Navigating Your Finances NAVIGATING FINANCES GOD’S WAY This DVD Series will improve your life and your finances . . . . . . because you will be learning what God says about handling money. Navigating Your Finances is for everyone--single or married, young or old, whether you earn a lot or a little. Amazingly the Bible has 2,350 verses dealing with money and possessions, and 15 percent of everything Jesus said had to do with it. And as you apply these principles, you’ll enjoy more financial health, freedom, peace and even joy. This six-lesson DVD series is designed to be used in a variety of settings: Small Group • Seminars or Workshops • Individual Study “The practical principles in this study are powerful and like-changing because they are based on the Bible. My only regret is that I did not take the course twenty years ago. Don’t make the same mistake!” —JOE GIBBS, FORMER NFL HEAD COACH AND FOUNDER OF NASCAR’S JOE GIBBS RACING TM
NAVIGATING YOUR FINANCES GOD’S WAY DVD SERIES Workbook
Copyright © 2014, Compass—finances God’s WayTM All Rights Reserved Orlando, Florida (407) 331-6000 Compass1.org ISBN 978-0-9914619-4-3 We gratefully acknowledge the generosity of GoodLife45 that made this Navigating Your Finances God’s Way DVD Series possible. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice. If legal advice or other expert professional assistance is required, the services of a competent professional person should be sought. – From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations. Published by Compass – Finances God’s Way, Inc. Verses identified as (NIV) are taken from the Holy Bible: New International Version. Copyright ©1973, 1978, 1984 by the International Bible Society. Used by permission of Biblica. Verses identified as (TLB) are taken from The Living Bible. Copyright ©1971 by Tyndale House Publishers, Wheaton, IL. Used by permission. All other verses are taken from the New American Standard Bible. Copyright ©1960, 1962, 1963, 1968, 1971, 1972, 1973, 1975, 1977 by the Lockman Foundation. Used by permission. September 2014 Edition www.compass1.org
CONTENTS CHAPTER PAGE LET’S GET PRACTICAL GOD’S PART........................ 5 Deed & Personal & OUR PART Financial Statement DEBT & COUNSEL............. 17 Debt List & Snowball ‘Em! GENEROSITY..................... 27 Recording Your Income & HONESTY and Sending SAVING & INVESTING....... 41 Estimated Monthly Budget WORK & CHILDREN.......... 51 Teaching Children to Handle Money FINISHING WELL............... 61 Your Financial Goals ANSWER KEY.................... 73 PRAYER REQUESTS......... 75
Welcome! Thank you for your interest in discovering how to handle your finances God’s way. This DVD Series contains six lessons, each with its own 20-minute DVD. It may be used in a variety of settings: a class, workshop, seminar, small group, or as an individual study. This Workbook will help you apply what you’re learning. Each chapter contains: The DVD Notes—an outline containing blank spaces for you to fill-in key words as you watch the DVD. The Let’s Talk It Over section—questions to discuss with the group after viewing the DVD. An optional Dig Deeper ssection for those who wish to better grasp God’s way of handling money. It includes a scripture to memorize, additional scriptures dealing with money, questions to answer, and an opportunity for you to work on a helpful financial exercise. A Prayer Log for class members to take prayer requests so they can pray for one another during this series. Please visit the Compass Website for a host of additional financial resources— all from God’s point of view. We are deeply grateful for your interest in learning how to navigate your finances God’s way! Howard Dayton Founder, Compass—finances God’s wayTM
CHAPTER ONE God’s Part & Our Part “If therefore, you are not faithful in the use of worldly wealth, who will entrust the true riches to you” (Luke 16:11).
NAVIGATING YOUR FINANCES GOD’S WAY DVD Notes How we handle 1. Money is a primary competitor with Christ for the lordship money has a of our life. “No one can serve two masters; for either he significant impact will hate the one and love the other . . . you cannot serve on our relation- God and _________ (Matthew 6:24). ship with Christ. “If therefore, you Scripture tells us how to earn, give, save, spend, invest, are not faithful in the use of world get out of debt, and teach children about money. In short, wealth, who will Bible addresses every area of handling money. entrust the true riches to you” 2. The way most people operate a business is so _d_i_f_fe_r_e_n_t_ (Luke 16:11). from God’s way. “‘For my thoughts are not your thoughts, neither are your ways my ways,’ declares the Lord” (Isaiah 55:8, NIV). GOD’S PART 3. The Lord owns everything in the world, including our possessions. “To the Lord your God belong . . . the earth and _e_ve_r_y_t_h_in_g_ in it” (Deuteronomy 10:14, NIV). 4. If we are going to be genuine followers of Christ, we must transfer the _________ of our possessions to the Lord. Jesus said, “No one can be My disciple who does not give up all his own possessions” (Luke 14:33). 5. The first step in learning ___________ is recognizing God is the owner of all your possessions. 6
GOD’S PART & OUR PART 6. As we acknowledge God’s ownership, we no longer ask, NOTES “Lord, what do You want me to do with my money?” The question becomes, “Lord, what do You want me to do with ___Y_o_u_r___ money?” When we have this perspective, spending and saving decisions are equally as spiritual as giving decisions. OUR PART 7. Our responsibility is summed up in 1 Corinthians 4:2: “It is required in stewards that one be found _________.” 8. “He who is faithful in a very ___l_it_tl_e___ thing is faithful also in much” (Luke 16:10) COMPASS MONEY MAP The Compass Money Map is easy to follow, and works for everyone, regardless of your financial situation. You may not reach the final destination, but you can make progress. And I have great news for you: Each destination along the way brings you greater financial freedom and stability. The Compass Money Map answers two big financial questions: where am I financially, and what do I do next? 9. Once you know where you are on the map, the next step is to focus on accomplishing the ___f_ir_s_t___ destination you haven’t completely finished. 7
NAVIGATING YOUR FINANCES GOD’S WAY COMPASS MONEY MAP 8
GOD’S PART & OUR PART NOTES 9
NAVIGATING YOUR FINANCES GOD’S WAY Poor, Rich, or Faithful Joseph is an example of a faithful person who experienced prosperity and poverty. Prosperous Head of Prime Family Household Minister Slave Prisoner The Bible doesn’t teach that godly people must be poor. Nor does it promise them to always be rich. The Bible says we’re to be faithful stewards of our possessions whether we have a lot or a little. The Deed & Personal Financial Statement In the Dig Deeper Section, to help you recognize God’s owner- ship of possessions, you can complete a deed transferring the ownership to Him. This deed is solely for your use. You can also complete a Personal Financial Statement to get a picture of your current financial situation. Let’s Talk It Over 1. What did you learn from the viewing Chapter 1—Introduction that proved to be especially helpful or challenging? 10
GOD’S PART & OUR PART 2. How do you think the Scriptures might help you make wise NOTES financial decisions? 3. Who really owns your money and possessions? How should this perspective impact your thinking? 4. What benefits do you hope to receive from participating in the Navigating Your Finances God’s Way DVD Series? 5. Take several minutes to examine the Compass Money Map on pages 8 and 9. Check off the items you have already completed. What did you learn by checking them off? 11
NAVIGATING YOUR FINANCES GOD’S WAY Dig Deeper After each session, there are optional items you may complete to help you learn how to handle your finances God’s way. There is a scripture to memorize, ques- tions to answer, and another step to take on better understanding how to make progress on the Compass Money Map. SCRIPTURE TO MEMORIZE “The earth is the Lord’s, and all it contains” (Psalm 24:1). QUESTIONS TO ANSWER 1. Read 1 Corinthians 4:2, “It is required in stewards that one be found faithful.” According to this verse what do you think you are required to do as a steward? How would you define a steward? 2. How can you learn what you need to do to become faithful 3. Are you faithful to handle money God’s way? (Rate yourself on a scale of 1-10, with 10 being the most faithful). If your need to improve your faithfulness, what do you plan to do? 12
GOD’S PART & OUR PART 4. After you complete the Deed on page 14, what were the most important insights you learned from completing it? THE DEED To help recognize God’s ownership of possessions, we will transfer the ownership of our possessions to Him. We will use a Deed, because one is often used to trans- fer property. This deed is not legally binding. By completing the Deed, you will establish a time when you acknowledge God’s ownership. Here are the directions to complete it. 1. Insert today’s date at the top of the Deed. Then print your name in the space after “From,” because you are transferring ownership of your possessions. 2. There is a large blank space following the sentence, “I (we) transfer to the Lord the ownership of the following possessions.” Please pray about the possessions you wish to acknowledge that God owns, and write them in the space. 3. In the lower right hand corner there are two blank lines under the heading “Stewards”. This is the space for your signature. If you are married, both you and your spouse should sign. In the lower left-hand corner there are two blank lines for the signatures of witnesses. 13
NAVIGATING YOUR FINANCES GOD’S WAY 14
GOD’S PART & OUR PART THE PERSONAL FINANCIAL STATEMENT Complete the Personal Financial Statement on the next page to get a picture of your current financial situation. This is the first step in getting a grasp on your finances. It’s not necessary to be precise to the penny; rather, estimate the value of each asset and the amount of each liability. We recommend that you revise your Personal Financial Statement once a year to keep abreast of your progress. 15
NAVIGATING YOUR FINANCES GOD’S WAY PERSONAL FINANCIAL STATEMENT ASSETS (Present value) Cash on hand/Checking account ___________ Stocks and Bonds ___________ Cash value of life insurance ___________ Home ___________ Other real rstate ___________ Mortgages/Notes Receivable ___________ Business valuation ___________ Automobiles/Vehicles ___________ Furniture ___________ Jewelry ___________ Other personal property ___________ Pension/Retirement plan ___________ Other Assets ___________ Total Assets ___________ LIABILITIES Credit card debt ___________ Automobile loans ___________ Home Mortgage ___________ Other real estate mortgages ___________ Personal debts to relatives ___________ Business loans ___________ Medical/Other past due bills ___________ Life insurance loans ___________ Bank loans ___________ Other debts ___________ Total Liabilities ___________ NET WORTH (total assets minus total liabilities) ___________ 16
CHAPTER TWO Debt & Counsel “The borrower is slave to the lender” (Proverbs 22:7, NIV)
NAVIGATING YOUR FINANCES GOD’S WAY DVD Notes DEBT The Bible discourages debt. “Keep out of debt and owe nothing to anyone” (Romans 13:8). 1. “The borrower is ___s_la_v_e___ to the lender” (Proverbs 22:7). 2. In the Old Testament, being out of debt was a reward for _o_b_e_d_ie_n_c_e_. “If you diligently obey the Lord your God, being careful to do all His commandments. . . All these blessings shall come upon you . . . You shall lend to many nations, but you shall not borrow” (Deuteronomy 28:1, 12). 3. Debt was one of the curses for disobedience. The decision to “If you will not obey the Lord your God. . . all these curses borrow is often ________ shall come upon you. The alien who is among based on the you shall rise above you higher and higher. . . He shall assumption that lend to you, but you shall not lend to him” we’ll earn enough (Deuteronomy 28:15, 43). to repay the debt. Debt presumes upon tomorrow “Come now, you who say, ‘Today or tomorrow we will go to such and such a city, and spend a year there and engage in business and make a profit.’ Yet you do not know what your life will be like tomorrow” (James 4:13-14). 18
DEBT & COUNSEL GETTING OUT OF DEBT NOTES 4. First ___p_ra_y____. 5. Create as much monthly __s_u_r_p_lu_s__ as possible because the more your surplus, the quicker you can pay off debt. You do that by increasing your income or reducing expenses. It’s that simple. 6. _S_n_o_w__b_al_l_ your way out of debt, and here’s how. In addition to making the minimum payments on all your debts, focus on paying off one debt at a time starting with the one with the lowest balance first. After the first debt is paid off, apply its payment toward the next smallest one. After the second debt is paid off, apply what you were paying on the first and second debt toward the third smallest balance. That’s the snowball in action! AUTO DEBT First, pay off your automobile loan and then keep your car for at least three more years. Continue paying the car payment, but to yourself into your own savings account. Then, when you’re ready to replace your car, the saved cash plus the trade-in should be enough to buy a reliable car without going into debt. WHEN CAN WE OWE MONEY? 7. Scripture doesn’t address when we can have debt. We believe it’s possible to owe money for a home mortgage, your education, or a business. But here’s the rule of thumb for this debt: Borrow as ___li_tt_l_e__ as possible, and pay it off as __q_u_ic_k_l_y_ as possible! 19
NAVIGATING YOUR FINANCES GOD’S WAY COSIGNING 8. “It is poor judgment to __c_o_si_g_n__ another’s note, to become responsible for his debts” The words “poor judgment” are better translated “destitute of mind”! When you cosign, you pledge all of your assets as collateral as long as the debt exists, everything you own is at risk. The purpose of COUNSEL counsel is to 9. “The way of a fool is right in his own eyes, but a wise man secure insights and suggestions is he who listens to __c_o_u_n_se_l__” (Proverbs 12:15). that will aid us in making good 10. The Lord’s counsel comes to us through __p_r_a_ye_r__, decisions. directly from His Word, and through others. THE BIBLE 11. “For the Word of God is __l_iv_i_n_g__ and active and sharper than any two-edged sword and able to judge the thoughts and intentions of the heart” (Hebrews 4:12). PEOPLE 12. If you’re married, your __s_p_o_u_s_e_ should be a primary source of counsel. A husband and wife are one, and they need each other to make great decisions. 20
DEBT & COUNSEL Let’s Talk It Over NOTES 1. What was the most helpful thing you learned from the viewing Chapter 2—Debt & Counsel? How will you apply this? 2. Read Romans 13:8. “Keep out of debt and owe nothing to anyone.” How does the Bible view debt? What is your view of debt and how do you feel about your debt situation? 3. If you are in debt, are you committed to get out of it? If you have a plan to eliminate it, please describe it. 21
NAVIGATING YOUR FINANCES GOD’S WAY 4. What are some of the benefits you’ve experienced from seeking counsel? And what hinders you from seeking it? We are warned to avoid the counsel of the wicked. “How blessed is the man who does not walk in the counsel of the wicked” (Psalm 1:1). 5. Why should the Bible also serve as your counselor? Do you consistently read and study the Bible? (Rate yourself on a scale of 1-10, with 10 being the most consistent in reading God’s word.) If you need to improve, what do you plan to do? 22
DEBT & COUNSEL Dig Deeper SCRIPTURE TO MEMORIZE “The way of a fool is right in his own eyes, but a wise man is he who listens to counsel” (Proverbs 12:15). QUESTIONS TO ANSWER 1. Read Proverbs 22:7. “The borrower is slave to the lender” (NIV). How does this verse apply to you personally and to your business, if you have one? 2. Read Psalm 37:21. “The wicked borrows and does not pay back, but the righteous is gracious and gives.” Read Proverbs 3:27-28. “Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, ‘Go, and come back, and tomorrow I will give it,’ when you have it with you.” What do these verses say about debt repayment, and why do you think God gave us these principles? 23
NAVIGATING YOUR FINANCES GOD’S WAY 3. Read Proverbs 22:26-27. “Do not be among those who give pledges, among those who become guarantors for debts. If you have nothing with which to pay, why should he take your bed from you?” What does this passage say about cosigning/guaranteeing the debt of another? How does this apply to you? 4. Read Psalm 32:8, “I [the Lord] will instruct you and teach you in the way which you should go. I will counsel you with My eye upon you.” Does the Lord actively counsel His people? How do you seek the Lord’s counsel? 24
DEBT & COUNSEL DEBT LIST & SNOWBALL‘EM! The Debt List on the following page will assist you in compiling your debt. The Snowball column will help you prioritize the repayment of the debt. The columns on the Debt List are as follows: Creditor—The one to whom the debt is owed. Interest rate—The rate charged for the debt. Monthly payment—The amount of the monthly payment. If payment is due more often than monthly, compute the total amount that is paid each month. If payment is due less frequently, determine the average monthly cost. Balance due—The amount of the outstanding balance Snowball ‘em—The priority of paying off the loans Determine the snowball On pages 8 and 9, review Destinations 2, 3, and 5 from the Compass Money Map dealing with paying off debt. Check off the debt you’ve already paid off. Then start to snowball the first debt you haven’t completely paid off. For example, if you’ve already paid off all your con- sumer debt in destination 3, but haven’t paid off your credit cards in destination 2, that’s where you’ll start: working to pay off your credit card debt. Then snowball your debt: In addition to making the minimum payments on all your debts, pay off one debt at a time starting with the one with the lowest balance first. After the debt is paid off, apply its payment toward the next smallest one. After it’s paid off, apply what you were paying on the first and second debt toward the third smallest balance. That’s how to snowball your debt! 25
NAVIGATING YOUR FINANCES GOD’S WAY DEBT LIST & SNOWBALL ‘EM! CREDITOR INTEREST MONTHLY BALANCE SNOWBALL RATE PAYMENT DUE PRIORITY 26
CHAPTER THREE Generosity & Honesty “Remember the words of the Lord Jesus, that He Himself said, ‘It is more blessed to give than to receive’” (Acts 20:35).
NAVIGATING YOUR FINANCES GOD’S WAY DVD Notes GENEROSITY Attitude in giving 1. “For God so loved the world, that He ___g_av_e___ His only begotten Son” (John 3:16). The only way to 2. “If I give all my possessions to feed the poor . . . but do not consistently give have love, it profits me _n_o_t_h_i_n_g_” (1 Corinthians 13:3). with love, is to give each gift to Jesus Amount to give Christ . . . we can 3. “Honor the Lord from your wealth, from the ___fi_r_st___ of express our love and gratefulness your increase” (Proverbs 3:9-10). by giving our gifts to him. In the Old Testament, giving a tithe, 10 percent of our income, was required. “You have robbed me of tithes and offerings due to me, and so the awesome curse of God is cursing you” (Malachi 3:8). 4. The New Testament builds on the tithe and teaches us to give in _p_r_o_p_o_r_ti_o_n_ to what God has entrusted to us, and it commends sacrificial giving. “Then Jesus said, ‘The poor widow put in more than all the contributors to the treasury; for they gave out their surplus, but she out of her poverty, gave all that she owned, all she had to live on’” (Mark 12:43). 28
GENEROSITY & HONESTY Advantages of giving NOTES “Remember the words of the Lord Jesus, that He Himself said, ‘It is more blessed to give than to receive’” (Acts 20:35). 5. Giving draws our heart to Christ. “For where your treasure is, there your __h_e_a_r_t__ will be also” (Matthew 6:21). Giving develops godly character. 6. Giving is an opportunity to invest for eternity. “Lay up for yourselves _tr_e_a_s_u_r_es_ in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal” (Matthew 6:20). Giving with the proper attitude results in an increase. “There is one who scatters, and yet increases all the more, and there is one who withholds what is justly due, and yet it results only in want. The generous man will be prosperous, and he who waters will himself be watered” (Proverbs 11:24-25). Cycle of generosity We Give Needs Met Lord Produces Increase 29
NAVIGATING YOUR FINANCES GOD’S WAY When we give, we should do so with a sense of expectancy – anticipating that the Lord will provide an increase. What we never know is when or how the Lord may choose to do it. In my experience, He will often surprise us! Places to give 7. Our first priority is our local ___ch__u_rc_h___. “Pastors who do their work well should be paid well and should be highly appreciated, especially those who work hard at both preaching and teaching” (1 Timothy 5:17, TLB). 8. The Lord also emphasizes giving to the ____p_o_o_r___. “The King will say, ‘For I was hungry and you gave Me something to eat; I was thirsty, and you gave Me some- thing to drink.’. . . Then the righteous will answer Him, ‘Lord, when did we see You hungry, and feed You, or thirsty, and give You something to drink?’ . . . The King will answer and say to them . . . ‘To the extent that you did it to one of these brothers of Mine, even the least of them, you did it to Me’” (Matthew 25:34-40, emphasis added). ”He who gives to 9. When we give to the poor, we’re actually helping __Je_s_u_s__ the poor will never Himself. want, but he who shuts his eyes will “‘He pled the cause of the afflicted and the needy; then it have many curses” was well. Is not that what it means to know Me?’ declares (Proverbs 28:27). the Lord” (Jeremiah 22:16). “I delivered the poor who cried for help, and the orphan who had no helper . . . I made the widow’s heart sing for joy . . . I was eyes to the blind and feet to the lame. I was a father to the needy, and I investigated the case which I did not know” (Job 29:12-16). 30
GENEROSITY & HONESTY HONESTY NOTES 10. “You shall not ____st_e_a_l ___ , nor deal falsely, nor lie to one another” (Leviticus 19:11). 11. When we’re __d_is_h_o_n_e_s_t_ we’re acting as if God doesn’t even exist! We believe the Lord is incapable of discovering our dishonesty and that He is powerless to discipline us. 12. Every honest decision _st_r_e_n_g_th_e_n_s_ our faith in God and helps us grow into a closer relationship with Christ. Why we should be completely honest O ur heavenly Father won’t allow us to keep anything we’ve acquired dishonestly. “Wealth obtained by fraud dwindles” (Proverbs 13:11). 13. When we act dishonestly, we’re __s_t_e_a_li_n_g__ from another person. W e may rationalize that it’s only a business or the government suffering loss, but bottom line is that it’s the business owners or other taxpayers from whom we are stealing. It’s just as if we took the money from their wallets. H onesty creates credibility for evangelism. Our Lord wants us to be honest in order to demonstrate the reality of Jesus Christ to those around us. 31
NAVIGATING YOUR FINANCES GOD’S WAY 14. The Lord is especially concerned with the honesty of ___le_a_d_e_r_s__, whether it is a leader of a home, business or government. Why? A dishonest leader produces dishonest followers. “If a ruler listens to lies, all his officials become wicked” (Proverbs 29:12). 15. “You shall not take a ___b_r_i_b_e___, for a bribe blinds the clear-sighted and subverts the cause of the just” (Exodus 23:8). Restitution 16. “He shall restore what he took by robbery or anything about which he swore falsely; he shall make _r_es_t_it_u_t_io_n_ for it in full, and add to it one-fifth more. He shall give it to the one to whom it belongs” (Leviticus 6:4-5). The future of an Honesty is important to God. entire city hung in the balance, 17. “Go up and down the streets of Jerusalem and look and what was the around and search through her squares. If you can find Lord looking for? but __o_n_e___ person who deals honestly and seeks the Just one honest truth, I will forgive the city” (Jeremiah 5:1). person. . . Are you willing to be that person in your community? 32
GENEROSITY & HONESTY Let’s Talk It Over NOTES 1. What was the most helpful or thought provoking thing you learned from the viewing Chapter 3—Giving & Honesty? How will you apply this? 2. Read 1 Corinthians 13:3. “If I give all my possessions to feed the poor . . . but do not have love, it profits me nothing.” And read 2 Corinthians 9:7, “Each one must do just as he has purposed in his heart, not grudgingly or under compulsion, for God loves a cheerful giver.” What do these verses communicate to you about the importance of the proper attitude in giving? How would you describe your attitude in giving, and how do you think you can improve if it needs to be adjusted? 33
NAVIGATING YOUR FINANCES GOD’S WAY 3. How do you think you can more effectively give to the poor? “If you love 4. Read Leviticus 19:11. “You shall not steal, nor deal falsely, your neighbor nor lie to one another.” as much as you love yourself, What does this verse say to you? Are you completely hon- you will not want est? (Rate yourself on a scale of 1-10, with 10 being the to cheat him, or most honest). If you need to improve in this area, what do steal from him you plan to do? . . . love does no wrong to anyone” (Romans 13:9-10, TLB). 5. Read Exodus 23:8, “Do not accept a bribe, for a bribe blinds those who see and twists the words of the righteous.” What does the Bible say about bribes? Have you ever been asked to give a bribe? If so, describe what happened? 34
GENEROSITY & HONESTY Dig Deeper SCRIPTURE TO MEMORIZE “Remember the words of the Lord Jesus, that He Himself said, ‘It is more blessed to give than to receive’” (Acts 20:35). QUESTIONS TO ANSWER 1. Read Acts 20:35. “Remember the words of the Lord Jesus, that He Himself said, ‘It is more blessed to give than to receive.’” How does this truth from God’s economy differ from the way most people view giving? Share a time when you experienced this truth. 2. Read 2 Corinthians 8:1-5. “Now, brethren, we wish to make known to you the grace of God which has been given in the churches of Macedonia, that in a great ordeal of affliction their abundance of joy and their deep poverty overflowed in the wealth of their liberality. For I testify that according to their ability, and beyond their ability they gave of their own accord, begging us with much entreaty for the favor of participation in the support of the saints, and this not as we expected, but they first gave themselves to the Lord and to us by the will of God.” Describe the principles from this passage that should influence how much to give. 35
NAVIGATING YOUR FINANCES GOD’S WAY 3. Read Galatians 2:9-10. “They [Peter, James and John] only asked us to remember the poor—the very thing I [the apostle Paul] also was eager to do.” What does this verse say to you about the importance of giving to the poor? 4. Read Leviticus 6:4-5. “Then it shall be, when he sins and becomes guilty, that he shall restore what he took by robbery . . . or anything about which he swore falsely; he shall make restitution for it in full and add to it one-fifth more. He shall give it to the one to whom it belongs.” And read Luke 19:8. “Zacchaeus stood up and said to the Lord, ‘Look, Lord! Here and now I give half of my possessions to the poor, and if I have cheated anybody out of anything, I will pay back four times the amount’” (NIV). What does the Bible say about restitution? If you have acquired anything dis- honestly, what do you need to do? 36
GENEROSITY & HONESTY 5. Read Jeremiah 5:1. “Go up and down the streets of Jerusalem and look around and search through her squares. If you can find but one person who deals honestly and seeks the truth, I [the Lord] will forgive the city.” What does this passage say to you about the importance of honesty from God’s point of view? Are you willing at this time to commit to become a completely honest person? If not, why? RECORDING YOUR INCOME AND SPENDING Many people are uneasy when considering a budget. A budget is often viewed as something that will mean a loss of freedom and endless hours of detailed account- ing. But if properly understood and used, a budget can be enormously valuable for you. A budget is simply a plan for spending money—that’s why we prefer to call it a Spending Plan! The first step is to begin recording your income and spending to help you deter- mine more accurately what you are actually earning and spending. This will be important to know later on when you complete the estimated budget. 37
NAVIGATING YOUR FINANCES GOD’S WAY RECORDING YOUR INCOME AND SPENDING Date Description Amount Amount of Spending Income ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ 38
GENEROSITY & HONESTY RECORDING YOUR INCOME AND SPENDING Date Description Amount Amount of Spending Income ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ ____ __________________________________ _________ _________ 39
CHAPTER FOUR Saving & Investing “Steady plodding brings prosperity; hasty speculation brings poverty” (Proverbs 21:5, TLB).
NAVIGATING YOUR FINANCES GOD’S WAY Saving means not DVD Notes spending today so you’ll have The Bible encourages us to save. something to 1. “The wise man ___s_a_v_e_s___ for the future, but the foolish spend in the future. man spends whatever he gets” (Proverbs 21:20, TLB). 2. The best way to save it to make it a __p_r_i_o_r_it_y__ and make it automatic. When you receive income, the first thing you should do is to give to the Lord, and the second thing is to make a deposit into your savings. 3. The biblical framework for investing. Become a _s_te_a_d_y__p_lo_d_d_e_r_. “Steady plodding brings prosperity; hasty speculation brings poverty” (Proverbs 21:5, TLB). The key to become a successful investor is to spend less than you earn, and consistently save and invest the differ- ence over a long period of time. The principle of _c_o_m__p_o_u_n_d_i_n_g_. Compounding occurs when the earnings your investments produce are added to the principle, allowing both the earn- ings and the principle to grow exponentially. There are three variables in compounding. • The __a_m__o_u_n_t__ you save. • The rate of interest (return) you earn on an invest- ment. • ___T_i_m__e___ is the third factor in compounding. 42
SAVING & INVESTING The principle to __d_i_ve_r_s_if_y__. NOTES “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth” (Ecclesi- astes 11:2). There is no investment without risk, so we should diversify and not put all of our investment eggs in one basket. Avoid ___r_i_s_k_y___ investments. 4. Gambling Make a _c_o_m_m__it_m__en__t never to bet even one penny even for entertainment. We should not expose ourselves to the risk of becoming a compulsive gambler, nor should we sup- port an industry that enslaves so many. 5. Save and invest only when we’re also ___g_iv_i_n_g___. “The land of a certain rich man was very productive. And he began reasoning to himself, saying, ‘What shall I do, since I have no place to store my crops?’ And he said, ‘This is what I will do: I will tear down my barns and build larger ones, and there I will store _____a_ll____ my grain and my goods. And I will say to my soul, “Soul, you have many goods laid up for many years to come; take your ease, eat, drink and be merry.’” But God said to him, ‘You fool! This very night your soul is required of you; and now who will own what you have prepared?’ So is the man who lays up treasure for himself and is not rich toward God. For where your treasure is, there will your heart be also” (Luke 12:16-21). It is legitimate to save and invest only when we are also giving to the Lord. Why? “Where your treasure is, there will your heart be also” (Matthew 6:21). For our heart to be focused on Christ and not on our savings, we must give consistently to Lord. We should balance our savings with our giving, by giving at least as much as we are saving. 43
NAVIGATING YOUR FINANCES GOD’S WAY Let’s Talk It Over The Bible doesn’t 1. What was the most helpful thing you learned from the teach an amount or viewing Chapter 4—Saving & Investing? How will you percentage to save, practice this? but we recommend establishing the goal of saving at least 10 percent of your income. 2. Read Proverbs 21:20. “The wise man saves for the future, but the foolish man spends whatever he gets” (TLB). And read Proverbs 30:24-25. Four things on earth are small, yet they are extremely wise; the ants are creatures of little strength, yet they store up their food in the summer” (NIV). Are you a consistent saver? If so, share what methods you use to save. If not, what steps will you take to begin? 44
SAVING & INVESTING 3. The Bible cautions us against risky investments. What NOTES steps can you take that will help protect you against risky investments? 4. Albert Einstein once said, “Compounding is the greatest mathematical discovery of all time, not E=mc2.” How would you define compounding, and how to plan on implementing this investing principle? 5. What are some of the motivations that cause people to gamble, and do these motives please the Lord? Why? Are you committed never to gamble? Explain why or why not. 45
NAVIGATING YOUR FINANCES GOD’S WAY Dig Deeper SCRIPTURE TO MEMORIZE “Steady plodding brings prosperity; hasty speculation brings poverty” (Proverbs 21:5, TLB). QUESTIONS TO ANSWER 1. What are your saving and investing goals? Describe what you will need to do to accomplish these goals? 2. Read 1 Timothy 6:9-10. “People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered away from the faith, and pierced themselves with many griefs.” According to this passage, what is a scripturally unacceptable reason for sav- ing and investing, and why is it wrong to want to get rich? Do you have the desire to get rich? 46
SAVING & INVESTING 3. Read Luke 12:16-12. “The land of a certain rich man was very productive. And he began reasoning to himself, saying, ‘What shall I do, since I have no place to store my crops?’ And he said, ‘This is what I will do: I will tear down my barns and build larger ones, and there I will store all my grain and my goods. And I will say to my soul, “Soul, you have many goods laid up for many years to come; take your ease, eat, drink and be merry.’” But God said to him, ‘You fool! This very night your soul is required of you; and now who will own what you have prepared?’ So is the man who lays up treasure for himself and is not rich toward God. For where your treasure is, there will your heart be also.” Why do you think God called the rich man a fool? According to this parable, why do you think that it is biblically permissible to save only when we are also giving? 4. Read Proverbs 21:5. “Steady plodding brings prosperity; hasty speculation brings poverty” (TLB). And read Ecclesiastes 11:2. “Divide your portion to seven or even eight, for you do not know what misfortune may come up on the earth.” What do these verses communicate about saving and investing, and how will you apply them? 47
NAVIGATING YOUR FINANCES GOD’S WAY ESTIMATED MONTHLY BUDGET The Estimated Monthly Budget is one of the most important practical exercises of the entire study, and for many it proves to be the most difficult. You may be dis- couraged by what your estimated monthly budget reveals. But keep heart—there is hope! Keep using and refining your budget until it balances. ESTIMATED MONTHLY BUDGET TOTAL MONTHLY INCOME ___________ Salary ___________ Interest and Dividends ___________ Other Income ___________ EXPENSES 1. Tithe/Giving ___________ 2. Taxes ___________ 3. Housing ___________ Mortgage or Rent ___________ Insurance ___________ Property Taxes ___________ Utilities & Phone ___________ Maintenance ___________ Cable TV ___________ Other ___________ 4. Food ___________ 5. Transportation ___________ Payments ___________ Gas & Oil ___________ Insurance/License ___________ Main./Repair/Replace ___________ Other ___________ 48
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