A look at realities about money; the only five ways that a person can handle money; and some action steps toward becoming a faithful steward of finances. Presented to participants in the Support Raising Workshop, Calvary Church, State College, Pennsylvania, on 7-25-2013.
2. In a Nutshell…husband, father, freelancer
• Attend Calvary Midtown
• Trailing partner of PhD student at Penn State
My Background…fellow struggler with money
• Former Bank Examiner. Financial Literacy Campaign
• Mobilizer for evangelical mission agency
My Passion…connecting people with resources
• Financial Education - Natural Talent Careers
Tim Mooney
4. Realities about Money
Money is a big part of life.
workhousingcollege educationhealthcareinsuranceclothesgroceriesutility billscarshobbiesvacationchildrenmarriageinvestingdivorce
5. Realities about Money
Materialism is a competing theology.
Things bring happiness
Just a little more money will solve all my
problems
6. Realities about Money
Money is the chief rival god of our day!
Jesus said, “No one can serve two masters.
For you will hate one and love the other, or be
devoted to one and despise the other. You
cannot serve both God and money.”
Matt. 6:24 NLT
7. Realities about Money
Our relationship with God is closely tied
to the way we handle money
Jesus talked more about money &
possessions than anything else
2,350 verses on the topic!
8. Realities about Money
Handling money is a struggle…
With cultural messages:
Debt is normal, expected and unavoidable.
Buy now, worry about paying for it later.
9. Realities about Money
Handling money is a struggle…
With my own expectations:
How well am I handling money?
What indicators would tell me?
10. Realities about Money
Handling money is a struggle…
With the expectations of others!
How well are they handling my donation?
What outcomes are produced?
14. Develop the mindset of a steward
A steward knows . . . we actually own nothing
A steward is. . . one who manages the
resources owned by another
A steward’s job. . . use God-given resources
in His best interest
21. Five Ways: Earning
“It is good for people to eat well . . . and
enjoy their work – whatever they do
under the sun – for however long God
lets them live.
And it is a good thing to receive wealth
from God and the good health to enjoy it.
To enjoy your work and accept your lot in
life – that is indeed a gift from God”
Ecclesiastes 5:18-19 NLT
22. Five Ways: Earning
Goal: Bring in more than you send out
Issues:
• Need more income?
• Mix of income streams
• How much is enough?
• How much for a realistic lifestyle?
23. Five Ways: Earning
Practical Tip:
Dealing with Variable Income
• Estimate annual income after-tax
• Divide by 12 to get monthly amount
Straight-Line Method
24. Five Ways: Earning
Practical Tip:
Avoid the trap of Take-Home Pay
• Income Tax withholding defaults
• Adjust taxes withheld to match
estimated taxes owed.
• Track paycheck deductions just like
your spending items.
25. Five Ways: Earning
Resources:
• People Raising.com
Also book of same title by Bill Dillon
• CareerMatch Assessment & Reports
idakgroup.com
Natural Talent Careers
26. Five Ways to Handle Money
Earning
Spending
Saving
Giving
Debt
27. Five Ways: Spending
Principle: Spend to meet needs and
approach contentment
“Beware! Don’t be greedy for what you don’t
have. Real life is not measured by how
much we own.”
Luke 12:15
30. Five Ways: Spending
Variable Expenses:
• Gasoline, Maintenance & Repair
• Professional Services, Childcare
• Household or Personal Items
• Medical, Dental, Prescriptions
• Internet, Phone & Data Plans?
31. Five Ways: Spending
Discretionary Expenses:
• Entertainment, Books, Subscriptions
• Clothing
• Cable TV
• Education
Q: What about ministry projects?
32. Five Ways: Spending
Goal: Send out less than you bring in!
Fixed: Lock in the lowest realistic costs.
Variable: Push toward the predictable…
estimate, track, adjust.
Discretionary: Spend when you have it.
Watch out for impulses.
33. Five Ways: Spending
Practical Tips:
• Track your spending
• Set a Spending Plan
• See how you did at end of month
• Repeat…every month!
34. Five Ways: Spending
Resources:
• Online Tools
Online Banking, Mint, Manilla
• Financial Software
Quicken, TurboTax
• Internet Search…
Simplicity Movement
Couponing
35. Five Ways to Handle Money
Earning
Spending
Saving
Giving
Debt
36. Five Ways: Saving
Principle: Save wealth wisely to…
• Build
• Preserve
• Invest
“Go to the ant, you sluggard; consider its ways
and be wise! It has no commander, no overseer
or ruler, yet it stores its provision in summer and
gathers its food at harvest.” Proverbs 6:8
37. Five Ways: Saving
Principle: Save wisely to build,
preserve and invest
Benefits:
• Take advantage of time and money
• Leverage power of compounding
• Reinvestment = earnings that earn too
38. Five Ways: Saving
Goal: Save with a purpose in mind
Define your purpose(s):
• For what?
• By when?
• How much needed?
• Once reached, then what?
39. Five Ways: Saving
Practical Tips:
Emergency: 3-6 months living exps.
Replacement: cars, appliances, clothes
Long-Term: home purchase, education,
and retirement
43. “I will make you into a great nation and I
will bless you; I will make your name
great, and you will be a blessing. And I will
bless you, and make your name great;
and so you shall be a blessing.”
Genesis 12:2-3
Five Ways: Giving
44. Five Ways: Giving
Principle: Give generously to help
others…and yourself!
Ways to Give:
Money Stuff
Assets
Time Expertise
45. Five Ways: Giving
Three Goals:
1. Give something…start with tithe
2. Give regularly…habit
3. Get started ASAP
46. Five Ways: Giving
Practical Tips:
• Giving breaks the hold of money.
• It’s not about how much you give.
• Increase giving according to your
passionate priorities.
• Watch for how your gift is stewarded.
47. Five Ways: Giving
Resources:
• Do your research!
Evangelical Council for Financial
Accountability (ECFA accredited)
charitynavigator.org
• When Helping Hurts, Steve Corbett
48. Five Ways to Handle Money
Earning
Spending
Saving
Giving
Debt
49. Five Ways: Debt
Principle: Pay back what you borrow
“The wicked borrow and do not repay, but the
righteous give generously”
Psalm 37:21
50. Five Ways: Debt
Principle: Pay back what you borrow
Kinds of Debt:
• Auto
• Home Mortgage
• Education
• Business
• Consumer (Credit Card)
51. Five Ways: Debt
Principle: Enter into debt cautiously
“The rich rule over the poor, and the borrower is
servant to the lender”
Proverbs 22:7
52. Five Ways: Debt
Principle: Enter into debt cautiously
Caveats:
• Not all debt is bad…sensible purposes
• Necessary purchases require more cash
than normally available.
• Business purposes
• Appreciating assets
53. Five Ways: Debt
Goal: Eliminate short-term,
high-interest, consumer debt
Tips & Rules:
• Limit usage to one credit card (if any)
• Use for items in Spending Plan
• Pay balance in full each month
• If you violate the rules, cut up the cards!
54. Five Ways: Debt
Resources:
• Effective Debt Elimination
Conquering Debt God's Way, Bruce Ammons
Financial Peace University, Dave Ramsey
I Will Teach You to Be Rich, Ramit Sethi
55. Five Ways to Handle Money
Earning
Spending
Saving
Giving
Debt
56. Check out handout…
BIBLICAL FINANCIAL PRINCIPLES
…available today!
Today’s slide deck is online…
Slideshare.net/timothylmooney
58. • Effective stewards are made - not born!
• Focus on the NEXT ACTION STEP
• Be honest with yourself about money
• Take setbacks as opportunities
Bringing it all together…
Money is a big part of lifeTouch on every area of my life…that makes money very important.
SPIRITUAL REALITYMaterialism is a competing theologyMessages that come from our culture
Jesus understood this conflict perfectly.
My spiritual condition is somehow dependent on how I handle money? The Bible is an authoritative way that God chose to reveal Himself, His nature, and His thoughts on life.A survey of the Bible shows that Jesus said more about money than any other subject – even including prayer, faith and marriage.Fact: there are over 2,350 verses of Scripture that deal with money or possessions. If God was willing to devote that much ink to the subject, it seems to me that He considers it very important.
Advertising sends us potent messages:They tell us what their sponsors want us to do with our moneyIf we handle money effectively, we are less susceptible
If it’s not all up to us, then what is God’s part?
But, what does all that mean?Take a look at this…
Develop the mindset of a steward Not a common term in our day – unless airline flight or cruise A steward knows . . . we actually own nothing God created everything….He is the rightful owner of everything in the world. He hasn’t given up title to any of it. We have no rights to the money, possessions, jobs or relationships that we call our “OWN” A steward is. . . one who manages the resources owned by another Modern legal concept…Trustee appointed by someone who has become incapacitated. Trustee conduct business affairs and handle money in that person’s place. The trustee has no rights to the assets. Only responsibilities to manage them in that person’s best interest. The difference? God isn’t incapacitated!! A steward’s job. . . to use God-given resources inHis best interest Amazing thing about God’s economy – His best interest is always in our best interest!
EARNING - Practical Tips on Earning:Avoid the trap of Take-Home PayYou can adjust taxes withheld to match estimated taxes owed.Track deductions like you would spending**You can’t adjust them if you don’t know about them!
SPENDING- Principle…Spend to meet needs and approach contentmentHousing, UtilitiesAuto, Transportation, ParkingInsurances: auto, life, health
Let’s think about the kinds of needs to spend on. Fixed…AMOUNTS DO NOT VARY PER MONTH…NOT MUCH CHOICEVariable…AMOUNTS CHANGE FROM MONTH TO MONTH…NOT MUCH CHOICEDiscretionary…YOU CAN CHOOSE WHEN AND HOW MUCH TO SPEND
SPENDING - Practical Tips on Spending:Track your spendingKeep records. Use what works for you…online tools or software, a manual system, cash envelopes.Check your bank records at least twice per month!!Set a Spending PlanBetter than “Monthly Budget” (diet?)Balance it each month…or shoot for that goalSee how you did at end of monthTally it up in a simple reportShare it with someone for accountability (spouse, roommmate)Repeat…every month!
Compound Interest Example:$100 @ 10% = $10 interest$110 @ 10% = $11 interest$100 per month accumulates $1,200 per year Over 20 years to $24,000 total Over 40 years = $48,000 total$100 invested each month @ 10% over 20 years = $76,500 Over 40 years = $637,000 Compound interest produces gain of $589,000** Still a good deal even if you don’t have 20 or 40 years until retirement!
CAVEAT….Not about how much you give. Give something…even if it’s a little…God’s honors the gift regardless of the amount.
CAVEAT…Not all debt is bad…some makes sense….To purchase something that increases in value.To invest in a business or investment that will pay you back.3. Student loans for higher education (in reasonable amounts) are “sensible”Earning power increase means the education pays you back.Necessary purchases require more cash than normally available. Home purchases Automobiles (but not necessarily pre-owned)