Financial Freedom for Families Session 2
-
Upload
marcus-valles -
Category
Spiritual
-
view
52 -
download
1
description
Transcript of Financial Freedom for Families Session 2
Financial Freedom for Families – Session 3Marcus G Valles
Financial Freedom, … the journey so far:
Session 1o Biblical Foundations
o Luke 14:28, can you finish your tower?o 1 Tim 6:9, … those who desire to be richo King Agur, … neither rich nor poor
Session 2o First 3 Steps to Financial Freedom
1. Financial Physical2. Set Goals3. Spend less than you earn (reflected in your
Income Statement)
Session 3 Session 3 … Final 3 Steps
4. Build Emergency Cash5. Eliminate and Avoid Debt6. Invest for the Long Term
4. Build Emergency Cash
Liquidity The ability to have an asset turned into cash
on hand when there is an emergency Liquid Assets?
Risk management Kinds of emergencies
Companies downsize Cars break down Medical emergencies occur Cash flow reduces the cost of things
How much Emergency Cash to have? Depends on your income stability, job
security, debt situation, plans for major purchases, comfort levels
If good job security: 3 months living expenses (see income
statement) If 100% commission job:
6 + months living expenses
5 Places to Find the Extra Money for your Emergency Cash1. Use Ebay / Garage sale etc to sell items
you no longer use or need2. Reduce Income tax withholding if you
regularly receive a large tax refund3. Save unexpected income such as work
bonuses and monetary gifts4. Combine or close small savings accounts5. Consider your Savings Account a priority
every pay period6. … be creative … there are more ideas!
Where to put your Emergency Cash Account1. Savings Account2. Cheque Account3. Credit Unions4. Term Deposits
How to Use your Emergency Cash NOT FOR:
Gifts Impulse
purchases Vacations! … you need to
save and plan for these
Saving Cash versus Hording
Saving Emergency Cash (Proverbs 6:6-8) 6 Go to the ant, O sluggard;
consider her ways, and be wise.7 Without having any chief, officer, or ruler,8 she prepares her bread in summer (stores) and gathers her food in harvest (gathers)
Is different to …. Hording Be wary of your feelings
Num 26:2 … Counting for Preparation (based on trust & obedience)
2 Sam 24 … Counting for Confidence (based on Good feeling, sense of security, faith boost)
Steps to Saving and Investing
5. Eliminate and Avoid Debt
When we use credit to borrow Debt is pre-committing your future income Consequences of Debt:
Reduced financial freedom in the future Reduced mental, emotional and financial comfort
levels Unable to take better opportunities in the future The “monkey on your back” will dictate your future
decisions Benefits of Debt Free Living
Lifestyle of freedom and opportunity Less anxiety and pre-occupation with lenders
Dangers of Debt Financial
Compounding works against you … the spiral speeds up Getting in is easier than getting out Debt limits the future Debt presumes the future, presuming a certain economic
future may take you into financial bondage
Spiritual It may deny God an opportunity to provide … a quick purchase
on borrowed money does not require faith It may limit our opportunities to serve God, giving, serving,
educating A family’s stress levels will increase Your reputation and testimony will suffer if you are unable to
pay or forced into bankruptcy
Family Uniting Against Debt
It is pleasant to dwell in unity … Ps 133:1
Husbands are far more likely to risk losing capital on “investment deals”
6 Steps to Tackle DEBT – TOGETHER1. Admit changes need to be made2. Determine the real reason for the debt3. Determine current Income Statement4. Consider steps to get out of debt5. Develop a repayment plan6. Reduce your living expenses to halt
the accumulation of debt and free up money for repayments
6. Think Long Term with Investing There are no silver bullets in investing
Biblical vs Worldly Views
10 Most Common Investment Mistakes
10 Biblical Principles of Successful Investing
… Finally …Focus