Midterm My Money Map

1. Decide to keep your car at least 3 years or longer than your car loan 2. Pay off your car loan. 3. After your last payment, keep making the payment, but pay yourself. Put it into an account that you will use to buy your next car. 4. When you are ready to replace your car, the cash you have saved plus your car's trade in value should be sufficient to buy a car without credit.

4 steps to get out of auto debt are...

don't give adult children money if they are not making a serious effort to handle it in gods way

A basic rule of thumb

is the view that once I have tithed, I have fulfilled all my responsibilities to give.

A potential danger of tithing

seek the Lords provision through prayer

A valuable lesson to teach children is to

age 65 have less than $600 in their checking account. Only 3% are financially secure, and 54% are still working, according to USA Today.

A whopping 97% of Americans...

do not survive beyond the second year. Many fail because they do not have a written business plan.

About 80% of all business start-ups...

The Bible does not elevate any profession above another. David was a shepherd and a king. Luke was a doctor. Lydia was a retailer. Daniel was a government worker. Paul was a tentmaker, and Jesus was a carpenter. Regardless of what our culture thinks of your job, God views it as valuable as any other honest job.

All honest professions are honorable.....

so is the other 90%, which most people have learned to handle from the world's perspective.

And although this area is crucial

to true financial freedom, you need to prepare by learning God's financial principles.

And before you begin the journey

legally responsible for the debt of another.

Anytime you cosign you become...

refinancing makes sense when you can pay for its costs within two or three years through what you save each month because of the lower interest rate.

As a rule of thumb...

establishing your spending plan, building up your emergency savings, and getting out of credit card and consumer debt.

As you know the first 3 destinations on your money map focus on...

to improve your job performance.

Be a lifelong learner: Continually seek.....

give, save, and spend Establish the habit of saving as soon as children receive income

Begin with a simple system with 3 boxes

junior year of hs, they should open a checking account and get a secured credit card

By the time your children are in their

the interest you earn is added to the principle, and both earn interest. the amount you save, the rate you earn on your savings, and the length of time you save.

Compounding occurs when... There are three variables in compounding...

that people spend about one-third more when they use credit cards rather than cash.

Credit card companies know...

is where you begin saving to start a business.

Destination 4 on your money map is...

buying an affordable home, beginning to invest, and prepaying the home mortgage.

Destination 5 is...

to your financial health.

Dishonesty is dangerous......

or the government; you need to invest for your retirement

Don't rely solely on an employer...

your payments are almost all interest. In fact, it will be 23 years before the principal and interest portions of the monthly payment equal each other.

During the first several years of a 30 year mortgage...

the habit of giving

Early childhood is the best time to establish

it's a spiritual exercise we work out in gods presence for His glory

Estate planning is not merely a financial or legal matter

than squabbles over inheritance.

Few areas have more potential for harming family relationships

impacts the closeness of our relationship with Him.

First, how we handle our money

refine our character.

God uses money to

We cannot practice dishonesty and love God, We cannot practice dishonesty and love our neighbor, Honesty confirms God's direction

God wants us to be honest for 3 extremely important reasons. They are...

by rest and the other priorities of life.

Hard work, however, must be balanced...

Your total housing expenses should not exceed 40% of your gross income.

How is an affordable home defined here?

Every 3 years First, decide how you want to distribute your assets and how to prepare your heirs for what they will receive.

How often was it suggested to review your estate plan?

Limit your exposure, Cultivate Contentment, and Pray for God to provide

How to resist the calls to spend and spend. What three practical things were suggested to stand against the relentless onslaught of advertising to spend and spend?

says so much about money is that He wants to equip us to handle it wisely.

I continued, "The second reason God

to keep 25% of investments in cash equivalents

I have found it wise

it can provide tremendous benefits, including peace of mind. Lets heirs hear what you want and they can ask questions. It promotes open communication.

I recommend holding a family conference because

pray, read the Bible regularly, and experiment with different areas of service.

Identify your purpose: Three steps that help you do this are

at 18 percent interest, twenty years is about how long it takes to pay off credit card.

If they pay only the monthly minimum........

we must return it to its rightful owner and make restitution

If we have acquired anything dishonestly.......

is to set aside about 30% of your net income for taxes and withholding so you won't be forced to use debt to fund your tax payments.

If you are self-employed, a good rule of thumb...

with less than a 20% down payment, your lender probably will require you to buy mortgage insurance to protect their interests in case you default.

If you buy a home loan...

use this opportunity to reduce the number of years left on your mortgage.

If you refinance...

is even more important than the amount.

In God's economy the attitude

before you buy your home.

It is preferable to start your business...

part of the entire journey.

It's the most important

becoming productive and valuable in the job market. The best way for young children to learn to work is to establish daily household chores for each member of the family.

Learning to enjoy work and develop proper work habits is a giant step toward

at lower rates than ordinary income. Under current tax laws, if you hold an investment for at least a year then sell it for profit, profit will be taxed at favorable long-term capital gains

Long-term capital gains are taxed

In 1984, people were save 10.8% of their income. In 2005, people were saving -0.5%.

Look at Personal Savings Rate chart: compare 1984 to 2005.....

Help you focus on God, Helps you when the going gets tough, helps you stay motivated, helps your relationships

Look at the 4 reasons given for celebrating.

for modeling, verbal communication, and practical opportunities

MVP stands for

to identify what God wants you to accomplish is that it helps you focus; it actually simplifies your life.

Now the reason it's important ....."

most failed in the second half of their lives

Of the 2/3rds that did not finish well

, two thirds didn't finish well.

Of those 100 individuals the bible mentions,

teach others

One of the best ways for you to make progress on your financial journey is to

of start-up businesses is lack of capital- not enough cash saved up.

One of the most common reasons for the failure...

is to develop us.

One of the primary purposes of work.....

in a verse that says: 'It is required of stewards that one be found faithful.'

Our responsibility is best summed up

The most effective way to save is to make it automatic. When you receive income, the first check you write should be a gift to the Lord, and the second check should go to savings. An automatic payroll deduction can ensure that you regularly save some of your income. Some people save their tax refunds or bonuses. Remember this: if you immediately save a portion of every paycheck, you will save more.

Paragraph under Practical Suggestions for Saving.

but children must have freedom of choice within those boundaries.

Parents should establish boundaries and offer advice on how to spend

obstacles for most people on their journey to true financial freedom because most people never get out of it.

Paying off auto debt. Car debt is one of the biggest...

should not retire and become unproductive.

People who are physically and mentally capable

only when you give out of a heart filled with love.

Remember you receive the advantages of giving

faithful to handle money God's way and save as much as you can.

Remember your responsibility is to be ...

can make a big difference. During a career, the average person works more than 100,000 hours. Do the math: Earning $2.50 more per hour adds up to $250,000. An additional $5.00 per hour equals $5,000 more over a lifetime.

Short paragraph that begins with: "Matt was right; a little increase....

is expressing gratitude. Let these next five words sink in and revolutionize the way you respond to God and others: Unexpressed gratitude feels like ungratitude.

Short paragraph that starts with, " A close cousin to celebrating

The average American cardholder carries more than six credit cards, and the average household that has credit card debt owes more than $9,300 on their cards.

Startling Stats box

There are 23 million shoplifters in America who steal more than $10 billion of merchandise a year. About 75% of shoplifters are adults.

Startling stats box

Two of every three middle-income Americans-66%-live from paycheck to paycheck

Startling stats box

If you are spending more than your income or if you want to accelerate your journey to true financial freedom, you must increase your income, reduce your expenses, or both. The objective is to create enough surplus in your spending plan to move toward your goals. Ask yourself two questions about every expense: Do I really need this? Can I do this less expensively? Reducing spending means changing your lifestyle. This is never easy.

Step 3: Adjust your spending plan: Notice the first 2 paragraphs under this topic.

money and possessions.

The Bible contains 2,350 verses on how to handle

to their kids. A good man leaves an inheritance to his childrens children.

The Bible says parents should try to leave an inheritance

serving God in our work, not just people.

The Bible says we are actually

the concept of the tithe. It emphasizes giving generously, even sacrificially.

The New Testament does not reject.....

$20 a year to international missions while the average person gambles $1,174 annually

The average church member gives

investments with the greatest track record of growth also carry the greatest potential for loss

The concept of risk is important because...

25 percent of the cost of driving your car; so, every time you fill up, multiply the cost of gas by four to figure out what you are really spending.

The cost of gas is only...

the little big principle. The strategy is to steadily increase responsibility so children are independently managing finances by senior year of hs.

The fundamental strategy for training children to handle money is the

is to develop their character and ability to earn money.

The objective of teaching your children the value of work is

give out of love is to give our gifts to the Lord Himself.

The only way we can consistently

pictures a person filling a large barrel one handful at a time. Little by little the barrel is filled to overflowing.

The original Hebrew words for steady plodding

are late payments or non-payments of bills or debts, bankruptcy, foreclosure, repossession, bills or loans sent to collection.

The primary things that hurt your credit score ......

is usually the most challenging

The snowball principle. The initial effort...

the more momentum you gain

The snowball principle. The more you pay off debt.....

both spouses must push in the same direction

The snowball principle: Look at the three sentences in italics: If you are married....

prohibited in the Bible: "You shall not take a bribe, for a bribe blinds the clear-sighted and subverts the cause of the just."

The taking of bribes is clearly

auto debt, student loans, and home equity loans, including home equity lines of credit.

The three most common consumer debts are.....

are found 52 times in the Bible.

The word celebrate and celebrated

describes our role is steward.

The word in the Bible that best

Save $1,000 for emergencies, and second, you'll start using a spending plan.

There are two objectives for destination 1: know what they are.

in consolidating your loans. If you haven't solved your problems that put you into debt in the first place, you'll end up worse off. Surveys confirm that about two-thirds of those who borrow against their home equity to pay off credit cards run up more credit card debts within two years.

There is one huge downside...

It's not about what you want to do with your life: it's about what God wants you to do with it.

This is important to realize:

but money is the primary competitor with God for our affection.

This may surprise you

3 potential dangers

Those who reach true true financial freedom will encounter

the two most important actions you can take are to pay your bills on time and reduce your total debt.

To improve your credit score.....

seven times and six times it has to do with money

Under the paragraph cultivate contentment: How many times is the word contentment used in the scriptures?

have been taught how to handle only 10% of their income God's way-the area of giving.

Unfortunately most Christians

heart wrenching. to form one, write down every detail.

Unraveling a partnership can be... If you reach an agreement...

generosity.

We need to balance our investing with...

1. Reduce the length of the mortgage. 2. Add something to the required payment. 3. Bonuses and tax returns.

What 3 suggestions were given on how to pay a home loan off quickly?

1. Start communicating with your creditors. 2. Offer lenders a written copy of your budget, a list of your debts, and your repayment plan. 3. Exercise integrity- always be completely honest with your creditors.

What are 3 simple rules to follow when dealing with creditors?

Increase in intimacy, Increase in heaven, Increase on Earth

What are the 3 extraordinary benefits a giver receives?

1. Be a steady plodder. 2. Seek advice. 3. Diversify. 4. Limit Investment debt.

What are the 4 things given as God's principles of Investing?

God owns all your possessions, God is in control, God provides our needs

What are the three responsibilities God has with money and possessions?

He would've included repentence

What did your instructor say he would have said or written in chapter 21, that was not included in the book?

A list of your assets (what you own) and liabilities (what you owe); net worth=assets minus liabilities

What is a financial statement or how do you calculate your net worth?

At least 20% of the purchase price. Advantages: mortgage and monthly payments will be smaller, it eliminates the need for you to carry expensive mortgage insurance that protects only the lender, your smaller payments make it easier to afford larger prepayments, and it protects you.

What is suggested as a reasonable down payment on a home? What are the advantages of this approach?

Pay off your smallest high-interest debt and accelerate the snowball.

What is the snowball strategy?

Be faithful with what you have, Be faithful with 100%, Be faithful in little things, Be faithful with other people's stuff

What our responsibilities in regard to money?

75%

What percent of people who cosigned for finance company loans ended up making the payments?

Invest in cash equivalents: money market funds, short term certificates of deposit (CD), and Treasure bills (T-bills)

What suggestion is given for where to put your money for less than 5 years?

meditate, pray, and focus on the next destination and go for it

What three things are given as part of the true financial freedom mind-set?

Mutual funds, stocks, bonds, and real estate

What was suggested for longer than 5 years investing?

spending plan

What word or phrase does the author like instead of Budget?

take advantage of all employer matches, and invest in a Roth IRA or Roth 401k.

When investing for retirement...

every spending decision becomes a spiritual decision.

When we acknowledge God's ownership

but often neglected step that helps you clarify and prioritize them.

Writing down your goals is a powerful

our character and priorities by examining our checkbook and credit card statement than by listening to us talk.

You can tell more about

that 15% of everything Jesus Christ said had to do with it. He talked more about money than almost any other subject

You might be surprised to learn

if your credit history is short, or if you have maxed out your credit limits.

Your credit score will also be hurt.....

22-24. More people file bankruptcy than graduate from college

fastest-growing age group filing bankruptcy

on the remaining unpaid principal balance.

(On a home loan) Interest is charged...