WOMEN WINNING IN AREAS OF PERSONAL FINANCE

BUDGETING AND SAVING

CAN YOU BUILD A HOUSE WITHOUT A BLUEPRINT?

ZIG ZIGLER STATES “YOU AIM AT NOTHING, YOU WILL HIT IT EVERYTIME”

TO WIN IN BUDGETING/SAVING, YOU MUST HAVE

WRITTEN GOALS.

ON PAPER...ON PURPOSE

WHY IS A BUDGET IMPORTANT?

HELPS TO ENSURE YOU PAY YOUR BILLS

ON TIME. PEACE OF MIND.

ENSURES YOU HAVE FUNDS TO COVER UNEXPECTED EMERGENCIES

HELPS YOU TO ACHIEVE YOUR FINANCIAL

GOALS

SCRIPTURAL REFERENCES LUKE 14:28 THE MESSAGE (MSG)

28-30 “IS THERE ANYONE HERE WHO, PLANNING TO BUILD A NEW

HOUSE, DOESN’T FIRST SIT DOWN AND FIGURE THE COST SO

YOU’LL KNOW IF YOU CAN COMPLETE IT? IF YOU ONLY GET THE

FOUNDATION LAID AND THEN RUN OUT OF MONEY, YOU’RE

GOING TO LOOK PRETTY FOOLISH. EVERYONE PASSING BY WILL

POKE FUN AT YOU: ‘HE STARTED SOMETHING HE COULDN’T

FINISH.’

HABAKKUK 2:2

AND THEN GOD ANSWERED: “WRITE THIS. WRITE WHAT YOU SEE. WRITE IT OUT IN BIG

BLOCK LETTERS SO THAT IT CAN BE READ ON THE RUN. THIS VISION-MESSAGE IS A WITNESS

POINTING TO WHAT’S COMING. IT ACHES FOR THE COMING—IT CAN HARDLY WAIT! AND IT

DOESN’T LIE. IF IT SEEMS SLOW IN COMING, WAIT. IT’S ON ITS WAY. IT WILL COME RIGHT ON

TIME.

PROVERBS 13:18

REFUSE DISCIPLINE AND END UP HOMELESS; EMBRACE CORRECTION AND LIVE AN HONORED

LIFE.

PROVERBS 22:6

TRAIN UP A CHILD IN THE WAY HE SHOULD GO, AND WHEN HE IS OLD HE WILL NOT DEPART

FROM IT.

MEDITATE DAY AND NIGHT GOD HAS PROMISED ALL OF US PROSPERITY.

GOD WILL SUPPLY ALL YOUR NEEDS ACCORDING

TO HIS RICHES IN GLORY. PHIL 4:19

IF WE AND OBEY AND SERVE HIM …WE SHALL SPEND OUR DAYS IN PROSPERITY AND OUR

YEARS IN PLEASURE. JOB 36:11

NOW UNTO HIM THAT IS ABLE TO DO EXCEEDING ABUNDANTLY ABOVE ALL THAT WE

ASK OR THINK, ACCORDING TO THE POWER THAT WORKETH IN US. EPHESIANS 3:20

I CAN DO ALL THINGS THROUGH CHRIST WHO

STRENGTHENS ME. PHILLIPIANS 4:13

BUDGET GUIDELINES

35% - HOUSING THIS INCLUDES MORTGAGE/RENT, UTILITIES, INSURANCE, TAXES AND HOME INSURANCE/RENTERS INSURANCE 10% - TITHING DO YOU WANT A GROSS BLESSING OR NET BLESSING 10% - SAVING MAKE SURE YOU HAVE 3-6 MONTHS INCOME IN AN EMERGENCY FUND BEFORE YOU START SAVING FOR OTHER GOALS

BUDGET GUIDELINES, CONT.

15% - TRANSPORTATION THIS INCLUDES CAR PAYMENT, AUTO INSURANCE, LICENSE, MAINTENANCE, GASOLINE AND PARKING 15% - DEBT THIS INCLUDES STUDENT LOANS, CREDIT CARDS, PERSONAL LOANS, TAX DEBTS AND MEDICAL DEBTS 15% - OTHER FOOD, CLOTHING, ENTERTAINMENT, CHILDCARE AND VACATIONS.

SET GOALS

1. SAVE A $1,000 (TAKE 52 WEEK CHALLENGE)

2. PAYOFF DEBTS (SMALLEST TO LARGEST)

3. EMERGENCY FUND (THREE TO SIX MONTHS OF EXPENSES)

EMERGENCY FUND SHOULD COVER

SIX MONTHS OF NEEDS

RENT OR MORTGAGE CAR PAYMENT

GROCERIES HEALTH INSURANCE (COBRA

PAYMENTS) OTHER INSURANCE (AUTO, HOME, LIFE)

UTILITIES CHILDREN’S NECESSITIES

WHERE DO I START?

STARTING APRIL 1, 2015

KEEP TRACK OF YOUR INCOME AND SPENDING.

EVERY TIME YOU SPEND CASH, SWIPE THE

DEBIT CARD, CREDIT CARD, EVERY

CHECK, EVERY ONLINE BILL PAYMENT….

PUT THE RECEIPT IN THIS ENVELOPE.

RECORD IT ON YOUR BUDGET SHEET WEEKLY.

2 KEY COMPONENTS OF A BUDGET FOCUS ON ONE MONTH AT A TIME

BUDGET MAY NEED TO BE MODIFIED MONTHLY

1. MONTHLY NET INCOME 2. MONTHLY EXPENSES

MONTHLY NET INCOME

RECORD YOUR INCOME AT THE TOP OF WORKSHEET.

THIS IS THE AMOUNT OF MONEY YOU RECEIVE EACH MONTH

Note: IF YOU ARE RECEIVING A LARGE REFUND CHECK EACH YEAR,

CONSIDER ADJUSTING YOUR DEPENDENTS SO THAT YOU CAN

BRING HOME MORE MONEY EACH MONTH. WHY ALLOW THE

GOVT TO USE YOUR MONEY ALL YEAR WHEN YOU NEED IT?

(EX. $3,000 REFUND IS THE SAME AS $250 ADDITIONALLY EACH MONTH)

THIS IS ACCOMPLISHED BY CHANGING THE W-4 WITH EMPLOYER

MONTHLY NET EXPENSES

WRITE DOWN EVERY SINGE EXPENSE YOU HAVE EACH MONTH.

SUDDENLY, YOU WILL SEE .50 FOR A

SODA EVERY DAY IS ACTUALLY COSTING YOU $50 A MONTH….

BREAKFAST EVERYDAY @ MCDONALDS IS COSTING YOU $60.00……

STARBUCKS EVERY FRIDAY IS COSTING

YOU $10.00 $40 A MONTH

TYPES OF EXPENSES

FIXED EXPENSES/CONTRACTUAL OBLIGATIONS

THESE ARE EXPENSES THAT YOU HAVE COMMITTED TO ON A MONTHLY BASIS. (RENT, MORTGAGE, CAR NOTE, ETC.) THEY BECOME FIXED EXPENSES AFTER YOU SIGN A CONTRACT. SHOP FOR THE BEST VALUE BEFORE COMMITTING TO THE PAYMENT. (REVIEW WORKSHEET)

FLEXIBLE/VARIABLE EXPENSES

IS IT A NEED OR A WANT? WHEN SHOPPING, CONSIDER EVERY PURCHASE. ASK YOURSELF IF YOU REALLY NEED IT, AND IF YOU DO, CAN IT WAIT A WHILE OR CAN YOU GET IT FOR LESS SOMEWHERE ELSE?

RECONCILING THE BUDGET

IF YOUR INCOME EXCEEDS YOUR EXPENSES

EVERY DOLLAR HAS TO BE ACCOUNTED FOR. IF YOUR BUDGET HAS MONEY LEFT OVER AT THE END OF THE MONTH, THOSE FUNDS NEED TO RE ALLOCATED.

IF THEY AREN’T ALLOCATED, YOU LOSE THE OPPORTUNITY TO SAVE FOR EMERGENCY FUND, VACATION OR PAY DOWN DEBT.

IF YOUR EXPENSES ARE GREATER THAN YOUR

INCOME….SEE WHAT EXPENSES CAN BE

ELIMINATED!!

PLANS OF THE DILIGENT LEAD TO PROFIT. PROVERBS 21:5

MAKE SOME CHANGES IN EXPENSES

- DINE IN VS DINE OUT

- DRINK WATER INSTEAD OF SODAS

- STOP SHOPPING EVERY WEEKEND

- USE CASH…..STOP USING THE DEBIT CARD. (SPEND MORE WITH CREDIT

THAN DEBIT AND DEBIT THAN CASH

- WALK, JOG, RUN FOR FREE!

- DO I NEED A CELL PHONE & LANDLINE

- CANCEL MAGAZINE SUBSCRIPTIONS

- INCREASE INSURANCE DEDUCTIBLES

- PURCHASE GENERIC OR OTC MEDS

BEWARE OF ENTICING COMMERCIALS

OTHER SOURCES OF FUNDS ARE AVAILABLE, BUT

BEWARE; THEY MAY NOT BE IN YOUR BEST INTERST.

1. PAYDAY LOANS – AVG INTEREST RATE FROM 390% TO

871%. THEY ARE NO BARGAIN

2. CREDIT CARD ADVANCES – THERE IS AN

ORIGINATION FEE AND USUALLY A HIGHER

INTEREST RATE ON THE ADVANCE AMOUNT

3. TITLE LOAN COMPANIES – BORROWER EXCHANGES

THE TITLE AND SET OF KEYS FOR A LOAN BASED

UPON THE AUTOMOBILE’S VALUE. IF YOU MISS A

PAYMENT, THE AUTOMOBILE CAN BE REPOSSESSED.

MONEY ROBBERS

1. DEBIT CARD SWIPING (SPENDING CASH REQUIRES THOUGHT)

2. EATING OUT (COOK THE GROCERIES YOU PURCHASE)

3. CAR PAYMENTS (BUY WHAT YOU NEED UNTIL YOU CAN GET WHAT YOU WANT)

4. GROCERIES (CLIPPING COUPONS AND BUYING GENERIC)

5. UTILITIES (LIGHTS ON IN EVERY ROOM)

6. CLOTHING (JUST BECAUSE IT IS ON SALE DOESN’T MEAN WE SHOULD BUY IT)

ENVELOPE SYSTEM for Budgeting USE YOUR BUDGET TO CREATE ENVELOPES

Create Envelopes and Stuff Them with Cash

Get an envelope for each category and write the category name on the front.

Then, after each paycheck, put in the budgeted amount of cash. Of course, there

will be budget items that you cannot include in your envelope system, like bills

paid by check or automatic withdraw. However, you can create categories like

food, gas, clothing and entertainment

Spend Cash Only

Once you run out of cash in an envelope, you have met your budget for that pay

period and are unable to spend any more in that category until the next pay

period..

Pay Off Debt with Extra Money or Save It

IT’S UP TO YOU!!

MAKE IT FUN! MUST GET THE FAMILY INVOLVED. IT WORKS WHEN YOU WORK AT IT! IT IS A WAY TO HELP YOU ACHIEVE YOUR GOALS. IF YOU HAVE NEVER DONE IT, DON’T KNOCK IT UNTIL YOU TRY IT)