • Visit the I Was Broke. Now I’m Not. Group Study Portal to access bonus materials and content. 69
Session Thoughts 70
Proverbs 13:11 DISHONEST MONEY DWINDLES AWAY, BUT WHOEVER GATHERS MONEY LITTLE BY LITTLE MAKES IT GROW. Memory Verse 71
2 73 Planning BASIC RETIREMENT 1. Estimate your monthly retirement expenses • Start by estimating your retirement expenses, including housing, food, healthcare, transportation, and entertainment. Don’t forget to factor in any additional expenses you may have, such as travel or hobbies. • Use one of the provided monthly budget templates as you gather and estimate your projected retirement expenses. 2. Estimate your monthly retirement income • Next, estimate your retirement income, including any pension or Social Security benefits you may receive. Consider any additional sources of income you may have, such as rental property or investment income. 3. Calculate your monthly shortfall (or surplus!) • Once you have estimated your expenses, income, retirement length, and savings, calculate the shortfall or surplus. • If your estimated expenses exceed your estimated income and savings, you will need to save more before retiring. Conversely, if your estimated income and savings exceed your estimated expenses, you may be able to retire sooner or enjoy a more comfortable retirement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
2 73 Planning BASIC RETIREMENT 1. Estimate your monthly retirement expenses • Start by estimating your retirement expenses, including housing, food, healthcare, transportation, and entertainment. Don’t forget to factor in any additional expenses you may have, such as travel or hobbies. • Use one of the provided monthly budget templates as you gather and estimate your projected retirement expenses. 2. Estimate your monthly retirement income • Next, estimate your retirement income, including any pension or Social Security benefits you may receive. Consider any additional sources of income you may have, such as rental property or investment income. 3. Calculate your monthly shortfall (or surplus!) • Once you have estimated your expenses, income, retirement length, and savings, calculate the shortfall or surplus. • If your estimated expenses exceed your estimated income and savings, you will need to save more before retiring. Conversely, if your estimated income and savings exceed your estimated expenses, you may be able to retire sooner or enjoy a more comfortable retirement. 7JYNWJRJSY.SHTRJfi5TYJSYNFQ8TZWHJX (TRUQJYJ .S5QFHJ &HYN[JQ^'ZNQINSL ,WT\NSL <FSYYT*]UQTWJ 3T.SYJWJXY ,ZFWFSYJJI ;FWNFGQJGZY7JQNFGQJ ;FWNFGQJGZY3497JQNFGQJ &RTZSY <JJPQ^ 'N\JJPQ^ 9\NHJ2TSYMQ^ 2TSYMQ^ 6ZFWYJWQ^ &SSZFQQ^ 2TSYMQ^&RTZSY 5WJ9F]7JYNWJRJSY&HHTZSY P G ffi9858.251*.7&.7&785 5TXY9F]7JYNWJRJSY&HHTZSY 7TYM P7TYM G7TYM9857TYM.7&9+8& 7JSYFQ.SHTRJ (TRRJWHNFQ 7JSYFQ.SHTRJ 7JXNIJSYNFQ &SSZNY^ 8THNFQ8JHZWNY^ )JKNSJI5JSXNTS 1NKJ.SXZWFSHJ(FXM;FQZJ 'ZXNSJXX.SHTRJ )N[NIJSI.SHTRJ 8YTHP)N[NIJSIX .SYJWJXY.SHTRJ (JWYNKNHFYJTK)JUTXNY8F[NSLX &HHTZSY2TSJ^2FWPJY&HHTZSYJYH 8YWZHYZWJI8JYYQJRJSY 4YMJWfi 4YMJWfi 4YMJWfi 8YFYZX 7JQNFGNQNY^ .SHTRJ+WJVZJSH^ 9TYFQ5TYJSYNFQ2TSYMQ^.SHTRJ RETIREMENT SOURCE TABLE ACCESS DIGITAL BUDGET FORM IN YOUR ONLINE PORTAL
“IF YOU CARE YOU WILL prepare. ” JOE SANGL 74
Session Six INSURANCE INSURANCE IS FINANCIAL PROTECTION. AS A FOUNDATIONAL ELEMENT, INSURANCE ACTS AS A SAFEGUARD, PREVENTING A “FALL” FROM THE FULLY FUNDED LIFE LADDER. DURING THIS SESSION, YOU WILL LEARN: • 5 TYPES OF INSURANCE NEEDED • 5 TIPS TO SAVE MONEY ON INSURANCE 75
Session Six LISTENING GUIDE Key INSURANCE ALLOWS YOU TO RISK. Types of Insurance Most People Need 5 1. INSURANCE 2. (OR ) INSURANCE 3. INSURANCE 4. INSURANCE 5. INSURANCE Key INSURANCE YOU FROM BEING KNOCKED OFF THE FULLY FUNDED LIFE LADDER. Key YOUR EMERGENCY FUND IS ! Key BE SURE YOU CAN WHY YOU HAVE PURCHASED EACH INSURANCE POLICY. 76
Notes Tips to Save Money on Insurance 1. OBTAIN QUOTES EVERY YEARS 2. CONSIDER THE DEDUCTIBLE 3. OBTAIN QUOTES FROM AT LEAST COMPANIES 4. USE CAUTION WHEN PURCHASING FROM 5. 5 77 Session Six LISTENING GUIDE
Session Six DISCUSSION QUESTIONS 1. How does your emergency fund [Rungs #2 & #5] function as a form of insurance? 2. Read Genesis 41:29-36. Egypt stored up grain during the seven years of abundance to prepare for the seven years of famine. How was this a form of insurance? 3. What are some motivations for you to have insurance? 4. What are some obstacles – real or perceived – that can keep people from obtaining proper insurance coverage? 5. In your life, how have you benefited from having insurance? “INSURANCE ALLOWS YOU TO TRANSFER FINANCIAL RISK. YOUR EMERGENCY FUND FUNCTIONS AS A FORM OF INSURANCE!” JOE SANGL 78
Session Six ACTION ITEMS ACTION ITEMS NOTES DETERMINE WHEN YOU LAST OBTAINED NEW QUOTES ON YOUR INSURANCE. IF IT HAS BEEN MORE THAN TWO YEARS SINCE YOU HAVE OBTAINED NEW QUOTES ON YOUR AUTO AND HOMEOWNERS OR RENTERS INSURANCE, OBTAIN AT LEAST THREE UPDATED QUOTES. IF YOUR INSURANCE IS NOT CURRENTLY BUNDLED, GET QUOTES TO SEE IF YOU WILL SAVE MONEY BY BUNDLING YOUR AUTO AND HOMEOWNERS OR RENTERS INSURANCE. OBTAIN QUOTES IN YOUR ONLINE PORTAL USE THE INSURANCE REVIEW CHECKLIST ON PAGE 84 TO VERIFY THAT YOU HAVE PROPER COVERAGE. IF YOU IDENTIFY ANY GAPS IN YOUR INSURANCE COVERAGE, BE SURE TO MAKE THE NECESSARY ADJUSTMENTS TO YOUR POLICIES. 79 √
Session Six AT HOME SELF-REFLECTION 1. Read Genesis 41:29-36 (above). What are some warning signs that could alert you to an impending “famine?” 2. How can you prepare for seasons of famine? 3. Have you modeled the wisdom of Joseph by storing up reserves? 80 “Seven years of great abundance are coming throughout the land of Egypt, but seven years of famine will follow them. Then all the abundance in Egypt will be forgotten, and the famine will ravage the land. The abundance in the land will not be remembered, because the famine that follows it will be so severe. The reason the dream was given to Pharaoh in two forms is that the matter has been firmly decided by God, and God will do it soon. And now let Pharaoh look for a discerning and wise man and put him in charge of the land of Egypt. Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance. They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food. This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine.” - Genesis 41:29-36
Session Six AT HOME SELF-REFLECTION 4. If not, what changes do you need to make right now so you can not only survive, but thrive, during a season of “famine?” 5. If you are currently in a season of famine for which you didn’t prepare, outline changes you can make to prevent being unprepared should a similar season occur in the future. 6. During this session, Joe shared the reasons for each of his insurance policies. Review your plans, hopes, and dreams (PHDs) that you have written down on page 49. Why is having the right insurance “foundational” to helping you achieve your PHDs? Preparation for Next Session • Read chapter 13 of I Was Broke. Now I’m Not. • Visit the I Was Broke. Now I’m Not. Group Study Portal to access bonus materials and content. 81
Session Thoughts 82
Ecclesiastes 7:12 WISDOM IS A SHELTER AS MONEY IS A SHELTER, BUT THE ADVANTAGE OF KNOWLEDGE IS THIS: WISDOM PRESERVES THOSE WHO HAVE IT. Memory Verse 83
INSURANCE REVIEW CHECKLIST NEED TYPES OF INSURANCE HEALTH AUTO HOMEOWNERS / RENTERS DENTAL VISION SHORT-TERM DISABILITY LONG-TERM DISABILITY LIABILITY LIFE: TERM OR WHOLE LONG-TERM CARE CANCER GENERAL LIABILITY (UMBRELLA) LLC, INC. OR PARTNERSHIP 84 HAVE
QUESTIONS ABOUT YOUR COVERAGE DO YOU HAVE ALL THE TYPES OF INSURANCE YOU NEED? DO YOU HAVE ENOUGH COVERAGE? DO YOU POSSESS “DOUBLE-COVERED” INSURANCE POLICIES? OUTLINE THE STEPS YOU NEED TO TAKE TO ENSURE YOU ARE MAXIMIZING YOUR INSURANCE DOLLARS. NOTE: DO YOU HAVE QUESTIONS ABOUT THE DIFFERENCE BETWEEN TERM AND WHOLE LIFE INSURANCE? WATCH THE BONUS VIDEO FOUND IN YOUR ONLINE PORTAL TO ANSWER YOUR QUESTIONS AND DETERMINE WHICH IS THE RIGHT OPTION FOR YOU. 85
“YOU MUST OBTAIN TWO EDUCATIONS: academic AND financial.” 86 JOE SANGL
Bonus Session SUSTAINING THE GAINS IT IS ONE THING TO MAKE PROGRESS, BUT IT TAKES A COMMITMENT TO ENSURE CONTINUED GROWTH. THE SAME IS TRUE FOR YOUR FINANCIAL JOURNEY. DURING THIS SESSION, YOU WILL LEARN: • 5 WAYS TO SUSTAIN YOUR GAINS 87
Bonus Session LISTENING GUIDE Key DECIDE TO . 5 Things That Will Help Sustain the Gains 1. : YOU WILL NOT WANDER YOUR WAY TO FINANCIAL FREEDOM. 2. FINANCIAL : COACHES PROVIDE ACCOUNTABILITY, BUT MORE IMPORTANTLY THEY PROVIDE HOPE AND ENCOURAGEMENT. 3. : YOU’LL ACCOMPLISH MORE TOGETHER THAN IF YOU TRY THIS ALONE. 4. LEARNING: AN ACADEMIC EDUCATION IS VERY IMPORTANT. SO IS YOUR FINANCIAL EDUCATION. BE SURE TO PRIORITIZE BOTH. 5. : HE OWNS IT ALL. WE ARE THE MANAGERS. WHEN WE KEEP THE RIGHT PERSPECTIVE, IT IS EASIER TO SUSTAIN THE GAINS. JOIN OUR FULLY FUNDED LIFE COMMUNITY TO SUSTAIN THE GAINS YOU SUSTAIN YOUR GAINS BY MAKING A FIRM DECISION TO HONOR GOD WITH YOUR FINANCES. “The beginning of wisdom is this: Get wisdom. Though it cost all you have, get understanding.” Proverbs 4:7 88
Notes “Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.” 1 Timothy 6:17 Additional Scripture PROVERBS 21:5 // PROVERBS 15:22 // ACTS 4:34-35 89 Bonus Session LISTENING GUIDE
Bonus Session DISCUSSION QUESTIONS 1. Why is it so important to have a community of like-minded people with you on your climb up the Fully Funded Life Ladder? 2. Do you feel that seeking wisdom is a worthwhile investment for your money journey? 3. God is our great provider. Share some stories of how you have seen Him provide for you in the past. 4. What is a personal finance goal you want to accomplish within the next year? Write it down. 5. How can this group support you in reaching your goals? 6. Which lesson in this study has had the most impact on your financial journey? “The beginning of wisdom is this: Get wisdom. Though it cost all you have, get understanding.” Proverbs 4:7 90
Bonus Session ACTION ITEMS ACTION ITEMS NOTES REVIEW THE ACTION ITEMS FROM THE PREVIOUS SESSIONS. LIST ANY ACTION ITEMS THAT YOU STILL NEED TO ACCOMPLISH. SET A GOAL DATE FOR WHEN YOU WOULD LIKE TO ACHIEVE THEM. COMMIT TO BEING A CONTINUAL LEARNER BY READING FROM JOE’S LIST OF FINANCIAL LEARNING RESOURCES. IDENTIFY 2-3 PEOPLE THAT YOU WOULD LIKE TO COACH YOU (IF YOU DON’T ALREADY HAVE A FINANCIAL COACH). SCHEDULE A TIME TO MEET WITH EACH POTENTIAL COACH YOU’VE IDENTIFIED. BE A GOOD LISTENER, AND CLEARLY CONVEY WHAT YOU ARE LOOKING FOR IN A FINANCIAL MENTORSHIP. ACCESS JOE’S LIST IN YOUR ONLINE PORTAL GO TO PAGE 96 AND WRITE OUT WHAT YOU HAVE ACCOMPLISHED DURING THIS STUDY. GO TO PAGE 97 AND WRITE OUT HOW YOU SEE THIS STUDY CREATING A LEGACY FOR YOUR FAMILY. 91 √
Bonus Session AT HOME SELF-REFLECTION 1. What steps have you taken, or will you take, to remain “diligent” in managing the money God has provided you? 2. Who are the financial mentors in your life? Who would you like to be a financial mentor in your life? “THE PLANS OF THE DILIGENT LEAD TO PROFIT AS SURELY AS HASTE LEADS TO POVERTY.” Proverbs 27:5 “PLANS FAIL FOR LACK OF COUNSEL, BUT WITH MANY ADVISERS THEY SUCCEED.” Proverbs 15:22 92
Bonus Session AT HOME SELF-REFLECTION 3. Who do you have in your corner to champion your success? If no one comes to mind, how can you develop that community? 4. What additional steps do you need to take in your financial journey to reach your goals? Wrap Up • Read chapter 14 of I Was Broke. Now I’m Not. • Visit the I Was Broke. Now I’m Not. Group Study Portal to access bonus materials and content. 93
Session Thoughts 94
Memory Verse Proverbs 4:7 THE BEGINNING OF WISDOM IS THIS: GET WISDOM. THOUGH IT COST ALL YOU HAVE, GET UNDERSTANDING.
You Did It You did it! Take a moment to celebrate your success. Completing this study is a big deal, but we know it is only the beginning. As you continue your financial journey, let this moment be a catalyst for a legacy of God-honoring stewardship. Before we move on, take some time to write out what you’ve accomplished during this study. What progress have you made with your finances? What’s your biggest take away? 96 !
Moving Towards a Legacy Now, let’s capture what you feel at this moment and how you hope to move this experience into a legacy for your family. Include how you want the outcome of this study to impact your children and their children, nieces/nephews, spiritual children, and more. Ponder where you are now, what you’re hoping to achieve, and why you are making these changes. Let this moment propel you forward! “A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.” Proverbs 13:22 97
General Finance TERMS ASSET: Any item that possesses financial value BONDS: Debt certificates issued by organizations to finance operating activities, usually with specific repayment terms (interest, repayment period, early payment options) BUDGET: A process of detailed planning of projected income and expenses for a specific time period. This planning is completed prior to the specified time period which allows each dollar to be maximized. CREDIT SCORE: A measurement of a person’s ability to manage debt. Typical inputs used to calculate a credit score include debt type (installment vs. revolving), payment timeliness, available credit, credit consumed, credit utilization, duration of credit relationship, and outstanding judgments. DEBT: Money owed to another person or entity. A financial instrument whereby a lender provides money to a borrower with specific terms – interest rate, repayment terms, and minimum payments. EQUITY: The financial value of a particular asset if it were liquidated into cash and all liabilities owed against it were paid in full. • For example, a house worth $275,000 with an existing mortgage of $150,000 has $125,000 of equity. COMPOUND INTEREST: The interest on savings calculated on both the initial principal and the accumulated interest from previous periods, also known as the “interest on interest.” Compound Interest multiplies money at an accelerated rate. 98
General Finance TERMS GROWTH RATE: The rate, usually measured as a percentage, at which a particular investment grows over a specific period of time (usually a year). • It is calculated as follows: Growth Rate = (Value, end of specified period – Value, beginning of specified period)/Value, beginning of specified period LIABILITY: Any financial obligation owed by an individual or entity MUTUAL FUNDS: A collection of investments funded by many people and invested by a fund manager or management team following a specific charter that dictates how the money can be utilized. NET WORTH: The sum total financial value of the assets and liabilities of an individual or entity. • It is calculated as follows: Net Worth = Total Actual Value of All Assets Owned – Total Actual Value of All Liabilities Owed OXEN: Any financial instrument that enables people to accomplish far more than they could on their own. PROFIT: Money remaining after all expenses have been satisfied. • It is calculated as follows: Profit = Total Income – Total Outgo RETURN ON INVESTMENT [ROI]: The gain or loss, usually measured as a percentage, on a particular investment. • It is calculated as follows: Return on Investment [ROI] = (Current Value – Purchase Price)/Purchase Price 99
Guidelines for Successful SPENDING GIVING Please note these are typical spending percentages (% of take home pay). Percentages may vary. These are guidelines. INCLUDING ESCROWED TAXES, INSURANCE, PMI 10 - 15% SAVING 10 - 15% HOUSE PAYMENT < 25% INCLUDING GASOLINE, TAXES, INSURANCE & REPAIRS TRANSPORTATION 10 - 20% NOT INCLUDING HOUSE & CAR PAYMENT OTHER DEBT < 10% FOOD 10 - 20% HOUSING 10 - 35% INCLUDING UTILITIES CLOTHING 5 - 10% ENTERTAINMENT 5 - 10% ALL OTHER 5 - 10% 100