As I mentioned in an earlier lesson, my mom always told me, "Son, it’s not how much money you make that is important, it’s how much you keep." Isn't that wise training to give your children? She is so right. I know of people that have great jobs and earn six-figure incomes, but they are just barely getting by because of debt.
At the time I wrote this book my mom was 63 years old and worked in a kitchen of a nursing home for a little over minimum wage. My mom was a saver and a giver. I would say that my mom was more wealthy than many people making a six-figure income. She was totally out of debt plus she had a nice little nest egg that she's built toward retirement.
It really does not matter what the size of the income is. What matters is whether you are in bondage (like the children of Israel were in Genesis) to debt (your Egypt) or whether you have been freed (from the debt of slavery).
How did we get into this bondage? How did we become slaves of debt? The answer is simple. You've been lied to and deceived. You've been tricked and you've let the cares of this world and the deceitfulness of riches blind you. We all have. We were weak and unskilled in the tricks of the devil. Satan is like a roaring lion seeking whom he may devour (1 Peter 5:8). He wants to sift you like wheat. We've been like dumb, fat pigs living off of Satan's slop while we wait to be slaughtered. We did not even know that we should take a stand and refuse to take the stuff that Satan does to us.
God sent Jesus to live among us to teach us this lesson but the modern church has lost sight of the "Big Picture" that Jesus taught us. Jesus said, that the enemy has come to steal, kill and destroy, but he come to give you life and to give it to you more abundantly. He is a good shepherd. He gave his life for his sheep to redeem us from the hand of the devil. (John 10:10)
Jesus bleed and died for us not just so that we could go to heaven, but to restore us to the authority that Adam had before he was deceived. Jesus' ministry was devoted to teaching us how to prosper and be in health in health in this life as well as the life to come.
God wants us to arm ourselves so that we can resist the devil and he will flee from us. (James 4:7) God wants us to put on the whole armor so that we are able to stand up against the tricks of the devil. For our battle (debt) is not with flesh and blood (people), our battle is against principalities, powers, rulers of the darkness of this world, against spiritual wickedness in high places (classes of evil spirits). Ephesians 6:12
God gave us the tools and the weapons to overcome what the devil tries to do to us. He expects us to exercise faith in Him and His word. He expects us to arm ourselves and take a stand and fight. The weapons of our warfare are mighty to the pulling down of strongholds mentioned in Ephesians 6:12. (2 Corinthians 10:3,4)
God wants us to even bring our thought life under control (2 Corinthians 10:5). Our thought world is where our trouble begins. This is where the demons attack you. You cannot see them so you are not even aware they are talking to you. They whisper thoughts to your mind all day and all night.
We think the demon's thoughts are our thoughts but they do not become our thoughts until we "take the thought", dwell on it, and then speak it. The power of good and evil comes as a result of the words we speak.
Take the time to listen to the thoughts that come into your head during the day. Listen to yourself talk. Do you ever hear negative thoughts like, "I'm not very good at this", "I'm not as smart as other people", "I cannot remember as well as I used to" etc? I must admit I've been guilty of that too.
If you are hearing these kinds of negative self-talk, which I'm sure that you are, then you are hearing words of doubt and unbelief in yourself. It is not any wonder that there are so many sick and struggling Christians in the Churches today. We have listened to the lies of the devil for too long.
Even our well-meaning parents often times feed us negative feedback as children. It was to protect us, to keep us from harm but unknowingly it built in a doubt system that hinders our trust in God. We are so full of limitations that our subconscious mind works against us.
Little children are able to have more faith than grownups because they have not been fully programmed in doubt and unbelief. Jesus wants us to come to him with childlike faith. Think of your own children, if you have any. Think about how they totally trust you.
In the next few pages, we will learn how to set up and operate an accountability system called a budget. This system is designed to help you gain control of your finances until are freed from debt. This system is not designed to put you in another type of bondage. You can adjust the system to what works best for your situation. If you don't then you will become discouraged and quit too soon.
"I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
Affirmations: My God meets all of my needs according to his glorious riches in Christ Jesus. Philippians 4:19
"Do not let your hearts be troubled. Trust in God: trust also in me." John 14:1
"In this world, you will have trouble. But take heart! I have overcome the world." John 16:33
Fear is the darkroom where negatives are developed
The theme of this course: Depend on and trust in God Handle money responsibly, Give generously, Save mightily, Work industriously, Invest wisely
"Put his money to work," he said, "until I come back." Luke 19:13
Give first, save second, and live off of the rest. This is our success formula.
"Get all you can. Save all you can. Give all you can." John Wesley
Happy is a person who has learned to hold the things of this world with a loose hand.
Worry is like a rocking chair; it will give you something to do, but it won't get you anywhere.
"Work and play are words used to describe the same thing under differing conditions." Mark Twain
First, give yourself to God. Then giving your possessions will be easy and joyful.
"Whatever you do, work at it with all of your heart, as working for the Lord, not for men, since you know that you will receive an inheritance from the Lord as a reward." Colossians 3:23,24
"Piling up" money beyond reason or consumptive lifestyles is forbidden just as clearly as adultery. (1 John 2:15-17)
The first step to controlling your finances is to balance your checkbook every day. (Carrying a checkbook is out of style nowadays, so check your balance on a software program like Quicken is a good way to keep track of your balances.
"There are two ways to have enough money: One is to continue to accumulate more. The other is to desire less." G.K. Chesterton
The second step to controlling your finances is like building a house - draw up your plans (budget) before you start.
How You Can Develop Your Financial Blueprint.
"Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him, saying, 'This fellow began to build and was not able to finish.'" Luke 14:28-30
Plan ahead - it wasn't raining when Noah built the ark.
"Money management is not so much a technique as it is an attitude. Unless one achieves Self-control, his no more likely to control his money than he is to discipline his habits or his time. Undisciplined money usually spells an undisciplined person." Robert J. Hastings
Now we are getting down to the hardest part. From here on what I call a "financial diet". When you hear the word diet you think of reducing calories and losing weight. In a financial diet, you are reducing spending and losing debt. Sounds simple, doesn’t it. The steps are simple, but like losing weight you have to stay committed to your plan in order to succeed. Develop your plan and stick with it.
Give first - If it is just impossible then hold off until you dig yourself out of debt some. God will help you dig out if you will stand on his word and refuse to fear and worry
Pay yourself second. Start your emergency fund now. Build up to $1,000 and then stop for a while. Your goal should be to build enough cash equal to three to six months of living expenses.
Credit Cards: If you cannot control your credit card use, then cut up all credit cards including gas cards, department store cards, MasterCard, and Visa. Pay cash for everything. If you just cannot bring yourself to cut all your cards then you can keep one card as long it has a zero balance. Never use a credit card as an emergency fund.
When you are applying for a mortgage loan the loan officer will not look favorably on your application if you have several credit cards, even if you have zero balance on all of your credit cards. This is because you have too much easy credit available and can get into trouble too easily. Your credit rating will look better if you only have one card and pay it off each month.
Credit cards can be a good thing as long as you are disciplined enough to pay them off every month. The way I used to do it is when I charge something I write it down in my checkbook just like I had written a check. I subtract the amount from my balance so when the bill comes in I have enough to pay off the bill. If I don't have enough in my account to cover the charge then I don't charge it.
If you ever find yourself not able to pay the balance off in any given month then cut up this card as well. If you have several credit cards and they are charged up to the max then I would suggest that you cut them all up and mail the pieces back with your next payment. Always try to pay more than the minimum payment or you will never pay off the credit card.
Bank Debit Cards: Get the kind that works just like a visa so that you can use it when you travel or for your everyday purchases. Every time you use it you can write the amount down in your checkbook (as I used to do) and subtract that amount from the balance.
The only negative to this is if you return your purchase it can take days or weeks for the money to be put back in your account. Cash is better, that is if you are comfortable with keeping up with cash.
Overdraft protection: If you don't have overdraft protection on your checking account then I would suggest that you open an account in a bank that has totally free checking and apply for the minimum overdraft of $300 (unless you know you will deliberately use it)...” This is not so that you can spend more than you have - it is just for your protection should you make a mathematical error or forget about an entry. I would also suggest that you order checks that have the carbon page so that you will never forget what your checks were written to and how much.
Do not carry your checkbook around with you because you may be tempted to spend when you really do not need to spend.
Write yourself an allowance check to cover your expenses like eating out, entertainment, newspapers, magazines, groceries, dry cleaning, and laundry. You can use the envelope system if that works for you. Decide on the amount you need and you become your own banker. Cash that checks and uses only that cash. Learn to say no.
Note: I know it's now the year 2023 and many people do not agree with carrying cash. For some, they have never been taught how to pay with cash and how to figure out the exact change. It's easier for these people to use other forms of payment.
Debt Snowball: Make a list of all of your debts. Start with the smallest one and pay more than the minimum payment - 25 to 40% as mentioned earlier. When you get it paid off take the payment and add it to the payment that you were paying on the next highest debt. As the momentum gets going the snowball will get bigger and the debt will get paid off faster and faster.
Automatic Deductions: Use the automatic deduction system no matter how strapped you are for cash. Have your 401K deducted from your salary at work. Decide how much you want to save each payday and have the amount drafted from your checking account into your money market account or mutual fund account. You will tend to make sure that you have enough in the bank to cover those PACs (pre-authorized withdrawals).
ATMs - Don't use automated teller machines. They are too convenient and cause impulse buying for many people. Don't carry around too much cash either. You believe you can afford things you don't need if you have the cash on you.
Never Pay Retail. Never buy at the mall unless it is after the season and everything is marked down from 50% to 75% off. Today you can buy almost everything you need online for less than what you pay at your local retail store.
Track where your money goes. Get yourself a spiral notebook and write down every cent you spend for two months. Before you were wondering where you're money was going. Now you will be able to see if there is a pattern that needs to be corrected. I prefer to enter my income and expenses in my Quicken program because I can easily print out reports to see where my money is going.
Lower your cell phone costs - shop several different carriers until you find a plan that will fit your budget. I personally switch to Consumer Cellular because my monthly rate is only $35 and I get excellent coverage that us just as good as the two major carriers.
If you are still using a landline for home your home telephones then you are probably paying too much. If you have cable then your cable provider may provide a better phone service or you may want to try Voice over IP through your internet carrier. I typically don't recommend this type of service.
Cut your homeowners insurance by increasing your deductibles. Talk to your insurance agent first before making any changes. The reductions may not be enough to justify the change. Most insurance agents will be glad to work with you in reviewing your insurance and setting up the plan that is best for you and your budget.
Reduce your auto expense. Buy good used vehicles instead of new ones. Check with your auto insurance agent before you buy. Do not buy a car that is too costly for your insurance budget.
Save money on auto insurance. Increase your deductible to $500 (if you have your $1,000 emergency fund in place). More on insurance in a later lesson.
Buy big-ticketed items out of season. Air conditioners are like swimsuits. When the temperature goes down, so do the prices.
Cancel Service Contracts. Never sign up for them. They are not worth the expense.
Open a Money Market Account Emergency Fund. A money market account has a little more risk factor than a passbook savings plan but usually does pay a higher rate of return. A money market account does have check-writing features in case you do have an emergency. Your next best emergency fund would be a growth and income mutual fund. There are mutual funds that allow investments as small as $25 to $50 per month and they can draft your account each month.
Note: your emergency fund must be liquid. Meaning that you can get the money out of your account immediately. Bank CDs, Insurance Annuities, and other investment vehicles may take time before you can get your money.
Sell some of your assets to pay off debt. Have a yard sale, advertise on Craigslist, Facebook, or any free posting service.
Barter. Barter for something or some service that you need. My wife owns a beauty salon and barters services with her attorney, a contractor, a chiropractor, and a massage therapist.
Start your own part-time business - I accidentally discovered that I was sitting on a gold mine in my own home. I started reading books about selling online and quickly discovered how I could sell my old books, movies, and music CDs that I never use anymore. I listed a few items on eBay and Amazon.com, and before I knew it I had orders almost every day for items that I was going to either donate to Good Will or sell in a yard sale for less than 1% of their value.
Next, I decided to branch out and sell in other areas and listed books, movies, and music on Half.com, I sometimes sell my friend's items, for a small finder’s fee, on Craig’s List, eBay, and Amazon.com.
Another area for you to make money is to become an affiliate. I am an affiliate for several different companies. See my website: https://thebuysellnetwork2.blogspot.com/
If you are good at writing you may want to publish your own eBook and make money selling your eBook(s) online. You may even want to start selling eBooks written by other publishers. Information is one of the hottest products that sell online.
I also recommend that you become an affiliate for ClickBank. Just go to http://www.clickbank.com to register. I have been an affiliate for several companies on ClickBank. There are some great videos on YouTube.com where you can learn out to be a success in selling ClickBank products.
If you have an interest in a particular product you may want to become a distributor and sell products online.
To become a distributor for a particular company or companies, that will drop ship your orders go to:
Find your niche products and register with the company or companies that will take care of all the packing and shipping for you.
Avoid Bankruptcy - bankruptcy used to be an easy way out when you couldn’t pay your bills. The laws have since changed and it’s not an easy way out any longer. I recommend that you consult with a professional tax advisor or attorney regarding this subject.
God's Attitude Towards Money and Wealth
Principle Scripture Reference
God owns it all - We are stewards, not owners - Faithfulness in the use of money is basic to receiving God's blessings ... Luke 19:13-27 Matthew 25:14-30 Romans 14:12 Luke 16:1-13
God's blessings make us rich in spiritual blessings:
(Note: build your treasure in heaven - the riches of this world will not last but your treasure in heaven will last for an eternity
God rewards those who give: (Your homework is to look up these verses for yourself - don't take my word for anything I say - do your own research and draw you're on conclusions)
- Proverbs 10:22
- Ecclesiastes 5:19
- Malachi 3:10
The love of money is wrong:
- Luke 12:15
- 1 Timothy 6:10
You cannot serve both God and Money (Mammom):
- Matthew 6:24
We are responsible for what God has provided:
- Luke 12:47, 48
- Luke 19:15
God Instructs us to DO These Things
Principle Scripture Reference
Depend on God - for everything - He is your source
- Philippians 4:19
- John 14:1
Keep your promises - Debts must be paid:
- Ecclesiastes 5:4, 5
- Psalm 37:21
Pay your taxes - Must know and obey the laws of the land:
- Luke 20:22-25
- Romans 13:7
Be reasonable - Be content - Have a moderate standard of living:
- 1 Timothy 6:6-8 Hebrews 13:5
Be faithful even in small things:
- Matthew 25:23-30
Make plans - Be wise:
- Luke 14:28-30
- Proverbs 21:5
- Proverbs 24:3, 4
Giving is important - Give out of love - Give cheerfully:
- 1 Corinthians 16:2
- Proverbs 3:9, 10
Giving stores up treasures in heaven:
- Malachi 3:10
- Deuteronomy 26:1, 2, 10, 11
- 1 Timothy 6:18,19
- 2 Corinthians 9:6-11
- Matthew 6:19-21
- Luke 11:42
Expect to receive as a result of giving:
(Note: I am not a "give to get" prosperity teacher, so please do not confuse my words with that false doctrine. I should have stated "Expect to receive a blessing as a result of your giving.)
- Luke 6:38
- Malachi 3:10, 11 9.
- Proverbs 15:22
- Proverbs 14:15
- Proverbs 13:20
- James 1:5
Investing is better than protecting against loss - Poor investing reaps the curse as found in the Parable of the Talents - Count the cost and evaluate an investment:
- Matthew 25:23-30
- Luke 14:28
Provide for your family
- 1 Timothy 5:8
Parents are to teach their children:
- Proverbs 22:6
- Psalm 78:4
A good man leaves an inheritance for future generations:
- Proverbs 13:22
Working in God's Plan:
- Colossians 3:23,24
God Instructs us to AVOID AND NOT TO DO These Things
1. Avoid pride:
- 1 Timothy 6:17
2. Avoid Greed:
- 1 Timothy 6:9,10 Luke 12:15
3. Avoid hoarding money:
- James 5:3
4. Do not be anxious about the future - Do not worry:
- Matthew 6:25-34
5. Do not try to get rich:
- Proverbs 28:20
- Proverbs 13:11
6. Do not co-sign for another - Borrow with caution
- Proverbs 22:26,27
- Proverbs 22:7
- Proverbs 11:15
7. Do not love money:
- Matthew 6:21, 24
8. Do not rely on the uncertainty of riches:
- Timothy 6:17-19
Food for thought - Read the parable of the talents in Matthew 25:14-30 - There are many valuable lessons in this parable but one that really sticks out in my mind.
We are to trust God for our supply but HE expects us to do something with what he gave us. Notice the servants were not the owners of the talents - they were the managers of the talents.
The Master expected each of the three servants to do something with the talent to reap a return on the Master’s talents.
The Master gave each man a different amount, based on the servant’s ability. Notice the servant with the smallest amount and the easiest to reap a return buried the Master’s talent, but the two that had the larger amounts could be trusted with more.
The other two servants invested their talents wisely and reaped an abundant return on the Master’s investment.
Is the Master able to trust you with talents to invest for a return for HIM?
What Are You Worth?
Assets (at Sales Value)
- Cash (checking, money market accounts, savings, CDs) $___________
- Invested Accounts Insurance and Annuities$____________
- Stocks and Stock Mutual Funds $____________
- Bonds and Bond Mutual Funds $____________
- Partnerships $____________
- Residence $____________
- Other Real Estate $____________
- Notes and Deeds of Trust $____________
- IRAs and Other Retirement Accounts $ _______
- Other Assets $ ________
- Total Invested Assets $_____________
- Furnishings $____________
- Automobiles $____________
- Boats $____________
- Guns $____________
- Jewelry $____________
- Collections $____________
- Other $____________
- Total Personal Assets $ __________________
Liabilities
- Secured Liabilities Mortgage on Residence $____
- Automobile Loans $____________
- Notes and Trust Deeds $___________
- Loans against Life Insurance $____________
- Other $____________
- Total Secured Liabilities $______________
- Bills Due $____________
- Personal Loans $____________
- Other $____________
- Total Unsecured Liabilities $______________
TOTAL LIABILITIES $______________
Total Assets $______________
- - Total Liabilities $___________
- =Total Net Worth $____________
MONTHLY INCOME AND EXPENSE PLANNING For (month)______________
GROSS INCOME PER MONTH $_________
- Salary/Commissions $_________
- Interest $ __________
- Dividends $ __________
- Other $__________
- LESS:
- Taxes $__________
- Giving $ __________
2. NET SPENDABLE INCOME _____$_________
3. Pay Myself (Emergency Fund) ____$________
4. Housing _____________ Total $________
- Mortgage $__________
- Insurance $__________
- Taxes $__________
- Electricity $__________
- Gas $__________
- Water $__________
- Sanitation $__________
- Telephone $__________
- Maintenance $__________
- Other $__________
5. Food _______________ Total $_______
- Groceries $__________
- Eating Out $__________
6. Automobile(s) ___________Total $_______
- Payments $__________
- Gas & Oil $__________
- Insurance $__________
- License/Taxes $ __________
- Maint/Repair/Replace $__________
7. Insurance _______________Total $______
- Life $__________
- Medical $__________
- Other $__________
8. Debts __________________Total $______
- Credit Card(s) $__________
- Loans & Notes $__________
- Other $__________
9. Enter. & Recreation _________ Total $_____
- Movies/Rental $__________
- Baby Sitters $__________
- Activities/Trips $__________
- Vacations $__________
- Other $__________
10. Clothing _________________Total $_____
11. Medical Expenses ___________Total $_____
- Doctor $_________
- Dentist $_________
- Pharmacy$ _________
- Other $_________
12. Miscellaneous ______________Total $_____
- Beauty Products $__________
- Hair Care $__________
- Laundry/Cleaning $__________
- Allowances $__________
- Lunches $__________
- Subscriptions $__________
- Gifts $__________
- Cash $__________
- Other $__________
13. School/Child Care ___________Total $_____
- Tuition $__________
- Materials $__________
- Transportation $__________
- Day Care $__________
14. Investments _______________Total $_____
15. Other Expenses Not Listed _____ Total $_____
- _________ $ ________
- _________ $ ________
- _________ $ ________
- ___________ $ ________
TOTAL EXPENSES ____________ Total $_____
INCOME VS. EXPENSES
Net Spendable Income __________Total $_____
- Less Expenses $_________
- Balance __________________Total $ _____
Unallocated Surplus Income ______Total $ _____
Crown Financial - Free Calculators
No comments:
Post a Comment