saving. two cultural myths: z“if you have it, spend it; and if you don’t have it, spend it...
TRANSCRIPT
![Page 1: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/1.jpg)
Saving
![Page 2: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/2.jpg)
Two Cultural Myths:
“If you have it, SPEND it; and if you don’t have it, spend it anyway.”
![Page 3: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/3.jpg)
Two Cultural Myths:
“If you have it, SPEND it; and if you don’t have it, spend it anyway.”
“It is futile to save.”
![Page 4: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/4.jpg)
The Wise Saver
One who builds, preserves, and invests with discernment.
![Page 5: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/5.jpg)
The Mind and Heart of God on Saving
It is wise to save.
![Page 6: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/6.jpg)
The Mind and Heart of God on Saving
It is wise to save. It is sinful to hoard.
![Page 7: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/7.jpg)
Saving versus Hoarding
Saving is putting money aside for APPROPRIATE goals.
![Page 8: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/8.jpg)
Saving versus Hoarding
Saving is putting money aside for APPROPRIATE goals.
Hoarding is continuing to put money aside after our goals are reached.
![Page 9: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/9.jpg)
How Can We Avoid Hoarding?
Understand our TENDENCIES
![Page 10: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/10.jpg)
How Can We Avoid Hoarding?
Understand our TENDENCIESAnswer the question: “When is enough,
enough?”
![Page 11: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/11.jpg)
Your Money Tendency
Group Activity:
![Page 12: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/12.jpg)
Savings Is:Money you KEEPNot money we have lost or given upFuture spending
![Page 13: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/13.jpg)
Compound Interest Is:
Interest earning interest, earning interest
![Page 14: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/14.jpg)
Compound Interest Example
$100 @ 10% = $10 interest$110 @ 10% = $11 interest
The extra $1 is compound interest.
![Page 15: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/15.jpg)
THE POWER OF COMPOUND INTEREST ($100/month at 10% interest)
0
20000
40000
60000
80000
100000
5 10 15 20
YEARS
DO
LL
AR
S
Interest
Principal
20 Year Period
![Page 16: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/16.jpg)
THE POWER OF COMPOUND INTEREST($100/month at 10% interest)
0
100000
200000
300000
400000
500000
600000
700000
5 10 15 20 25 30 35 40
YEARS
DO
LL
AR
S
Interest
Principal
40 Year Period
![Page 17: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/17.jpg)
Three Kinds of SavingsEMERGENCY savings
![Page 18: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/18.jpg)
Three Kinds of SavingsEMERGENCY savingsReplacement savings
![Page 19: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/19.jpg)
Three Kinds of SavingsEMERGENCY savingsReplacement savingsLONG-TERM savings
![Page 20: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/20.jpg)
Spending Plan Application
Individual Activity:
![Page 21: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/21.jpg)
Key Question:
If giving is so right and saving is so wise, why are they so hard to do?
![Page 22: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/22.jpg)
Cultural Order
LifestyleDebtSavingGiving
![Page 23: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/23.jpg)
God-Honoring Order
Giving
Saving
Lifestyle
![Page 24: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/24.jpg)
Transitional Order
Give. . . somethingSave. . . a littleDebt. . . maximize repaymentLifestyle. . . Spartan
![Page 25: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/25.jpg)
Debt
![Page 26: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/26.jpg)
“Debt is expected and UNAVOIDABLE.”
Cultural Myth:
![Page 27: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/27.jpg)
The Cautious Debtor Is:
One who avoids entering into debt, is careful and strategic when incurring debt, and always repays debt.
![Page 28: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/28.jpg)
Biblical Guidelines:
Repay debt
AVOID debt
![Page 29: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/29.jpg)
Proverbs 22:7
“The borrower is servant to the lender”
![Page 30: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/30.jpg)
Three Spiritual Dangers of Debt:
Presumes on the future Denies God the opportunity to TEACH USFosters ENVY and greed
![Page 31: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/31.jpg)
Five Kinds of Debt:
AutoHomeEducationBusinessCREDIT CARD
![Page 32: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/32.jpg)
There is no wise use of a credit card.
![Page 33: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/33.jpg)
Credit Card Studies:Family spending using a credit card
versus cash Amount spent (with a credit card) rose
between 20% and 30%.
![Page 34: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/34.jpg)
Credit Card Studies:Family spending using a credit card
versus cash Amount spent (with a credit card) rose
between 20% and 30%.
Pocket camera purchase using cash versus a credit card Cash group paid an average of $29.58 Credit card group paid an average of $52.67
![Page 35: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/35.jpg)
Two Reasons Credit Card Users Spend More
Using a credit card is psychologically different than using cash.
No RECORD of how much we’ve charged until the end of the month
![Page 36: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/36.jpg)
Credit Card Rules:
Use only for BUDGETED itemsPay the balance in full every monthIf you violate rule one or rule two, cut
up your cards
![Page 37: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/37.jpg)
Credit Card Tips:
Have only one cardConsider the use of a DEBIT cardConsider deducting the amount from
your checkbook balance
![Page 38: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/38.jpg)
Debt Example
You owe $7,200 @ 18.1%(Minimum payment = 2% of the balance or $10/month whichever is greater.)
![Page 39: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/39.jpg)
Debt Example
You owe $7,200 @ 18.1%(Minimum payment = 2% of the balance or $10/month whichever is greater.)
You Pay Total Paid Time
$Minimum/month $23,049 30+ years$150/month $13,387 8 years$150 + $100/month $ 9,570 3 years
![Page 40: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/40.jpg)
Is God big enough and are you committed enough to find a little over $3 a day somewhere in your expenditures?
Key Question:
![Page 41: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/41.jpg)
Principles for Accelerating Debt Repayment:
Pay off your SMALLEST debt first.As a debt is repaid, roll the amount you
were paying to the next largest debt.Incur no new debt!
![Page 42: Saving. Two Cultural Myths: z“If you have it, SPEND it; and if you don’t have it, spend it anyway.”](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649e015503460f94aebea0/html5/thumbnails/42.jpg)
Spending Plan Application
Individual Activity: