Ready, set, REFRESH!
Our church embraced FPU in 2004 and this whole church mindset in 2007. But this journey can be long! Let's refresh!
Financial Peace University “Baby Steps”:
- Baby Step 1: Quickly save $1000 in Starter Emergency Fund
- Baby Step 2: Do the Debt Snowball, eliminating all debts (except the home mortgage) from lowest balance to highest, REGARDLESS of interest rate.
- Baby Step 3: Put 3-6 months of expenses in a Fully-funded Emergency Fund. This normally ranges from $5000 to $25,000 depending on income.
- Baby Step 4: Contribute 15% of your Gross Income to Retirement (401k/Roth IRA)
- Baby Step 5: Save for kids College (if applicable) using ESAs or 529 plans
- Baby Step 6: Pay off the House early
- Baby Step 7: Build Wealth and GIVE a ton of it away!
Biblical Money Principles: Let’s get some MOMENTUM going!
1. MOMENTUM in managing money!
• You must live on a budget! You must be able to "give an account" of the resources God has given you. If you worked and managed money for a company called YOU Incorporated the way you manage your own money, would YOU Inc. fire you?
• Your greatest wealth-building tool is your income, so you must get control of it through budgeting: Pr 27:23-24 - Be diligent to know the state of your flocks, and attend to your herds; for riches are not forever, nor does a crown endure to all generations.
• You have to get intense! Pro 6:1-5 ESV My son, if you have put up security for your neighbor, have given your pledge for a stranger, (2) if you are snared in the words of your mouth, caught in the words of your mouth, (3) then do this, my son, and save yourself, for you have come into the hand of your neighbor: go, hasten, and plead urgently with your neighbor. (4) Give your eyes no sleep and your eyelids no slumber; (5) save yourself like a gazelle from the hand of the hunter, like a bird from the hand of the fowler.
• Your drive towards freedom must be radical and counter-cultural. Don’t be NORMAL. Normal is broke! BE WEIRD! Any hint of complacency will derail your efforts. Remember, this is for the KINGDOM!
2. MOMENTUM in NOT borrowing money.
• As we have clearly seen in the last four years, borrowing is very risky and can damage our families, our future, and our hope.
• Deut 28:12 - "…you shall lend to many nations but you shall not borrow."
• Deut 28:44 - "… He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail."
• Pr 22:7 - "The rich rules over the poor, and the borrower is servant of the lender."
• Debt is "payment" instead of "actual cost" centered. This is why debt is so deceptive. Can you afford to buy a $20,000 item with cash?
• D.E.B.T. - Doing Everything But Tithing!
3. MOMENTUM in NOT spending money! J
• You must remember that it all belongs to God. (The Steward’s Revelation: Ps 24:1)
• Learn to define a “need” verses a “want.” If God hasn’t provided it, you should not spend it.
• One of the single greatest principles to keeping some money is living beneath your means!
• Pro 21:20 ESVPrecious treasure and oil are in a wise man's dwelling, but a foolish man devours it.
• Pro 13:7 ESVOne pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.
• "If your outgo exceeds your income, then your upkeep will be your downfall."
4. MOMENTUM in saving money!
• We all know we need to save, but we are not really serious about doing it. A big key is contentment.
• 1Ti 6:8 ESVBut if we have food and clothing, with these we will be content.
5. MOMENTUM in earning money!
• There are two parts to the money equation: income and outgo. In order to get your income up, you must see purpose in work and in working hard.
• Pro 28:19 ESVWhoever works his land will have plenty of bread, but he who follows worthless pursuits will have plenty of poverty.
• God's primary method of providing wealth is work (Deut 8:18). Working extra jobs and severely cutting lifestyle for a period of time to hit financial goals may be an option for many.
Also, see The Playbook Chapter 7 on Stewardship! :)