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Budgeting and Debt Reduction <ul><li>Responsible Stewardship of  </li></ul><ul><li>God’s Great Gifts </li></ul>
Personal Finance Workshops <ul><li>Budgeting and Debt Reduction </li></ul><ul><li>Saving and Investing </li></ul><ul><li>P...
Our time today… <ul><li>Consumer Trends  </li></ul><ul><ul><li>The debt crisis </li></ul></ul><ul><ul><li>Causes of debt <...
Consumer   Trends   Today  <ul><li>10 years general prosperity up to Sept. 2008 </li></ul><ul><li>70,000 full time jobs di...
How has Debt gotten so out of control?   <ul><li>Confusion between our needs and wants </li></ul><ul><li>Driven by fear </...
Reversing the trend   <ul><li>Recognize it is not how much you make </li></ul><ul><li>Philosophy of “all is a gift from Go...
Reversing the trend <ul><li>Live within our means – use debt wisely </li></ul><ul><li>Prioritize our life decisions </li><...
What is a “Budget”? <ul><li>Budget = Spending plan  </li></ul><ul><li>It helps you: </li></ul><ul><ul><li>see where money ...
Budgeting Myths <ul><li>Budgeting is painful </li></ul><ul><li>You only need to budget if you are in financial crisis </li...
The Three Steps of Budgeting  <ul><li>List available monthly income  </li></ul><ul><li>List monthly expenses  </li></ul><u...
Tracking is key
Budget Example
Some budgeting tips <ul><li>Jar principle </li></ul><ul><li>Use credit cards with caution - freezer </li></ul><ul><li>Pay ...
Efficient steps for  Debt Reduction
Debt Elimination Worksheet  Conventional 22 9.2% $6,000 Car Loan 95 8.9% $9,550 Line of Credit 27 0.0% $  900 Family 27 18...
Debt Elimination Worksheet  Snowball Effect 33           8.9% $9,550  Line of Credit   20         9.2% $6,000  Car Loan   ...
Make the Commitment <ul><li>To yourself, in God’s presence </li></ul><ul><li>As a family – state your goals </li></ul><ul>...
What the Bible says about debt <ul><li>“ The rich rule over the poor, the borrower is servant to the lender” </li></ul><ul...
Want to go deeper?  <ul><li>To review or start your plan  </li></ul><ul><li>–  consider FaithLife Financial </li></ul><ul>...
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Budgeting and Debt Reduction seminar

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Budgeting and Debt Reduction seminar

  1. 1. Budgeting and Debt Reduction <ul><li>Responsible Stewardship of </li></ul><ul><li>God’s Great Gifts </li></ul>
  2. 2. Personal Finance Workshops <ul><li>Budgeting and Debt Reduction </li></ul><ul><li>Saving and Investing </li></ul><ul><li>Personal Financial Management </li></ul><ul><li>Stewardship </li></ul><ul><li>Charitable Giving </li></ul>
  3. 3. Our time today… <ul><li>Consumer Trends </li></ul><ul><ul><li>The debt crisis </li></ul></ul><ul><ul><li>Causes of debt </li></ul></ul><ul><li>Budgeting </li></ul><ul><li>Budgeting and debt reduction tips </li></ul>
  4. 4. Consumer Trends Today <ul><li>10 years general prosperity up to Sept. 2008 </li></ul><ul><li>70,000 full time jobs disappeared in Dec. alone </li></ul><ul><li>Canadians are awash in debt: </li></ul><ul><ul><li>Canadian household debt at all-time high at $1 trillion in 2006 </li></ul></ul><ul><ul><li>Interest on debt: 1984 = $6 billion </li></ul></ul><ul><ul><li> 2003 = $22 billion </li></ul></ul><ul><ul><li>Average total household debt = 127% of household income </li></ul></ul><ul><li>Savings: 1980’s =20.2% at highest point; 2005 = 1.2% </li></ul>
  5. 5. How has Debt gotten so out of control? <ul><li>Confusion between our needs and wants </li></ul><ul><li>Driven by fear </li></ul><ul><li>Generosity </li></ul><ul><li>Circumstances beyond our control </li></ul>Toronto Star: “Canadians starting to save cash, shun debt” Jan. 9/09
  6. 6. Reversing the trend <ul><li>Recognize it is not how much you make </li></ul><ul><li>Philosophy of “all is a gift from God” </li></ul><ul><li>Trust in God that HE provides </li></ul><ul><li>We can’t take it with us </li></ul><ul><li>Good stewardship </li></ul>
  7. 7. Reversing the trend <ul><li>Live within our means – use debt wisely </li></ul><ul><li>Prioritize our life decisions </li></ul><ul><li>Limit borrowing to appreciating assets </li></ul><ul><li>Understand risks </li></ul><ul><li>Develop a financial plan and use a budget </li></ul>
  8. 8. What is a “Budget”? <ul><li>Budget = Spending plan </li></ul><ul><li>It helps you: </li></ul><ul><ul><li>see where money comes from and where it goes </li></ul></ul><ul><ul><li>communicate with loved ones </li></ul></ul><ul><ul><li>set and achieve your goals </li></ul></ul><ul><ul><li>take advantage of opportunities </li></ul></ul><ul><ul><li>be a good steward of God’s great gifts </li></ul></ul>
  9. 9. Budgeting Myths <ul><li>Budgeting is painful </li></ul><ul><li>You only need to budget if you are in financial crisis </li></ul><ul><li>Budgeting requires long hours and lots of paperwork </li></ul><ul><li>Source: http://www.tuliptreepress.com/myths.htm </li></ul>
  10. 10. The Three Steps of Budgeting <ul><li>List available monthly income </li></ul><ul><li>List monthly expenses </li></ul><ul><li>Compare income vs expenses </li></ul>
  11. 11. Tracking is key
  12. 12. Budget Example
  13. 13. Some budgeting tips <ul><li>Jar principle </li></ul><ul><li>Use credit cards with caution - freezer </li></ul><ul><li>Pay mortgage bi-weekly and pay more towards the principal </li></ul><ul><li>Car pool/eliminate 1 car </li></ul><ul><li>Pack a lunch </li></ul><ul><li>Start cooking/plan meals </li></ul><ul><li>Buy bulk </li></ul>
  14. 14. Efficient steps for Debt Reduction
  15. 15. Debt Elimination Worksheet Conventional 22 9.2% $6,000 Car Loan 95 8.9% $9,550 Line of Credit 27 0.0% $ 900 Family 27 18.5% $1,600 Credit Card 2 26 11.5% $2,000 Credit Card 1 25 28.8% $1,000 Credit Card 3 Months to Pay Off Interest Rate Amount Owed Item
  16. 16. Debt Elimination Worksheet Snowball Effect 33           8.9% $9,550 Line of Credit   20         9.2% $6,000 Car Loan     17       11.5% $2,000 Credit Card 1       13     18.5% $1,600 Credit Card 2         9   28.8% $1,000 Credit Card 3           5 0.0% $900 Family Months to Pay Off Interest Rate Amount Owed Item
  17. 17. Make the Commitment <ul><li>To yourself, in God’s presence </li></ul><ul><li>As a family – state your goals </li></ul><ul><li>Consult a trusted advisor </li></ul><ul><li>Create a plan – a commitment to action </li></ul>
  18. 18. What the Bible says about debt <ul><li>“ The rich rule over the poor, the borrower is servant to the lender” </li></ul><ul><li>Proverbs 22:7 </li></ul>“ You are bought at a price, do not become slaves of men” 1 Corinthians 7:23
  19. 19. Want to go deeper? <ul><li>To review or start your plan </li></ul><ul><li>– consider FaithLife Financial </li></ul><ul><li>Go Green - www.faithlifefinancial.ca </li></ul><ul><ul><ul><ul><li>download financial tools </li></ul></ul></ul></ul><ul><ul><ul><ul><li>view seminars </li></ul></ul></ul></ul><ul><ul><ul><ul><li>calculators </li></ul></ul></ul></ul><ul><ul><ul><ul><li>great financial articles </li></ul></ul></ul></ul>

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