ple
Sim
Three Rules
Financial Counselor
and
Workshop Leader
Training Manual
Second Edition

Copyright 2003
Theo A. Boers
All rights reserved. No part of this book may be reproduced in any form, except for the inclusion
of brief quotations in a review, without permission in writing from the author.
Scriptures marked as NIV are taken from the Holy Bible New International Version® Copyright
© 1973, 1978, 1984 by the International Bible Society.
Scriptures marked as The Message are taken from The Message. Copyright © 1993, 1994, 1995,
1996, 2000, 2001, 2002. Used by permission of NavPress Publishing Group.
Scriptures marked as CEV are taken from the Contemporary English Version Copyright © 1995
by American Bible Society.
Scriptures marked as The Living Bible are taken from the Life Application Bible for Students:
the Living Bible, Copyright © 1992 by Tyndale House Publishers, Inc.
Free copies of Three Simple Rules Guaranteed to Improve Your Finances! may be downloaded
at www.ThreeRules.org
Printed copies of this manual and the Three Simple Rules book are available at cost of printing
and shipping. Check our web site for details.
Second Edition, printed September 2004

INDEX
FIRST BANK of TABS
Financial Counseling
Pre-Marriage Mentoring
Financial Workshop
Case Studies
SECOND BANK of TABS
Case Study Answers
Forms
Financial Workshop Tools
Appendix

Introduction
The Financial Counselor and Workshop Leader Training Manual is a self-teaching course on:
(a) How to become a Financial Counselor.
(b) How to do Pre-Marriage Financial Mentoring.
(c) How to conduct small group Financial Workshops.
It consists of this manual and the book written by the same author entitled Three Simple Rules
Guaranteed to Improve Your Finances. If you haven’t already done so you should read Three
Simple Rules before proceeding with this manual.
This manual is based on material that the author, who has been involved in financial counseling
for over ten years, has used in a classroom environment to teach financial counseling for over
seven years.
The Financial Counselor section of this manual prepares the reader to offer Financial Budget and
Debt Counseling from a Christian Perspective to individuals and/or families. It provides
appropriate Bible verses, simple tools for setting up counseling sessions and concrete
information on counseling dos and don’ts.
The Pre-Marriage Mentoring section of this manual will prepare the reader to offer a pre-
marriage mentoring session focused on the couple’s compatibility in the area of finance-related
values.
The Financial Workshop section of this manual will prepare the reader to conduct a structured
four week financial workshop for small groups.
The Three Simple Rules book is an integral part of all three aspects of this manual.

ple
Sim
Three Rules
Section One:
Financial
Counseling

Financial Counseling
Introduction………………………………………………………pg. 1
Why is Financial Counseling Necessary
Why People Have Financial Problems
Three Simple Rules
Types of Counseling Situations
Counseling Objectives
What People Think Causes Financial Problems
The Client’s Commitment
The Client’s Goals
No Magic Wands
Recognize Your Limits
Counseling from a Christian Perspective
Dos and Don’ts……………………………………………pg. 11
Where to Counsel
When to Counsel
Session Length
Cautions
Confidentiality
Counseling Technique
Set Healthy Limits
The Counseling Process……….………………………………pg. 15
Meeting Number One
Meeting Number Two
Meeting Number Three
Meeting Number Four and beyond
Conclusion………………………………………………...pg. 32

Why is Financial Counseling Necessary?
Personal bankruptcies hit an all time high of 1.6 million in 2003. On a per capita basis this rate
of bankruptcy is 10 times greater than it was during the Great Depression.
Last year over 9 million people, who averaged $16,000 in unsecured debt, sought help from debt
counseling agencies. Experts estimate that for every person who seeks council there are 4 who
are still in denial.
Why are record numbers of Americans filing bankruptcy and seeking debt relief?
The primary cause of the rampant rise in personal financial problems in the last 20 years has
been the ever increasing easy availability of credit. Financial institutions have been “selling”
money in ways we have never before experienced.
Houses can now be financed for 125% of value.
Cars can be bought and financed at 0% interest.
Everything from carpets to carports can be purchased with no down payment, no interest and no
payments for 6 – 36 months.
Credit cards companies now aggressively pursue non-traditional markets such as college
students, senior citizens, the working poor and even the recently bankrupt.
Almost anyone can borrow money to buy almost anything.
Credit card balances of “revolvers”, people who do not pay off their balance every month, is now
over $12,000.
We now live in a world where we are no longer reminded that if we buy now we have to pay
later. Instead we are repeatedly told to:
“Master the possibilities with Master Card.”
“Visa. It’s everywhere you want to be.”
The message is subtle but it sinks in. Master Card and Visa can help you live a better life, do
what you want to do and go where you want to go. The message is totally directed at personal
self-gratification. There is no hint of personal responsibility, no reference to interest rates, fees,
penalties and payback time except for in the fine print.
As a result of all this easy credit an unprecedented number of families are now struggling with
serious financial problems and the consequent tension it creates in marriages.
This manual is designed to help you help these families.
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Why People Have Financial Problems
The number one reason people have financial problems is because they spend more than they
earn!
That raises the obvious question of “Why do people spend more than they earn?”
Working with many clients over the years has identified three major reasons that cause people to
spend more than they earn: lack of discipline, lack of contentment and lack of goals.
1. Lack of Discipline
Lack of discipline is a behavioral problem. Behavioral problems have a lot to do with
personality. Some personality types have a difficult time being disciplined about
anything. Obviously, you can not change the client’s personality. However, being aware
that the underlying problem is lack of discipline will influence how you go about helping
the client address the problem.
Some symptoms that will help you recognize a lack of discipline situation are:
• client has no idea where all the money goes.
• client unknowingly buys stuff he/she/they can’t afford.
• check book is frequently overdrawn.
• compulsive spending.
• there is no set time to pay bills.
• there is no budget.
2. Lack of Contentment
Lack of contentment is a spiritual problem. We all have this in one degree or another.
Again, being aware that the underlying problem is lack of contentment will influence
how you go about helping the client address the problem.
Some symptoms that will help you recognize a lack of contentment are:
• client makes minimum payments on one or more credit cards
• client has more house than he/she/they need or can afford.
• client has more expensive cars than he/she/they need or can afford.
• client spends more money on clothes, etc. than he/she/they can afford.
• buying decisions are driven by wanting what others have.
• buying decisions are driven by the need to impress others.
• client is of the opinion that they deserve more than they have.
3. Lack of Goals
Many people do not have specific goals. Many people who do have a sense of what their
goals are have no idea or plan for how they will accomplish their goals.
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This is especially true in the financial area. That is why many people reach their
retirement years basically broke.
When you ask people if they would like to be financially free almost all of them will say yes.
When you tell them that step one toward that goal is to become totally debt free they look at you
with a blank stare because they don’t even believe that to be possible.
That is part of the counselor’s challenge. As a counselor you have to reverse what people have
been hearing all of their lives and that is that debt is normal.
You have to reverse that perception and help your clients to understand that they will never be
financially free until they owe no man anything!
Sometimes you will need to get your clients’ attention by whacking them over the head with the
proverbial two by four. I sometimes do that by projecting where they will be, based on their
current spending habits, in five, ten or fifteen years. Generally, the projection is so scary that I
get their attention so that we can begin to set some goals and lay out plans for how to accomplish
them.
Lack of discipline, lack of contentment and lack of goals are not the only reasons that people
spend more than they earn. Budgeting is another contributing factor. Budgeting isn’t easy - it’s
complicated. The reason budgeting is complicated is because:
• Some bills are monthly, some are quarterly, some may be semi-annual or annual and
some, like doctor or dentist bills, are just unpredictable.
• Some people are paid weekly, some bi-weekly, some monthly and some are on
commission.
As a result, matching up money coming in and money going out is difficult. This manual and the
Three Simple Rules book will provide detailed information on how to teach your clients how to
address these complicated variables.
Other reasons why budgeting is difficult are:
• Many people have simply never been trained to budget their money.
• Budgeting takes time.
• Balancing a budget means making choices - a lot of people don’t like making choices.
• People assume that their lifestyle, whatever it is, is the minimum acceptable lifestyle.
We all become accustomed to our standard of living whatever it is. Financial advisor
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Andrew Tobias states, “A luxury once sampled becomes a necessity.” Therefore, when
our budget tells us we have to cut back in certain areas it’s a difficult thing to do.
Three Simple Rules
As Christian Financial Counselors, our goal is to help people who are experiencing financial
difficulties to understand how to apply three of the Bible’s basic money management principles.
The three principles are:
1. Spend less than you earn.
Don’t fall in love with money. Be satisfied with what you have. The Lord has promised
that he will not leave us or desert us. Hebrews 13:5, CEV
2. Save now! Buy later.
The wise man saves for the future, but the foolish man spends whatever he gets.
Proverbs 21:20, The Living Bible
3. Know the consequences of debt.
The poor are always ruled over by the rich, so don’t borrow and put yourself under their
power. Proverbs 22:7, The Message
As you get involved in financial counseling you will discover that much of the financial hardship
and heartache that you will see is a result of people violating these three God-given principles.
Types of Counseling Situations
In financial counseling it is our objective to help the individual or the family work through a
particular financial problem.
There are at least six common types of counseling situations. They are:
1. Young couples, perhaps newly married, who need some help setting up a budget.
2. People who need help thinking through a “major” financial decision. For example,
perhaps they found a house they would really like to buy, but they are not sure they can
afford it.
3. People who tell you that things are always tight and would like some help just thinking
things through. Perhaps all they really want to know is if they are doing anything wrong.
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4. People whose circumstances have changed and cash flow went from positive to negative.
Perhaps this was the result of a loss of job, a particularly severe illness, or a divorce.
5. Probably the most frequent situation that you will see will be people who have had a
monthly negative cash flow for quite some time and it’s beginning to catch up with them.
6. One more type of counseling situation that you may experience is an individual or a
family that is so significantly behind on loan payments that they are being threatened
with foreclosure and/or repossession.
Situations 1 - 3 are people who are looking for advice. It is frequently possible to give them that
advice in one or two meetings. In many situations you may want to ask them to read some or all
of Three Simple Rules and then meet to discuss their particular issues.
Situations 4 - 6 will take longer. They will require analysis, review of options, making of
decisions and then helping the client to develop the discipline necessary to carry out those
decisions.
Counseling Objectives
What do we hope to accomplish as a result of agreeing to provide financial counsel?
Obviously, the primary objective of financial counseling is to help clients eliminate current
financial problems and to help them prevent future financial problems. However, there are some
sub-objectives of which you should be aware:
The first one is to simply give them hope – to help them understand that there is a way out of this
mess. I’ve had many clients walk into my office convinced that they had no choice but to file
bankruptcy only to learn that they did have options. That gave them hope.
A second objective is to help the clients define their goals. Many people have never done that
before. Helping them define their goals and then focusing on accomplishing those goals will
help them stay on the right financial track.
A third objective is to teach them some basic money management skills. Many people have
never even been taught the basics.
Another objective is to teach them that the Bible has a lot of very practical advice when it comes
to money. Advice, which if not followed, causes financial problems.
I say all this because you may not be successful in accomplishing the primary goal. We’ll talk
more about that later. However, that does not mean that the time you invested was wasted.
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What People Think Causes Their Financial Problems
If you were to ask first-time clients, “So, what’s the problem?” many of them will tell you that
they just don’t make enough money. In a sense they are right. They don’t make enough money
to pay for their excessive spending habits. But inevitably, not making enough money is not the
real problem. It isn’t that they don’t make enough money. The real problem is that they spend
too much money.
I know that’s true because I’ve counseled people who made $30,000 per year and people who
made $130,000 per year and they all say the same thing: they don’t make enough money. Most
people think that more money will solve all of their financial problems. Perhaps that’s why
lottery tickets are so popular. Unfortunately, we know that even with lottery winners more
money is not the answer.
For this reason, whenever we begin to look for solutions to a financial problem we always first
look at where we can reduce expenses. (More about that later.)
The Client’s Commitment
When I first meet with a counseling client I always ask them what to them seems like a strange
question. The question is this, “Will you do whatever it takes to fix this problem?” The answer
is generally, “Of course we will.” Unfortunately, I know from experience that many of them will
not. Old habits are just too hard to break.
I ask them the question anyway, “Will you do whatever it takes to fix this problem?” This allows
me to help them understand that I can’t fix their problem. I can only give them advice. They
have to fix the problem. I can show them the “how to,” but they are responsible for the “will to”
and the “will do.”
I then share with them something I learned from Pastor Henry Wildeboer. He frequently
incorporates the Four D’s into his messages.
The Four D’s
He suggests that having the Desire to change something in your life is not unusual and not hard
to do. Everyone desires something: to lose weight, to stop smoking, to spend quiet time with
God every day, etc. Having desire is normal and not difficult.
Then comes Decision: the Decision to do something that will get you where you want to be.
Decision is a little bit harder than Desire, but still not terribly difficult. We all make many
Decisions every day.
But then comes Discipline. Discipline is tough. Discipline means actually doing what it is we
made a Decision to do. Not only once, but over and over and over again. Discipline is where the
6

rubber hits the road. Unless we have the Discipline we will never accomplish what we want to
accomplish. It’s that simple.
But if we do, if we do have the Discipline to do what we have to do to get what we want to go,
we will experience DELIGHT! That’s the fourth “D” of Pastor Henry’s little talk and it applies
in almost all areas of our life, including attaining financial freedom.
The Client’s Goals
Another area I cover in the early part of the counseling process is encouraging the client to
identify specific goals. Obviously they want the pain of financial problems to go away but I try
to get them to be much more specific. As a result they will often identify goals like:
• stopping the creditor calls.
• having some savings.
• buying a better car so they won’t have unreliable transportation.
• being able to help send their kids to college.
• saving some money for retirement.
• etc.
The reason I believe it is so important to encourage them to identify their goals up front is so you
can remind them of those goals later on in the counseling process. As you work with them over
a period of weeks or perhaps months there are going to be times when they want to give up.
Changing old spending habits is tough.
They may have to make some very difficult choices like:
• seriously cutting back on their spending habits in certain categories.
• selling a car, boat or motorcycle.
• moving to a smaller house.
• working more hours.
That’s when I remind them of their goals. Would they rather keep the boat or would they rather
get that nasty collection agency off their back? That frequently brings them back to reality.
No Magic Wands
People you counsel also need to understand that you do not have a magic wand. They also need
to understand that it is their problem, not your problem and they have to do the heavy lifting to
solve the problem. Don’t let them make their problem your problem.
You are there to help them analyze their situation, to make recommendations and, to the extent
that they will let you, hold them accountable, but you can not fix their problem.
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Counseling from a Christian Perspective
For many people, money is considered to be a secular commodity. After all, money has to do
with buying and selling, business and the marketplace. However, what they forget is that
Christianity also has to do with the things of everyday life. Jesus talked a lot about money and
certainly used everyday life examples in most of his parables.
If we were to counsel from a purely secular perspective we would focus on doing whatever is
necessary to solve the financial problem. However, when we counsel from a Christian
perspective we are going to recognize that violating God’s money management principles may
have caused the problem and that applying these principles and asking for his help is a key to
solving the problem.
From a practical standpoint the following will differentiate Christian financial counseling from
secular financial counseling:
1. We will open the counseling session with prayer asking for God’s guidance and wisdom
as we work through this problem.
2. We will apply Scriptural principles to financial decisions. For example:
• We will encourage the client to be absolutely honest in all their financial dealings.
Who may stay in God’s temple or live on the holy mountain of the LORD? Only
those who obey God and do as they should. They speak the truth and don’t spread
gossip; they treat others fairly and don’t say cruel things. They hate worthless
people, but show respect for all who worship the LORD. And they keep their
promises, no matter what the cost. They lend their money without charging
interest, and they don’t take bribes to hurt the innocent. Those who do these
things will always stand firm. Psalm 15:1-5, CEV
• We will deal with the concepts of needs vs. wants. God has promised to supply all our
needs, not necessarily all of our wants, if we live within his will.
You can be sure that God will take care of everything you need, his generosity
exceeding even yours in the glory that pours from Jesus. Philippians 4:19, The
Message
• In the process of dealing with needs vs. wants we will refer to the Scriptural concept of
contentment.
Do not want anything that belongs to someone else. Don’t want anyone’s house,
wife or husband, slaves, oxen, donkeys or anything else. Exodus 20:17, CEV
•We will recognize a need to give back to God irrespective of whether we can “afford it.”
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You have been treated generously, so live generously. Matthew 10:8b, The
Message
•We will not consider bankruptcy an easy out.
An evil person borrows and never pays back; a good person is generous and never
stops giving. Psalm 37:21, CEV
3. We will close the counseling session with prayer asking for God’s guidance and wisdom
as we work through this problem. In some cases it may be appropriate to encourage the
clients to repent of their mistakes and to ask for God’s forgiveness.
One Caution - There is obviously much opportunity to refer to God’s Word in the process of
financial counseling. The caution is that you need to earn the right to share God’s Word with
your clients. This means you need to build rapport and create a trust and respect level. You
should never “preach” at your clients. Your clients came to you because of a financial problem.
A better understanding of God’s Word will inevitably be a part of the solution, but you have not
earned the right to start talking about the solution until they agree that you understand the
problem.
9

10

Dos and Don’ts
Recognize Your Limits
If you are not an attorney, do not give any legal advice.
If you are not an accountant, do not give any accounting or tax advice.
If you are not a marriage counselor, do not deal with marriage issues that may be intertwined
with the financial issues. Financial problems and marriage problems are frequently interrelated,
one causing or contributing to the other. If you are a marriage counselor by profession you can
use your own judgment to what extent you want to do marriage counseling. If you are not a
marriage counselor but detect some tension in the marriage you should suggest that your clients
make an appointment with a marriage counselor or a pastor.
If you detect some tension resulting from differences of opinion between husband and wife you
may want to ask them to complete the Values Questionnaire (located in the Forms section). This
process may help to point out some areas the couple needs to work through with a pastor or
marriage counselor.
If you are not an investment advisor, do not give investment advice. However, if you are an
investment advisor I would urge you to stay far away from any advice that could in any way be
perceived as a conflict of interest. If you can somehow gain from any advice that you might give
a counseling client, no matter how good that advice might be, you have crossed the line. This
will come back to hurt you or the organization (church, etc.) that you represent. The financial
counseling business is not a good place to be prospecting for investment clients.
Where to Counsel
Setting a safe and appropriate environment for your counseling sessions is important. I would
strongly advise that you not meet in your home or your client’s home. If you meet in your home
the client may be uncomfortable because your home may be much nicer than his or her home. If
you meet in the client’s home you may lose control by having to compete with kids, dogs and
television sets.
I do most of my counseling at my business office. Other places that are appropriate are a quiet,
private room at your local library or a quiet, private room at your church. I almost always
counsel at my church if I am counseling someone who is not a Christian. This just helps me to
underscore that I am counseling from a Christian point of view.
There are some times that it is appropriate for you to meet at a restaurant. However, I only use
that option for “get acquainted” sessions or situations where we are just going to talk over a
relatively simple situation. Obviously, if we are going to get into the nitty gritty of a financial
11

analysis a restaurant is not private enough and doesn’t have the room to lay out the necessary
paperwork.
When to Counsel
You are the counselor. Chances are that you are volunteering your time to help others.
Therefore the short answer is that you should counsel based on your availability. Within reason I
would encourage you to offer to meet based on when it is convenient for you.
I typically meet with counseling clients once per week in the early stages. Sometimes I meet
them during the day, sometimes in the evening and sometimes before or after a church service.
In all situations I recognize my responsibilities to my family and to my day job before agreeing
to meet with a client.
Session Length
Typically a counseling session will last one to one-and-a-half hours. If they run any longer than
that you are probably not being very productive.
Cautions
1. Do not counsel family members or friends.
Rightly or wrongly, finances in our culture are a very private matter. As a result, friends
and relatives may not tell you what you need to know. It is also possible that they will
tell you stuff that you really didn’t want to know.
2. Do not counsel the opposite sex alone.
This one should be self-explanatory.
3. Do not counsel half of a couple.
Finances are a family matter. If there are financial problems significant decisions will
need to be made to correct the problem. Both spouses should be part of that decision
making process.
4. Do not solve the client’s problem by giving them money.
If you are like me you will feel sorry for some of the people you counsel. That in turn
may tempt you to give them money. Don’t do it. You are an advisor and you do not
want to create a dependency. If there is a critical cash need refer them to the deacons of
their church.
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Confidentiality
You will want to keep some records, notes and copies of budgets as you work through the
financial situation. You will need them as you develop your recommendations. However, you
need to have a place where you can keep this information under lock and key so as to protect the
confidentiality of your clients.
Counseling Technique
1. Ask questions and listen. This is especially true in the first several meetings. You need
to figure out what created the problems before you can begin to address them.
2. DON’T LET THEM MAKE THEIR PROBLEM YOUR PROBLEM. They would like
that. They would like to just leave their problem with you for you to fix, but that won’t
work. All you can do is show them what they have to do if they want the problem to go
away.
3. Keep it simple. Many people who are drawn to becoming financial counselors are the
analytical type. Most are quite comfortable with numbers and may know a lot of stuff
about money and money management that not everyone needs to know. Therefore, keep
it simple. Don’t overwhelm your client with everything you know. Address what they
need to know.
Healthy Counseling Relationships
You are probably reading this manual because you want to become a volunteer financial
counselor. As a financial counselor you will deal with people who are experiencing serious
financial difficulties. You are offering to help, but you need to be careful that you do not
become consumed.
Both you and your client need to understand that you may have the “how to” but they have to
have the “will to” and they have to commit to the “will do.” You may be able to walk alongside
them but you can’t solve their problem for them. That is something that only the client can do.
The following is an excerpt from an article written by Mike Taylor in a 1998 edition of
“Counselor’s Corner,” a publication of Christian Financial Concepts, Inc. In this article Mr.
Taylor outlines six steps that will help you to keep your counseling relationships healthy.
1. Pray for God to grant you a wise and discerning spirit. Call to me and I will answer
you and tell you great and unsearchable things you do not know. (Jeremiah 33:3) He will
help you to distinguish between the person being crushed by life’s circumstances and the
one avoiding personal responsibility in life. Paul writes, “Let your speech always be with
grace, season, as it were, with salt, so that you may know how you should respond to
each person.” (Colossians 4:6)
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2. Clearly communicate that you are volunteering your time to help, but you are not a
“rescuer.” Your role as a volunteer counselor is to help people apply biblical principles
to everyday problems. You are trained to show “how,” but the the counselee must take
responsibility for applying your objective insights.
3. Make homework assignments and hold the person(s) accountable for completing the
study work. The goal of Christian counseling is not only seeing financial freedom
actualized but long-term life changes under the lordship of Jesus Christ. Such behavior
change is unlikely in a person who is unwilling to study.
4. Prepare yourself that many – perhaps the majority – of the counselees will be
unwilling to do the hard work that long-term solutions require. Some may show up
for a session or two and never come back. That is discouraging. Jesus faced a similar
situation: “As a result of this many of his disciples withdrew, and were not walking with
Him anymore” (John 6:66). Be careful not to measure the success of your counseling
ministry in numbers.
5. Stay focused on your area of expertise – biblical financial counseling. If you’re not a
professionally trained marriage counselor, don’t get involved in marital conflicts. If
you’re not a trained CFP, don’t pretend to know everything about investing and estate
planning. If you’re not trained as a tax specialist, don’t give advice that could get your
counselee’s in trouble with the IRS. When you step outside the boundaries of your
training, you are flirting with trouble.
6. Watch your time investment. When you begin spending more time on a case than the
counselees themselves, you may be heading for trouble. You counsel; allow the
counselees to do the legwork.
Remember that volunteer financial counseling is a marathon – don’t try to run it at a sprint
speed. May God grant you wisdom and insight as you faithfully serve those He sends your way.
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The Counseling Process
The counseling process will generally consist of a series of meetings. The number of meetings
will vary depending on the complexity of the situation and the clients’ ability and willingness to
do what needs to be done. The following is an outline of what is likely to happen at these
meetings.
Meeting Number One
Prior to the first meeting give or send your client(s) a copy of Three Simple Rules and ask your
client(s) to read the Introduction and Part One.
Also give or send your client(s) a copy of the Personal Financial Habit Assessment (located in
the Forms section) and ask them to complete it and bring it to the first meeting.
The purpose of the first meeting is:
• for the counselor and the client to get to know each other.
• for the client to understand the counseling process.
• for the client to understand the two primary forms, the Personal Asset and Debt Inventory and
the Personal Cash Flow Plan.
• for the client to understand that there will be homework between sessions and that they will be
expected to do it.
At the first meeting:
1. I like to start with 5 - 10 minutes of small talk just to make the clients comfortable.
2. Open with prayer. (Ask God’s blessing on your time together.)
3. Give them an overview of the counseling process. Explain that this will probably take at
least 3-4 meetings and that they will have to do some homework between meetings.
4. Ask them if they did the homework and what they thought of what they read.
Some questions to ask:
• “What did you think of Steve and Jessica’s story? Can you tell me some of the mistakes
they made?”
• “Have you made any of the mistakes Steve and Jessica made?”
• “What did you learn from reading Part One of Three Simple Rules?”
• “How do you plan to apply what you learned?”
Ask them for the completed copy of the Personal Financial Habit Assessment. You
might scan it but I would suggest not commenting too much on it at this time. Reviewing
the Personal Financial Habit Assessment will give you a quick and early read on the
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habits that may be causing their financial problems. If they answered “No” to any of the
questions 1-8, this may be a suspect area. If they answered “Yes” to any of questions 9-
16, this may also be a suspect area.
If they did not do the homework, that is a big red light. If they did not do the homework
before the first meeting, chances are they are not going to work very hard between
subsequent meetings. You may need to point out that unless they do what you ask them
to do, you may not be able to help them.
5. Ask them if you can take some notes so that you will be able to help them better.
6. Complete the top part of the Client Profile. (Located in the Forms section.) Follow the
Client Profile as you ask questions and gather information about their financial situation.
7. Ask some general questions to determine their assessment of their financial situation:
“Why are you here and how can I help?”
“When did the problems start?”
“What do you think caused the problem?”
8. Ask some questions to assess their expectations and commitment:
“What do you hope to achieve as a result of this process?”
“If your financial situation was perfect, what would be different?”
“What are your three primary financial goals?”
“How badly do you want to accomplish these goals? Are you willing to do whatever it
takes?” (If you don’t we’re wasting our time!)
Explain that for things to get better some behavior and habits will have to change.
9. Explain the 4D’s of changing a condition from what it is to what you want it to be. This
applies whether we are trying to stop smoking, lose weight or eliminate a financial
problem.
• Desire (Having a desire for change is easy.)
• Decision (Making a decision to do what is necessary to change is not difficult.)
• Discipline (Having the discipline to do what needs to be done is where the rubber hits
the road.)
• Delight (If we hang in there with the discipline we will have the delight of
accomplishing our goal.)
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10. Ask some specific questions to get an overview of how they manage their money:
“How often do you get paid?”
“What happens to the paychecks?”
“How many checking accounts and savings accounts do you have?”
“Who pays the bills? When? How often?”
“How much cash do you go through per week?”
“Did you have to pay additional taxes or did you get money back as a result of last year’s
tax return?”
“How is your credit record?”
“Are there bills that are past due?” (Helps determine the urgency of the situation.)
“Is there anything that is close to repossession or foreclosure?”
“Are you current on your taxes?”
11. Explain the Financial Physical Concept.
Explain that before we can make recommendations on how to correct their financial
situation we need to totally understand their financial situation. We call that the financial
physical.
Explain the two forms that we use to help us understand the financial situation.
•Personal Asset and Debt Inventory (X-ray) - The Personal Asset and Debt Inventory is
like an x-ray. It gives a picture at a point in time.
• Personal Cash Flow Plan (Stress Test) - The Personal Cash Flow Plan is like a Stress
Test. It tells us what’s happening over time.
Complete parts of each form starting with the Personal Asset and Debt Inventory.
Complete the parts that they know, primarily for the purpose of getting them comfortable
with the forms. (Forms are available in the Forms section.)
Part Two of Three Simple Rules has more information on how to complete these two
forms.
If in the process of explaining and completing the Personal Cash Flow Plan it becomes
obvious that the client has no idea how much they are spending in some or all of the
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categories, suggest to them that they refresh their memory by going through their
checkbook and their credit card statements for the last three months.
Prior to reading the following section, pull a copy of the Personal Asset and Debt
Inventory and the Personal Cash Flow Plan out of the Forms section and refer to them as
you review these instructions.
PERSONAL ASSET & DEBT INVENTORY
Assets
Try to establish value for assets but don’t be too concerned about exact value. If the
client does want to get a good estimate on the value of their car, you can refer them to
www.nadaguides.com.
Do not include furniture, clothing, etc.
The primary purpose of analyzing assets is to get an idea of approximate value and
whether any assets could be turned into cash.
Debts
Try to get as accurate a picture of the client’s debt as possible.
Have the client look up the last statement or call the company if necessary to get an
accurate balance.
Make sure the list is complete. People have a tendency to “forget” about some loans they
may have.
Probe for money owed to parents, other relatives, doctors/hospitals, student loans, loans
on 401K (Replacement Pension Plan in Canada), loans on life insurance, etc.
PERSONAL CASH FLOW PLAN
Income
Don’t be shy about asking them about their income.
Probe for all income sources.
Income needs to be defined on a monthly basis.
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Expenses
Explain why we use three categories of expenses. (See Three Simple Rules for a
refresher if necessary.)
All expenses need to be defined on a monthly basis.
CATEGORY ONE EXPENSES
Giving
Explain why giving is listed first.
Honor the Lord by giving him the first part of all your income, and he will fill your barns
with wheat and barley and overflow your wine vats with the finest wines. Proverbs 3: 9-
10, The Living Bible
Do not focus on their giving amount at this time. This is something you can come back to
later in the prescription phase.
Taxes
The easiest way to compute tax liability is to start with information from the clients’
paycheck(s). Assuming that they were not significantly over- or under-withheld in the
prior year and assuming that nothing has changed in their status, the current withholdings
should be pretty accurate.
If this is not the case, there are a number of internet sites that can be used to help
calculate tax liability. One of these is www.quiken.com/taxes/tools
Certain low-income families are eligible for Earned Income Tax Credits (US only).
Check the latest IRS rules on the internet or check with an accountant.
Debt Retirement
The information necessary to complete this section should be on the debt side of the
Personal Asset and Debt Inventory.
Savings
Most of your counseling clients will not be saving on a regular basis.
This section is an opportunity to reinforce the need to save on a regular basis.
Emergency Savings Account ––
• For emergencies like a broken refrigerator, major car repairs, unexpected dental bill,
etc.
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• Build up an emergency account until it equals 5% of annual income.
• If some of the money is used it needs to be replenished.
Short-Term Savings Account ––
• For big ticket items that will be needed in the next three to five years like cars,
furniture, appliances, major home repairs, etc.
• Amount needed in this account will be based on short-term goals.
Long-Term Savings Account ––
• For children’s education, retirement, etc.
• Amount needed will be based on long-term goals.
• Any regular contributions to a 401K (Replacement Pension Plan in Canada) or IRA
(Registered Retirement Savings Plan in Canada) should be listed here.
Focus on the savings accounts in the order listed. Fund the emergency account before
being concerned about the other two.
Use the Savings Comparison Chart (located in the Financial Workshop Tools section) to
demonstrate the importance of starting a savings plan early. The number one rule
regarding saving and investing is to get started.
CATEGORY TWO EXPENSES
Housing
Taxes and insurance may already be included in the mortgage payment under the debt
retirement section of Category One if they are included in the mortgage payment. If that
is the case, do not list them again.
Food
Do not include bought lunches or eating out. These are found in the miscellaneous and
entertainment sections below. Typically, this category will include everything purchased
at the grocery store including toiletries and cleaning supplies.
Car
Car loans are listed in the debt retirement section of Category One Expenses.
Insurance
If medical insurance is provided by an employer, only show the portion of the premium
for which the client is responsible.
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Entertainment
This is an area where clients frequently do not know how much money they spend. An
estimate is acceptable for now.
Tuition/Childcare
Christian School tuition is a possible area of conflict between husband and wife. Refer
them to a pastor or a marriage counselor if you detect conflict over this issue.
Miscellaneous
Probe for “other” expense categories that may be unique to this particular client.
CATEGORY THREE EXPENSES
Any expenses that do not occur on a regular weekly or monthly basis should be
accounted for here.
For many of these expenses, you will need to estimate the annual cost and then divide by
twelve to estimate what the monthly budget should be.
12. Assign Homework
Read Part Two and The Addendum of Three Simple Rules.
Complete both forms as much as possible.
What they should bring to the second counseling session:
Recent typical pay stub(s)
Personal Asset and Debt Inventory (Completed as much as possible)
Personal Cash Flow Plan (Completed as much as possible)
13. Schedule the next counseling session. The second counseling session should be
scheduled for one or two weeks later. I like to stay with the same day, time and place so
as to minimize confusion.
14. Close with prayer.
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22

Meeting Number Two
Prior to the second meeting you will want to review your notes from the first meeting and your
client’s Personal Financial Habit Assessment. This review will refresh your memory of your
client’s situation and give you some insight into how your client tends to make money decisions.
The purpose of the second meeting with your counseling client is to understand their financial
situation as accurately as possible.
By the end of the second meeting it is your goal to understand:
• what they have in the way of assets.
• what their liabilities are.
• how much income they have and where it is coming from.
• how they are spending their money.
In the process of finalizing the financial forms, be sure that the numbers remain their numbers,
not your numbers. You can question their numbers if you believe they are high or low, but they
have to remain their numbers.
To accomplish that you will do the following at the second meeting:
1. Some small talk.
2. Open with prayer.
3. Review that they did the homework.
Some questions to ask:
• “What did you learn from reading Part Two or the addendum pages of Three Simple
Rules?”
• “How do you plan to apply what you learned?”
The counselor should be familiar with the addendum forms in case questions arise.
(Many of the forms are available in the Financial Workshop Tools section.)
Depending on what you think their problem is, ask them specific questions about
addendum exhibits that relate to their problem.
4. Review forms.
Start with the Personal Asset and Debt Inventory.
Go through all the numbers making sure that you understand their numbers, that they are
complete, and that they make sense.
23

Review the Personal Cash Flow Plan.
Go through all the numbers making sure that you understand their numbers, that they are
complete, and that they make sense.
5. ID missing numbers. If there are missing numbers and they do not know them ask them
to look them up at home and call you as soon as they have them.
6. Review their goals again (see Client Profile) to see if you understand them correctly and
to remind them of what this is all about.
7. Assign Homework
Clients:
Read Part Three of Three Simple Rules and prepare your own diagnosis and prescription
of your situation.
Counselor:
Prepare your diagnosis of your client’s situation and your recommended prescription.
You will share this with your clients at Meeting Number Three.
8. Schedule the next session.
9. Close in prayer.
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Meeting Number Three
The purpose of the third meeting (assuming you are ready to do this) is to help your clients to
understand their financial situation and for you to share recommendations for corrective action.
Before the meeting you will want to rewrite or reprint (if you used computer forms) the budget
forms based on the numbers they gave you because at this point they will probably be somewhat
messy.
Before the meeting, you will also prepare your diagnosis and prescription.
At the meeting:
1. Open with prayer.
2. Review that they did their homework.
• “What according to them is the diagnosis of their financial situation?”
• “What should be the prescription?”
3. Give them your diagnosis and prescription of their financial situation. Put it in writing.
Be very specific and frank. You can use the Diagnosis and Prescription form (located in
the Forms section) as a guide. Some examples of a Diagnosis and Prescription are
provided in the Case Study Answers section.
Tell them what you think is the cause of the problem in simple, direct, frank, no beating-
around-the-bush terms.
Help them understand their current financial situation.
Start by focusing on the bottom line of the Personal Cash Flow Plan.
If it is negative, that is obviously a problem that needs to be corrected.
Then focus on line items where they are not accomplishing their goals (Savings, Giving,
Debt Retirement, etc.).
Next, focus on the Personal Asset and Debt Inventory.
Compare their total assets and their total debts. Help them understand the concept of
equity.
Break their debt down into credit card, auto, mortgage and other.
4. Review their goals again. (Located in the Client Profile.)
Talk about what has to happen if they are to accomplish their goals.
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5. Offer optional solutions that will help them correct the problem that is preventing them
from accomplishing their goals.
In most cases the obvious problem is that they spent or are spending more than they earn.
Help them develop a balanced budget using the following approach:
(a) Test each expense category to see if it can be reduced. (This is the most
important and the most difficult part of the process. Most clients will tell you that
they can’t possibly reduce expenses. This is where you have to remind them of
their goals. Hopefully, accomplishing their goals will become the incentive for
them to do what they have to do.) Start at Category Two because it is unlikely
that Category One expenses can be reduced. Refer to the Expense Guidelines
addendum in the Three Simple Rules book for some recommended category
percentages.
(b) Evaluate whether there are assets that could be sold so that the proceeds can be
used to pay off debt.
(c) Can income be increased?
• change jobs
• more overtime
• additional part-time job
• offer day-care
• children get part-time jobs
• rent out a room
• etc.
Do not explore whether income can be increased until all options in (a) and (b)
have been exhausted. Typically, increasing income without tackling expense
reduction will result in future expenses catching up to the new income level.
If part of the solution is to increase income by working additional hours it should
typically be structured as a short-term solution to earn additional money for the
primary purpose of reducing or eliminating debt.
(d) Many clients will suggest debt restructuring (refinancing their home, home equity
loans or a debt consolidation loan) as the solution to their debt problem. In most
cases this should be strongly discouraged. This solution may offer a short term
fix but it generally does not serve as a long-term solution. The result will
typically be temporary because unless the client(s) change their spending habits,
chances are that one year from now they will again have the same credit card
balances that got them into trouble in the first place. Plus, if they use a home
equity loan to restructure or consolidate their debt, their home may be subject to
foreclosure.
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These four steps are deliberately in this order. Do not make the mistake of reversing this
order, which many of your clients will be inclined to do. Unless the bad habits that
caused the problem in the first place are corrected, there will not be any long-term
solutions.
In the process of going through this exercise it is important that you let the clients make
the decisions. You can attempt to lead them to the correct decisions but they have to
make the decisions because they are the ones who are going to have to execute the plan.
They may execute their plan but they won’t execute your plan because they won’t believe
it can be done.
In many cases the decisions that need to be made will be too complicated for the clients
to make at this meeting. If that is the case, focus on helping them understand what the
options are and suggest that they think about what they want to do so that they can tell
you what they decided at the next meeting.
Again, the client will not like most of the options that you give them and they may
express that. When that happens keep reminding them that implementing these options is
the only way they will accomplish their goals.
There is an old saying that applies in this situation:
“If you always do what you’ve always done you will always get what you
always got. If you want something different you have to do something
different.”
You may need to remind your clients several times that if their behavior doesn’t change,
neither will their circumstances!!!
If they do not change their behavior they will in all likelihood never achieve their goals!
In fact, for emphasis you may want to calculate what their financial situation will look
like in five, ten or fifteen years if they do not take the appropriate action now.
Once the tough decisions have been made and you have updated the Personal Cash Flow
Plan to show the impact of these decisions, you should have a balanced budget. A
balanced budget allows adequate funds for the necessary expenses while still
accomplishing your client’s goals in the area of saving, giving and debt retirement.
However, just having a balanced budget is only half the battle. All we’ve done so far is
make the “Decision” to have a balanced budget. We still have to execute the
“Discipline” to actually change the habits that created the financial problems in the first
place.
We will address that in Meeting Number Four.
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6. Assign Homework
Read Part Four and Five of Three Simple Rules.
7. Schedule the next session.
8. Close in prayer.
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Meeting Number Four and subsequent meetings as necessary
We will assume that you now have a balanced budget that your clients agree will accomplish
their goals.
What we mean by a balanced budget is that the Personal Cash Flow Plan no longer has a deficit
and that the client’s goals of debt retirement, saving and giving are being met.
The purpose of the fourth meeting is to help your client learn how to exercise the “Discipline”
that will change the habits that will help them live according to their balanced budget.
This is also where the Personal Financial Habit Assessment comes in again. By now you should
have highlighted the “bad habits” that need to be corrected. Again, if they answered “No” to any
of questions 1-8, this may be a suspect area. “Yes” answers to questions 9-16 may also be
suspect areas.
1. Review the Personal Financial Habit Assessment with your client to help them
understand the habits that are contributing to the problem and therefore the habits that
need to be changed.
Explain that the Three Rules were designed to help them change those habits.
2. Review that they did their homework:
• “What did you learn about the Paycheck Management System?”
• “What did you learn about the Spending Management System?”
• “Which one of the Three Rules will it be hardest for you to follow? Why?”
• “What did you think about Part Five - Living by God’s Rules?”
(Use this question to reinforce the fact that when we violate God’s rules for our lives
there will be a consequence.)
3. Help your client think through how to follow Rule One – Spend Less than You Earn.
The Paycheck Management System is a critical component to helping your clients spend
less than they earn. Unless your clients immediately deposit or direct-deposit paychecks
into the appropriate accounts, the chances of accomplishing their goals is greatly
diminished.
Talk about how to:
• set up special accounts. (Savings, Reserve, General)
• calculate the appropriate amounts for each account.
• distribute every paycheck into the appropriate bank account. (Direct deposit is best.)
Once the Paycheck Management System is in place you can focus on helping your clients
implement the Spending Management System. When you are focusing on the Spending
Management System do not overwhelm your clients. They may have poor spending
habits in a lot of different areas.
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I like to start by focusing on the Budget Busters. For most families the Budget busters
are:
• Food
• Clothing
• Eating Out
• Entertainment
• Vacation
• Gifts
• Cash
See Part Four of Three Simple Rules for ideas on how to help your clients get certain
spending areas under control.
You will probably be most successful by focusing on a maximum of three spending areas
at a time. In some cases you may want to focus on only one spending area until it is
under control. Remember, you are trying to change engrained habits and changing habits
is hard to do. Once you have worked on and been successful in a few of the spending
areas you can move on to others.
4. Help your client think through how to follow Rule Two – Save Now! Buy Later.
There are two keys to having a successful savings plan.
The first key is DECIDING how much to save. That step should have been accomplished
during the process of completing the Personal Spending Plan for this client.
The second key is DISCIPLINE. Your client has to have the discipline to execute the
plan. The Paycheck Management System we talked about earlier is the best way to help
your client accomplish their savings goals.
5. Help your client think through how to follow Rule Three – Know Debt.
The reason it is important to Know Debt (understand debt) is so that wise decisions can
be made about debt. There are five keys to really understanding debt.
The first step is to Know how much debt you have. This step should have been
accomplished in the process of completing the Personal Asset and Debt Inventory.
The second step is to Know the consequences of debt. The consequences of debt are:
(a) Debt reduces your future standard of living.
(b) Debt reduces your ability to save.
(c) Debt reduces your ability to give.
(d) Debt creates personal frustration and stress.
(e) Debt results in relational problems between husband and wife.
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The third step is to Know the different types of debt:
• Credit Card
• Consumer Debt
• Real Estate Debt
• Student Debt
The fourth step is to Know the borrowing test. If and when you do decide to borrow
money there are a few questions that you should ask yourself. Any question to which
you answer “yes” is a warning light that should cause you to reconsider your borrowing
decision.
Am I seeking contentment with this purchase?
Am I borrowing money to pay for an impulsive purchase?
Am I borrowing money to pay for a purchase driven by pride/ego?
Am I justifying my buying decision on the basis that everyone is doing it?
Is the item I am about to buy likely to depreciate?
Is my loan for this item longer than absolutely necessary?
Is there a possibility that I may not be able to make the payments on this loan?
Will repayment of this loan threaten my ability to save?
Will repayment of this loan threaten my ability to give?
Will repayment of this loan threaten my ability to take care of my family?
Am I questioning whether taking out this loan is a good decision?
Does my spouse have any concern about borrowing money for this purchase?
The last key is to Know how to Get out of Debt! That should be everyone’s goal. The
steps for getting out of debt are listed on the “How to Get Out of Debt” page of the
Financial Workshop Tools section.
Once you are satisfied that your client understands the basics of how to implement the Three
Rules, subsequent meetings may be scheduled as much as three months later, primarily to see
how things are going and for the purpose of accountability. In the interim, you may want to stay
in touch with your client by phone to see how it’s going and for encouragement.
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Conclusion
Now that you are familiar with the entire cycle of Financial Counseling it’s time to get your feet
wet. However, before meeting with real clients we are going to start by looking at some case
studies of typical counseling situations.
There are five case studies located in the Case Studies section. Read the story, answer the
questions and then compare your answers to those in the Case Study Answers section.
Once you have completed the Case Studies you are ready to work with actual counseling clients.
To learn more about where to get actual counseling clients see the section entitled “How to Start
a Financial Counseling Ministry in Your Church” located in the Appendix section of this
manual.
For additional support, we’ve also provided you with some Counseling Session Agendas. Go to
the “Getting Started” section of the Appendix and you will find brief outlines of each meeting
that will help you to prepare and keep yourself on track during the meeting itself.
And one final reminder. You are not alone. If at any time you get confused or have a question
about how to handle a unique situation you can always contact us through our website at
www.ThreeRules.org.
32

ple
Sim
Three Rules
Section Two:
Pre-Marriage
Mentoring

Pre-Marriage Financial Mentoring
Researchers have told us for years that family financial problems are the number one cause of
marriage failure. The good news is that there is something we can do about it. The two primary
contributing factors to these financial problems can be addressed. As a result, many of these
family financial problems can be prevented provided they are addressed prior to or early in the
marriage.
The two primary contributing factors to family financial problems that need to be addressed are:
1) Different Values
The two people who are about to be married may have significantly different
values when it comes to money. This may be a result of personality or it may be a
result of upbringing or both. One may be a spender, the other may be a saver.
One may believe in giving, the other may not. One may have a problem with
debt, the other may think it is normal. Frequently young couples are not aware
that this is the case prior to the marriage. In their pre-marital bliss they are either
in denial or they figure they will deal with it later.
2) Lack of a Financial Plan
The lack of a financial plan is the second contributing factor to family financial
problems. In the absence of a financial plan we tend to spend based on perceived
needs rather than based on what we can afford. The best time to get into the
habit of living within our means, building savings and minimizing debt is before
we get into financial difficulty.
The Pre-Marriage Financial Mentoring process outlined in this manual is designed to address
both of these issues. It attempts to ferret out these value differences and give the couple an
opportunity to talk about them before they tie the knot. It also walks them through the steps
toward creating a Personal Cash Flow Plan that can be used to determine what they can afford
and what they need to postpone.
This section assumes that you (the mentor) have read the Three Simple Rules book as well as the
Financial Counseling section of this manual.
In our church it is our policy that our pastors will not marry a couple unless they do a number of
things. One of those “things” is to meet with a financial mentor. That is why this Pre-Marriage
Financial Mentoring material was developed.
The Pre-Marriage Financial Mentoring sessions typically occur three to twelve months before the
wedding. They generally consist of three sessions lasting one to one-and-a-half hours each. It
would be ideal if the mentoring program extended well into the marriage but from a practical
standpoint, once the couple is married, the leverage to motivate them to participate in this
1

process is gone. I typically offer to meet with them at any time in the future and some take
advantage of that offer.
Process:
Since this program is a normal part of the marriage process at our church, the couple is told to
contact the financial counseling ministry for an appointment. When the bride-to-be calls (yes,
it’s usually the bride-to-be) the couple is assigned to one of our mentors. The mentor calls the
couple and arranges a mutually convenient time to meet.
The mentor will then mail a letter to the couple confirming the date and time as well as directions
to the agreed-upon meeting place. (See sample letter in this section.)
The mentor will also include two copies of the Values Questionnaire (located in the Forms
section) along with the letter. The couple is asked to complete the Values Questionnaire
independent from each other and to bring the forms to the meeting.
Typically there will be three meetings over a period of three weeks. I like to set the meetings for
the same day of the week and at the same time and place.
Meeting Number One
At the first meeting the mentor will:
1. Spend 5 – 10 minutes in informal talk for the purpose of making everyone comfortable
with each other.
2. Open with prayer.
3. Use the Values Questionnaire as the agenda for the main part of the first meeting.
I typically start by asking the bride-to-be what her answer was to the first question. Then
I will ask the groom-to-be the same question.
If they do not have the same answer we talk about whether that will become a problem
and suggest that they spend some more time with that issue. That could happen on the
spot or later.
If they agree on the answer I make a judgment as to whether their answer is appropriate.
In the case of Question 1 it doesn’t really matter how they answer, just as long as they
agree. However, in the case of many of the other questions there is definitely a right and
a wrong answer.
2

For example, if they agreed that they needed zero credit cards or one credit card I would
conclude that that is an appropriate answer. If they agreed that they should have seven
credit cards I would not agree that that is an appropriate answer and I would discuss the
danger of credit cards.
Once we are finished with the first question I would address the next question to the
groom-to-be and then to the bride-to-be. I continue alternating until we are done with all
of the questions. This typically takes about one hour.
In the process you will likely discover some areas where there is disagreement and or
areas where both of them could be agreeing to make decisions that could result in
financial disaster. That is where I typically focus my time. If the problems are serious
enough I make a note to visit the area again in future sessions or suggest that they seek
other counsel for the sake of their marriage.
4. An Early Wedding Gift
Once we have gone through the Values Questionnaire I give them an early wedding gift -
a copy of Three Simple Rules - Guaranteed to Improve your Finances. I explain the
Three Rules and refer them to the Scripture verses in Part Five of the book that support
the Three Rules.
5. Assign Homework:
Read the Introduction and Parts One and Two of Three Simple Rules.
Meeting Number Two
At the second meeting the mentor will:
1. Open in prayer.
2. Ask them if they have any questions about the homework assignment.
• “What did you learn from reading Parts One and Two of Three Simple Rules.”
• “How do you plan to apply what you learned?”
3. Introduce the two primary Family Financial Planning Forms:
• Personal Asset and Debt Inventory
• Personal Cash Flow Plan
The objective of this meeting is to familiarize the couple with these two forms so that
they can complete them as a homework assignment. The forms can be partially
completed based on the numbers that the couple knows. The rest they may have to
research as part of the homework assignment.
3

See the Counseling Section of this manual for more information about how to explain
these two forms.
4. Discuss Goals
Any additional time can be used to talk about goals the couple may have regarding:
• Saving.
• Giving.
• Debt Management and Debt Retirement.
5. Assign Homework:
• Complete the Personal Asset and Debt Inventory.
• Complete the Personal Cash Flow Plan.
• Read Parts Three, Four, Five and the Addendum of Three Simple Rules.
Meeting Number Three
The objective of the third meeting is to:
• Make sure that the two primary Family Financial Planning Forms are fully completed,
• That the numbers on these forms are realistic, and
• That the Personal Cash Flow Plan is balanced while accomplishing the couple’s saving goals,
giving goals and debt retirement goals.
At the third meeting, the mentor will:
1. Open in prayer.
2. Ask them if they have any questions about the homework assignment.
• “What did you learn from reading Parts Four and Five of Three Simple Rules.”
• “Do you have any questions about completing the two forms?”
• “How do you plan to apply what you learned?”
3. Review the Family Planning Forms.
• Touch on each number in the two forms, first in the Asset and Debt Inventory and then
in the Cash Flow Plan.
• Anything that does not look complete or realistic should be addressed.
4. Future Planning.
• Teach the couple the importance of reviewing The Financial Plan periodically as
changes occur in income or expense. For example, when they decide to start a family,
this may increase expenses and reduce income and preparations would need to be made.
After asking if they have any questions about anything we covered, I ask if I can pray for
their future together and then we end our session in prayer.
4

Dear John and Kelley,
I’m looking forward to meeting with you at 7:30 PM on Monday September 30.
I have enclosed two surveys, one for each of you.
Please complete the enclosed surveys independently prior to that time and bring them with you
to our get together. You are certainly welcome to talk about your answers prior to our meeting.
We will meet at my office which is located at 3215 Memory Lane.
Directions:
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Looking forward to meeting you.
Tom Counselor

ple
Sim
Three Rules
Section Three:
Financial
Workshop

Three Simple Rules Financial Workshop
The Three Simple Rules Financial Workshop is designed to be offered once per week for four
weeks.
The objective of the workshop is to:
(a) help participants understand the importance of the Three Simple Rules.
(b) give an overview of basic budgeting principles.
(c) teach participants how to create a budget unique to their circumstances.
(d) introduce several simple systems that will assist participants in living according to their
budget.
(e) share the Biblical perspective of handling money.
The four week workshop could be offered as part of an Adult Sunday School Curriculum or as a
stand alone weekday evening education series.
The material is sufficiently flexible that class time can range from 45 minutes to 1 1/2 hours and
class size can range from as little as six to as many as thirty.
The following pages describe how to conduct the four-session financial workshop. The Three
Simple Rules book is an integral part of this workshop. The instruction pages assume that the
workshop leader has read the book and the Financial Counseling section of this manual. It is also
assumed that each workshop participant will receive a copy of Three Simple Rules at the end of
the first session.
The following announcement was designed to recruit people to attend the financial workshop.
Need a little help getting your financial house in order? You are invited to
attend the Three Simple Rules Financial Workshop. This four-session
workshop is being offered on (day of week) at (starting and ending time)
starting on (date) at (location). At this workshop you will learn about the three
simple rules that are guaranteed to improve your financial situation. You will
also learn how to give yourself a financial physical and how to identify and
change the financial habits that are preventing you from accomplishing your
financial goals. Call (person) at (phone number) for more information.
The following pages outline the Objective and the Talking Points for each session.
A PowerPoint Presentation for the Financial Workshops is available free of charge. Just e-mail
kristin@threerules.org and ask for the Workshop PowerPoint Presentation. We would also be
happy to give you a digital version of this section so that you can customize it to your situation.
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Session One – The Three Rules
(Note: The symbol (PPt) is a reminder to go to the next Power Point page. If you are using an
overhead projector you may want to make transparencies of the pages in the Financial Workshop
Tools Section and the Forms Section.)
Objective – To help the group understand the three simple rules and how to apply them.
Preparation –
• read or reread the Introduction and Part One of Three Simple Rules.
Handout Materials Needed – Bring along a copy of the following for each participant:
• Three Simple Rules book
• Student Notes Cover Page for Session One (See the back of this section.)
• Financial Opinion Survey (Forms Section)
• Personal Financial Habit Assessment (Forms Section)
Talking Points:
1. Welcome to Week One of the Three Simple Rules Financial Workshop. (PPt)
• The workshop is based on the book - Three Simple Rules - Guaranteed to Improve Your
Finances.
• You will all receive a copy of the book tonight.
• We will cover Part One of the book tonight.
• The rest of the book will be covered over the next three sessions.
• Since each part of the book builds on the previous parts you will benefit the most if you
can attend all four sessions.
2. Give each participant a copy of the Financial Opinion Survey.
Let them know that this is simply a chance to start thinking through some of the questions
that will be discussed in the next few sessions. Ask participants to individually answer
the questions. Collect the answers and tell them you will summarize the answers and
share the results with them next week.
3. How the Three Simple Rules Book Came into Existence.
The author is an entrepreneur and a businessman who set up a Financial Counseling
Ministry at his church in the early nineties. After counseling hundreds of families and
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training many counselors he decided to summarize what he had learned in this book. He
wrote it especially for young people and young couples, in the hope that by reading this
book they would avoid financial difficulties.
4. Some Questions (PPt)
Q. Should a Christian’s Spending Habits be different than a non-Christian? (PPt)
A. Giving (firstfruits)
A. Contentment (want what you have)
A. Christian Education may be part of the budget
A. Christians need to question their buying motives
Q. What is your favorite Bible verse about money? (PPt)
A. See Part Five of the Three Simple Rules book for some Bible verses about money.
Q. Would Jesus drive a BMW? (PPt)
A. This is an opportunity to talk about testing our decisions from the perspective of
WWJD – What Would Jesus Do?
5. Steve and Jessica’s Story (PPt)
• Read the Steve and Jessica story from the Introduction of Three Simple Rules to the
group. (Read through to the end of the paragraph on the third page that starts with “Early
last year…”)
• Ask audience to write down Steve and Jessica’s financial mistakes, as you tell the story.
• After telling the story ask the audience to ID Steve and Jessica’s financial mistakes.
• Review the mistakes list. (PPt)
• For some startling information regarding Steve and Jessica’s credit card debt situation,
see “Steve and Jessica’s Credit Card Debt” located in the Financial Workshop Tools
section. Share this information with the class.
Encourage further group discussion regarding Steve and Jessica’s financial mistakes by
asking:
Q. Do you think these financial mistakes are typical? (PPt)
Q. Which mistake do you think is most dangerous? (PPt)
Q. What caused Steve and Jessica to make these mistakes? (PPt)
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6. Talk about the Personal Financial Habits Assessment. (PPt)
• Introduce by explaining that many financial problems are simply a result of bad habits.
• In order to fix the problem we have to change the habits (just like a diet).
• Hand out blank forms. Have audience take the test.
• Tell them how to score the test. (PPt)
(Questions 1 – 8 are good habits, therefore the correct answer is Yes; 9 – 16 are bad
habits, therefore the correct answer is No.)
Group discussion regarding habits:
Q. What is the most difficult Good Habit to maintain?
A. For many people it is Savings and/or knowing how much cash they spend.
Q. What is the most difficult Bad Habit to break?
A. Anything dealing with debt. (7 of the 8 bad habits deal with borrowing money.)
7. Introduction to The Three Rules (PPt)
1) Spend Less than You Earn. (PPt)
2) Save Now! Buy Later. (PPt)
3) Know Debt. (PPt)
Explain that we will now look at each of the three rules in detail.
8. Rule One –– Spend Less Than You Earn. (PPt)
This is the key rule because it makes complying with the other rules possible.
Most financial problems are a result of people spending too much money.
Q. What happens when you spend more than you earn?
A. Debt and probably no savings and minimal giving.
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TIPS for spending less than you earn.
(a) Understand your paycheck. (PPt)
Q. How many hours does it take to pay for a $100 item if you earn $10 per hour?
A. See Part One of Three Rules. Explain that a large part of your paycheck is
pre-spent because of Giving Commitment, Taxes, Savings Commitment and
Commitment to repay Debt.
(b) Can’t afford it? Don’t buy it. (PPt)
Q. How do I know if I can afford it?
A. “Do I have the cash to pay for it?”
A. “Will I need this money for anything else in the future?”
(c) Don’t buy on impulse. (PPt)
The bigger the ticket the longer you should wait.
(d) Biggie size your fries, not your house and car. (PPt)
This is often the biggest mistake made by young couples.
(e) Think Used! (PPt)
Almost anything can be purchased used and you’ll save a lot of money!
(f) Pay Cash. (PPt)
Paying Cash limits your spending!
Consequences of not paying cash
• People who use credit spend 35% more than people who pay cash.
• Interest increases costs.
• Debt reduces future standard of living.
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(g) Plan your spending. (PPt)
Use a Personal Cash Flow Plan. (We’ll talk about that next week.)
In the remaining three sessions, we will talk more about additional ideas that will help you
spend less than you earn.
9. Rule Two –– Save Now! Buy Later. (PPt)
Stores used to talk about “Buy Now –– Pay Later”. They don’t anymore because it sounds
too negative.
Sandy Kelley wrote a book called Two Incomes and Still Broke. She mentions in the
book that “It’s not how much you make –– It’s how much you keep.” This is good
advice!
Types of Saving Accounts:
Emergency Savings Account (PPt)
• Allows you to pay for unplanned expenses such as doctor bills and car repairs.
• Add money to this account every payday until it equals five percent of your annual
income.
• Fund this account first.
Short-term Savings Account (PPt)
• Allows you to pay cash for the big-ticket items (cars, new roof, etc.) you plan to buy in
the next five years.
• Compute the amount you need to save in this account based on the big-ticket items you
plan to buy in the next five years.
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Long-term Savings Account (PPt)
• Allows you to plan for items you will pay for in the future, such as your children’s
Education, Weddings, Full time ministry/retirement, etc.
• Compute the amount you need to save in this account based on your unique long-term
needs.
Recommendation: Save 10% out of every paycheck and divide that as appropriate
between your emergency savings, short-term savings and long-term savings.
In the remaining three sessions, we will talk more about the discipline of saving.
10. Rule Three –– Know Debt. (PPt)
Explain the difference between Know Debt and No Debt.
What we mean by “Know Debt” is that you need to understand debt.
What we mean by “No Debt” is to be debt free.
In this course we will talk about both.
Right now we want to focus on Knowing and Understanding debt.
Q. What is Debt? (PPt)
A. Anytime we owe something to someone else we have a debt.
A. That makes us a debtor or a borrower.
A. The Bible says, “the borrower is servant to the lender.”
A. Therefore we can conclude that as long as you are borrowing money you are enslaved.
Q. What are the consequences of Debt? (PPt)
A. Debt reduces your standard of living because you have to make payments.
A. Debt reduces your ability to save because you have to make payments.
A. Debt reduces your ability to give because you have to make payments.
A. Debt causes frustration and stress.
A. Debt causes relational problems between husband and wife.
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Q. How do you get rid of Debt? (PPt)
A. You have to have a plan. (We will talk about that more later.)
A. You have to apply the 4D’s. (PPt)
A. You have to have the Desire.
A. You have to make a Decision.
A. You have to exercise the Discipline.
A. Then you will experience the Delight.
The 4D’s apply to anything we want (lose 20 pounds, learn a new language, stop smoking,
become financially free etc.)
We’ll talk more about this whole business of debt as we go through the next three lessons.
11. Summary (PPt)
Review the Three Rules with Scripture.
12. Assign Homework: (PPt)
Read Part Two and the Addendum of Three Simple Rules.
Identify any questions you may have from the reading assignment.
13. Hand out a copy of Three Simple Rules.
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Session Two – A Financial Physical
Objective – To help the group understand how to give themselves a financial physical.
Preparation –
• take the Financial Opinion Surveys that the class completed in Session One and tabulate how
the class responded to each question.
• read or reread Part Two of Three Simple Rules.
• review the Three Simple Rules Addendum in case questions arise.
Handout Materials Needed – Bring along a copy of the following for each participant:
• Student Notes Cover Page for Session Two (See the back of this section.)
• Blank copy of the Personal Asset and Debt Inventory (Forms Section)
• Blank copy of the Personal Cash Flow Plan (Forms Section)
Talking Points:
1. Welcome to Week Two of the Three Simple Rules Financial Workshop. (PPt)
2. Share summary results of the Financial Opinion Survey.
Go through each statement and share how the majority of the group answered.
Talk about the fact that how the group answered the questions and what they actually do
may vary (most people know the right answers to the opinion survey but they do not
necessarily live that way.)
3. Opening Questions: (PPt)
Q. If your financial situation was perfect, what would be different?
Q. Is it true that “it should be a Christian’s goal to be out of debt”? (PPt)
4. Homework Review
Q. Does anyone have any questions about Part Two of Three Simple Rules?
Q. Does anyone have any questions about the Addendum of Three Simple Rules?
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5. The Importance of Personal Goals
Encourage the class to identify and share with the group specific goals they have in the
area of finance. Obviously they want the pain of financial problems to go away but try to
get them to be much more specific. Some example goals might be:
• having savings.
• being able to do a better job in the area of giving.
• not living from paycheck to paycheck.
• having reliable transportation.
• getting out of debt.
• being able to go on a family vacation.
• stopping the creditor calls.
• being able to help send their kids to college.
• saving some money for retirement.
The reason it is important that participants focus on personal goals is that they might have
some tough decisions ahead if they discover that they need to make significant financial
adjustments. However, keeping these goals in mind will help them focus on the reward
of living on a balanced budget.
6. How to give yourself a Financial Physical
Teach the class how to give themselves a financial physical. (See Part Two of Three
Simple Rules.)
Teach about the concept of a Personal Asset and Debt Inventory using Steve and
Jessica’s as an example. (PPt).
Teach about the concept of a Personal Cash Flow Plan using Steve and Jessica’s as an
example. (PPt).
Note – In the power point there are two screens devoted to the Personal Asset and Debt
Inventory and four screens devoted to the Personal Cash Flow Plan. This will allow you
to take one section of the form at a time.
Explain the purpose of each form.
Spend time on every line item in both forms so that everyone will understand how to
complete these forms for their personal situation.
Define each term as necessary.
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Be sure to spend some time on unique income situations i.e. bi-weekly income,
commissions, etc., or make yourself available after class if people have specific
questions.
7. Q and A
Make sure that everyone understands the purpose of both forms.
8. Assign Homework: (PPt)
• Write down at least three personal goals in the area of your personal finances.
• Complete the two forms for your personal situation. (Provide blank forms of the
Personal Asset and Debt Inventory and the Personal Cash Flow Plan for each
participant or couple.)
• Read Part Three of Three Simple Rules.
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Session Three - Diagnosing Your Financial Situation
Objective – To help the group understand how to diagnose their own financial situations.
Preparation –
• read or reread Part Three of Three Simple Rules.
Handout Materials Needed – Bring along a copy of the following for each participant:
• Student Notes Cover Page for Session Three (See the back of this section.)
• Blank copy of the Diagnosis and Prescription Form (Forms Section)
Talking Points:
1. Welcome to Week Three of the Three Simple Rules Financial Workshop. (PPt)
2. Have some fun with Money Trivia. (Located in Financial Workshop Tools section.)
3. Homework Review
Q. Who would like to share the personal goals that you identified for yourself?
Q. Do you have any questions about completing the Personal Asset and Debt Inventory?
(PPt)
Q. Do you have any questions about completing the Personal Cash Flow Plan? (PPt)
Q. Which expense category was the hardest to quantify and why?
A. Typical expense categories that are difficult to quantify are:
• Taxes
• Food
• Cash
• Clothing
• Gifts
Q. How did it feel to give yourself a Financial Physical? What did you learn?
4. Diagnosing Your Financial Situation (PPt)
Last week we talked about how to give yourself a Financial Physical.
Now we are going to talk about how to use that information to diagnose if you have any
financial problems.
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The three primary questions we use to diagnose our financial situation are:
1 – Are we spending less than we earn? (PPt)
If we are not, we have a problem!
2 – Are we saving for future needs? (PPt)
If we are not, we have a problem!
3 – Is our debt under control? (PPt)
If it is not, we have a problem!
5. To help us understand how to do a diagnosis, let’s diagnose Steve and Jessica’s situation.
(PPt)
Q1 – “Are they spending less than they earn?”
Q2 – “Are they saving for future needs?”
Q3 – “Is their debt under control?”
Q. What is your diagnosis of Steve and Jessica’s situation?
A. Steve and Jessica: (PPt)
• spend more than they earn.
• have no savings.
• are not giving.
• have too many credit cards.
• make minimum credit card payments that consume 4% of income vs. a goal of 0%.
• have consumer debt payments that consume 12.5% vs. a goal of less than 10%.
• have student debt payments that consume 7% vs. a goal of less than 5%.
6. Now that we’ve done a diagnosis, and have discovered some problems, we need to write
a Prescription.
Steps to Writing a Prescription (PPt)
Step One – If Credit Card Rules are being violated cut them up. (PPt)
Step Two – Examine each expense and reduce it as necessary. (PPt)
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Step Three – Repeat Step Two. (PPt)
Step Four – Repeat Step Three. (PPt)
Step Five – Sell assets (motorcycles, boats, RV, garage sale, Ebay etc) and use
proceeds to reduce debt and payments as necessary. (PPt)
Step Six – Downsize (cars, house etc.) to reduce debt (PPt)
Step Seven – Increase Income if necessary. (PPt)
Q. What would be your prescription for Steve and Jessica? (PPt)
A. Cut up the credit cards.
A. Reduce expenses.
A. Reduce expenses.
A. Reduce expenses.
A. Sell the boat.
A. Sell a car.
A. Increase Income.
7. Wrap-up
The process starts with a financial physical.
Then we do a diagnosis.
Then we do a prescription.
Next week we will talk about following the prescription.
8. Assign Homework: (PPt)
• Do a diagnosis and a prescription on your own situation. (Students should be given a
blank copy of the Diagnosis and Prescription form located in the Forms section.)
• Read Parts Four and Five of Three Simple Rules.
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Additional Topics if you have time:
1. Money Saving Tips
Ask for money saving tips from the group.
Share the following Money Saving Tips with the group:
• Alter credit card behavior. Pay cash whenever possible.
• If you already have a credit card balance, transfer to a card with a low interest rate.
• Find a card that does not charge an annual fee.
• Brown bag it.
• Shop for the best phone plan for your needs.
• Cell vs. home phone. Do you need both?
• Clip coupons.
• Shop Garage Sales.
• Shop Goodwill, etc.
• Shop for stuff on e-bay.
• Refinance your house at lower interest rate.
• Bundle your insurance.
• ID needed items and plan how much can be spent BEFORE going shopping.
• Always use a shopping list.
• Shop once per week or less. (Have you ever wondered why milk is at the back of the
store?)
• Only buy planned for items.
• Compare price and quality before buying, especially on expensive purchases.
• Return poor quality or defective items to the seller.
• No Rent to Own. (2 – 3 times more expensive)
2. Ways to Increase Income
Ask for income generating ideas from the group.
Share the following income increasing ideas with the group:
• Change jobs.
• Ask for a raise.
• Add part time job.
• Use special skills to moonlight.
• Have a garage sale or sell stuff on e-bay.
• Barter.
• Take in a border.
• Offer to baby-sit/daycare.
• Kids can and should work!
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Session Four - Living by the Rules
Objective – To help the group understand how to Live by the Rules.
Preparation –
• read or reread Part Four and Five of Three Simple Rules
Handout Materials Needed – Bring along a copy of the following for each participant:
• Student Notes Cover Page for Session Four (See the back of this section.)
• Certificate of Completion (See Forms Section)
Talking Points:
1. Welcome to Week Four of the Three Simple Rules Financial Workshop. (PPt)
2. Homework Review
Q. What did you learn about yourself when you did a diagnosis of your financial
situation?
Q. Any questions about the diagnosis phase?
Q. How did the prescription phase go?
Q. Did you have to make any tough decisions?
Q. Any questions about the prescription phase?
3. Some Questions and Answers about Living by the Rules – (PPt)
Q. Is it easier for a family that makes $80,000 per year to live by the rules than it is for a
family that makes $40,000?
A. Either family can live by the rules provided that they adopt a lifestyle based on their
income.
Q. Two families have an annual income of $40,000.
Family One has $25,000 in consumer and credit card debt.
Family Two didn’t incur any consumer or credit card debt.
Q. Which family will have a more difficult time living by the rules? Why?
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A. It will be harder for Family One. Family One will have to reduce their standard of
living by the total of their debt payments.
Conclusions:
• Financial problems are the result of prior decisions because prior decisions are
consuming today’s dollars.
• It’s easier to live by the rules if we haven’t violated the rules in the past.
• If we have violated the rules in the past we will need to pay the price for a while until
the impact of prior decisions is eliminated.
4. Following Rule One – Spend Less Than You Earn. (PPt)
Rule One is the most important rule because if you violate it you will probably also
violate the other two rules.
Q. How do you know if you are following Rule One?
A. The first step in following Rule One is to have a balanced Personal Cash Flow Plan.
(PPt)
A. The second step in following Rule One is using the Paycheck Management System.
(PPt)
• Special accounts. (Savings, Reserve, General, Special or Envelopes)
• Learn how to calculate the appropriate amount for each account.
• Distribute every paycheck into the appropriate account.
• Direct deposit is best.
A. The third step in following Rule One is using the Spending Management System.
(PPt)
Two Keys to managing your spending:
(a) Manage the Budget Busters (Food, Clothes, Entertainment, Gifts, Cash)
Budget Busters can be controlled by:
• envelope system.
• special bank accounts.
• ledger/log.
• self-imposed rules. (eg - limit number of trips to the ATM, cut up the credit
cards)
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(b) Change Habits as necessary (trips to ATM, impulse buying, credit cards, using
debt to balance your budget)
Changing habits may require an accountability partner.
Change is tough!
• there must be dissatisfaction and pain with the present situation.
• there must be a vision that things can get better.
• there must be an understanding of how to get to that better future.
• the pain of getting there must be less than the pain currently experienced.
A. The fourth step in following Rule One is to think through Big Ticket Purchases. (PPt)
Use the following two examples to explain the long-term impact of Big Ticket
Purchases.
Houses
• Two House Buying Scenarios – Appendix of PPt.
• How Much House Should You Buy? – Addendum of Three Simple Rules.
Cars
• Three Car Buying Scenarios – Appendix of PPt.
• How Much Car Should You Buy? – Addendum of Three Simple Rules.
Additional Discussion regarding Spending Less than We Earn – as time allows:
Needs vs. Wants
Ask these questions to stimulate group discussion:
Q. What is the purpose of a car?
A. To get you from Point A to Point B.
Q. Since a $5000 car will get us from Point A to Point B why do we pay $10,000 or
$15,000 or $20,000+ for a car?
Q. Is air conditioning in your car a need or a want?
Q. Is air conditioning in your house a need or a want?
Q. Is a second car in your family a need or a want?
Q. Is a 2000 square foot house a need or a want?
Q. Is an annual trip to Disney World a need or a want?
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Q. Does it make sense to spend money we do not have to buy things we really don’t
need?”
A few comments:
Our “wants” are often influenced by what our peers have and by what we see on TV.
We should never borrow to try to match someone else’s standard of living!
We have much more than previous generations.
We have more than 80% of the people in the world.
We believe that having just a little bit more will make us happy. It’s a lie!!!
Debt has made it possible for children to start where their parents arrived after working
for 25 years. The result is increased debt, little savings and minimal giving.
5. Following Rule Two – Save Now! Buy Later (PPt)
Q. How do you know if you are following Rule Two?
A. You have made the decision to save 10% of your income. (PPt)
A. You are exercising the discipline to save 10% of your income. (PPt)
Additional Discussion re Save Now! Buy Later – as time allows:
Q. What is the purpose of savings?
A. Spending on future needs.
Paycheck Management System is the key to funding savings accounts.
Use the following exhibits to further discuss saving concepts:
Review Savings Comparison Chart (PPt Appendix/Addendum of Three Simple Rules)
Review Savings Calculator (PPt Appendix/Addendum of Three Simple Rules)
Review Seven Simple Investment Rules (PPt Appendix/Addendum of Three Simple
Rules)
6. Following Rule Three – Know Debt (PPt)
Q. How do you know if you are following Rule Three?
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A. You Know how much debt you have. (PPt)
A. Your credit card debt is “0”.
A. Your consumer debt payments take less than 10% of your income.
A. Your student loans take less than 5% of your income.
A. Your mortgage debt takes less than 25% of your income.
A. You Know the consequences of debt: (PPt)
(a) Reduces future standard of living.
(b) Reduces saving.
(c) Reduces giving.
(d) Frustration and stress.
(e) Relational problems.
A. You Know the different types of debt: (PPt)
Credit Card
Consumer Debt
Mortgage Debt
Student Debt
A. You Know the Borrowing Test: (PPt)
If and when you do decide to borrow money there are a few questions that you should
ask yourself. Any question to which you answer “yes” is a warning light that should
cause you to reconsider your borrowing decision.
The Borrowing Test (PPt Appendix/Part Four of Three Simple Rules)
Am I seeking contentment with this purchase?
Am I borrowing money to pay for an impulsive purchase?
Am I borrowing money to pay for a purchase driven by pride/ego?
Am I justifying my buying decision on the basis that everyone is doing it?
Is the item I am about to buy likely to depreciate?
Is my loan for this item longer than absolutely necessary?
Is there a possibility that I may not be able to make the payments on this loan?
Will repayment of this loan threaten my ability to save?
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Will repayment of this loan threaten my ability to give?
Will repayment of this loan threaten my ability to take care of my family?
Am I questioning whether taking out this loan is a good decision?
Does my spouse have any concern about borrowing money for this purchase?
A. You Know how to Get out of Debt! (PPt)
(See How to Get Out of Debt – PPt Appendix/Addendum of Three Simple Rules.)
And most important…
You have a Plan to Get out of Debt!
Additional Discussion on debt – as time allows:
Q. Is debt a sin?
A. Not necessarily, but debt fostered by lack of contentment is a sin. (Thou shalt not
covet…)
7. Overall Workshop Review
Q. Any questions about anything?
Q. What do people say causes their financial problems?
A. We don’t make enough money.
Q. What is the real reason people have financial problems?
A. They spend too much money.
Q. Why do people spend too much money?
A. Lack of Discipline.
Lack of Contentment.
Lack of Goals.
Q. What are the 4D’s?
A. Desire, Discipline, Decision, Delight
Q. What are the four credit card rules?
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www.ThreeRules.org

A. Rule One – You only need one general-purpose credit card.
Rule Two – Don’t use your credit card to buy things impulsively.
Rule Three – Pay off your credit card bill every month.
Rule Four – If you don’t pay off a credit card at the end of the month, cut it up.
Q. How has your thinking about money changed?
8. Review Three Rules with Scripture. (PPt)
9. Hand out Completion Certificates.
22
2nd Edition
Revised 10/04/04
www.ThreeRules.org

Three Simple Rules Financial Workshop
Session One – The Three Rules
Notes:
Homework:
• Read Part Two and the Addendum of Three Simple Rules.
• Identify any questions you may have from the reading assignment.
2nd Edition
Revised 8/04

Three Simple Rules Financial Workshop
Session Two – A Financial Physical
Notes:
Homework:
• Write down at least three personal goals in the area of your personal finances.
• Complete the Personal Asset and Debt Inventory and the Personal Cash Flow Plan.
• Read Part Three of Three Simple Rules.
2nd Edition
Revised 8/04

Three Simple Rules Financial Workshop
Session Three - Diagnosing Your Financial Situation
Notes:
Homework:
• Do a diagnosis and a prescription on your own situation.
• Read Parts Four and Five of Three Simple Rules.
2nd Edition
Revised 8/04

Three Simple Rules Financial Workshop
Session Four - Living by the Rules
Notes:
2nd Edition
Revised 8/04

ple
Sim
Three Rules
Section Four:
Case Studies

Case Studies
Don and Joyce
Don and Joyce’s Story
Personal Asset and Debt Inventory
Personal Cash Flow Plan
Karin
Karin’s Story
Personal Asset and Debt Inventory
Personal Cash Flow Plan
George and Georgette
George and Georgette’s Story
Personal Asset and Debt Inventory
Personal Cash Flow Plan
Christa
Christa’s Story
Personal Asset and Debt Inventory
Personal Cash Flow Plan
Johnny
Johnny’s Story
Personal Asset and Debt Inventory
Personal Cash Flow Plan

Don and Joyce’s Story:
Don and Joyce are both 45 years old. They have been married 23 years and have three
children ages 18, 16, and 10. Don and Joyce are active participants in their church. They
are youth group leaders and attend a weekly Bible study with several other couples. They
used to tithe their income, but stopped several years ago because they decided they just
could not afford it.
Don works at a warehouse where he makes $22 per hour. There is frequently an
opportunity for overtime but Don enjoys getting home at 3:00 PM so he typically does
not sign up for over time.
Joyce works 20 hours per week cleaning houses. She averages $14 per hour and proudly
tells the counselor that she is really making more than $20 per hour because she doesn’t
have to pay taxes. When probed about the “no taxes” she explains that she always gets
paid in cash.
Don has a 401K investment plan at work and his employer will contribute $0.50 for every
$1.00 he invests. He was taking advantage of this program until 3 years ago. Don and
Joyce know the benefit of this program but they see no way to contribute at this time.
Since Joyce pays no taxes and Don over withholds they typically get a $2,000 to $3,000
tax refund every spring. It has been their tradition to use this money to go on a spring
break vacation to Disney World every year. The entire family looks forward to this
annual event.
Don really enjoys fishing and bought a bass boat several years ago. Since their old van
was not powerful enough they bought a new van to pull the boat. The down payments on
both the new van and the bass boat were paid for from a loan they were able to get from
Joyce’s mom. Joyce drives a 12-year-old Pontiac that is worth about $3000 and requires
frequent repairs.
Since both Don and Joyce have income they each agreed to be responsible for certain of
their household expenses and if they have any money left at the end of the month they
agreed that they can do with it whatever they want. Don has money left at the end of the
month more frequently than Joyce.
Don and Joyce send all three of their children to a Christian school. Their church pays
for about half the cost. Joyce went to a Christian School and feels strongly that her
children should have a Christian education. Don’s not so sure. In fact he thinks they
really can’t afford it.
Don and Joyce have always considered themselves to be very generous parents. They
feel that kids shouldn’t have to work and there isn’t much that the kids want that they
don’t get.
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Since they haven’t been able to make the payment to Joyce’s mom lately and since they
have gotten some calls about payments that are late, Don and Joyce realize that they have
worked themselves into a difficult situation and have come to you for assistance.
After reviewing the above information, and the forms that follow (Personal Asset and
Debt Inventory and Personal Cash Flow Plan), how would you counsel Don and Joyce?
Start by identifying their problem.
________________________________________________________________________
________________________________________________________________________
What is the cause of their problem?
________________________________________________________________________
________________________________________________________________________
What are their goals?
________________________________________________________________________
________________________________________________________________________
What options do Don and Joyce have to balance their budget and accomplish their
objectives?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
www.ThreeRules.org

PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
DON AND JOYCE
ASSETS (What we own) DEBT (What we owe)
Description Value Description Payment Rate Balance Owed
Car # 1 Van $20,000 Car # 1 Loan Don's Van $500.00 $18,000
Car # 2 Joyce's Car $3,000 Car # 2 Loan
Real Estate $140,000 Mortgage Loan $750.00 7.50% $118,000
Boats $6,000 Personal Loan Joyce's Mom $250.00 $5,000
Motorcycles Personal Loan
RVs Personal Loan
Other Credit Card Visa $125.00 19.90% $6,250
Emergency Savings Credit Card Master Card $60.00 19.90% $3,000
Short Term Savings Credit Card Discover $50.00 19.90% $2,500
CD's Credit Card Penneys $45.00 22.00% $2,000
IRA, 401k $23,000 Credit Card Kohls $75.00 23.00% $3,750
Mutual Funds Credit Card Best Buy $70.00 23.90% $3,500
Stocks, Bonds, etc. Student Loans
Cash Value Life Ins Other Boat $250.00 12.00% $4,500
Other Other
Other Total Payments/Debts $2,175 $166,500
Total Assets $192,000 Net Worth -- Assets minus Debts $25,500

PERSONAL CASH FLOW PLAN www.ThreeRules.org
INCOME (PER MONTH)
DON $3,813
JOYCE $1,386
INCOME 3 $0
TOTAL INCOME $5,199
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH $0 RENT (SEE CAT 1 FOR MORTGAGE) HOME INSURANCE *
OTHER $0 PROPERTY TAXES HOME MAINTENANCE $100
TAXES INSURANCE CAR INSURANCE *
FEDERAL TAX $750 UTILITIES (GAS, ELEC, WATER) $140 CAR MAINTENANCE $150
SOCIAL SECURITY (US ONLY) $150 GARBAGE PICK-UP $15 CLOTHING/HIM $25
MEDICARE $52 TELEPHONE/CELL PHONES $60 CLOTHING/HER $25
STATE/PROVINCIAL TAX $150 FOOD CLOTHING/KIDS $150
CITY TAX FOOD $500 DOCTOR $20
DEBT RETIREMENT CAR DENTIST $20
CAR LOANS $500 GAS $150 EYE CARE $20
MORTGAGE LOAN $750 INSURANCE (IF PAID MONTHLY) $100 LIFE INSURANCE *
PERSONAL LOANS/PARENTS $250 INSURANCE HEALTH INSURANCE *
CREDIT CARDS $425 HEALTH (IF PAID MONTHLY) VACATION $200
STUDENT LOANS 0 LIFE (IF PAID MONTHLY) GIFTS (BIRTHDAYS, ETC.) $100
OTHER LOANS/BOAT $250 ENTERTAINMENT GIFTS (CHRISTMAS) $100
SAVINGS ENTERTAINMENT $100 HOUSEHOLD $25
EMERGENCY ACCOUNT $0 EATING OUT $100 HARDWARE $25
SHORT TERM SAVINGS $0 BABYSITTERS OTHER
LONG TERM SAVINGS $0 CABLE/INTERNET $65
TUITION/CHILD CARE TOTAL CATEGORY 3 EXPENSES $960
TOTAL CATEGORY 1 EXPENSES $3,277 TUITION $600 * Leave blank if included in prior column.
DAY CARE/CHILD SUPPORT
MISCELLANEOUS
SUBSCRIPTIONS $20
LUNCHES $100
Future Needs: PET SUPPLIES/VET $25
HAIRCUTS, ETC $30 TOTAL EXPENSE $6,442
CIGARETTES (Category 1+2+3)
MISC
MISC
MISC SURPLUS/DEFICIT ($1,243)
CASH (WALKING AROUND MONEY) $200 (Total Income - Total Expense)
TOTAL CATEGORY 2 EXPENSES $2,205
CATEGORY 1 % OF INCOME 63% CATEGORY 2 % OF INCOME 42% CATEGORY 3 % OF INCOME 18%

Karin’s Story:
Karin is 45 years old and has been divorced for nine years. Her children are grown, and
on their own. She had two years of Junior College before she got married. She has been
working a full-time night shift at a local factory for twelve years where she makes $13.50
per hour. Since she realized that she was having a difficult time making ends meet, she
recently took a part-time job at a local fast food restaurant. She works the breakfast shift
from 6:00 AM till 9:00 AM five days per week. She earns $7.75 per hour at the
restaurant plus receives a free breakfast.
Karin’s husband left her for another woman and filed for divorce. The court awarded
Karin child support but now that the children are on their own, that has stopped. Even
though her former husband is now quite well-to-do, Karin does not receive any support
from him.
Karin was given ownership of the house as part of the divorce settlement. Several years
after the divorce she sold the house and used the $30,000 equity to buy a new car and
used the balance as a down payment on a manufactured home in a manufactured home
community. The manufactured home is over 1800 square feet and has three bedrooms.
Since she wanted a clean new start she gave away her old furniture and used store credit
to furnish her manufactured home. At this point the car is seven years old, has over
100,000 miles and is starting to become costly on repairs. Although she enjoys living in
the manufactured home community she is beginning to consider some options concerning
her housing situation. She’s even wondering if she should move back to the area where
she grew up.
Because things have been tight, Karin has run up several credit card balances. She would
really like to get another car but that would introduce a new payment which she can not
afford.
Not sure where to turn, Karin asked her Pastor at the small local church she attends for
advice. He suggested that she meet with a Christian financial counselor.
Assuming you were that counselor, after reviewing the above information, and the forms
that follow (Personal Asset and Debt Inventory and Personal Cash Flow Plan), how
would you counsel Karin?
Start by identifying her problem.
________________________________________________________________________
________________________________________________________________________
www.ThreeRules.org

What is the cause of her problem?
________________________________________________________________________
________________________________________________________________________
What are her goals?
________________________________________________________________________
________________________________________________________________________
What options does Karin have to balance her budget and accomplish her objectives?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
www.ThreeRules.org

PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
KARIN
ASSETS (What we own) DEBT (What we owe)
Description Value Description Payment Rate Balance Owed
Car # 1 $2,000 Car # 1 Loan
Car # 2 Car # 2 Loan
Real Estate Mfd Home $60,000 Mortgage Loan Chase $500.00 14.00% $55,000
Boats Personal Loan
Motorcycles Personal Loan
RVs Personal Loan
Other Credit Card Visa $100.00 19.50% $5,000
Emergency Savings Credit Card Hudsons $40.00 21.00% $2,000
Short Term Savings Credit Card Target $25.00 22.00% $1,000
CD's Credit Card
IRA, 401k etc. Credit Card
Mutual Funds Credit Card
Stocks, Bonds, etc. Student Loans
Cash Value Life Ins Other Art Van $450.00 18.00% $15,000
Other Other
Other Total Payments/Debts $1,115 $78,000
Total Assets $62,000 Net Worth -- Assets minus Debts ($16,000)

PERSONAL CASH FLOW PLAN www.ThreeRules.org
INCOME (PER MONTH)
FACTORY $2,340
FAST FOOD $504
INCOME 3
TOTAL INCOME $2,844
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH $50 RENT (MFG. HOME PARK) $300 HOME INSURANCE *
OTHER PROPERTY TAXES HOME MAINTENANCE
TAXES INSURANCE $50 CAR INSURANCE *
FEDERAL TAX $400 UTILITIES (GAS, ELEC, WATER) $90 CAR MAINTENANCE $100
SOCIAL SECURITY (US ONLY) $138 GARBAGE PICK-UP CLOTHING/HIM
MEDICARE $46 TELEPHONE/CELL PHONES $70 CLOTHING/HER $50
STATE/PROVINCIAL TAX $96 FOOD CLOTHING/KIDS
CITY TAX FOOD $125 DOCTOR $10
DEBT RETIREMENT CAR DENTIST
CAR LOANS GAS $80 EYE CARE
MORTGAGE LOAN $500 INSURANCE (IF PAID MONTHLY) $60 LIFE INSURANCE *
PERSONAL LOANS INSURANCE HEALTH INSURANCE *
CREDIT CARDS $165 HEALTH (IF PAID MONTHLY) $48 VACATION
STUDENT LOANS LIFE (IF PAID MONTHLY) GIFTS (BIRTHDAYS, ETC.) $25
OTHER LOANS $450 ENTERTAINMENT GIFTS (CHRISTMAS) $25
SAVINGS ENTERTAINMENT HOUSEHOLD
EMERGENCY ACCOUNT EATING OUT HARDWARE
SHORT TERM SAVINGS BABYSITTERS OTHER
LONG TERM SAVINGS CABLE/INTERNET $47
TUITION/CHILD CARE TOTAL CATEGORY 3 EXPENSES $210
TOTAL CATEGORY 1 EXPENSES $1,845 TUITION * Leave blank if included in prior column.
DAY CARE/CHILD SUPPORT
MISCELLANEOUS
SUBSCRIPTIONS
PRESCRIPTIONS $10
Future Needs: LUNCHES
PET SUPPLIES/VET TOTAL EXPENSE $2,995
HAIRCUTS, ETC $10 (Category 1+2+3)
CIGARETTES
MISC
MISC SURPLUS/DEFICIT ($151)
MISC (Total Income - Total Expense)
CASH (WALKING AROUND MONEY) $50
TOTAL CATEGORY 2 EXPENSES $940
CATEGORY 1 % OF INCOME 65% CATEGORY 2 % OF INCOME 33% CATEGORY 3 % OF INCOME 7%

George & Georgette’s Story:
George and Georgette are both 50 years old. They have been married for 30 years and
have 3 grown children that are all out of the house and living on their own.
George presently works on the maintenance staff at the local high school. Georgette
decided to go back to work when her last child entered college. She now works as a part-
time social worker, about 20 hours per week. Their combined income is $40,000.
Seven years ago, George and Georgette bought a small tw-bedroom house in a nice
neighborhood near their oldest daughter. They still owe $72,000 on that $100,000 house.
They repaired the roof two years ago and still owe $2411. They also have $13,000 worth
of loans on their present cars. Blue book value of their cars is presently $9,000.
As George and Georgette get a little older they are starting to look forward to retirement
and spending their free time with their grandchildren. However, as they look at their
finances, they fear they may never be able to afford to retire. As of right now, their
savings is $0.00.
They came to you for assistance. They wonder if it’s too late for them to start a retirement
savings plan.
When you start asking them questions you discover the following:
1. They have a tax refund coming of $1200.
2. George has 6 weeks of vacation saved up that he can cash out if he wants to.
3. One of the reasons the car payments are so high is because they both include
credit life insurance.
After reviewing the above information, and the forms that follow (Personal Asset and
Debt Inventory and Personal Cash Flow Plan), how would you counsel George and
Georgette?
Start by identifying their problem.
________________________________________________________________________
________________________________________________________________________
www.ThreeRules.org

What is the cause of their problem?
________________________________________________________________________
________________________________________________________________________
What are their goals?
________________________________________________________________________
________________________________________________________________________
What options do George and Georgette have to balance their budget and accomplish their
objectives?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
www.ThreeRules.org

PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
GEORGE AND GEORGETTE
ASSETS (What we own) DEBT (What we owe)
Description Value Description Payment Rate Balance Owed
Car # 1 Truck $5,000 Car # 1 Loan CU $225 9% $7,000
Car # 2 Car $4,000 Car # 2 Loan CU $215 9% $6,000
Real Estate Residence $100,000 Mortgage Loan $614 6.50% $72,000
Other Personal Loan
Other Personal Loan
Other Personal Loan
Other Credit Card
Other Credit Card
Bank Savings Account Credit Card
CD's Credit Card
IRA, 401k etc. Credit Card
Mutual Funds Credit Card
Stocks, Bonds, etc Other Roof Loan $71 18% $2,411
Cash Value Life Ins Other
Other Other
Other Total Payments/Debts $1,125 $87,411
Total Assets $109,000 Net Worth -- Assets minus Debts $21,589

PERSONAL CASH FLOW PLAN www.ThreeRules.org
INCOME (PER MONTH)
GEORGE @ $12.18/hour $2,111
GEORGETTE @ $14.10/hour $1,222
INCOME 3
TOTAL INCOME $3,333
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH RENT (SEE CAT 1 FOR MORTGAGE) HOME INSURANCE *
OTHER $252 PROPERTY TAXES HOME MAINTENANCE $16
TAXES INSURANCE CAR INSURANCE * $72
FEDERAL TAX $281 UTILITIES (GAS, ELEC, WATER) $82 CAR MAINTENANCE $100
SOCIAL SECURITY (US ONLY) $255 TELEPHONE/CELL PHONES $47 CLOTHING/HIM $25
STATE/PROVINCIAL TAX $118 FOOD CLOTHING/HER $25
CITY TAX $41 FOOD $290 CLOTHING/KIDS
DEBT RETIREMENT CAR DOCTOR $10
CREDIT CARDS $0 GAS $170 DENTIST $20
PERSONAL LOANS $0 INSURANCE (IF PAID MONTHLY) EYE CARE
CAR LOAN $440 INSURANCE LIFE INSURANCE *
MORTGAGE LOAN $614 HEALTH (IF PAID MONTHLY) $33 HEALTH INSURANCE *
OTHER LOANS $71 LIFE (IF PAID MONTHLY) $35 VACATION $50
SAVINGS ENTERTAINMENT GIFTS (BIRTHDAYS ETC.) $25
EMERGENCY ACCOUNT $0 ENTERTAINMENT GIFTS (CHRISTMAS) $10
SHORT TERM SAVINGS $0 EATING OUT $50 HOUSEHOLD
LONG TERM SAVINGS $0 BABYSITTERS HARDWARE
CABLE/INTERNET $31 OTHER
TOTAL CATEGORY 1 EXPENSES $2,072 TUITION/CHILD CARE OTHER
TUITION
CHILD CARE/SUPPORT TOTAL CATEGORY 3 EXPENSES $353
MISCELLANEOUS * Leave blank if included in prior column.
Future Needs: SUBSCRIPTIONS
PRESCRIPTIONS $25
LUNCHES $10
PET SUPPLIES
HAIRCUTS ETC TOTAL EXPENSE $3,308
CIGARETTES (Category 1 +2+3)
MISC
MISC
MISC
MISC SURPLUS/DEFICIT $25
CASH (WALKING AROUND MONEY) $110 (Total Income - Total Expense)
TOTAL CATEGORY 2 EXPENSES $883
CATEGORY 1 % OF INCOME 62% CATEGORY 2 % OF INCOME 26% CATEGORY 3 % OF INCOME 11%

Christa’s Story:
Christa is 25 years old. She graduated from a private college 3 years ago and started working for
a small advertising agency in her home town. She is very involved in her local community and
volunteers at the rest home down the street from her house. She also loves attending her church
and spends time with friends from the young adult group.
Christa earns $36,000 per year at her advertising agency. She’s hoping to get a raise this year,
but finances are tight for her company. They do provide a matching investment in her retirement
plan up to 3 percent allowing Christa to set aside $100 each month towards her 401K. She really
enjoys her job and feels this is a great place for her to gain a lot of hands-on experience before
moving on to a larger agency.
Upon graduating from college, Christa immediately lined up her present job. However, before
starting, she and some of her best friends decided to treat themselves to a cruise as a graduation
present. Her parents chipped in $1000 towards the cost as her graduation present and Christa put
the other $1000 on her credit card.
Christa’s parents had allowed her to use one of their cars throughout college. However, that deal
ended on graduation day and Christa needed to get some wheels. She decided to buy a 1-year-old
Honda Civic for $12,000. They had a great payment plan that would allow her to pay off her car
in just 4 years time without stretching her budget too much.
Christa’s parents encouraged her to focus on her studies and enjoy her college experience, so she
didn’t work during college. She had scholarships that paid for about a 25% of her tuition and her
parents paid for room and board, but she still had to take a $10,000 loan out each year, leaving
her with $40,000 of debt. After a one-year grace period, Christa’s college debt payments kicked
in. She was shocked to think she’ll be paying for college for the next 10 years, but all of her
friends are in similar situations so she just decided this was normal.
Last year, Christa’s company was able to send her to a conference in Chicago. She had an
opportunity to make a presentation and meet with a lot of other advertising executives. Looking
at her closet before she left she decided she didn’t have any clothes that were dressy enough for
this trip, so she went shopping. She looked great at the conference, but now had a $700 bill at
Express.
Six months ago, Christa brought her car in for a tune up and discovered she needed a new
muffler system. That cost $500 which she also had to put on her credit card.
Christa received her bank statement a few weeks ago and was shocked to see her bank account
wasn’t growing. It was shrinking!! She had always planned on buying a house after working a
few years and that just didn’t seem possible with the direction she was headed. Her church
offered financial counseling so she thought she just might check that out.
After reviewing the above information, and the forms that follow (Personal Asset and Debt
Inventory and Personal Cash Flow Plan), how would you counsel Christa?

Start by identifying her problem.
______________________________________________________________________________
______________________________________________________________________________
What is the cause of her problem?
______________________________________________________________________________
______________________________________________________________________________
What are her goals?
______________________________________________________________________________
______________________________________________________________________________
What options does Christa have to balance her budget and accomplish her objectives?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
CHRISTA
ASSETS: What we own DEBT: What we owe
Description Value Description Payment Rate Balance Owed
Car # 1 $6,500 Car # 1 Loan $295.00 9.00% $3,200
Car # 2 Car # 2 Loan
Real Estate Mortgage Loan
Boats Personal Loan
Motorcycles Personal Loan
RVs Personal Loan
Other Credit Card VISA - car repair $30.00 18.90% $350
Emergency Savings Credit Card VISA - vacation $50.00 18.90% $300
Short Term Savings Credit Card Express $30.00 23.90% $500
CD's (GIC's) Credit Card
IRA, 401k (RRSP, RPP) 401K $3,600 Credit Card
Mutual Funds Credit Card
Stocks, Bonds, etc. Student Loans College $395.00 3.50% $33,500
Cash Value Life Ins Other
Other Other
Other Total Payments/Debts $800 $37,850
Total Assets $10,100 Net Worth -- Assets minus Debts ($27,750)
( ) equals Canadian equivalent

PERSONAL CASH FLOW PLAN www.ThreeRules.org
INCOME (PER MONTH)
CHRISTA $3,000
INCOME 2
INCOME 3
TOTAL INCOME $3,000
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH $200 RENT (SEE CAT 1 FOR MORTGAGE) $600 HOME INSURANCE * $6
OTHER PROPERTY TAXES HOME MAINTENANCE
TAXES INSURANCE CAR INSURANCE * $85
FEDERAL TAX $310 UTILITIES (GAS, ELEC, WATER) $60 CAR MAINTENANCE
SOCIAL SECURITY (US ONLY) $186 GARBAGE PICK-UP CLOTHING/HIM
MEDICARE $43 TELEPHONE/CELL PHONES $60 CLOTHING/HER $50
STATE/PROVINCIAL TAX $106 FOOD CLOTHING/KIDS
CITY TAX $40 FOOD $150 DOCTOR
DEBT RETIREMENT CAR DENTIST $10
CAR LOANS $295 GAS $40 EYE CARE
MORTGAGE LOAN INSURANCE (IF PAID MONTHLY) LIFE INSURANCE *
PERSONAL LOANS INSURANCE HEALTH INSURANCE *
CREDIT CARDS $110 HEALTH (IF PAID MONTHLY) VACATION $100
STUDENT LOANS $395 LIFE (IF PAID MONTHLY) GIFTS (BIRTHDAYS, ETC.) $50
OTHER LOANS ENTERTAINMENT GIFTS (CHRISTMAS) $100
SAVINGS ENTERTAINMENT $80 OTHER - Home Decorating $30
EMERGENCY ACCOUNT EATING OUT $40 OTHER
SHORT TERM SAVINGS BABYSITTERS OTHER
LONG TERM SAVINGS $120 CABLE/INTERNET
TUITION/CHILD CARE TOTAL CATEGORY 3 EXPENSES $431
TOTAL CATEGORY 1 EXPENSES $1,805 TUITION * Leave blank if included in prior column.
DAY CARE/CHILD SUPPORT
MISCELLANEOUS
SUBSCRIPTIONS
PRESCRIPTIONS
Future Needs: LUNCHES $20
PET SUPPLIES/VET TOTAL EXPENSE $3,406
HAIRCUTS, ETC $20 (Category 1+2+3)
CIGARETTES
MISC
MISC SURPLUS/DEFICIT ($406)
MISC (Total Income - Total Expense)
CASH (WALKING AROUND MONEY) $100
TOTAL CATEGORY 2 EXPENSES $1,170
CATEGORY 1 % OF INCOME 60% CATEGORY 2 % OF INCOME 39% CATEGORY 3 % OF INCOME 14%

Johnny’s Story:
Johnny graduated from high school 4 years ago. He was able to take some work study classes during
high school and learned a lot of home craftsmanship skills. After school finished he immediately got
a job as a construction worker. His parents asked if he was interested in going to college, but he
wanted to take a break from school. Maybe he would go back in a few years.
Another friend of his also got a job right out of high school and they found a duplex to move into
together. By splitting rent and utilities, they felt they were making some pretty good financial
decisions so they splurged and got the complete cable package. They can now watch Sportscenter
and ESPN all day long!! Neither of them know how to cook, so they order pizza or Chinese at least
2 nights a week and eat it on the couch watching sports. Johnny and his construction crew friends go
out for lunch everyday to the local fast food joints.
Johnny drove an old truck of his dad’s all through high school that he bought for $500 his
sophomore year. Two years ago, that truck finally died and Johnny decided to buy a brand new
Dodge. Johnny’s dream had always been to have a truck with an awesome sound system so he went
right over to Best Buy to check out their options. They had an offer going that you could take 15%
off your purchase if you got a Best Buy credit card, so Johnny got a $1000 car system for $850.
After listening to his car stereo system for a couple of months, he realized his home system just
wasn’t good enough anymore. He decided to go back to Best Buy and get a new equalizer, speakers,
DVD, etc. Since he was now a ‘preferred customer’ he was able to get 10% off his purchase if he
spent over $1000. He spent $1500 and put $1350 on his Best Buy credit card.
Last year, Johnny and his roommate decided to buy brand new snowmobiles. They had been
snowmobiling since they were little boys and wanted to have their own so they wouldn’t have to
borrow their parents’ anymore.
Johnny thought he had everything under control, but his parents got a little nervous when he bought
the brand-new snowmobile and started asking some questions. Johnny had assumed his payments
were very typical, but they warned that if he kept going in this direction he might be headed toward
some trouble. They pointed out that he had mentioned his desire to buy a house and he and his
girlfriend seemed pretty serious. He might want to be able to support a family some day. They
recommended he talk to someone from their church about his situation. Although Johnny didn’t
attend church very often, he thought it might be a good idea to talk things through.
After reviewing the above information, and the forms that follow (Personal Asset and Debt
Inventory and Personal Cash Flow Plan), how would you counsel Johnny?
Start by identifying his problem.
_________________________________________________________________________________
_________________________________________________________________________________

What is the cause of his problem?
_________________________________________________________________________________
_________________________________________________________________________________
What are his goals?
_________________________________________________________________________________
_________________________________________________________________________________
What options does Johnny have to balance his budget and accomplish his objectives?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
JOHNNY
ASSETS: What we own DEBT: What we owe
Description Value Description Payment Rate Balance Owed
Car # 1 $14,000 Car # 1 Loan Truck $496.00 9.00% $11,273
Car # 2 Snowmobile Loan $165.00 12.00% $3,500
Real Estate Mortgage Loan
Boats Personal Loan
Motorcycles Personal Loan
RVs Personal Loan
Other Snowmobile $5,000 Credit Card Best Buy - Car $20.00 19.90% $700
Emergency Savings Credit Card Best Buy - House $40.00 19.90% $1,000
Short Term Savings Credit Card
CD's (GIC's) Credit Card
IRA, 401k (RRSP, RPP) Credit Card
Mutual Funds Credit Card
Stocks, Bonds, etc. Student Loans
Cash Value Life Ins Other
Other Other
Other Total Payments/Debts $721 $16,473
Total Assets $19,000 Net Worth -- Assets minus Debts $2,527
( ) equals Canadian equivalent

PERSONAL CASH FLOW PLAN
INCOME (PER MONTH)
JOHNNY $2,167
INCOME 2
INCOME 3
TOTAL INCOME $2,167
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH RENT (SEE CAT 1 FOR MORTGAGE) $450 HOME INSURANCE * $15
OTHER PROPERTY TAXES HOME MAINTENANCE $50
TAXES INSURANCE CAR INSURANCE * $100
FEDERAL TAX $126 UTILITIES (GAS, ELEC, WATER) $75 CAR MAINTENANCE $50
SOCIAL SECURITY (US ONLY) $130 GARBAGE PICK-UP CLOTHING/HIM $40
MEDICARE $35 TELEPHONE/CELL PHONES $80 CLOTHING/HER
STATE/PROVINCIAL TAX $75 FOOD CLOTHING/KIDS
CITY TAX $27 FOOD $50 DOCTOR
DEBT RETIREMENT CAR DENTIST
CAR LOANS $496 GAS $50 EYE CARE
MORTGAGE LOAN INSURANCE (IF PAID MONTHLY) LIFE INSURANCE *
PERSONAL LOANS INSURANCE HEALTH INSURANCE *
CREDIT CARDS $60 HEALTH (IF PAID MONTHLY) $15 VACATION $50
STUDENT LOANS LIFE (IF PAID MONTHLY) GIFTS (BIRTHDAYS, ETC.) $75
OTHER LOANS $165 ENTERTAINMENT GIFTS (CHRISTMAS) $75
SAVINGS ENTERTAINMENT $80 OTHER
EMERGENCY ACCOUNT EATING OUT $60 OTHER
SHORT TERM SAVINGS BABYSITTERS OTHER
LONG TERM SAVINGS CABLE/INTERNET $35
TUITION/CHILD CARE TOTAL CATEGORY 3 EXPENSES $455
TOTAL CATEGORY 1 EXPENSES $1,114 TUITION * Leave blank if included in prior column.
DAY CARE/CHILD SUPPORT
MISCELLANEOUS
SUBSCRIPTIONS
PRESCRIPTIONS
Future Needs: LUNCHES $100
PET SUPPLIES/VET TOTAL EXPENSE $2,714
HAIRCUTS, ETC (Category 1+2+3)
CIGARETTES
MISC
MISC SURPLUS/DEFICIT ($547)
MISC (Total Income - Total Expense)
CASH (WALKING AROUND MONEY) $150
TOTAL CATEGORY 2 EXPENSES $1,145
CATEGORY 1 % OF INCOME 51% CATEGORY 2 % OF INCOME 53% CATEGORY 3 % OF INCOME 21%

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Section Five:
Case Study
Answers

Case Study Answers
Don and Joyce’s Diagnosis and Prescription
Karin’s Diagnosis and Prescription
George and Georgette’s Diagnosis and Prescription
Christa’s Diagnosis and Prescription
Johnny’s Diagnosis and Prescription

Don and Joyce’s Diagnosis and Prescription
Start by identifying their problem.
1. Spending way more than their income.
2. No Savings.
3. Debt is out of control.
What is the cause of their problem?
1. Spending money without any concept of whether they can afford it.
2. No discipline.
3. No contentment.
What are their goals?
1. To have a good time.
2. To be generous with their kids.
3. Joyce wants the kids to go to Christian School.
4. They would like to tithe.
5. They would like to contribute to their 401K.
6. They would like to take family vacations.
What options do Don and Joyce have to balance their budget and accomplish their
objectives?
1. Cut expenses by the following amounts:
Entertainment $ 75
Eating Out $ 75
Lunches $100
Cash $100
Home Maintenance $ 75
Car Maintenance $100
Clothing $100
Vacation $150
Gifts $150
Total $925
2. Sell Assets
Boat
Joyce’s Car
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By selling the boat and paying off the boat loan, they will save $250 per month in
payments and still have $1500 in cash.
Selling Joyce’s car and combining the proceeds with the cash raised by selling the boat
will allow them to pay off Discover and Penney’s and save another $95 per month.
They could consider selling the van and downsizing to a $7-10,000 used vehicle and
saving an additional $200 per month or they could use that money to buy a second
vehicle if Joyce absolutely needs one.
3. Increase income
Don has the option of working overtime. If he worked 10 hours per week at $33/ hour he
would earn $1430 per month. After tax, this would contribute over $1000 per month to
the family income
Since their current deficit of $1263 per month can be offset by cutting expenses and
selling assets, this new income can be used for saving and giving.
Other Suggestions:
1. Joyce needs to start reporting her income and paying taxes. God requires that
we be honest.
Lord , who may dwell in your sanctuary? Who may live on your holy hill?
He whose walk is blameless and who does what is righteous, who speaks the
truth from his heart. Psalm 15:1-2 NIV
2. Don should stop over-withholding and use the additional income to retire
debt.
3. Don and Joyce should decide who will be responsible for paying the bills. All
income should be recognized as joint income and all bills paid out of that
income. They should sit down once per month so that they both will know
where they are financially.
4. Don and Joyce should sit down and explain some of their financial mistakes to
their kids. This will be a great learning experience. They should also create a
new family rule that anyone over 12 should earn at leat part of their spending
money and help pay for their own clothes.
5. Since Don and Joyce have not managed their debt they should cut up all their
credit cards until they have their debt situation under control.
6. They should put all savings into the emergency account until it equals 5% of
their income.
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Karin’s Diagnosis and Prescription
Start by identifying her problem.
1. Spending more than she earns.
2. No savings.
3. Too much debt.
What is the cause of her problem?
The divorce contributed to her problem, but the primary culprit is bad financial
decisions. These primarily have to do with housing.
What are her goals?
1. Get another car.
2. Eliminate financial stress.
What options does Karin have to balance her budget and accomplish her
objectives?
Although there are a number of expense areas where Karin could cut back, her
expenses are not out of line except in the area of housing. Between her loan
payment, rent in the manufactured housing community and insurance, her house
costs are $850 per month.
The primary decision that created Karin’s financial problems was the purchase of
a new manufactured home significantly bigger than she needed and then to
borrow money to furnish this large home. Karin should consider taking in two
renters or selling the home.
If she could generate $700 per month from two renters, she would be able to
eliminate her monthly deficit and use the balance to make payments on a reliable
used car and put the balance in savings.
If she elects to sell the home, she should be able to rent a small apartment and
save $350 per month.
By trading in her current car for a reliable used car, Karin should also be able to
reduce car maintenance by $75 per month.
Karin does not have any assets that could be sold to pay off debt.
Since Karin is already working a full time and a part time job, it is not likely that
she can increase her income unless she can find a part time job that pays better
wages.
Karin should consider checking with the deacons at her church. Perhaps they
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could help her purchase a reliable used car at a good price from a church member.
The deacons may also be able to help Karin with car maintenance to keep these
bills as low as possible.
Since Karin has tended to use credit card debt in the past to get through the tough
spots, it would be a good idea for Karin to cut up her credit cards and use all
“extra” money to retire the credit card balances as quickly as possible.
Once she does that, she will have an additional $165 per month that she could put
into an emergency savings account.
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George and Georgette’s Diagnosis and Prescription
Start by identifying their problem.
George and Georgette did not plan ahead.
What is the cause of their problem?
Lack of a savings plan.
What are their goals?
To be able to retire so that they can spend time with their grandchildren.
What options do they have to balance their budget and accomplish their objectives?
George and Georgette have several options:
1. Cut Expenses
Reduce tax withholdings. $100
Reduce food budget. $ 90
Cut eating out in half. $ 25
Drop cable and internet services. $ 31
$246
$246 per month invested at 9.0% for 15 years equals $93,087
2. Sell House
Use tax refund and cash out from banked hours to fix up the house.
Sell the house $100,000
Pay off mortgage $ 72,000
Pay off cars $ 13,000
Pay off roof loan $ 2,400
Cash Balance $ 12,600
Buy a used manufactured home $ 40,000
Down payment $ 12,600
Finance $ 27,400
Payment at 9.0% for 15 years $ 278
Park Rent $ 275
Total $ 553
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By selling the house and paying off the car loans and the roof loan, they will
reduce their monthly payments by $1125. After we subtract their new housing
costs ($553), they have $572 left that they can save and invest.
If they invest half in George’s 401K, it will grow to $242,442 in 15 years
assuming a 9 % return. If they invest the other half in a savings account paying
5% they will have $20,000 in 5 years. This money can be used to pay for future
cars etc.
3. Increase Income Option
If George worked 5 hours overtime, he would net an additional $237 per month. If
George worked a part time job, 10 hours per week at $8 per hour, he would net an
additional $277 per month.
If Georgette increased her hours to 32 hours per week, she would net an
additional $391 per month.
If they took in a border at $400 per month, they could earn an additional $4800
per year.
$237 per month invested at 9.0% for 15 years equals $ 89,682
$277 per month invested at 9.0% for 15 years equals $104,818
$391 per month invested at 9.0% for 15 years equals $147,956
$400 per month invested at 9.0% for 15 years equals $150,000
If George and Georgette do all of the above, they will have a nest egg of $733,485 by the
time they turn 65.
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Christa’s Diagnosis and Prescription
Start by identifying her problem.
Christa’s expenses exceed her income.
What is the cause of her problem?
Christa spends too much money.
What are her goals?
Christa wants to buy a house, but doesn’t have any down-payment money.
What options does Christa have to balance her budget and accomplish her objectives?
1. Cut expenses
Get rid of cell phone $ 40
Reduce entertainment expense $ 20
Reduce eating out $ 20
Reduce walking around money $ 25
Reduce vacation $ 50
Reduce gifts $ 75
Reduce home decorating $ 30
Total $226
2. Sell car and buy used
Christa can sell her Honda for $6500. She can use $4350 to pay off her loan and credit
card debt. She can then use $1500 to put a down-payment on a used car. She can buy an
$8000 used car and only pay $225 per month and pay for the car in just three years. She
can use the remaining $650 to start a savings account.
After these changes, Christa will be saving an additional $200 per month. This money
can be put into savings accounts, starting with the emergency account until it equals 5%
of her income.
3. Increase income
Even though Christa loves her job, she recognizes they can’t afford to pay her what she is
now worth thanks to her increased experience. She could look for a job at a bigger ad
agency that pays $40,000 per year instead of $36,000. This would add $333 of gross
income per month.

Christa could also see if the rest home where she volunteers has any job openings.
Although volunteering is a generous thing to do, she could explore if she could be paid
for the time she spends there. If she worked just 10 hours per week at $8.00 per hour, she
could increase her gross income by $346 each month.
By increasing her income along with cutting expenses, Christa will have approximately
an additional $175 per month that she can start using to save for her house.

Johnny’s Diagnosis and Prescription
Start by identifying his problem.
1. Johnny’s expenses exceed his income.
2. Johnny doesn’t have very much savings.
3. Johnny isn’t giving.
What is the cause of his problem?
1. Johnny is spending too much money buying toys.
2. Johnny bought too much car and too much snowmobile.
What are his goals?
1. Johnny still wants to maintain his hobbies and fun activities.
2. Johnny wants to save for an engagement ring.
3. Johnny wants to buy a house in a few years.
What options does Johnny have to balance his budget and accomplish his objectives?
1. Cut Expenses
Lower cell phone plan $ 20
Lower entertainment budget $ 40
Eat out less $ 10
Pack a lunch for work $ 75
Reduce walking around money $ 50
Total $195
2. Cut Expenses more
Get rid of cable $ 35
Reduce vacation savings $ 25
Reduce gifts $ 25
Total $ 85
3. Sell truck and buy cheaper truck
By selling his truck, Johnny can pay off both his car loan and $700 off his Best Buy
credit card and have $2000 to put towards buying a used vehicle. Johnny can buy a
used truck for $4000 and finance $2000 at the car dealership. His new payment each
month would be just over $100. This would save him $500 per month in payments.
Johnny will now have a surplus of $350 each month that he can use to accelerate debt
payment and start saving.

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Section Six:
Forms

Forms
Certificate of Completion
Client Profile
Diagnosis and Prescription
Financial Opinion Survey
Permission Agreement
Personal Asset and Debt Inventory
Personal Cash Flow Plan
Personal Financial Habit Assessment and Interpretation
Values Questionnaire

This certificate is awarded to
for successful completion of the
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Financial Workshop
Instructor Signature Date of Completion

Client Profile
Name ______________________________________________________________
Address ______________________________________________________________
City _____________________________ State ___________ Zip _____________
Home Phone __________________________ Cell Phone ________________________
Email _________________________________ Fax ________________________
Kids Names and Ages ______________________________________________________
Work (his) _______________________________________ Phone_________________
Work (hers) _______________________________________ Phone_________________
Preliminary
1. Why are you here and how can I help?
When did the problems start?
What do you think caused the problem?
2. What do you hope to achieve as a result of this process?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
If your financial situation was perfect, what would be different?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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What are your three primary financial goals?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
3. How badly do you want to accomplish these goals? Are you willing to do whatever it
takes? (If you don’t we’re wasting our time!)
4. 4D’s of Change
• Desire
• Decision
• Discipline
• Delight
Specifics
1. How often do you get paid?
________________________________________________________________________
2. What happens to the paychecks?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
3. How many checking accounts and savings accounts do you have?
________________________________________________________________________
________________________________________________________________________
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4. Who pays the bills? When? How often?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
5. Did you have to pay additional taxes or did you get money back as a result of last year’s
tax return?
________________________________________________________________________
________________________________________________________________________
6. How is your credit record?
________________________________________________________________________
________________________________________________________________________
7. Are there any bills that are past due? Anything close to repossession or foreclosure?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
8. Are you current on your taxes?
________________________________________________________________________
________________________________________________________________________
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Diagnosis and Prescription
What financial goals have been discussed?
________________________________________________________________________
________________________________________________________________________
What financial problems, if any, did the financial physical reveal?
________________________________________________________________________
________________________________________________________________________
What is the cause of the problems identified?
________________________________________________________________________
________________________________________________________________________
What actions can be taken to eliminate these problems and accomplish the financial goals?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Continue on reverse as needed.
www.ThreeRules.org

Financial Opinion Survey
Answer the following questions honestly based on your personal opinion.
1. In today’s world, a typical family needs ___ credit cards.
2. The best way to buy a car is to [ ] buy new [ ] buy used [ ] lease.
3. It’s OK to take out a loan to purchase a car. [ ] Yes [ ] No
4. It’s OK to buy furniture on payments. [ ] Yes [ ] No
5. It’s OK to borrow money to pay for vacations. [ ] Yes [ ] No
6. It’s OK to borrow money for a boat, RV or motocycle. [ ] Yes [ ] No
7. It’s better to buy a home than to rent. [ ] Yes [ ] No
8. A mortgage term of _____ years is normal and OK.
9. A family should save ___ percent of their income for future needs.
10. A family should give ___ percent of their income back to God.
11. Does it make sense to give when you are struggling to repay debt? [ ] Yes [ ] No
12. Living on a budget is important. [ ] Yes [ ] No
Answer the following only if married:
13. [ ] Husband [ ] Wife [ ] Either should assume primary responsibility for paying bills.
14. A household’s financial situation should be reviewed:
[ ] weekly, [ ] monthly, [ ] quarterly, [ ] annually.
15. It’s okay for husbands and wives to have separate bank accounts. [ ] Yes [ ] No
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Permission Agreement
I hereby give permission to __________________________ to share my financial
information with the deacons at _________________________________ Church.
Date _________________________
_____________________________
Signed
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PERSONAL ASSET AND DEBT INVENTORY www.ThreeRules.org
ASSETS: What we own DEBT: What we owe
Description Value Description Payment Rate Balance Owed
Car # 1 Car # 1 Loan
Car # 2 Car # 2 Loan
Real Estate Mortgage Loan
Boats Personal Loan
Motorcycles Personal Loan
RVs Personal Loan
Other Credit Card
Emergency Savings Credit Card
Short Term Savings Credit Card
CD's (GIC's) Credit Card
IRA, 401k (RRSP, RPP) Credit Card
Mutual Funds Credit Card
Stocks, Bonds, etc. Student Loans
Cash Value Life Ins Other
Other Other
Other Total Payments/Debts
Total Assets Net Worth -- Assets minus Debts
( ) equals Canadian equivalent

PERSONAL CASH FLOW PLAN www.ThreeRules.org
INCOME (PER MONTH)
INCOME 1
INCOME 2
INCOME 3
TOTAL INCOME
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH RENT (SEE CAT 1 FOR MORTGAGE) HOME INSURANCE *
OTHER PROPERTY TAXES HOME MAINTENANCE
TAXES INSURANCE CAR INSURANCE *
FEDERAL TAX UTILITIES (GAS, ELEC, WATER) CAR MAINTENANCE
SOCIAL SECURITY (US ONLY) GARBAGE PICK-UP CLOTHING/HIM
MEDICARE TELEPHONE/CELL PHONES CLOTHING/HER
STATE/PROVINCIAL TAX FOOD CLOTHING/KIDS
CITY TAX FOOD DOCTOR
DEBT RETIREMENT CAR DENTIST
CAR LOANS GAS EYE CARE
MORTGAGE LOAN INSURANCE (IF PAID MONTHLY) LIFE INSURANCE *
PERSONAL LOANS INSURANCE HEALTH INSURANCE *
CREDIT CARDS HEALTH (IF PAID MONTHLY) VACATION
STUDENT LOANS LIFE (IF PAID MONTHLY) GIFTS (BIRTHDAYS, ETC.)
OTHER LOANS ENTERTAINMENT GIFTS (CHRISTMAS)
SAVINGS ENTERTAINMENT OTHER
EMERGENCY ACCOUNT EATING OUT OTHER
SHORT TERM SAVINGS BABYSITTERS OTHER
LONG TERM SAVINGS CABLE/INTERNET
TUITION/CHILD CARE
TOTAL CATEGORY 1 EXPENSES TUITION TOTAL CATEGORY 3 EXPENSES
DAY CARE/CHILD SUPPORT * Leave blank if included in prior column.
MISCELLANEOUS
PRESCRIPTIONS
SUBSCRIPTIONS
Future Needs: LUNCHES
PET SUPPLIES/VET
HAIRCUTS, ETC TOTAL EXPENSE
CIGARETTES (Category 1+2+3)
MISC
MISC
MISC SURPLUS/DEFICIT
CASH (WALKING AROUND MONEY) (Total Income - Total Expense)
TOTAL CATEGORY 2 EXPENSES
CATEGORY 1 % OF INCOME CATEGORY 2 % OF INCOME CATEGORY 3 % OF INCOME

Personal Financial Habits Assessment
When you answer these questions, it is important that you do so 100% truthfully. If you do not
answer them truthfully, you are only kidding yourself.
1. Are you living on a budget? [ ] Yes [ ] No
2. Do you know how much debt you have within $1000? [ ] Yes [ ] No
3. Are you saving on a regular basis? [ ] Yes [ ] No
4. Do you balance your checkbook monthly? [ ] Yes [ ] No
5. Are you happy with your giving? [ ] Yes [ ] No
6. Do you pay off your entire credit card balance each month? [ ] Yes [ ] No
7. Do you make all your loan payments on time? [ ] Yes [ ] No
8. Do you know how much cash you spend every week? [ ] Yes [ ] No
9. Do you buy things on impulse? [ ] Yes [ ] No
10. Do you have more than one personal credit card? [ ] Yes [ ] No
11. Are you making payments on automobiles? [ ] Yes [ ] No
12. Are you making payments on a boat, RV or motorcycle? [ ] Yes [ ] No
13. Do you owe money to relatives? [ ] Yes [ ] No
14. Do you ever get a cash advance on a credit card? [ ] Yes [ ] No
15. Have you ever taken a cash advance against your paycheck? [ ] Yes [ ] No
16. Do you ever use your credit card because you can’t afford to pay cash? [ ] Yes [ ] No
Personal Financal Habit Assessment Results
If you answered “Yes” to questions 1-8 and “No” to the rest, you have a perfect score of 100%.
Congratulations!
If you answered “No” to any of Questions 1-8, that is an area that will need some work.
If you answered “Yes” to any of questions 9-16, that is also an area that needs
some work.
2nd Edition
Revised 8/04

Values Questionnaire
1. Husband [ ] Wife [ ] should assume primary responsibility for paying our bills.
2. We should plan to save ____% of our income for future needs.
3. We need ___ credit cards.
4. We should [ ] buy new cars [ ] buy used cars [ ] lease our cars.
5. It’s OK to take out a loan to purchase a car. [ ] Yes [ ] No
6. It’s OK to buy furniture on payments. [ ] Yes [ ] No
7. It’s OK to borrow money to pay for vacations. [ ] Yes [ ] No
8. It’s better to buy a home than to rent. [ ] Yes [ ] No
9. We should mortgage our home for ___ years.
10. We should plan to give ___ % of our income back to God.
11. We should live on a budget. [ ] Yes [ ] No
12. We should own everything in common. [ ] Yes [ ] No
13. We should review our financial situation
[ ] weekly [ ] monthly, [ ] quarterly, [ ] annually.
14. We should discuss any unbudgeted purchase over $__________.
15. We should pray about any purchase over $__________.
16. We should live on one income after we have children. [ ] Yes [ ] No
17. We should send our children to Christian School. [ ] Yes [ ] No
18. We should agree to agree on all of the above. [ ] Yes [ ] No
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Section Seven:
Financial Workshop
Tools

Financial Workshop Tools
How Much Car Should You Buy?
How Much House Should You Buy?
How to Get Out of Debt
Money Trivia
Savings Calculator
Savings Comparison
Seven Simple Investment Rules
Steve and Jessica’s Credit Card Debt
Steve and Jessica’s Finanical Mistakes
Steve and Jessica’s Personal Asset and Debt Inventory
Steve and Jessica’s Personal Cash Flow Plan
The Borrowing Test

How Much Car Should You Buy?
The following page will help you answer that question. It outlines three car-buying
scenarios.
Ralph, Tom and Bill each bought a car.
Ralph bought a new car for $20,000, paid $2000 down and financed the balance for 5
years at 9.75% interest.
Tom bought a used car for $12,000, paid $2000 down and financed the balance for 3
years at 10.5% interest.
Bill bought a used car and paid cash.
Even recognizing that Tom and Bill will have more repair costs over the years, our
illustration indicates that Ralph’s cost per year is almost two times Bill’s cost. That
doesn’t even include the fact that Bill’s cost to insure a $12,000 used car will be a lot less
than Ralph’s cost to insure a $20,000 new car.
Your initial reaction to a savings of $2000 per year might be that it isn’t that significant.
That all depends on how you look at it. If Bill was to invest that $2000 annual savings he
would have over $200,000 in an investment account after 30 years.

Three Car-Buying Scenarios
Ralph Tom Bill
New Used Used
Financed Financed Cash
Purchase Price $20,000 $12,000 $12,000
Downpayment $2,000 $2,000 $12,000
Amount Financed $18,000 $10,000 $0
Term in Months 60 36 0
Interest Rate 9.75% 10.5% 0.0%
Monthly Payment $380.24 $325.02 $0.00
Repairs over 3 years $0 $1,500 $1,500
Loan Balance $8,179 $0 $0
after 3 years
Resale Value $12,000 $6,000 $6,000
after 3 years
Net Cost $11,868 $7,701 $6,000
Cost per Year $3,956 $2,567 $2,000
Notes:
Used cars assumed to be 3 years old
Net Cost = Downpayment + Total Payments + Repairs + Payoff – Resale Value.
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How Much House Should You Buy?
The chart on the following page demonstrates two house-buying scenarios. Ralph buys a
home for $120,000 and finances it for 30 years at 8.5%. Bill buys a home for $70,000
and finances it for 7 years at 7.5%. They both put down $20,000. Their payments are
approximately the same.
After 7 years Bill’s home is paid in full and he sells it and buys a $120,000 home with
$70,000 down. He again finances the balance for 7 years at 7.5% so his payments stay
the same.
At the end of 14 years Bill owns his $120,000 home free and clear. At this point Ralph
still owes $80,557.
From year 15 through year 30 Bill no longer needs to make a mortgage payment, so he
invests an amount equal to the mortgage payment he used to make, at an average return
of 7.5%.
At the end of 30 years both Ralph and Bill own a $120,000 home free and clear.
However, in addition to his home, Bill has an investment account of $283,174. The only
“penalty” Bill had to pay to accomplish this was to live in a $70,000 house for 7 years
while Ralph lived in a $120,000 house.
(Although both homes probably appreciated during this time period we kept the values
constant to make the illustration more simple.)

Two House-Buying Scenarios
Year 1 Ralph Bill
Purchase Price $120,000 $70,000
Downpayment $20,000 $20,000
Term in Years 30 7
Interest Rate 8.5% 7.5%
Monthly Payment $768.91 $766.91
Year 8
Payoff Balance $93,079 $0
Purchase Price $120,000
Downpayment $70,000
Term in Years 7
Interest Rate 7.5%
Monthly Payment $768.91 $766.91
Year 15
Payoff Balance $80,557 $0
Year 30
Assets (House) $120,000 $120,000
Investment Account $0 $283,174
www.ThreeRules.org

How to Get Out of Debt
1. Stop accumulating new debt. (Get rid of the credit cards. Resolve to not take
on any new debt.)
I/We agree to stop accumulating new debt.
2. Figure out where you are. (Personal Asset/Debt Inventory)
I/We have completed a Personal Asset/Debt Inventory.
3. Set a goal for debt reduction.
It is our goal to eliminate $______________ of debt by ____________(date).
4. Create a Personal Cash Flow Plan and look for expenses that could be
reduced. Apply this money to debt repayment.
I/we are committed to reducing expenses by $_________ and using the
money to reduce debt.
5. Identify assets that could be sold to reduce debt.
I/We have identified $_________ worth of assets that can be sold to reduce
debt.
6. Increase income and apply to debt repayment.
I/we will increase income by $__________ and use the money to reduce our
debt.
7. Snowball debt repayment. (Apply all extra money to your smallest debt. As
soon as that debt is paid off apply that debt’s payment and all extra money to
your next smallest debt. Keep doing this until all or your debt is paid off.)
I/we are committed to using the snowball method to getting out of debt.
8. Don’t give up.
I/we are committed to seeing this process through until we have
accomplished our debt reduction goal.
www.ThreeRules.org

Money Trivia
Credit Cards Facts:
• 1947 - First Credit Card
• 1950 - Dinners Card (27 restaurants in NYC)
• 1950 - American Express
• 1958 - Bank Americard (Later became VISA)
Have you ever really looked at a dollar bill?
Right Side
• eagle represents strength
• arrows and an olive branch (war and peace)
• “e pluibus unum” means in diversity there is unity
Left Side
• The pyramid represents strength and permanence of our country.
• The pyramid has been left unfinished to signify that our country is unfinished.
• The triangle above the pyramid represents the trinity.
• The eye surrounded by the sunburst represents God.
• “Novus ordo seclorum” means He has favored our undertakings.
• “Annuit Coeptis” means a new order for the ages.
Roman numerals = 1776
The statement “In God we Trust” has been on every bill and coin in the US since
1864 and became the official motto of the United States in 1956.
Ironic because it is in the area of money that we trust God the least.
Is it true that the Bible says that money is the root of all evil?
NO – “the love of money is a root of all kinds of evil. Some people, eager for
money, have wandered from the faith and pierced themselves with many griefs.”
1 Timothy 6:10
What is a FICO score?
• credit scoring system developed by Fair Isaac & Co. begun in the late 1950s.
• your credit record boiled down to one number.
• every one has a FICO score.
• a score of under 600 means you have poor credit.
• a score of 600 –650 means your credit is marginal.
• a score of 650 – 800 is good.
2nd Edition
Revised 8/04

• the lower you score the more you will pay to borrow money.
• insurance premiums can also be higher for people with a low FICO.
Ponzi Scheme
A Ponzi Scheme develops when someone offers a high rate of return on an
investment but uses the next investor’s money to pay prior investors. Ultimately a
Ponzi Scheme collapses because it runs out of money.
A Riddle:
Q: Ten years ago, Jim found a coin dated 425 BC. He took it to a coin collector
who took one look at it and told Jim it was a fake. How did the coin collector
know?
A: In 425 BC, no one knew that it was “BC” therefore, that would not have been
written on the coin.
Did you know?
• Paying off a 22% credit card is the same as earning 22% on your money!
• If you have a $2000 credit card balance that charges 21% and make the
minimum payment (2% or $20, whichever is more). It will take 32 years to pay it
off. You will have paid a total of $10,000.
• If you save $100 per month and invest at 10% = $325,000 after 35 years.
• Most mortgages are paid off after 7 – 8 years.
• Mortgage balance after 5 years of a 30 year mortgage @ 7% interest = 94% of
original.
• In 1950, average housing costs consumed 14% of income.
• In 2000, average housing costs consumed 35 – 40% of income.
• Great Depression - 5 bankruptcies per 1000 people
• 2000 - 52 bankruptcies per 1000 people
•In 1950, American Savings Rate was 10 – 12%
•In 1998, American Savings Rate was negative.
2nd Edition
Revised 8/04

Savings Calculator
This Savings Calculator will help you to determine how much you need
to save per month in order to accumulate a savings account of $10,000
based on a specified time period and expected rate of return.
For example, if you wanted to have a savings account of $10,000 in 10
years and you anticipated an average interest rate return of 5% you
would need to save 64.40 per month.
Once you know what you have to do to save $10,000 you can quickly
calculate how much you need to save monthly to accomplish any
savings goal.
For example, if it is your goal to save $20,000 all you have to do is
multiply the monthly savings amount for $10,000 by 2.

Savings Calculator Chart
Interest Rate 10 Years 20 Years 30 Years 40 Years
5% $64.40 $24.33 $12.02 $6.55
6% $61.02 $21.64 $9.96 $5.02
7% $57.78 $19.20 $8.20 $3.81
8% $54.66 $16.98 $6.71 $2.86
9% $51.68 $14.97 $5.46 $2.14
10% $48.82 $13.17 $4.42 $1.58
11% $46.08 $11.55 $3.57 $1.16
12% $43.47 $10.11 $2.86 $0.85
www.ThreeRules.org

Savings Comparison Chart
(Assumes 10% Return)
Ralph and Bill are the same age. They both believed in saving. However, Ralph decided
to start saving at an early age. Bill decided to wait until he could afford it. Ralph saved
$1200 per year for ten years. Bill waited for ten years and then started saving $1200 per
year and continued for 30 years. Even though Bill contributed $1200 per year to his
savings account for 30 years he never caught up to Ralph.
See the next page for the result of these two approaches.
That is why the time to start saving is now!

Savings Comparison Chart
(Assumes 10% Return)
Value of Value of
Year Ralph Savings Account Bill Savings Account
1 $1,200 $1,260
2 $1,200 $2,646
3 $1,200 $4,171
4 $1,200 $5,848
5 $1,200 $7,692
6 $1,200 $9,722
7 $1,200 $11,954
8 $1,200 $14,409
9 $1,200 $17,110
10 $1,200 $20,081
11 $22,089 $1,200 $1,260
12 $24,298 $1,200 $2,646
13 $26,728 $1,200 $4,171
14 $29,401 $1,200 $5,848
15 $32,341 $1,200 $7,692
16 $35,575 $1,200 $9,722
17 $39,132 $1,200 $11,954
18 $43,046 $1,200 $14,409
19 $47,350 $1,200 $17,110
20 $52,085 $1,200 $20,081
21 $57,294 $1,200 $23,349
22 $63,023 $1,200 $26,944
23 $69,326 $1,200 $30,899
24 $76,258 $1,200 $35,248
25 $83,884 $1,200 $40,033
26 $92,272 $1,200 $45,297
27 $101,500 $1,200 $51,086
28 $111,650 $1,200 $57,455
29 $122,815 $1,200 $64,460
30 $135,096 $1,200 $72,166
31 $148,606 $1,200 $80,643
32 $163,466 $1,200 $89,967
33 $179,813 $1,200 $100,224
34 $197,794 $1,200 $111,507
35 $217,573 $1,200 $123,917
36 $239,331 $1,200 $137,569
37 $263,264 $1,200 $152,586
38 $289,590 $1,200 $169,105
39 $318,549 $1,200 $187,275
40 $350,404 $1,200 $207,262
www.ThreeRules.org

Seven Simple Investment Rules
1. Don’t invest in stuff you don’t understand.
2. Don’t expect to get rich overnight.
3. If you are going to invest in individual stocks as opposed to mutual funds
make sure you know more about that company than the experts on Wall
Street.
4. Exercise discipline and patience vs. reaction and panic.
5. Invest regularly.
6. Never invest solely on a tip. Most inside information is either old or
wrong.
7. Diversify! DIVERSIFY!! DIVERSIFY!!!
www.ThreeRules.org

Steve and Jessica’s Credit Card Debt
Total Credit Card Debt $9,500
Monthly Payments $241/month
Interest 18% – 23.9%
Assuming Steve and Jessica stop creating any new debt and continue with their current
minimum payments ($241 per month), ask the class:
“How long do you think it will take them to pay off their debts?”
The answer is that it will take over 9 years to pay off their debts.
During that time they will pay:
$9,500 of credit card debt
$7,873 of interest
Grand total of $17,373.
This assumes that they continue with the current minimum payments.
However, as the debt balance drops, the bank will reduce the minimum payment. If they fall into
this trap it will take even longer to pay off this debt and will cost even more interest.
Total Credit Card Debt $9,500
Monthly Payments 2% of Debt
Interest 18% – 23.9%
Assuming Steve and Jessica stop creating any new debt and only make the decreasing
minimum payments, ask the class:
“How long do you think it will take them to pay off their debts?”
The answer is that it will take 94.5 years to pay off their debts.
During that time they will pay:
$9,500 of credit card debt
62,298 of interest
Grand total of $71,798.
2nd Edition
Revised 9/04

Steve and Jessica’s Financial Mistakes
1. Too much college debt.
2. Financing the honeymoon.
3. Leasing new cars.
4. Buying used cars that were too expensive & financing 100%.
5. Giving is not a priority.
6. Buying a home too early.
7. Looking at houses they couldn’t afford.
8. Buying a house that was 30% over their budget.
9. Thirty-year mortgage.
10. Borrowing from parents.
11. Buying furniture on credit.
12. Using a credit card to buy clothes.
www.ThreeRules.org

PERSONAL ASSET AND DEBT INVENTORY
STEVE AND JESSICA
ASSETS (What we own) DEBT (What we owe)
Description Value Description Payment Rate Balance Owed
Car # 1 Steve's $11,250 Car # 1 Loan $375.00 9.00% $8,170
Car # 2 Jessica's $9,000 Car # 2 Loan $304.00 10.00% $6,595
Real Estate $138,000 Mortgage Loan $795.00 8.50% $99,000
Boats Fishing Boat $2,500 Personal Loan Parents $75.00 8.00% $4,700
Motorcycles Personal Loan
RVs Personal Loan
Other Credit Card Visa $50.00 18.00% $2,500
Emergency Savings Credit Card Discover $50.00 18.00% $2,500
Short Term Savings $0 Credit Card Babies R Us $50.00 21.00% $2,000
CD's Credit Card Sears $31.00 21.00% $1,500
IRA, 401k etc. $6,400 Credit Card Van's $43.00 23.90% $800
Mutual Funds Credit Card Pier One $17.00 23.90% $200
Stocks, Bonds, etc. Student Loans $425.00 8.00% $20,942
Cash Value Life Ins Other
Other Other
Other Total Payments/Debts $2,215.00 $148,907
Total Assets $167,150 Net Worth -- Assets minus Debts $18,243

PERSONAL CASH FLOW PLAN
INCOME (PER MONTH)
STEVE $3,000
JESSICA $3,000
INCOME 3
TOTAL INCOME $6,000
CATEGORY 1 EXPENSES (PER MONTH) CATEGORY 2 EXPENSES (PER MONTH) CATEGORY 3 EXPENSES (PER MONTH)
GIVING HOUSING PROPERTY TAXES *
CHURCH $20 RENT (SEE CAT 1 FOR MORTGAGE) HOME INSURANCE *
OTHER PROPERTY TAXES $120 HOME MAINTENANCE $50
TAXES INSURANCE $45 CAR INSURANCE * $25
FEDERAL TAX $600 UTILITIES (GAS, ELEC, WATER) $126 CAR MAINTENANCE
SOCIAL SECURITY (US ONLY) $378 GARBAGE PICK-UP CLOTHING/HIM $50
MEDICARE $81 TELEPHONE/CELL PHONES $100 CLOTHING/HER $50
STATE/PROVINCIAL TAX $240 FOOD CLOTHING/KIDS $50
CITY TAX FOOD $350 DOCTOR $40
DEBT RETIREMENT CAR DENTIST $30
CAR LOANS $679 GAS $100 EYE CARE
MORTGAGE LOAN $795 INSURANCE (IF PAID MONTHLY) $75 PRESCRIPTIONS $10
PERSONAL LOANS $75 INSURANCE LIFE INSURANCE *
CREDIT CARDS $241 HEALTH (IF PAID MONTHLY) $40 HEALTH INSURANCE *
STUDENT LOANS $425 LIFE (IF PAID MONTHLY) $40 VACATION $200
OTHER LOANS ENTERTAINMENT GIFTS (BIRTHDAYS, ETC.) $50
SAVINGS ENTERTAINMENT $100 GIFTS (CHRISTMAS) $50
EMERGENCY ACCOUNT $0 EATING OUT $100 OTHER
SHORT TERM SAVINGS $0 BABYSITTERS $50 OTHER
LONG TERM SAVINGS $0 CABLE/INTERNET $50 OTHER
TUITION/CHILD CARE OTHER
TOTAL CATEGORY 1 EXPENSES $3,534 TUITION
DAY CARE/CHILD SUPPORT $700 TOTAL CATEGORY 3 EXPENSES $605
MISCELLANEOUS * Leave blank if included in prior column.
SUBSCRIPTIONS $40
LUNCHES $100
PET SUPPLIES
HAIRCUTS, ETC
CIGARETTES TOTAL EXPENSE $6,475
MISC (Category 1+2+3)
MISC
MISC
CASH (WALKING AROUND MONEY) $200 SURPLUS/DEFICIT ($475)
(Total Income - Total Expense)
TOTAL CATEGORY 2 EXPENSES $2,336
CATEGORY 1 % OF INCOME 59% CATEGORY 2 % OF INCOME 39% CATEGORY 3 % OF INCOME 10%

The Borrowing Test
If and when you do decide to borrow money there are a few questions that you should ask
yourself. Any question to which you answer “yes” is a warning light that should cause you to
reconsider your borrowing decision.
Am I seeking contentment with this purchase?
Am I borrowing money to pay for an impulsive purchase?
Am I borrowing money to pay for a purchase driven by pride/ego?
Am I justifying my buying decision on the basis that everyone is doing it?
Is the item I am about to buy likely to depreciate?
Is my loan for this item longer than absolutely necessary?
Is there a possibility that I may not be able to make the payments on this loan?
Will repayment of this loan threaten my ability to save?
Will repayment of this loan threaten my ability to give?
Will repayment of this loan threaten my ability to take care of my family?
Am I questioning whether taking out this loan is a good decision?
Does my spouse have any concern about borrowing money for this purchase?
2nd Edition
Revised 8/04

ple
Sim
Three Rules
Section Eight:
Appendix

Appendix
Starting a Financial Counseling Ministry at Your Church
Deacon Policy
Sample letter to deacons
Debt Counseling Agencies
Resources
Internet Sites
Books
Newsletters
Getting Started

Starting a Financial Counseling Ministry at Your Church
Obviously the first thing you will need to start a Financial Counseling Ministry at your
church are prospective counselors. The characteristics of individuals who typically make
good Christian counselors are:
• Comfortable with numbers
• A heart for people
• Have their own house in order
• Have a Christian Testimony
You may know some people with these characteristics who you can approach directly or
you may want to advertise in your bulletin.
Running the following ad in your bulletin will hopefully generate the response that you
need.
Financial problems are the number one cause of marriage failure and other
broken relationships. Most financial problems can be corrected. Help us
reach out to our members and to our community. We are looking for two
or three people who are willing to be trained as financial counselors.
Training starts ______________. Call _____________________ at
_______________ if you are interested in working with us in this ministry.
Once you have some prospective counselors you will need to do some training or ask
each counselor to go through this self study course.
When we do group training we generally spend about seven hours. My favorite format is
Friday from 6:00 – 9:00 PM and then Saturday from 8:00 AM to 12:00 noon. Group
training should be led by someone who has been counseling for some time.
Once you have trained counselors you can begin to advertise for clients. These are some
sample ads we typically run in our church bulletin.
Do you have a friend, co-worker or neighbor who could use some help
getting their financial house in order? Our Financial Counseling Ministry is
available to help. Call ______________ at _________________, for more
information. This service is free.
Are you running out of money before you run out of month? Our Financial
Counseling Ministry is available to help you. Call _______________ at
_________________ for more information or to set up an appointment.
If you would like to create a brochure about your financial counseling ministry, the
sample copy on the next page will be helpful.
www.ThreeRules.org

Why is the ministry called “Seven What types of financial problems does
Seven Steps to Financial
Steps”? “Seven Steps” deal with?
Freedom
We call it “Seven Steps” because we The most frequent type of problem we
What is the “Seven Steps Financial have identified seven Biblically based deal with our situations where expenses
Counseling Ministry”? steps, which, if followed, we believe regularly exceed income, either resulting
will lead to financial freedom. in debt, or caused by debt. However, a
The Seven Steps Financial Counseling counselor would be happy to meet with
Ministry is a ministry that provides one- What are the “Seven Steps”? you to discuss any type of financial
on-one Christian financial counseling to problem.
members and friends of the __________ 1 – Understand that God is the Owner of
Church. This counseling is provided by Everything. (II Chronicles29:11-12) What can I expect if I meet with a
a group of volunteers who have been “Seven Steps” counselor?
trained to help those who would like 2 – Understand Man’s Role as Manager
assistance in taking charge of managing of God’s Creation. (Psalm 8:6) Normally, you would meet with a
their finances in a biblical manner. “Seven Steps” counselor a minimum of
3 – Freely You Have Received, Freely three times over a period of three to four
What does “financial counseling” Give. (Matthew 10:8) weeks. Each meeting will last about one
from a “Christian Perspective” mean? hour.
4 – Set Some of Your Income Aside for
Providing financial counseling from a Future Predictable Needs. At the first meeting, our objective will
Christian perspective means that we (Proverbs 21:20) be to share our seven-step approach with
look at how to make our money you and get to know you. At the second
decisions based on the principles taught 5 – Be Content to Live on the Rest. meeting, the counselor will ask you to
in God’s Word – the Bible. Scripture (Hebrews 13:5) bring in specific numbers regarding your
has much to say about what we do with income, expenses, assets and debts. The
our money. There is a lot of practical 6 – Avoid Debt. (Proverbs 22:7) objective of this second meeting is to
advice in the Bible about money. make sure that the counselor
7 – Trust and Obey. (Proverbs 3:5-6) understands your financial situation.

Once the counselor has all the numbers Don’t let pride rob you of this help that
needed, he or she will put together a is available to you. The Bible says…
spending plan (also known as a Therefore, there is no condemnation for
‘budget’), designed to help you those who are in Christ Jesus. (Romans
accomplish your goals. This spending 8:1) You will be treated with love and
plan will be shared with you at the third respect.
meeting. The counselor will also offer
recommendations and suggestions. How much does it cost to meet with a
“Seven Steps” counselor?
Who are the Counselors in the “Seven
Steps to Financial Freedom” There is no charge for this service. The
ministry? “Seven Steps to Financial Freedom” is a
ministry of _________________ Church
They are men and women who were and the members who participate in the
gifted by God in the area of financial ministry as counselors.
administration. They have been trained
to help others get their ‘financial house’ What do I have to do to set up an
in order. appointment with a “Seven Steps”
counselor?
What about confidentiality?
All you have to do is call ___________
Be assured that your privacy and at the church at _____-_____-_______.
confidentiality are important to us. We We will take it from there.
take God’s admonition seriously when
His word says, … do not betray another
man’s confidence, or he who hears it If you or someone you know could
may shame you and you will never lose benefit from this ministry, we would
your bad reputation. (Proverbs 25:9b- like to hear from you.
10)

Deacon Policy
You should discuss with your deacons when they should refer clients to the Financial
Counseling Ministry and when the Financial Counseling Ministry should refer clients to
the deacons.
Due to the confidential nature of counseling, it is highly recommended that you get
permission from your clients before sharing any of their information with the deacons. A
Permission Agreement is available in the Blank Forms section for your use.
If the deacons refer a client to you and want feedback, provide information to the deacons
in a written form. A sample letter follows this page.
In our church, the deacons refer clients to the Financial Counseling Ministry before
giving them financial assistance for the second time.
The deacons may also be able to orchestrate support for your clients through other
members of your church. For example, there may be situations where the deacons can
recruit church members to help your counseling client with a used car, furniture, an
appliance, job or perhaps child care on a temporary basis.
www.ThreeRules.org

To: First Church Deacons
I had the opportunity to meet with Mickey and Minnie Mouse to review their financial
information. My conclusions are as follows:
1. Mickey and Minnie manage their money very well. They are aware of where their
money is going and they do not appear to be spending excessively in any category.
2. Given their current limited income, resulting from Mickey losing his job, they are
experiencing negative cash flow of approximately $1,200 per month.
3. Short term belt tightening could reduce their negative cash flow by $700 per month.
4. Belt tightening would leave them with negative cash flow of approximately $500 per
month.
5. Mickey and Minnie tell me they are contributing $500 per month to the church.
6. From an asset standpoint, Mickey and Minnie have approximately $43,000 equity in
their home, approximately $12,500 in a 401K and approximately $15,000 in cash value
life insurance.
7. Additional income opportunities are limited to additional part time employment for either
Mickey and Minnie.
Call me if you have any additional questions.
John Counselor
www.ThreeRules.org

Debt Counseling Agencies
There are many debt counseling agencies that advertise in newspapers, by direct mail, on
the radio and on television. Many of them are just fronts for people in the debt
consolidation business.
In researching a debt counseling agency it is important to confirm exactly what service
they are offering you. Some questions to consider are:
• Is this a non-profit organization?
• Are there fees for their services?
• Are they being paid by the creditors?
• How will any program I enroll in affect my credit rating?
Some terms:
Debt Counseling: Often free, many organizations will offer to help you understand what
your options are to get out of debt.
Debt Consolidation: This option typically results in a new loan that is used to pay off
exisitng debts. While lowering interest rates, the client is often required to put their home
down as collateral on the new loan. If client defaults on that loan, the client risks losing
their home. This is NOT a recommended means of lowering debt.
Debt Management: This option simplifies the clients’ finances by allowing them to pay
their debt management agency one payment each month. That agency then disburses the
funds to the various creditors. Working with the creditors, the agency is often able to
lower interest rates and reduce calls from the creditor.
Debt Settlement: This option involves the debtor and creditor to come to an agreement
to settle the debt for less than what was originally owed. Debt counseling agencies will
often negotiate this on behalf of their client.
Some examples of debt information sources are as follows:
GreenPath Debt Solutions is a non-profit organization that has been helping consumers
since 1961. Also known as Consumer Credit Counseling Service, this is an organization
that works with people that have excessive debt. In some cases, they can lower credit
card balances and/or interest rates. They will also manage your client’s checkbook for a
nominal fee. They can be located at http:// www.greenpath.com
Consumer Credit Counseling Service of Greater Atlanta also offers debt counseling. They
began in 1964 servicing the Atlanta community, but now offer nationwide phone and on-
line counseling while still offering face-to-face counseling in Georgia and Florida.
Recommended by Crown Financial Ministries, they offer free consultations for credit
counseling. Their web site is http://www.cccsatl.com.
Another organization is Myvesta, previously known as Debt Counselors of America.
They are a non-profit organization that offers Consumer Education. They can be located
at http://www.dca.org.
www.ThreeRules.org

Resources
Internet Sites
A few of my favorite web sites dealing with money management are:
• Crown - www.crown.org
• Christian Stewardship Association - www.stewardship.org
• Sound Mind Investing Newsletter - www.soundmindinvesting.com
Books
A few of my favorite books dealing with money management are:
• Your Money Counts - Howard Dayton
• Money, Possessions and Eternity - Randy Alcorn
• Financial Peace - Dave Ramsey
Newsletters
A couple of my favorite newsletters dealing with money management are:
Sound Mind Investing (SMI) Newsletter
Box 22128
Louisville, KY 40252-0128
(502) 426-7420
Money Matters
Crown
601 Broad Street SE
Gainesville, GA 30501
(770) 534-1000
www.ThreeRules.org

Getting Started
So, you have now made it to the back of the manual. We are going to assume that you’ve read
the financial counseling section and the case studies and have your first appointment set up with
your first client. But the question may still remain:
What EXACTLY am I supposed to do?
While each situation will be different, here are some Counseling Session Agendas to aid you in
keeping on track and focused throughout your meetings. Each agenda contains a brief outline of
the meeting with important tips and reminders for the meeting.
Also, don’t forget about our website at http://www.ThreeRules.org. There is a special
Counselors’ Corner just for you with access to fresh copies of any of the forms you might need.
You can also contact us from that link with any general or specific questions that may come up.
So, be encouraged, you are not alone!
2nd Edition
Revised 9/04
www.ThreeRules.org

Meeting Number One
Before the Meeting:
• Send your client a copy of Three Simple Rules and the Personal Financial Habit Assessment.
(Forms Section) Ask them to read the Introduction and Part One of Three Simple Rules and to
complete the Personal Financial Habit Assessment. Ask them to bring both to the first meeting.
Locate all the necessary forms for the meeting, make copies as needed:
• Steve and Jessica’s Mistakes (Financial Workshop Tools section.)
• Blank Client Profile (Forms section)
• Blank Personal Asset and Debt Inventory (Forms section)
• Blank Personal Cash Flow Plan (Forms section)
Agenda:
1. Spend some time getting to know each other.
2. Open with prayer.
3. Give them an overview of the counseling process:
• 3 – 4 meetings
• homework
4. Homework Check:
• What did you think of Steve and Jessica’s story?
• What were some of the mistakes they made?
• Have you made any of the mistakes Steve and Jessica made?
• What did you learn from reading Part One of Three Simple Rules?
Collect the Personal Financial Habit Assessment. Briefly review, but no major comments
need to be made at this time.
5. Complete the Client Profile. Start with name, address etc. and then follow through with
the entire 3 page profile. Take notes.
6. Explain the Personal Asset and Debt Inventory and the Personal Cash Flow Plan and then
complete parts of both to familiarize the client with the forms.
7. Assign Homework:
• Read Part Two and The Addendum of Three Simple Rules.
• Complete both forms as much as possible. (Give client the forms started in Step 6.)
• Bring a recent pay stub and the completed forms next time.
8. Schedule next meeting and close with prayer.
2nd Edition
Revised 9/04
www.ThreeRules.org

Meeting Number Two
Before the Meeting:
• Review notes from previous meeting.
Locate all the necessary forms for the meeting, make copies as needed:
• Diagnosis and Prescription Form (Forms Section)
Agenda:
1. Small talk and opening prayer.
2. Homework Check:
• What did you learn from reading Part Two and the Addendum of Three Simple Rules?
• Any questions about Part Two or the Addendum?
• How do you plan to apply what you learned?
• What did you learn in the process of completing the forms?
3. Review forms and try to fill in missing data. Begin with Personal Asset and Debt
Inventory and move on to Personal Cash Flow Plan.
Ask the clients if they have any questions about the forms. Make sure they understand all
the expense categories. Make sure you understand all their numbers.
The objective of this session is to get all the numbers for both forms so that both you and
the client can move on to the Diagnosis and Prescription phase. If any numbers are
missing you may have to have your client call you.
4. Review goals from the Client Profile with your client. Make sure you understand them
so you can take them into consideration in the Prescription phase.
5. Assign Homework:
• Read Part Three of Three Simple Rules.
• Write your own Diagnosis of your situation and some Prescription options.
(Provide a blank Diagnosis and Prescription Form from the Forms section.)
6. Counselor Homework: Write your Diagnosis and Prescription for the client.
7. Schedule next meeting.
8. Close with prayer.
2nd Edition
Revised 9/04
www.ThreeRules.org

Meeting Number Three
Before the Meeting:
• Review notes from previous meetings.
• Review the client’s Personal Financial Habit Assessment so you can offer constructive advice
about habits that need to be changed.
• Complete your own Diagnosis and Prescription of the client’s situation. Be sure to put this in
writing. Diagnosis and Prescription Forms available in the Forms section. (See the Notes on
Meeting Number Three in the Financial Counseling section of this manual for tips on writing this
Diagnosis and Prescription.)
Agenda:
1. Small talk and opening prayer.
2. Homework Check:
• What is your Diagnosis of your financial situation?
• What Prescription options have you thought about?
3. Share your Counselor Diagnosis. Use the Personal Financial Habit Assessment to point
out the habits that have caused their existing situation.
4. Review client’s goals (from Client Profile)
• ID what needs to occur for your client to achieve their goals.
• contrast where they are and where they want to be.
5. Share Counselor Prescription Options
• Cut expenses.
• Sell assets.
• Increase income.
• Consider debt restructuring. (Remember, this is an absolute last resort!)
6. Explain to them what will happen if they don’t do something different. Be specific!
7. Assign Homework:
• Decide which prescription options will be implemented. Bring to the next meeting.
• Read Part Four and Five of Three Simple Rules.
8. Schedule next meeting.
9. Close with prayer.
2nd Edition
Revised 9/04
www.ThreeRules.org

Meeting Number Four
Before the Meeting:
• Review all notes from previous meetings.
Locate all the necessary forms for the meeting, make copies as needed:
• The Borrowing Test (Financial Workshop Tools)
• How to get out of Debt (Financial Workshop Tools)
Agenda:
1. Small talk and opening prayer.
2. Homework Check:
• Which of the Three Rules will be the hardest for you to follow? Why?
• What did you think about Part Five – Living by God’s Rules?
• Which prescription options did you decide to implement?
3. Redo the Personal Cash Flow Plan based on the new decisions.
• Does it balance?
• Does it accomplish the client’s goals?
4. How to Follow the Rules:
Rule One: Spend Less than You Earn.
Explain Paycheck Management System as necessary.
Explain Spending Management System as necessary.
Rule Two: Save Now! Buy Later.
Review your client’s DECISION regarding how much they plan to save per month.
Talk about the importance of having the DISCIPLINE to stick with the plan.
Rule Three: Know Debt
• Know how much debt you have – review how much debt your client has.
• Know the consequences of debt – review what debt could do to your client.
• Know the types of debt – review the types of debt from bad to worst.
• Know the Borrowing Test – review the Borrowing Test with your client.
• Know how to get out of debt – review the How to get out of Debt Plan with you client.
5. Schedule future meetings as needed.
6. Close with prayer.
2nd Edition
Revised 9/04
www.ThreeRules.org