Presentation about how to prepare yourself financially prior to a job loss.

1. Financial Fitnessin a time of job loss or career transition EFree Career Forum Meeting July 8, 2010 Michael Meyer EFree & Crown Money Map Coach

2. Summary Fundamental Truths The Harsh reality of work ARM yourself for unemployment or underemployment Assess Current Situation Identify Risk Risk Mitigation

3. Truths Believers experience periods of financial abundance and can lack financial prosperity Job 1:8-21, Gen. 37:23-28, 39:7-20, Joshua 1:8 2 Corinthians 11:23-37 Ps. 73:1-20 God loves us. Jn. 3:16, Luke 12:7, 12:27-31 God wants us to work Prov. 10:4-5, 6:9-11, 12:11, 12:24, 27 14:23 I Thess. 4:11-12

4. The Harsh Reality of Work More than half of people (56%) are concerned about losing their job in the next year. Americans surveyed (50%) say they could meet their financial obligations for one month Americans say (59%) they would be somewhat or very concerned about filing for bankruptcy if they lost their job. Mass affluent Americans (53%) identify themselves at risk if they were to lose their job. Americans (75%) have been touched by unemployment over the last year. 20% have lost a job and 55% have a friend, relative or neighbor that has lost a job due to the financial crisis. The 2009 MetLife Study of the American Dream

5. How Household Savings Stack Up in Asia, the West and Latin America Bloomberg Businessweek June 14- June 20, 2010, Global Economics

6. Bankruptcies Other reasons Bad investment Crime victim Credit card overspending Natural disaster Other explanation No explanation “Big Three” Reasons Job Loss Medical problems Divorce or separation Source: 2001 Bankruptcy Project The Two Income Trap Why Middle Class Mothers and Fathers are Going Broke, Elizabeth Warren, 2003

8. Assess Current Financial Position Seek God, pray for wisdom and guidance. Prov. 8:10-11, 18-19, 16:16, Eccl.7:12, James 1:5, 5:13 Start/continue a daily time with God, journal. Create a “List of worries/fears and pray over them”. Define your monthly financial needs. Define your available savings and contingency fund/s. Define your assets and liabilities. Define the time to exhaust funds/assets. Luke 14:28 Prioritize which liabilities must be paid, deferred, addressed.

9. Risk Identification Define bills that must be paid and bills that can be deferred. Medical & dental insurance coverage. Education for children (private school), approaching the institution for scholarships or moving children to public school Child care/coverage options if required.

10. Mitigate the Risk Ask your employer for assistance in finding a new position. Ask for severance pay if it is not offered. Immediately move to a “crisis spending plan”. Commit to live on income Commit to incurring no debt Regularly communicate with your spouse. Regularly communicate with your church. Eliminate all discretionary spending and delay any unnecessary spending.

11. A Spending Plan“Simple and Complex Truth” “We never lived on a budget. We tithe, we save and we live on the rest, it is as simple as that ” Chuck Cromer West Springs Elder “The main thing, the primary thing that keeps us from living up to a high level of commendable stewardship is usually not because we don't understand what needs to be done. We know what needs to be done, …….we don't do it. We don't execute the game plan. Why not? Because the game plan requires us to master, ……our old natures. The nature that wants what it wants, puts self-gratification at the center of the decision-making process, that abhors sacrifice.” Sound Mind Investing Weekly Update August 19, 2009

12. Mitigate the Risk(continued) Take care of yourself physically and mentally Approach lenders and creditors Access the contingency fund if available Sell “stuff” – Craig’s List, Ebay, Garage Sale Sell assets Roth IRA’s , 401-K’s (tax deferred items as last resort). Network with various people Is spouse working can they add hours or benefits?

13. Money Map Coaching Process The earth is the Lord’s and everything in it The rich rule over the poor and the borrower is servant to the lender I have learned the secret of being content in any and every situation…. I can do everything through him who gives me strength It is more blessed to give than to receive. Train up a child in the way he should go and when he is old he shall not turn from it.

14. Path Forward Unemployed - Move to crisis spending plan, take care of needs, network to new position Employed – prepare for the worst, make your way down the “Money Map” Transition – Develop a plan, work your plan ensure an adequate contingency plan and fund is in place to financially support you and your family.