Stewardship Lifestyle Seminar Workbook

The
Stewardship
Lifestyle
Seminar
Applying God’s Word to Everyday Life

What’s a Christian Worldview?
As Christian Financial Advisors we strive to use the Scriptures to help our families make smart and
godly choices. This relates to their marriage, children, tax and estate planning and all areas of their
financial lives.
What do we base our choices and decisions on? Many of us follow the examples or leadership of others.
We are influenced by music, television, movies and friends. A recent nationwide survey completed by
the Barna Research Group determined that only 9 percent of “born- again” believers in Americans had a
“biblical” worldview.
Barna’s survey also connected an individual’s worldview with his or her moral beliefs and actions. Barna
says, “Although most people own a Bible and know some of its content, our research found that most
Americans have little idea how to integrate core biblical principles to form a unified and meaningful
response to the challenges and opportunities of life.”

1. WHAT’S A WORLDVIEW?
Whether conscious or subconscious, every person has some type of worldview. A personal worldview is a
combination of all you believe to be true, and what you believe becomes the driving force behind every
emotion, decision and action. Therefore, it affects your response to every area of life: from philosophy to
science, theology and anthropology to economics, law, politics, art and social order — everything.
Someone with a biblical worldview believes his primary reason for existence is to love and serve God.
For example, let’s suppose you have bought the idea that beauty is in the eye of the beholder (secular
relative truth) as opposed to beauty as defined by God’s purity and creativity (absolute truth). Then any
art piece, no matter how vulgar or abstract, would be considered “art,” a creation of beauty.

2. WHAT’S A BIBLICAL WORLDVIEW?
A biblical worldview is based on the infallible Word of God. When you believe the Bible is entirely true,
then you allow it to be the foundation of everything you say and do.
Do you have a biblical worldview? Answer the following questions, based on claims found in the Bible
and which George Barna used in his survey:
• Do absolute moral truths exist?
• Is absolute truth defined by the Bible?
• Did Jesus Christ live a sinless life?
• Is God the all-powerful and all-knowing Creator of the universe, and does He still rule it today?
• Is salvation a gift from God that cannot be earned?
• Is Satan real?
• Does a Christian have a responsibility to share his or her faith in Christ with other people?
• Is the Bible accurate in all of its teachings?
Did you answer yes to these? Only 9 percent of “born- again” believers did. But what’s more important
than your yes to these questions is whether your life shows it. Granted, we are all sinners and fall short,
but most of our gut reactions will reflect what we deep-down, honest-to-goodness believe to be real
and true.

(continued on inside back cover)

1http://www.barna.org/barna-update/article/5-barna-update/131-a-biblical-worldview-has-a-radical-effect-on-a-persons-life

The Truth About Wealth

The Apostle Paul told Pastor Timothy to “Command those who
are rich in this present age not to be haughty, nor to trust in
uncertain riches but in the living God, who gives us richly all
things to enjoy”
1 Timothy 6:17

When Jesus said, “Do not lay up for yourselves treasures on earth: (Matthew 6:19), the term
“lay up” did not simply speak of having possessions, but of your possessions having you.
“Lay up” could be better translated “hoard or stockpile.”

Jesus was not saying it was wrong to have things. He was warning against becoming
materialistic – letting things become more important than God.

God created us to love people and use things, but a materialist loves things and uses people.
There is nothing wrong with having possessions and a successful career. The apostle Paul wrote,
“Command those who are rich in this present age not to be haughty, nor to trust in uncertain
riches but in the living God, who gives us richly all things to enjoy” (1 Timothy 6:17). God can
bless a person. In fact, we read in the Bible of those who had wealth, such as Abraham, Job,
David, Joseph of Arimathea, Mary, and Barnabas.

Jesus did not extol poverty as some great virtue. In fact, only one time did He tell someone –
the rich young ruler – to sell his possessions and give to the poor. I think it was because that man
was possessed by his possessions. Because when Jesus said, “If you want to be perfect, go, sell
what you have and give to the poor, and you will have treasure in heaven; and come, follow me”
(Matthew 19:21), the Bible says that he went away sorrowful. It was a test to see weather God was
more important to him than his things.

Money is not the root of all evil; the love of it is. The problem with wealth is not in having it. It is
how we get it. It is how we guard it. And it is how we give it.

What will be your legacy? Will you be known as a wise and generous person or a worrier, a
hoarder afraid of not having enough – thus trusting in your wealth? It’s so easy and natural to
begin trusting in the resources you have accumulated over the years.

We need to be reminded to focus our love, time and attention on our God and Savior rather than
our gold, silver, house, toys and trinkets. While we protect and value “our stuff” we understand it
is God who is in control, not the political leaders, terrorists, governments, etc.

Life is choices; choices have consequences, make the right choice! Choose to make
a difference.

The LIFE Financial Group, Inc. www.TheLifeGroup.org Serving the Christian Community Since 1978 1

Table of Contents
What is a Christian or Biblical World View?............................................... Inside Cover (front & back)

Sunday School
“A Biblical Call to Proactive Parenting”.......................................................................................................5
Four Quarter Method of Stewardship.............................................................................................................8
The Surprise Package Company..................................................................................................................... 10

Sunday Morning Worship: Haggai 1...................................................................................................13
Priorities from a Biblical World View

Sunday Afternoon Workshop
Cash-Flow, Budgeting and Debt Elimination
Creating a Spending Plan that Works.......................................................................................................... 16
Debt Elimination...................................................................................................................................................19

Sunday Evening Worship: 1 Timothy 6............................................................................................... 21
A Biblical Call to Wise Stewardship

Monday Evening Workshop
Financial, Tax and Retirement Planning................................................................................................... 24
Benefits of Starting Early (Help Your Grandchildren?)............................................................................... 29
Key Strategies of Investing............................................................................................................................... 33
Rationale for Owning Gold.............................................................................................................................. 35
Planning for that BIG Expense........................................................................................................................ 37
Affording Retirement......................................................................................................................................... 40
Sample Cash Flow Worksheet........................................................................................................................ 43

Avoiding Costly and Dangerous Mistakes in Retirement
(Optional Sr. Luncheon).......................................................................................................................................... 44

Tuesday Evening Workshop
Legacy & Estate Planning
What Makes an Estate Plan “Christian?”...................................................................................................... 46
Estate Planning with a Biblical World View................................................................................................ 47

Personal Review Meetings (Monday and Tuesday).................................................................................. 56
Links to Download Various Forms
Speaker Bio............................................................................................................................................................. 57

Copyright 2012 by The Life Financial Group, Inc. All rights reserved.

2 The LIFE Financial Group, Inc. www.TheLifeGroup.org Serving the Christian Community Since 1978

The Stewardship Lifestyle Seminar
“To Worship and Glorify God through the Wise use of our Wealth”

Dear Friends,

Did you know that there are over 2000 verses in scripture dealing specifically with finances and planning?

For over thirty years, Roy Russell and his team of dedicated, Christian financial professionals have been
putting to use their training and experience in the financial field to assist fellow believers all over the world
in addressing the need for faithful Biblical stewardship in their lives. As part of a holistic Biblical worldview,
family and finances come together as instruments for great good in the hands of believers as they seek to
honor God in all things. A more thorough understanding of our personal and family finances, including
investments, insurance, income taxes, debt and estate planning will allow us as believers to be more faithful
stewards of all that God has entrusted to us.

But it cannot stop with an understanding of our finances alone. We must study, understand, and apply
God’s word to our whole lives, including our finances, each and every day. The Stewardship Lifestyle
Seminar is an information- and application-rich program that will provide individuals and families with
the knowledge and understanding of God’s word and their personal finances that will make it possible for
them to be the good and faithful servants Jesus calls us to be (Matt 25:23).

As Roy has often said, “instruction without application often leads to frustration.” It is for this reason
that the Stewardship Lifestyle Seminar provides not only a Biblical foundation but a wide variety of
practical information and application on all manners of financial topics, from basic budgeting to estate
planning. A local Christian attorney will be available as they discuss wills and trusts, and a CPA is also
available for any tax-related questions.

The Life Financial Group is a fee-based Financial Advisory firm, but they will waive the normal $350 fee for
personal reviews while at your church. I hope you will take advantage of this personal review session –
Roy and his team will provide a specific list of issues that need to be addressed to better plan for your
future. Come to the Stewardship Lifestyle Seminar with an open heart and open mind, and you’ll
be blessed!

Pastor Paul Caughill
High Point Baptist Chapel
Giegertown, PA

Key Elements
• aying a foundation of biblical principles that teach wise stewardship as a lifestyle
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• roviding qualified financial and legal professional to provide tax and financial counsel and
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prepare legal documents based on a Biblical World View

• ffering personal review sessions for believers who desire help with investing, estate planning,
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household budgeting and/or getting out of debt

Schedule
SUNDAY
• unday School: A Biblical Call to Proactive Parenting
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• Morning Worship: Priorities – A Biblical World View - Haggai 1
• Workshop - Budgeting and Debt
• Evening Worship: A Biblical Call to Wise Stewardship – 1 Timothy 6

MONDAY
• Personal Financial Checkups – from 9am to noon (60- to 90-minute sessions)
• Lunch Fellowship (optional) – Senior’s Group 12pm to 1:30pm
• Personal Financial Checkups – from 1:30pm to 4:30pm (60- to 90-minute sessions)
• Dinner at Church – 5:30pm to 6:30pm
• Workshop - Financial Planning, Tax and Retirement Planning – 6:30pm to 8:30pm
• Personal Financial Checkups – from 8:30pm to 9:30pm (60-minute sessions)

TUESDAY
• Personal Financial Checkups– from 9am to noon (60- to 90- minute sessions)
• Lunch Meeting (optional) – Local Pastors’ Fellowship – discuss Pastors’ Taxes
• Personal Financial Checkups – from 1:30pm to 4:30pm (60- to 90-minute sessions)
• Dinner with family from Church (optional) – 5:00pm to 6:30pm
• Workshop – Legacy Estate Planning (Wills, Trusts and Probate), Biblical World View
– 7:00pm to 8:30pm


A Biblical Call to Proactive Parenting
Tools to Train Your Children
“Principles without Application lead to frustration”

“Train up a child in the way he should go; even when he is old he will not depart from it.” – Prov. 22:6

1. Who learns more - the Student or the Teacher? Why?
A. arents who incorrectly react to a need or a problem often cause conflict.
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To be proactive you must plan
• Teach your children and grandchildren (Deuteronomy 4:1-9; Ephesians 6:4).
• Act differently than the world and the people around you (Romans 12:2; Ephesians 4:17).
• Look ahead and prepare for upcoming dangers (Proverbs 22:3).

B. Examples of proactively training children
• Balancing a checkbook – can they make deposits? Write checks? Balance the account?
• Securing their first job – what do they expect? What will they hear, see and do?
• Buying the first car – who buys it? Makes payments? Pays for insurance and upkeep?
• Planning for college – is it optional? What type? Who pays? How do they pay?
• Wedding expense – is there a limit?
• eceiving gifts or an inheritance – will it be misused or mismanaged? How much
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is enough?

2. Three Ways our Children Learn (Seeing, Hearing, and Doing)
• We remember:
– 10% of what we read
– 20% of what we hear
– 30% of what we see
– 50% of what we both see and hear
– 70% of what we say
– 90% of what we both say and do

Active learning requires that we are involved in the learning; we need to see it, hear it, and do
it to really get it!!

A. Your children learn by watching others – Seeing it (reading and watching others)
1. They are influenced by peer pressure (Luke 12:15).
a. The world’s philosophy from the god of this world?
b. Biblical Priorities from the God of the universe?
2. They often misunderstand the deceitfulness of wealth (Mark 4:19).
3. They must understand credit card dangers (Revelation 3:14-20).
a. Credit card use builds the “Me first” mentality-buy now, pay later...self sufficiency.
b. A typical family has 10 cards with an average debt balance of $8,000.
c. Credit card studies indicate that 34% more money is spent when “plastic” is used.

B. our children learn by the priorities you establish – Hearing it – Listening or Auditory
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(preaching training)
1. Are you keeping these lifestyle priorities in order?
a. Your faith – salvation, sanctification, preventing stagnation
b. Your family – spouse, children, parents, peers
c. Your finances – give, save, spend, offerings and luxuries
d. Your future – a Christian’s will


2. Are you keeping these financial priorities in order?
a. Giving – local church, 10% of gross income
b. Saving – minimum of 10% each month - More if single or an empty-nester
• Three biblical reasons to save (2 Sam 24:21-24; Prov. 6:6-8, 17:7, 22:9)
• Three steps required:
1. Treat it as an absolute necessity – a new mindset (develop a conviction)
2. Delegate responsibility – payroll deduction and automatic bank transfers (ACH)
3. Always use two accounts: short-term and long-term
c. Spending – paying bills, sticking to a budget
• The budget is the guideline never a strait jacket
• Budget busters include home, auto, groceries and personal allowances
• Avoid borrowing (Proverbs 22:6-7)
d. Offering – Remembering the poor (above church tithe).
• Be blessed and be a channel of blessing and (Proverbs 11:25)
• Doing good to others is pleasing to God (Hebrews 13:16
• Look for opportunities to put God’s wealth back into circulation
e. njoying luxuries – God’s bounty (1 Timothy 6:17)
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Eating out, travel, cable TV, cell phone, etc…

C. Your children learn through experience – Doing it – Kinesthetic (hands-on)
1. Four-Quarter Method - weekly, repetitive training reinforces priorities
a. Weekly amount starting at age six.
• Simply share the household income.
• Train them to manage money.
• Do not directly relate it to chores.
b. Four quarters every Sunday morning
• First quarter goes to Jesus.
• Second quarter goes into a short-term piggy bank for upcoming opportunities.
• Third quarter goes into a long-term piggy bank for college, marriage, etc.
• Fourth quarter is discretionary – they can give it, save it, or spend it.
• Amount increases with age of the child

The Four-Quarter Method is a great way to teach children to give, save and stay out of debt.

c. Some helpful hints:
• atch their long-term savings and invest it every Christmas into an investment
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for the child.
• Do not allow borrowing (no advances!)
• Never allow them to spend it all.
• o allowance is needed if their earnings are over $25 per week. It’s not
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an entitlement.

2. urprise Package Company: look for opportunities to give – in the church and in the
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community. (See page 9)
a. Thanksgiving opportunities. Go to www.TheSurprisePackageCompany.com
• elp your children look for individuals or families, saved or unsaved, who have a
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financial need. There are many!
• taple $100 to a paper entitled “Surprise Package Company.” (See page 10)
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• ave your child deliver the envelope to the house by knocking on the door and
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then hiding.


b. Benefits of practicing generosity
• od will not hear your prayers if you close your ears to the cry of the poor
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(Proverbs 21:13).
• hildren begin to give of their own money.
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• hildren begin to discern who should receive gifts, when they should be given,
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and how much should be given.
• hildren learn to be more thankful as they see the needs of others.
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D. In conclusion, we need to establish a belief or a conviction to live by a standard.
1. The shifting sands of the world’s philosophy or
2. The rock solid, consistent teachings from God’s Word.
a. We must adjust our view of life: Rom 12:1-2; Eph 4-5:12
b. Our old nature vs. the new nature once we have come to faith in Christ: 2 Cor 5:17

E. God’s judgment for doing nothing - Man’s natural tendency
1. Fig tree - Luke 13:6-9; Matt 21:18-19
2. Ten Virgins: Matt 25:1-13
3. Talents of silver - Matt 25:14-30
4. Helping the poor: Matt 25:34-36
5. Good Samaritan: Luke 10:30-34
6. Building on rock or sand: Matt 7:24-27
7. What direction are you headed?

How Are You Doing?
These twelve suggestions may help you teach your children money habits for life. The
developmental stage of each child will dictate how far you apply the topics presented.

1. Every week give each of your children some money to manage.
2. Help your children set up a giving, saving and spending plan. Teach them to invest.
3. Avoid paying children for regular household chores that are shared family responsibilities, such

as washing dishes, taking out the trash, cleaning floors, etc. Consider paying them for special
jobs (e.g., cleaning the garage).
4. Set a good example by being truthful about money matters. Acknowledge mistakes.
5. Be a good money manager, giving your children a good example to follow.
6. Give your children more financial responsibilities as they get older.
7. Help your children understand the difference between necessities and luxuries or needs

and wants.
8. Praise your children if they have made wise decisions with their money. Be an encourager!
9. elp your children find ways to earn extra money that are age appropriate and that suit their
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abilities and skills.
10. Allow your children to make mistakes and help them to understand the consequences. Do not

bail them out.
11. Never co-sign a loan. Become a pro-active parent not waiting for a problem to develop.
12. Help your children look for the needs of others. They should see you giving. Learn to

be generous.


Training Up Our Children
Practical Application
The Four-Quarter Method of Stewardship
Being a wise biblical steward is a mindset that will affect your whole life.
It needs to be demonstrated and modeled before our children copy the errors
of the world and suffer the consequences. A simple and proven method that has worked in many
homes is called “The Four Quarter Method of Stewardship.” It teaches the children:
• Biblical Priorities • Individual Responsibility
Starting at around age six, give a child 4 quarters every week as a teaching tool. This money is
NOT for work or chores performed around the house. It is a SHARING OF THE HOUSEHOLD
INCOME which provides the opportunity for you to teach your children about money manage-
ment. If you pay the children for chores, keep that separate from what we are advocating here.
The Four Quarter Method is a venue to teach, not pay for expected chores. Because they are part
of the family unit they should have responsibilities every week.
Go out and buy two piggy banks or small lock boxes for each child. Mark one as “short-term
savings” and the other as “long-term savings.” You need to keep your lessons simple to use and to
understand, so always use quarters until the child is age 13 and then add dollar bills. Explain how
the quarters are to be used.
Each Sunday morning when you give your children their weekly allotments, have them bring out
their banks and make sure they understand how the money is to be divided up. This constant
teaching tool will provide many opportunities to reinforce the underlying concepts of financial
priority and responsibility. It also provides a simple method of accountability.
Each year as the children get older; increase the number of quarters and write their name on a
3x5 card with the suggested breakdown and tape it to the refrigerator. Hold them accountable
because it takes time to develop a habit. It’s never too late to start. Remember, you never fail until
you quit trying.
• The first quarter goes to the Lord. We’re not teaching a percentage of giving here; you are

teaching the principle of priority!
• The second quarter goes into short-term savings. This is for gifts, youth activities or upcoming

events the child might participate in.
• e third quarter goes into long-term savings. This is for college, graduation and marriage
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expenses. At young ages the children don’t understand all these things, BUT WE ARE
TEACHING THE IDEA OF FINANCIAL PRIORITY! [Parents, learn an important point
here not only for your children, but also for yourselves; never co-mingle short and long term
savings.]
• e last quarter is for discretionary spending. Most young children cannot even say that
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word! It is this money that they can spend, save or give away. What we are trying to establish
is the concept of sequential priorities with money.
This will take time; discipline and work, especially for parents with younger children, but the
rewards can be great. Too many parents within the Christian community simply toss money
at their children when financial needs arise. For example; your child has a field trip, a youth
outing, and birthday party or even wants a specific item of clothing. The wallet or purse comes
out, the money is given, and the child spends it all. WHAT HAS THAT TAUGHT THEM?
Instead, look for ways to teach your children God’s wisdom in order to be an effective disciple
maker for Jesus Christ.


As the children get older, increase the amount they are responsible for, using the chart below.
Once they’re old enough to earn their own money, this system will have them well on their way to
financial wisdom.
Begin at ages 5-6 with four quarters;
Age 6.......... $1.00 Age 9.......... $4.00 Age 12.........$7.00 Age 15.......$15.00
Age 7..........$2.00 Age 10........ $5.00 Age 13.......$10.00 Age 16.......$18.00
Age 8.......... $3.00 Age 11........ $6.00 Age 14...... $12.00
Keep these SEVEN RULES
1) Always share the household income on Sunday morning. A portion goes to the Lord

each Sunday
2) Save a portion every week into both short term and long-term savings banks. Weekly

savings must become an absolute part of the training. We must teach our children to become
systematic savers.
3) Don’t allow the children to borrow from their siblings or parents. Also, there are no

advances. Older children have a tendency to spend all their discretionary money and then
go to their younger siblings for a loan. Anticipate that and stop it before it happens.
NO BORROWING!
4) ever allow the children to spend 100% of their short-term savings. Teach them to always
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keep some cash reserves.
5) fter Christmas help the child count up the quarters in their long-term piggy bank. If it’s
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more than the required minimum reward them and match what they saved. After all,
the scripture does teach reward for our faithfulness. Open up a mutual fund with that
money and teach them about investing. Every year the long-term savings is added to their
“college fund”.
6) When a child earns $25 in a week, they no longer need an allowance. It’s not an entitlement.
7) Lastly, teach your children there will never be co-signing for a bank or car loan of any kind.

Don’t wait till they turn 16 and want a car. Be proactive and train early.
Here’s what parents can learn from this!
• o learn to give generously; to the Lord, to others and to your children so they can learn when
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they are young
• o save for short term, for planned as well as unexpected expenses
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• o save for long term needs like a car, schooling, wedding, the house, a business
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and retirement
• To keep separate accounts for short and long term needs
• To do your best to avoid credit debt
• To be thankful for God’s blessing on wise and careful stewardship
• o use every opportunity to teach your children about wise
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money management

The Word or the World?
Are you building your life and your family on the
rock of the Word, or on the shifting sands of the
world’s philosophy?

Remember; if you don’t inspect it, don’t expect it!


Training Children, Part 2
The Surprise Package Company
www.TheSurprisePackageCompany.com

Our human nature always puts ourselves first. Some call it self-preservation; God calls it
selfishness, a part of our sin nature. We often think about my time, my car, my kids, my house,
my job – it’s all about me. Our children are no different. We hear them say, “…my teacher, my
bike, my room…” Life seems to revolve around me; at least many of us like to think that way.

What does the Bible say about this concept? Is there anything wrong with it? Flesh out...

Generosity is being unselfish, not always focusing on me but on others. Philippians 2:4 reminds
us that we should look not only to our own interests, but also to the interests of others. For many
it is not natural to think about the needs of others. This is a learned habit, trait, and skill.

We read in 1Timothy 6:17-19 that Pastor Timothy was told to hold the people in his church
accountable for the way they handled their money. He was to command his people to do good, to
be rich in good deeds, and to be generous and willing to share. By doing this, they would lay up
for themselves treasures in Heaven.

In these three verses we see three things: our attitude, activity and accomplishment.

The Attitude of our wealth - not arrogant, haughty or high-minded
The Activity of our wealth - ngage in good works, become rich in good works, be liberal or
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ready to distribute and to partner up, being willing to share
The Accomplishment of our wealth – reparing for the Bema Seat of Christ where we will be
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judged for our stewardship and service

As parents, especially fathers, we have the responsibility and the wonderful opportunity to
train up our children in God’s ways. While our children are still under our roofs, we need to be
proactive rather than reactive, as Proverbs 22:3 reminds us. We have the opportunity to teach
them discernment and discretion as they look for the needs of others.

In our household, every year around Thanksgiving we would make time to sit down with our
four children and talk about what God expects from us. We would start with our attitude towards
things. As a steward or manager we are responsible to take care of what we are entrusted with.
For example: their bike, their clothes, their toys, and their room. We are made in the likeness of
God and therefore must consider that God is a God of order not disorder. We should plan to take
care of things and protect them. Secondly, we remind our children of their activity with wealth.
Each of our children has received a weekly allowance from the time they were 6 years old. For
more information on this topic that we call the Four Quarter Method of Stewardship, please refer to
Training Children to be Generous - Part 1.

After they give to their local church, save for short-term and long-term needs and opportunities,
they should remember the poor. They need to actively be on the lookout for the needs of others
in the community. Thirdly, we teach that wise stewardship is smart and they will be rewarded for
their willingness to share and encourage others.

We would often speak with our pastor and other church pastors in the community, seeking to
reach out to individuals or families in need. A whole new world was opened up to my children.


In the past they never knew of the financial needs and struggles of families in the area. They were
willingly blinded to the needs of others since they had so many of their own. Life happens and
we are all busy. We could say, “I don’t have the time, money, or interest to focus on others when I
have so many of my own problems and worries.”

Giving outside the church does not come naturally but must be a planned event. Too often we
close our ears to the cry of the poor and suffer the consequences (Proverbs 21:13). Giving to the
poor is compared to lending to the Lord. We read in Proverbs 19:17, “Whoever is generous to the
poor lends to the LORD, and he will repay him for his deed.”

As a family we then decide on four individuals or families we can bless. We look for genuine
needs such as loss of a job, health problems, loss of a spouse, etc. We are careful not to enable the
lazy or help the foolish. It takes time and is not always easy but the rewards are priceless!

We staple a $100 bill to a page like the one shown above. The child takes it, folds it, and places it in
an envelope. They write the person’s name on the front and prepare to deliver it.

As Christmas approaches we drive out to the families’ houses and each child sneaks up to a house
to deliver the envelope while the rest of us are parked out of sight. Their goal is to slip it in the
door and ring the doorbell several times or knock hard and run. It is fun not getting caught!
They watch in secret to see the person open the envelope. They occasionally know the people who
they are giving to, but are instructed never to tell anybody.

Each year as the parent, I must plan for the next Surprise Package
Company and save money. We normally would give away $400
($100 per child). This will be a sacrifice for many with young
children but should become a priority.

As the children grow older they look forward to this event and want
to give of their own money. We instruct them not to give all their
short-term savings away and not to everybody they happen to see.
This is where discernment and discretion come in. What a
wonderful teaching opportunity! They also grow more thankful for
what they have and no longer take things for granted. They learn
contentment along with godliness which is great gain
(1 Timothy 6:6).

NOTES:


from The
Surprise Package Company
From
Your
Frien
ds at

Enjoy a Blessed New Year!
~ Remember to bless others even as you are blessed ~

“Priorities from a Biblical World View”
Misplaced Priorities
Haggai 1:1-14 and Luke 12:15 – 21
The goal: embrace Biblical priorities, challenge
encourage each other.

1. Are Priorities Important to God?
A. Diagnosing Misplaced Priorities (Haggai 1:1-4)
1. Lost focus and the Temple lay in ruins
2. Their focus was on themselves and their comforts
3. They were not rich towards God

B. The Consequences of Misplaced Priorities (Haggai 1:5-11)
1. Here we learn that when we edge out of God’s priorities, life stops working for us.
2. God says, “Consider your ways” – There is a cause-and-effect relationship between Israel’s

misplaced priorities and the problems that they’re experiencing in the book of Haggai.
3. Poor economy, crop failure, overall discontentment

C. The Solution to Misplaced Priorities (Haggai 1:12-15)
1. People began with reevaluation, with seeking God’s guidance on where their priorities

were out of line
2. They were distracted by the busyness of life and did not take time to honor God.
3. God resists the proud but gives grace to the humble – 2 Peter 3:15

How should we prioritize the financial choices we make? Here are several Timeless Truths when
properly applied will revolutionize our lives and align our priorities with Scripture. These are
not new but their applications may surprise you as we review a principled guideline for
handling 100% of God’s money.

2. Let’s Examine Five Timeless Truths
A. God is a God of order, sequence, and priority. It’s the very nature and Character of God.
1. een in creation itself (Genesis 1). In the beginning God…He brings order out
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of disorder.
2. emonstrated in the New Testament church (1 Corinthians 14:40 “But all things should
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be done decently and in order.”). There is a plan.
3. Illustrated in the wisdom of Proverbs (Proverbs 24:27 “Prepare your work outside; get

everything ready for yourself in the field, and after that build your house.”).
4. Are we orderly? Kitchen, garage, bedroom and basement? Finances?

B. od has deemed the family as the foundation stone of His plan for mankind. The family
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is key, and Satan wants to destroy it.
1. Instituted by God in the earliest moments of human history (Genesis 2).
2. onfirmed through New Testament truth - 1 Timothy 5:8 without a plan we have denied
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the faith (the Word of God).
3. Established as the key to passing divine truths through the generations. Deuteronomy

6:4-9 “…teach them diligently…talk of them when you sit in your house, and when you
walk by the way, and when you lie down, and when you rise.”


C. God wants our life choices to bring glory to Him. It’s all about our Testimony.
1. Lived out through the lives of Noah and the patriarchs (Gen. 6 – Numbers).
2. ommanded through Paul to New Testament Christians (1 Corinthians 10:31 “...do all
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for the Glory of God” – Do you go into debt for the glory of God?). Average family carries
over $7,000 in credit card debt.
3. Presented as the will of God for all believers (1 Peter 2:15 “For so is the will of God, that

with well doing ye put to silence the ignorance of foolish men”

D. God wants His people to help those who are less fortunate.
1. Established in the third or charity tithe of the Mosaic system (Exodus – Deuteronomy).

Three tithes: Levitical, Festival and Charity.
2. Confirmed in New Testament truth (James 2:15-17, 1 John 3:17-18).
3. Manifested as God’s love in us (1 Corinthians 8-9).

E. God wants to bless His people who obey.
1. Illustrated in His nation’s provision (Deuteronomy 6-8 – Blessing Curse).
2. Given by God for his children to richly enjoy (1 Timothy 6:17).
3. Promises to share His riches with His children throughout time (Rev. 21:7).

3. pplication of Financial Priorities to the Christian Steward
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Overlay of Financial Application

A. IVING – Returning to the Lord that which is His is the first financial priority
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and privilege.
1. “Honor the Lord…with the first fruits” (Proverbs 3:5-9).
2. “Every tithe…is the Lord’s” (Leviticus 27:30) – It is holy unto the LORD.
3. “…they gave themselves first to the Lord” (2 Corinthians 8:5).
4. “Give and it will be given unto you…” Luke 6:38
5. Have you robbed God in tithes and offerings? Malachi 3:8-11

Tithing isn’t the ceiling of giving; it’s the floor.
It’s not the finish line of giving; it’s just the starting blocks. Tithes can be the training wheels to
launch us into the mind-set, skills, and habits of grace giving.
Ironically, many people can’t afford to give precisely because they’re not giving.
If we pay our debt to God first, then we will incur His blessing to help us pay our debts
to others. (Haggai 1:9-11).
Giving is a step of obedience just as baptism is a step of obedience.

B. SAVING – Setting aside to protect one’s family is the second financial priority

privilege.
1. “Precious treasure and oil are in a wise man’s dwelling” (Proverbs 21:20).
2. “In the house of the righteous there is much treasure” (Proverbs 15:6).
3. If anyone does not provide for…his own household, he hath denied the faith...”
“
(1 Timothy 5:8)

Saving in order to protect your family must become a conviction, not a convenience. It
cannot be “I’ll save if there is extra.” Rather, “I must set aside reserves before I pay my
first bill.”


C. PENDING – Being timely, honest, and just with creditors is the third financial priority
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and privilege.
1. Pay to all what is owed to them – taxes…revenue…” (Rom 13:7a – give everyone what
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you owe him).
2. “The wicked borrows but does not pay back” (Psalm 37:21).
3. urpose of Work: “…so that you may walk properly before outsiders and be dependent on
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no one.”
4. (1 Thessalonians 4:12). It’s about our testimony!

Being timely with creditors is vitally important, but the wise steward first honors the Lord and
protects his family with savings.
We must choose to live at a level of consumption that is lower than our income.

D. FFERINGS – Being mindful and generous toward the needs of others is the fourth
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priority and privilege.
1. “Only they would that we should remember the poor” (Galatians 2:10).
2. On the first day of the week, each of you is to put something aside and store it up…”
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(1 Corinthians 16:2).
3. …your abundance at the present time should supply their need, so that their abundance
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may supply your need, that there may be fairness.” (2 Corinthians 8:14).
4. “Give and it will be given unto you…” (Luke 6:38)
5. 2 Cor 9:6-11 Sow little reap little
6. Don’t be Stingy: God says, “Whoever closes his ear to the cry of the poor will himself call

out and not be answered.” (Proverbs 21:13).
In Isaiah 58:6-10, God says that His willingness to answer our prayers is directly affected
by whether we are caring for the hungry, needy, and oppressed. Want to empower your
prayer life? Give.
7. What’s the Purpose of Prosperity? God prospers us not to raise our standard of living,

but to raise our standard of giving.

After managing well the first three responsibilities, financial freedom now allows freewill
offerings.
God asks that I consider the circumstances of others before I spend on
personal pleasures.
Are there individuals, mission efforts, or other ministry works I should assist?

E. LUXURIES – Rightfully enjoying God’s abundance is the fifth priority and privilege.
1. “The Lord blessed the latter days of Job more than his beginning.” (Job 42:12).
2. “…God, who richly provides us with everything to enjoy” (1 Timothy 6:17).
3. “What do you have that you did not receive?” (1 Corinthians 4:7)

Now that I’ve considered my obligations and opportunities to the Lord, my family, creditors and
others, I am free to enjoy the great blessings God has richly given.
Choosing to be rich toward God demonstrates wise stewardship and is a testimony to
the world.

It is required in Stewards that they be found faithful. (1 Corinthians 4:2)


Creating a Spending Plan that Works
DO I REALLY NEED A BUDGET? “Budget” is often treated like a four-letter word. However
a budget is simply a spending plan – a tool to help you make the best possible use of your
resources. Budgeting is not necessarily about getting out of debt, but it is about wise
stewardship, and this applies to everyone, from the Janitor to the CEO.
Budgeting = Planning = Wisdom.

It is required in Stewards that they be found faithful – 1 Cor 4:2

I. PRINCIPLES TO UNDERSTAND – Proverbs 27:23-27
A. Your purpose on earth is to glorify God (Matthew 5:16).
B. A Wise man builds his house upon the rocks (Matthew 7:24-27).
C. God rewards those who diligently seek Him (Hebrews 11:6).
D. Everything you have belongs to God (Exodus 9:29; Psalm 24:1; 1 Corinthians 10:26).
E. God is your provider (Deuteronomy 8:18).
F. You must honor God with everything He has entrusted to your care (Proverbs 3:9-10).
G. The husband is to bear the emotional burden for the family’s finances (1 Timothy 5:8)
H. You are accountable for your stewardship (1 Corinthians 4:2; Romans 14:12).
I. Tithes, offerings, and giving are the will of God (2 Corinthians 8:5).
J. Financial success comes through hard work (Proverbs 10:4; 22:29).

II. THE BUDGET WORKSHEET
A. Record your income
1. List gross income for both spouses from your jobs.
2. Subtract all deductions to arrive at your net spendable take-home pay.
3. List all other forms of income: social security, investment, pension, rents, etc.
B. rioritize your spending. See Priorities from a Biblical Worldview (pg. 12-14) notice that
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these are sequential priorities. Giving comes first than savings than spending and so forth.
1. Give – this is our 1st priority and privilege
a. Start at 10% of your income to your local church
b. Any giving above 10% or any ministries other than your church falls into the

offerings category.
2. Save – our family is the 2nd priority (Goal: 10% of income)
a. Emergency Fund: If you have debt, save $1,000 and proceed with debt snowball

(see Debt Elimination, pg. 18). If you are already debt-free, start by setting aside
3-6 months living expenses.
b. Short Term: These are funds that you expect to need over the next 12 months

(taxes, insurance payments, vacation, Christmas and birthdays, etc.). Add the value
of all these bills and then divide by 12. Set up an automatic savings plan to put that
amount into savings monthly until needed.
c. Long Term: This is for large expenses like education, marriage, automobile,

retirement, etc. If your company offers a matching 401k, take full advantage of the
match. Above that, consider saving in your IRA or Roth IRA. You may want to contact
The Life Group or another advisor to discuss your options.
3. Spend – on living expenses or needs
a. Housing: you should not spend more than 25% of your take-home pay on mortgage
or rent


b. Groceries: consider paying for groceries in cash. This may prevent overspending.
Also, plan out a weekly meal plan and then shop to fill the plan not the pantry.
c. Insurance: consider paying your insurance premiums annually if possible.
Many insurance companies charge less for this.
d. Personal Allowance: to avoid overspending on things like coffee or buying lunch at

work, give yourself a weekly or monthly allowance (i.e. $10 or $15 a week).
e. ebt Payments: If you have debt (other than your primary
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mortgage) we recommend that you follow the debt National Household
snowball (see Debt Elimination, pg. 18) Spending Averages
4. Offerings for the needs of others – come before luxuries. Percent
a. Giving to your local church beyond 10%, Faith
Category of Spending
Promise Missions Food 13.9%
b. Those in your community that are in financial need.
Clothing 4.2%
(See The Surprise Package Company, p. 9 ) Housing 23.3%
5. Luxuries - Enjoy the fruits of your labor (eating out,
Personal 11.4%
vacations, hobbies, Cable TV, etc.)
Medical 19.7%

III. Budgeting Tips Transportation 8.9%
A. isualize your cash flow. Understand that peaks and valleys
V Other 18.6%
will happen. This helps you see the need to set aside funds for Total: 100.0%
those difficult times. Source: Statistical Abstract of the United States:
2012. Table 677
B. Use a saving method.
1. Envelope system
2. Money market-automatic bank transfers. This is usually the best option.
C. Budgeting tools that help you.
1. Quicken, other computer programs (Excel), etc.
2. www.Mint.com – free online budgeting and cash flow monitor
3. Our Spending Plan Worksheet – see page 36
D. ecord your actual expenses as you pay your bills (tracking). This will provide the
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information you need to make next year’s budget
E. tick with it! This is the only way to measure your
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money and avoid future debt. Biblical Stewardship is
a lifestyle that displays wisdom in your choices.
F. stablish Accountability – If married, work together
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with your spouse. If single, find an
accountability partner.

IV. What If It Doesn’t Work?
A. ry to determine God’s reasons: Do I really need it or
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Is He testing my faith? Did I misspend the funds
He provided?
1. Have I violated the financial principles found in God’s Word?
Give and be financially blessed............................................................................ Proverbs 11:24
Scorning correction (Pride brings poverty)........................................................Proverbs 13:18
Planning leads to profit, haste to poverty..............................................................Proverbs 21:5
Stinginess – Listen to the cry of the poor............................................................Proverbs 21:13
Get-rich-quick schemes........................................................................................ Proverbs 28:19


2. Does God have a deaf ear to your request?
Idols of the heart (money or possessions)...................................................................... Ezk 14:3
Living in sin or disobey the law.................................................................... Proverbs 5:29; 28:9
Sin hinders prayer.............................................................................................................. Isa 59:1;
Unforgiving spirit - Selfishness...............................................................Mark 11:25; James 4:3
With faith not double-minded...................................................................................James 1:5-8
Good relationship with spouse....................................................................................1 Peter 3:7
Dishonoring Parents.....................................................................................Ex. 20:12; Eph 6:1-3
B. o you rely on God’s will or MasterCard - Prayer or Plastic? “You do not have, because
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you do not ask. You ask and do not receive, because you ask wrongly, to spend it on your
passions.” James 4:3
C. relationship requires two-way communication. Be patient; God does answer prayer.
A
Remember, the answer can be yes, no or wait.

The rich rules over the poor, and the borrower is the slave of the lender. Proverbs 22:7

Helpful Resources
• Our Website: www.TheLifeGroup.org
• e Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey.
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www.DaveRamsey.com
• 48 Days to the Work You Love by Dan Miller. www.48days.com
• inancial Parenting: Showing your Kids that Money Matters by Larry Burkett.
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www.Crown.org
• oney, Possessions and Eternity and The Treasure Principle by Randy Alcorn.
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www.epm.org
• Others. www.mint.com

NOTES:


Debt Elimination: Free to Serve
The wicked borrows but does not pay back, but the righteous is generous and gives
Psalms 37:21

I. Debt Elimination Starts in the HEART!
A. cknowledge your sin of poor stewardship, if necessary.
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“If we confess our sins, he is faithful and just to forgive us our sins and to cleanse us from
all unrighteousness.” (1 John 1:9).
B.Acknowledge your need of help.
“God is our refuge and strength, a very present help in trouble.” (Psa 46:1).
“Let us then with confidence draw near to the throne of grace, that we may receive mercy
and find grace to help in time of need.” (Heb 4:16).
C. ake a commitment to the Lord to be a godly steward.
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“I appeal to you therefore, brothers, by the mercies of God, to present your bodies as a living
sacrifice, holy and acceptable to God, which is your spiritual worship.” (Rom 12:1)

II. Debt Elimination Requires CHANGE!
A. Determine where you are financially. Debt is a worldwide
1. List all of your debts. epidemic. In order to
2. Inventory your assets. protect our families from it,
3. Complete a household budget. we must change the way we
a. Identify your income sources and amounts. treat money. It all starts with
b. Identify your financial obligations. an acknowledgement that
B. Stop going into debt. Stop the financial bleeding!
God owns all things and
When you’re in a hole, know when to stop digging!
that the way we handle
C. Start using a disciplined spending system:
money reveals who
1. Envelopes
or what we worship.
2. Savings Account for annual bills (taxes, insurance,

vacation, Christmas, exc.) -Tim Russell
a. Add up all these expenses, divide by 12 and

set that amount aside monthly.
b. Withdraw from account when bill comes in to avoid debt.

3. Electronic Tracking (Quicken or Mint.com)

Most debt problems are a result of overspending, rather than lack of income.

D. Establish accountability.
1. If married, start with your spouse
2. Close friend or pastor who you can confide in
3. Christian Financial Advisor
E. Develop a repayment plan.
1. Reduce your expenses.
a. Most debt problems are a result of overspending, rather than lack of income
b. liminate luxuries and excess spending (i.e. cable TV, eating out, impulse spending,
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and coffee on the way to work…)
c. Sell unnecessary assets (EBay, Craigslist, yard sale)


2. Increase your cash flow.
a. Sell unneeded stuff
b. You may need extra work temporarily.
c. Increase exemptions to reduce tax refunds.
3. Work your “Debt Snowball.”
a. Live on a strict budget
b. Build up a Starter Emergency Fund ($1,000)
c. List debts from smallest to largest total balance, excluding your mortgage.
d. Start by paying as much as you can on your smallest debt and make minimum

monthly payments on the others.
e. fter your smallest debt is paid off, roll that payment over to the next smallest and
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repeat until you’re debt free.
f. hen you have to dip into your Emergency Fund (EF) stop the debt snow ball
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(pay minimums on all balances) and refill EF back to $1,000.
g. See Dave Ramsey’s The Total Money Makeover for more details.

Extra Paid on Debt: $200

Name Interest Rate Balance Minimum Payment New Payment

1 Sears 16% $450 $50 $50 + $200 = $250

2 MasterCard 18% $650 $30 $30 + $250 = $280

3 Parents 0% $1,600 $200 $200 + $280 = $480

4 Visa 23% $1,800 $30 $30 + $480 = $510

5 Car 10% $7,000 $400 $400 + $510 = $910

6 School Loan 6% $9,000 $200 $200 + $910 = $1,110

NOTES:


A Biblical Call to Wise Stewardship
1 Timothy 6

The goal: Doing the Will of God as it relates to our Finances

Your personal stewardship affects more than your immediate family.
Does your pastor have any business speaking to you about your private financial matters?

Who wrote 1st Timothy? To whom was it written?
It was Timothy’s God given responsibility as a pastor to minister the Word of God to those who
had wealth regarding the exercise of personal stewardship.

1. WHAT IS STEWARDSHIP?
A. A Manager or Overseer of someone else’s estate
• Joseph – Gen 39:4; 43:19
• Pastors – Acts 20:28
B. The care for and use of all entrusted to us
C. We are Managers of God’s Estate: Psalms 24:1
i. Must be Faithful – 1 Cor 4:1-2
ii. Must be Accountable – Rom 14:11-12

2. WHY HEAR A MESSAGE ON STEWARDSHIP?
A. Lack of teaching – Acts 20:27, 1 Tim 6:17

It’s often limited to just tithing or fund raising. Stewardship is not simply tithing
B. ost Financial Advisors teach how to build and protect wealth and pass it on to your
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children, often to their harm. Few provide guidance or wisdom from Scripture. Psalm 1:1

1 Timothy 6:17-19
17
As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the
uncertainty of richest, but on God, who richly provides us with everything to enjoy. 18They are
to do good, to be rich in good works, to be generous and ready to share, 19thus storing up
treasure for themselves as a good foundation for the future, so that they may take hold of that
which is truly life.

C. ur nature – selfish and impulsive – Mark 4:19
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Indebtedness can make you a slave to an unwanted master - Proverbs 22:7
D. amilies are destroyed from mismanagement – over 90% of marital problems are related
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to finances.
E. Families can be torn apart over estate disputes - We will be held accountable for our choices

3. HOW SHOULD YOU FUNCTION AS A STEWARD?
A. hat does money do to your Attitude?
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1 Timothy 6:17 As for the rich in this present age, charge them not to be haughty, nor to
set their hopes on the uncertainty of richest, but on God, who richly provides us with
everything to enjoy.

Even though the congregation may be intimidating, the pastor is commanded to teach the
biblical responsibility of stewardship and exhort his congregation to practice it with eternity
in view.


A lot of folks are relieved and thinking, “Not me, I’m not rich” Can you answer the
question; how do you define wealth?

Defining Wealth on a Global Scale
Research finds that assets of just $2,200 per adult placed the household in the top half of the
world’s wealthiest. To be among the richest 10% of adults in the world just $61,000 in assets is
needed. If you have more than $500,000 you’re part of the richest 1%, the United Nations Study
has found.
(Source: Dow Jones Financial Advisor Service January 2007)

It looks like we are all back in the ball game!

1. o not be high-minded or arrogant. Don’t have a high esteem of self. Are you part of the
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upper middle class?
2. Do not trust in uncertain riches. Do not let wealth be your source of dependence

or confidence. Did you pray today, “Lord, give us today our daily bread.”? NO, why?
Because it was already in the refrigerator or cupboard.
3. o keep your trust in the living God. God gives us richly all things to enjoy, so trust Him.
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B. e right Activity with your wealth
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1 Tim 6:18 They are to do good, to be rich in good works, to be generous and ready to share
1. Work good deeds. Engage in the work, get involved
2. Become rich in good works – it’s a learned behavior.
3. Be ready to distribute to others
a. Proverbs 11:25 Whoever brings blessing will be enriched, and one who waters will

himself be watered.
b. Proverbs 11:24 One gives freely, yet grows all the richer; another withholds what he

should give, and only suffers want.
c. roverbs 19:17 Whoever is generous to the poor lends to the LORD, and He will repay
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him for his deed.
4. Be willing to share (from koinonikos, meaning to partner or fellowship).
5. Consider Christian School or Camping ministry – They both are labor-intensive but not

revenue-intensive. The Christian workers are grossly overworked, under-paid and quickly
burned out. We then find another group of dedicated believers and put them through the
same meat grinder.
C. hat will stewardship Accomplish?
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1 Tim 6:19 thus storing up treasure for themselves as a good foundation for the future, so
that they may take hold of that which is truly life. Also seen in 1 Tim 6:12
1. Lay-up treasure in store for yourself - Matt 6:19-20 Self-serving?
2. John 17:3 Seize the truth of your salvation, lay hold to this truth!
3. Matt 6:21 Your heart follows your money – Focus should be on the future, your future in

Heaven with your God.
4. “The time to come” is also called the Bema Seat or Judgment Seat of Christ where we will

be judged for our Stewardship and Service. This is not the Great White Throne Judgment
where the unsaved are condemned.

4. WHY IS STEWARDSHIP SO IMPORTANT?
A. On a Personal Level
1. t affects everyone in the church - 1 Corinthians 12:12 “…the body is one and has
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many members…”
2. You will give an account – 1 Corinthians 4:2, Romans 14:12
3. How you leave your estate is as important as how you managed it while you were living.

This is your final act of stewardship.


4. May disqualify you from service – Titus 1:7, 1 Tim 3:1-7

Impacts your personal testimony – Mat 5:16 “Let your light shine before others, so that
they may see…and give glory to your Father who is in heaven”
5. Stewardship is an area in which you can witness and recognize the work of God in your

life – 2 Cor 8:7 Paul says that we should abound in giving.
6. Stewardship impacts your personal testimony and your ability to reach family, friends,

neighbors and co-workers with the Gospel – 1 Cor 4:1-2; Matt 5:16
B. On a Corporate Level – Your stewardship affects many areas of local church ministry.
1. astoral compensation – 1 Timothy 5:17. A church reaps what it sows!
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Are you using Bible principles to pay your pastor? Consider the double honor principle
found in Scripture where he’s either paid twice the average salary or very good salary
with much respect.
2. Property management – Proverbs 3:9
3. Missions support, the needy, fulfilling the Great Commission
4. Keep priorities in order: Build and strengthen the church before you increase

missions giving.
5. Educational materials and venues (Camp, VBS, etc.) – What does the world see?

Stewardship is not an Option - Will you hear Christ say, “Well done, thou good and faithful
servant: thou hast been faithful over a few things, I will make thee ruler over many things:
enter thou into the joy of thy lord.” Do our financial choices display wisdom? Do our priorities
demonstrate that? Life is choices, choices have consequences, and we must make the right choice.

How can you put God’s Wealth back into circulation? Look for an excuse to bless others.
Have you thought about providing a Challenge Grant or Anonymous Matching Gift?
Examples include: Student scholarships, mission trip, church need, etc.

Notes:


Financial, Tax, and Retirement Planning
I. inancial Success comes from obeying Scripture and applying priorities to our choices.
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Life is choices; choices have consequences; make the right choice! Financial Freedom is a
choice, not a dream. Anyone can be financially free. You choose how your life is going to look
and you’re responsible for making it happen. No one is going to do it for you. Financial freedom
is not only your choice, it is your responsibility.
A. s God’s Money Manager, my
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Financial Responsibilities are: Providing for your family and avoiding debt
1. First to the Lord is wise!
2. Second to my family I Tim 5:8 – family provision is commanded
3. Third to my creditors Pr 13:11 – he who gathers money little by little...
4. Fourth to others or to God’s
Pr. 21:20 – the wise have reserves...
work (Sacrificial giving) Pr. 22:3 – the prudent look ahead...
5. ifth to rejoice in God’s
F Pr. 21:5 – planning results in plenty...
rich blessings Pr. 22:7 – borrower is in bondage...
B. Remember the Priorities of God

and then Family
1. Both Testaments urge wisdom (Prov 21:5, 22:3 James 3:13)
2. Both Testaments urge family protection (1 Tim 5:8, Prov 21:20)
II. Short-Term Saving
A. hort-term savings is always a priority over Long-term investing
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B. Remember – If you don’t earn interest, you will pay interest!

C. Short-Term, “liquid” Cash Savings for emergencies and opportunities
1. Saving short-term is wise – 10% of your monthly income is a good place to start
2. Find the bank that offers the best interest rate on savings accounts
a. What kind of interest are you getting from your local bank?
b. Internet banks” often have better rates –
“
check http://www.money-rates.com/savings.htm
3. Remember Proverbs 21:20 The Wise not the Rich have savings!
4. Build and maintain a cushion for opportunities and emergences. Set a goal of several

thousand dollars (3 to 6 months’ earnings is wise)
D. et’s look at some real life facts:
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The Personal Savings Rate has been in an overall declining trend for several decades.
• 50% of Americans have less than one month of savings saved for emergencies
• 61% are living paycheck-to-paycheck
III. Long-Term Saving and Investing
A. Six Rules for Investing
1. Invest conservatively, within different asset classes.
2. Look for a ten-year track record of the fund manager (not the fund).
3. Reduce or avoid investing in “sin stocks.”
4. Keep it simple!
5. Minimize or avoid surrender redemption fees.
6. Use independent, third-party research like Morning Star Publications.

NOTE: Investing is not like gambling. We typically invest with our head using logic or reason
but often sell out of fear or emotion. Like farming it takes time and patience to reap anything of
value. Lottery tickets and Casinos are gambling and not wise.


Personal Saving Rate (PSAVERT)
Source: U.S. Department of Commerce: Bureau of Economic Analysis
15.0

12.5

10.0
(Percent)

7.5

5.0

2.5

0.0
1950 1960 1970 1980 1990 2000 2010 2020
Shaded areas indicate U.S. recessions.
2012 research.stlouisfed.org

B. Where is wisdom?
1. From our experience with families just 26% of adults surveyed think they could

accumulate $200,000 in net wealth in
their lifetime. Questions for you to answer...
2. 21% said a lottery win would be the most

What are your rules for investing?
practical strategy for accumulating several
hundred thousand dollars.
3. But if you save $200 monthly from age 30 to 65

and earn an average of 9% per year you will How do you display wisdom?
have over $500,000.
C. Where can we find $200?
1. Reduce: Eating out – once per month or per

quarter How will you find $200 each and every month?
2. Buying lunches and snacks
3. Buying coffee, soda and bottled water

4. Overall Consumption!
5. Avoiding tax-refunds
6. Extra work = extra income

Stocks - Ownership Bonds - Debt Mutual Fund - Container REIT - Real Estate

D. Most Common Investment Terms:
1. Stocks: Ownership in a public company by purchasing common shares of the company.
A round lot of stock is usually 100 shares. For proper diversification you need to purchase
a variety of stocks in different sectors and asset classes of the market. Generally you
should start with $50,000 to build a portfolio.


2. Bonds: Bonds are the debt of a government entity or a corporation. A bond is simply
evidence of a debt and represents a long-term IOU. US Savings bonds are the most
common. Buy at 50% discount to face value. Bonds issued after June 2003 reach face
value in 20 years. These newer bonds are paying very low interest and usually not
recommended. Older bonds are generally paying a slightly higher rate of interest but
they stop earning interest after 30 years.

Other types of Government Issued Bonds include T-Bills,
Notes, and I-Bonds.

Bonds are also issued by Municipalities and Corporations to
fund specific projects. i.e. Sewer Authority Bond, Hospital
Bond, Community Development Bond, etc.

All types of bonds have a maturity date (when the principal
must be repaid) a stated interest rate (also known as a
coupon or “coupon rate”), how often the interest will be
paid and the term of the loan. It is important to
understand that the relationship between bond prices
and bond interest rates is an inverse relationship; when interest
rates rise, bond prices generally fall and vice versa. If a bond is sold prior to its
maturity date, you may receive less that the principal amount. If a bond is held to
maturity then you will receive all interest payments plus your original investment,
barring default by the issuer.

I-Bonds
I-Bonds are a form of inflation-protected debt, available with two rates: a fixed rate set when the
bond is purchased, and another rate, adjusted for inflation every May and November.
Benefits:
• Exempt from state and local taxes
• Can be held for up to 30 years, but can also be redeemed in full after just 12 months
Drawbacks:
• Only up to $10,000 can be invested in I-Bonds each year
• Typically offers relatively low return on investment

3. Mutual Funds: An investment vehicle that is made up of a pool of funds collected from

many investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets. Mutual funds are
operated by money managers, who invest the fund’s capital
and attempt to produce capital gains and income for the
fund’s investors. A mutual fund’s portfolio is structured
and maintained to match the investment objectives stated
in its prospectus. One of the big advantages of mutual
funds is that they give small investors access to
professionally managed, diversified portfolios of equities,
bonds and other securities, which would be quite difficult
(if not impossible) to create with a small amount of capital.
Each shareholder participates proportionally in the gain
or loss of the fund. The value of mutual fund shares is
determined daily (also known as NAV, Net asset value).


Most mutual fund shares can be purchased or redeemed as needed, but the price will
fluctuate with market conditions; shares, when redeemed, may be worth more or less
than their original cost.
a. Some can be set up with $50 monthly but others require $1,000 or more.
b. Consult the Prospectus (legal disclosures) before investing in any mutual fund
c. utual Funds and Money Market Funds are sold by a prospectus. An investment in a
M
money market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although a money market fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose money my
investing in the fund.
d. n investor should carefully consider the investment objectives, risks, charges and
A
expenses of a mutual fund. This and other important information is contained in the
prospectus which can be obtained from the mutual fund or your financial advisor. The
prospectus should be read and carefully considered before investing.

4. EIT “Real Estate Investment Trust”:
R
A REIT is a company that owns, and in
many cases, operates income-producing
real estate. To be a REIT, a company
must distribute at least 90 percent of its
taxable income to shareholders annually
in the form of dividends. REITs receive
special tax considerations and allow
individuals the ability to invest in
large-scale commercial properties and
receive a dividend income flow.
a. Equity REITs: Equity REITs invest in
and own properties (thus responsible
for the equity or value of their real estate assets). Their revenues come principally from
their properties’ rents.
b. Mortgage REITs: Mortgage REITs deal in investment and ownership of property
mortgages. These REITs loan money for mortgages to owners of real estate, or
purchase existing mortgages or mortgage-backed securities. Their revenues are
generated primarily by the interest that they earn on the mortgage loans.
c. Hybrid REITs: Hybrid REITs combine the investment strategies of equity REITs and
mortgage REITs by investing in both properties and mortgages.
d. ublicly Traded and Publicly Registered non-Traded REITS:
P
i. ublicly traded REITs are traded on major stock exchanges and are bought and sold
P
just like traditional exchange-traded stocks. Share prices can fluctuate daily.
ii. on-Traded REITs are not publicly traded on exchanges and are sold by a
N
prospectus. Non-traded REITs are long-term investments offering only limited
liquidity. Non-traded REITs may also involve additional restrictions and risks so it
is important to read and carefully consider the prospectus of a Non-traded REIT
before investing. The prospectus will contain information about the REIT’s
structure, objectives, expenses and fees. The prospectus can be obtained from the
REIT company or your Financial Advisor. Non-traded REITs are subject to the
same IRS requirements as traded REITS, which include returning at least 90% of
taxable income to shareholders. Because of the income feature, some investors
include them in their portfolios for the potential income flow. Non-traded REITs
usually have a minimum investment amount with an average holding period
of 5-7 years.


5. Annuities: These are best used by people needing tax deferral on account growth and/or
a guaranteed lifetime income. Annuities provide specific guarantees2 and can be issued
by insurance companies or non-profit organizations. Distributions made prior to age 59
½, have a 10% tax penalty similar to an IRA. Annuities are contracts which will contain
detailed information regarding risks, expenses, charges, withdrawal provisions and
related benefit riders. Investors should read and study the contract carefully
before investing.
a. Four Types of Annuities:
i. Fixed rate Annuity
ii. Variable Annuity3
iii. Indexed Annuity
iv. Charitable Gift Annuity – Often issued by non-profit organizations
b. Common Benefits of Insurance Company Annuities
i. Living Benefits: Some provide a guaranteed income benefit regardless of the market.
Some are as high as 6%.
ii. Death Benefits: Some provide an increasing guaranteed death benefit regardless of
investment performance.
iii. Investing in an annuity can defer or postpone income taxes. There is the possibility

of reduced income tax, if an investor is in a lower tax bracket when they start
taking withdrawals and distributions from an annuity.
c. Common Drawbacks with Insurance Company Annuities
i. They can be expensive
ii. e various Guaranteed Living Benefit Riders and Death Benefits have
Th
added costs.4
iii. They can be very confusing
iv. Some have long surrender penalties
v. ey are not a good investment to pass on to your children – tax problems! If the
Th
beneficiary is a non-spouse, all gains are taxable at the beneficiaries’ highest tax
bracket. This can be disastrous if your children or other heirs are in a high tax
bracket already. A great option to avoid future tax problems is to add a charity or
your church as a beneficiary to the annuity. They are tax-exempt.
d. Gift Annuity
i. gift annuity is a contract under which a charity, in return for a transfer of cash or
A
other property, agrees to pay a fixed sum of money for a period measured by one or
two lives. A person who receives payments is called an “annuitant” or “beneficiary”.
The contributed property becomes part of the charity’s assets, and the payments are
a general obligation of the charity. The annuity is backed by all of the charity’s
assets, not just by the property contributed.
ii. otentially pays an income, for life (earnings principal). Usually set from 6% to
P
9% based upon age.
iii. Great income tax savings for those who itemize deductions

iv. an be issued by your local church or favorite ministry. Can be used to fund a
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scholarship or other goals of the donor.
v. deal for gifts of $25,000 and above where the donor needs current income and
I
plans to provide for ministry at their death.

2
Guarantees are based upon the claim-paying ability of the insurance company.
3
Variable annuities are subject to market risk and only suitable for long-term investing. Investors should consider the investment objectives,
risks, charges and expenses of the variable annuity and underlying investment options before investing. For complete information on fees
and expenses, please read the prospectus carefully.
4
Living Benefit Riders may not be suitable for all investors.


AN EARLY START
How $6,750 Can Grow to Over $1 Million

This table shows four ways to accumulate approximately $1,000,000 in a tax-sheltered account by
age 65. Investor A contributes $2,000 at the beginning of each year for forty years (ages 25-65);
Investor B, $2,000 a year for only seven years (19-25); Investor C, $2,000 a year for only five years
(age 14-18); and Investor D, even smaller sums from age 8 through 13.

Investor A Investor B Investor C Investor D

Year-End Year-End Year-End Year-End

Age Invest Value Invest Value Invest Value Invest Value

$0 $0 $0 $0 $0 $0 $500
8 $550
$0 $0 $0 $0 $0 $0 $750
9 $1,430
$0 $0 $0 $0 $0 $0 $1,000
10 $2,673
$0 $0 $0 $0 $0 $0 $1,250
11 $4,315
$0 $0 $0 $0 $0 $0 $1,500
12 $6,397
$0 $0 $0 $0 $0 $0 $1,750
13 $8,962
$0 $0 $0 $0 $2,000
14 $2,200 $0 $9,858
$0 $0 $0 $0 $2,000
15 $4,620 $0 $10,843
$0 $0 $0 $0 $2,000
16 $7,282 $0 $11,928
$0 $0 $0 $0 $2,000
17 $10,210 $0 $13,121
$0 $0 $0 $0 $2,000
18 $13,431 $0 $14,433
19 $0 $0 $2,000 $2,200 $0 $14,774 $0 $15,876
20 $0 $0 $2,000 $4,620 $0 $16,252 $0 $17,463
21 $0 $0 $2,000 $7,282 $0 $17,877 $0 $19,210
22 $0 $0 $2,000 $10,210 $0 $19,665 $0 $21,131
23 $0 $0 $2,000 $13,431 $0 $21,631 $0 $23,244
24 $0 $0 $2,000 $16,974 $0 $23,794 $0 $25,568
25 $0 $0 $2,000 $20,872 $0 $26,174 $0 $28,125
26 $2,000 $2,200 $0 $22,959 $0 $28,791 $0 $30,938
27 $2,000 $4,620 $0 $25,255 $0 $31,670 $0 $34,031
28 $2,000 $7,282 $0 $27,780 $0 $34,837 $0 $37,434
29 $2,000 $10,210 $0 $30,558 $0 $38,321 $0 $41,178
30 $2,000 $13,431 $0 $33,614 $0 $42,153 $0 $45,296
31 $2,000 $16,974 $0 $36,976 $0 $46,368 $0 $49,825
32 $2,000 $20,872 $0 $40,673 $0 $51,005 $0 $54,808
33 $2,000 $25,159 $0 $44,741 $0 $56,106 $0 $60,289
34 $2,000 $29,875 $0 $49,215 $0 $61,716 $0 $66,317
35 $2,000 $35,062 $0 $54,136 $0 $67,888 $0 $72,949
36 These$2,000
are hypothetical scenarios based on the stated contribution $0
$40,769 $0 $59,550 amounts and an assumed annual 10% rate of
$74,676 $0 $80,244
37
return. The numbers stated do not reflect any particular investment and are not $82,144 any guarantee that you will
$2,000 $47,045 $0 $65,505 $0 implying $0 $88,269
38 $2,000 $53,950 $0 $72,055 $0 $90,359 $0 $97,095
experience the same $61,545 performance of any investment cannot be assumed or guaranteed into the future.
39 $2,000 result. Past $0 $79,261 $0 $99,394 $0 $106,805
40 With any investment, consider any and all objectives, risks, sales charges$109,334
$2,000 $69,899 $0 $87,187 $0 and expenses before investing.
$0 $117,485
41 $2,000 $79,089 $0 $95,905 $0 $120,267 $0 $129,234
42 $2,000 $89,198 $0 $105,496 $0 $132,294 $0 $142,157
43 $2,000 $100,318 $0 $116,045 $0 $145,523 $0 $156,373
44 $2,000 $112,550 $0 $127,650 $0 $160,076 $0 $172,010
45 $2,000 $126,005 $0 $140,415 $0 $176,083 $0 $189,211
46 $2,000 $140,805 $0 $154,456 $0 $193,692 $0 $208,133
47 $2,000 $157,086 $0 $169,902 $0 $213,061 $0 $228,946
48 $2,000 $174,995 $0 $186,892 $0 $234,367 $0 $251,840
49 $2,000 $194,694 $0 $205,581 $0 $257,803 $0 $277,024
50 $2,000 $216,364 $0 $226,140 $0 $283,584 $0 $304,727
51 $2,000 $240,200 $0 $248,754 $0 $311,942 $0 $335,200
52 $2,000 $266,420 $0 $273,629 $0 $343,136 $0 $368,719
53 $2,000 $295,262 $0 $300,992 $0 $377,450 $0 $405,591
54 $2,000 $326,988 $0 $331,091 $0 $415,195 $0 $446,151
55 $2,000 $361,887 $0 $364,200 $0 $456,715 $0 $490,766
56 $2,000 $400,276 $0 $400,620 $0 $502,386 $0 $539,842
57 $2,000 $442,503 $0 $440,682 $0 $552,625 $0 $593,826
58 $2,000 $488,953 $0 $484,750 $0 $607,887 $0 $653,209
59 $2,000 $540,049 $0 $533,225 $0 $668,676 $0 $718,530
60 $2,000 $596,254 $0 $586,548 $0 $735,543 $0 $790,383
61 $2,000 $658,079 $0 $645,203 $0 $809,098 $0 $869,421
62 $2,000 $726,087 $0 $709,723 $0 $890,007 $0 $956,363
63 $2,000 $800,896 $0 $780,695 $0 $979,008 $0 $1,052,000
64 $2,000 $883,185 $0 $858,765 $0 $1,076,909 $0 $1,157,200
65 $2,000 $973,704 $0 $944,641 $0 $1,184,600 $0 $1,272,920

Total Investment $80,000 $14,000 $10,000 $6,750
Investment Gains $893,704 $930,641 $1,174,600 $1,266,170
Investment Gains 11-Fold 66-Fold 117-Fold 188-Fold


IV. College Funding
A. 29 Plans: is an education savings plan operated by a state designed to help families set
5
aside funds for future college costs. It is named after Section 529 of the Internal Revenue
Code which created these types of savings plans in 1996. These are limited to accredited
colleges and universities only, and must be used for qualified education expenses, otherwise
penalties may apply.
Types of 529 plans: 529 plans are usually categorized as either prepaid or savings plans.
http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php
1. Savings Plans work much like a 401K or IRA by investing your contributions in mutual

funds or similar investments. The plan will offer you several investment options from
which to choose. Your account will go up or down in value based on the performance of
the particular option you select.
2. Prepaid Plans let you pre-pay all or part of the costs of an in-state public college

education. They may also be converted for use at private and out-of-state colleges.
The Private College 529 Plan is a separate prepaid plan for private colleges.
B. overdell Education Savings Accounts (ESA): The Coverdell Education Savings Account
C
(formerly known as the Education IRA) was created in 1998 exclusively for the purpose of
paying for “qualified education expenses” for an “eligible” student. Annual contributions are
nondeductible, limited to $2,000 per child and can only be made until the account holder
reaches age 18. The ability to contribute to a Coverdell ESA is phased out for higher income
earners. The annual contribution deadline is April 15 of the following year.
Sunset Provisions - Made Permanent: A “sunset” is an expiration date on a tax law, usually
included for federal budgeting purposes. The following Coverdell provisions were set to expire
at the end of 2012, but were made permanent by the American Taxpayer Relief Act of 2012:
• ualified withdrawals include K-12 expenses in addition to post-secondary education
Q
expenses. This includes Home Schooling, Christian Schools and all Colleges.
• istributions will be tax-free only for those taxpayers who do not claim an American Op-
D
portunity or Lifetime Learning Credit (if eligible) for the same expenses in the same year.
Eligibility: Any individual under age 30 may be the beneficiary of a Coverdell ESA.
Contributions: Contributions cannot exceed $2,000 per beneficiary per year. Dollars can be in-
vested in a variety of products, depending upon the investment objectives of the account owner.
Distributions: The earnings portion of distributions that are used for non-qualified
education expenses are subject to ordinary income tax, plus a 10% penalty. No penalty
exists for withdrawals due to death, disability or scholarship. Any balance remaining in the
Coverdell ESA must be distributed or transferred to another eligible family member when
the beneficiary reaches age 30 or dies.
Considerations: Contributions are not taxed as they accumulate, and distributions
Tax
used to pay for qualified education expenses are not subject to federal income tax.
inancial Aid Considerations: Coverdell ESAs may impact financial aid eligibility.
F
They are considered assets of the account owner. If owned by the parent, Coverdell ESAs
are considered parental assets, and this generally has less impact on financial aid.
C. Annuities: These are tax-deferred savings vehicles issued through insurance
companies. This reference relates to non-qualified (non-IRA) annuities. If a grandparent
invests money into a non-qualified annuity for the benefit of a grandchild the gains
are taxable to the grandparent when the money is taken. The retired grandparent may
likely be in a lower tax bracket than their younger children. Also money held in the
grandparent’s name will not be counted against the child or grandchild when grants
or scholarships are requested. Money invested is after-tax contributions and designed
to grow tax-deferred. Any distribution from an annuity is considered interest (or gains)
first and therefore taxable. All distributions taken before age 59 ½ are subject to a
10% IRS penalty.


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