This document provides information about personal financial discipline and budgeting from a Christian perspective. It emphasizes that lack of financial knowledge can destroy families and recommends creating a budget to gain control over spending. A budget accounts for all monthly income and expenses to identify areas where money can be reduced or eliminated in order to pay bills and save for the future. The document provides guidelines for creating a budget and suggests using any surplus funds to build savings, pay down debts, and invest for long-term goals like retirement.

1. Financial Literacy Personal Financial Discipline

2. Terms of use Families and lives are destroyed from a lack of knowledge about personal finances. This is one of a series of Microsoft PowerPoint 2007 presentations intended to help people understand a variety of financial subjects from a Christian perspective. They are a work in progress created and Copyright © 2009 By James C. Johnston 1364 Cordova Ave, Ft Myers, FL 33901 239.332.0028 All Rights Reserved Use is subject to the following limitations: You may try it for free; You may give copies to others, as long as there is no charge for doing so; If you find any mistakes or omission, have suggestions or make any changes in it, share them with the author so that appropriate corrections and additions can be made; and, If you find them useful and you are moved to do so, you may make some financial contribution in recognition of the value of the time and effort that went into their creation and distribution, and to encourage updating and improving them. Be Blessed!

3. Personal financial discipline is . . . . . . the self imposed systematic modification of the way you think about money and your spending habits, with the goal of becoming a Faithful Financial Steward (and at the same time, live better for less , become debt free and save for the future). It may require Doing some things you don’t want to do, and Refraining from some things you want to do.

5. review The Enemy of Faithful Financial Stewardship is raising your standard of living by accumulating consumer debt. The principle access to consumer debt is the “Credit Card.” Personal Financial Discipline requires taking control of your Credit Card and Shopping habits.

6. Credit card highlights Consider a debit card or pre-paid card. Pay on time - all the time! Pay-In-Full Monthly - If you can’t pay in full, always pay more than the minimum payment. Don’t use credit cards for cash advances. Don’t routinely carry your credit cards. Use a credit card register to track spending. Keep a “rainy day” credit card.

7. shopping Stop Recreational Shopping. Plan to shop and Stick To The Plan. Avoid temptation.

8. Financial records . . . Financial Discipline requires gathering and both regularly updating and reviewing personal financial information.

9. The starting point is Balancing yourcheck book Most people are not good money managers and can’t even balance their check book.

10. Listing debts Most people don’t know who and how much they owe, which is essential to taking control of your debt issues.

11. Debt repayment schedule Developing a plan to repay debt and tracking progress is an important to financial discipline.

12. Estimated Monthly Budget An “Estimated Monthly Budget” is a helpful, if not an essential, means to Financial Disciplined.

13. A family budget . . . . . . is a tool to help monitor a family’s income and expenses by planning for expenses, savings and debt repayment.

14. A Budget does Not . . . Get you out of debt Make your life better Solve your problems Constitute an end, in-and-of itself

15. A budget can . . . Offer a clearer picture of where money is going Help “find money” by revealing waste, un-necessary expenditures and “leaks” Provide information needed to set priorities and develop plans to reach goals Reveal opportunities to increase income

16. What you do with the information . . . . . . IS UP TO YOU!

17. You can ignore it . . . And Stick Your Head In The Sand

18. You can commit to . . . . . . using the information to discipline your financial life – for the rest of your life! Take a Stand!

20. THRIFTY – They Will Not Spend It All

21. INTUITIVE BUDGETERS Even these do better on a budget Most people who don’t budget eventually have financial troubles.

22. A FAMILY BUDGET is . . . . . . A Family’s plan to manage the money that comes into their home. Your Budget For Your Family ≠ Your Family Budget

23. A FAMILY BUDGET It accounts for all spending (including weekly, monthly, quarterly, semi-annual and annual items) so that money is put aside monthly to pay them as they come due. Frequently expressed as a “monthly budget,” which is a “yearly budget” divided by 12.

24. Estimated Monthly Budget An “Estimated Monthly Budget” is included in handouts. There are many other good forms.

25. BUDGET guidelines

26. BUDGET guidelines

27. BUDGET guidelines

28. BUDGET guidelines

29. BUDGET guidelines

30. Entering Financial information Looking For 1/12th Annual Totals Weekly Sums X 4.33 = Monthly Equivalent Annual Sums ÷ 12 = Monthly Equivalent Quarterly Sums ÷ 4 = Monthly Equivalent

31. Three main parts of budget Net Spendable Income (Total Living Expenses) Surplus or Deficit

33. As you record expenses . . . Find A Place To Record Everything Only Record Things Once Look for opportunities to Eliminate Expense Items Entirely Reduce Those You Can’t Eliminate Make a List of those areas where you can eliminate or reduce expenses

34. Gross income Salary Interest Dividends Alimony/Child Support Social Security & Public Benefits Pension Benefits Other Income Giving Taxes (Income Related)

35. Living expenses (housing 25% - 38%) Mortgage or Rent Second Mortgage Home Insurance Property Taxes Electricity Gas Water & Sewer Garbage & Trash Collection Telephone Maintenance Cleaning & Supplies Association or Condo Fees & Assessments Other

36. Living Expenses (food) Food (10% - 15%) Eating Out Transportation (10% - 15%) Loan or Lease Payments Gas & Oil Insurance Maintenance, Repair & Replacement Other

37. Living expenses (entertainment) Entertainment & Recreation (4% - 7%) Baby Sitters Vacations Pets Other Clothing (4% - 6%) Savings & Investments (5% - 25%)

38. Living expenses (insurance) Insurance (3% - 7%) Life Insurance Medical Insurance Disability Insurance Other Debts Except Auto (0% - 10%)

39. Living expenses (medical) Medical & Dental (4% - 8%) Doctor Prescriptions Other School & Child Care (5% - 10%) Tuition Day Care Student Loans Other

40. Misc. Living expenses (4% - 8%) Alimony & Child Support Toiletries & Cosmetics Laundry & Cleaning Children’s Allowances Subscriptions Birthdays & Anniversaries Weddings & Showers Christmas Presents Postage Accounting /Legal Fees Education Other

41. reconciliation Net Spendable Income ­Total Living Expenses Deficit

42. If you have a deficit Identify Areas Where You Can Cut Back If You Can’t Pay All - Prioritize Obligations Secured Debt: Home Mortgage Auto Loans Unsecured: Small Balance High Interest “Rainy Day” Credit Card Get creative

43. BECOME CREATIVE “We just sat in the hot car for 6 hours and bickered. It was like taking a vacation, but we saved $1,000.

44. reconciliation Net Spendable Income ­Total Living Expenses Surplus

45. Suggestions for use of a surplus: Create A Cash Reserve Prioritize & Pay Off Debts Low Balance Accounts High Interest Debt Secured Debts Bankruptcy Invest & Save

47. So we can worry before we spend money rather than after we spend it! Why bother to budget?

49. Being debt free & in control is sweet

50. Confused?

51. Later Can Be Too Late!

52. resources Faith Fellowship (239) 278-3638 Christian Financial Counseling http://www.cfcswf.org/ (239) 337-2122