“Tools for the Journey”

Transcript “Tools for the Journey”

“Tools for the Journey”

“Which of you wishing to construct a tower does not first sit down and calculate the cost to see if there is enough for its completion? Otherwise, after laying the foundation and finding himself unable to finish the work the onlookers should laugh at him and say, ‘This one began to build but did not have the resources to finish.’”

– Luke 14:28-30

Personal Budgeting Statistics

† According to the Wall Street Journal nearly 70% of consumers live paycheck to paycheck.

† A Marist Institute poll published in the USA Today stated that 55% of Americans always or sometimes worry about their money.

† According to CNN, the average credit card debt per household reached a record $9,312 in 2004. That's an increase of 116% over the past 10 years.

† Only 25% of Americans feel that they are well informed about managing their personal finances.

(1)

† Approximately 40% of families live off 110% of their incomes.

(2)

“The plans of the diligent are sure of profit, but all rash haste leads certainly to poverty”

– Proverbs 21:5

(1) FleetBoston (2) The Observer; Jan 12, 2004

Personal Budgeting Statistics

† According to ADP, 20% of workers would not be able to make a mortgage, utility, or credit card payment if they missed a paycheck.

† Money magazine states that 75% of families will have a major negative financial event ($10,000) in any ten-year period.

† A survey by Thrivent Financial for Lutherans estimates that one in five pre-retirees age 50 to 64 has less than $5,000 accumulated for retirement.

† According to studies performed by Empty Tomb, Inc., in 2003, Catholics gave 1.2% to their churches.

† Fifty percent of all marriages end in divorce, and money issues are pointed to as a significant cause of many breakups. (1)

“Honor the Lord with your wealth, with first fruits of all your produce”

– Proverbs 3:9

(1) http://www.family.org/cforum/fosi/marriage/divorce/a0037056.cfm

Personal Objectives

TO BECOME A GOOD STEWARD OF GOD’S BLESSINGS † To understand where you spend your money † To gain control of out-of-control spending † To reduce debt, increase savings, establish emergency fund, increase Net Worth, etc.

† To feel better about future purchases † To improve ability to help others † To improve communication with your spouse

“Then he said to the crowd, "Take care to guard against all greed, for though one may be rich, one's life does not consist of possessions.””

– Luke 12:15

Practical Tools for the Journey

† Develop a Balance Sheet † Track your spending † Create a budget † Debt Paydown Tool

“but everything must be done properly and in order”

14:40 – 1 st Corinthians

The Balance Sheet

Balance Sheet

† Net Worth is a snapshot of your financial worth and will help you reflect on the direction you have taken in buying, investing, or insuring against financial risks.

† Net Worth = Assets less Liabilities (What you own less what you owe) † What should be included in a balance sheet:

Assets:

Cash Checking Accounts Retirement Accounts Stocks & Bonds Property Vehicles Household Contents

Liabilities:

Credit Cards Mortgages Home Equity Loans Student Loans Vehicle Loans Personal Loans Other debts

“Precious treasure remains in the house of the wise, but the fool consumes it.”

– Proverbs 21:20

Sample Balance Sheet

Assets:

Cash Savings Checking Account Stock 401K Property: Home Property: Contents Property: Automobiles

Total Assets Liabilities:

Mortgage Credit Cards Auto Loan Student Loan

Total Liabilities

5,000 1,000 5,000 10,000 185,000 30,000 10,000

246,000

164,000 5,000 18,500 7,500

195,000

NET WORTH

(Assets less Liab)

51,000

What can you learn?

†Do you have an adequate emergency fund?

†Did you discover any surprises, like excess debt or forgotten assets?

†Is your insurance coverage adequate to cover the value of your property?

†Are your invested assets working for you to increase your net worth?

†How does your debt compare to your assets?

•

Debt-to-Asset ratio

†Are you building financial resources to help you achieve your long-term goals?

† Track over time to see how your balance sheet improves

source: www.uwex.edu

Tracking Your Money

Basic Tracking Steps

The Basics:

† Gain online access to your checking, savings, loan accounts.

† Choose a tool to track your spending & to create a budget.

† Review transaction categories the tool offers – adjust as desired.

† Download transactions into planning tool.

† Review all transaction history to ensure proper categorization of spending. Fix any miscategorizations.

Taking it to another level!

† Keep receipts and split out categories for general merchandise vendors.

† Utilize excel tool for spending trends and budgeting

Tracking & Budgeting Tools

Ministry Supported

†Yodlee.com

(free)

†Quicken Desktop

(software purchase)

†Excel Budgeting Tool

(free)

† Quicken Online

Other Tools

(free)

† Mvelopes

(monthly fee)

† You Need a Budget.com

(monthly fee)

† Mint.com

(free)

† Microsoft Money

(software purchase)

Yodlee.com

On-line financial transactions database that aggregates all your different financial accounts into one view. Yodlee can connect to bank accounts, retirement accounts, credit card accounts, etc. Strengths • No service fee • Free transaction downloads • Strong login security • Ability to group accounts • Free Billpay • Robust alerts settings • Easy to create a budget • Can split transactions • Can add sub-categories Weaknesses • Only allows one budget period • Cannot create categories • No account reconciliation • Must remember where you left off with transaction categorization

Yodlee.com

To change category simply click and select from list

Yodlee.com

Quicken Desktop

Desktop “checkbook ledger” used to track and budget spending activities. Strengths • Desktop solution • Manual downloads are free • Account reconciliations • Can split transactions • Can add/delete categories • Customized cash flow reports • Keeps transactions in separate window until you have categorized Weaknesses • Software purchase • Possible bank fee for auto downloads • Only allows one budget period • Budget tool is more difficult to use

Quicken Desktop (Main View)

Quicken Desktop (Cash Flow Report)

Quicken Desktop (Downloading Transactions)

Budgeting

Creating a Budget

† Design your budget based on your objectives, e.g. increase giving, build emergency fund, paydown consumer debt, save for car purchase, etc.

† Review % guides – these are guidelines only, every family is different.

† Review spending trends & seasonality of various categories, e.g. electricity, gifts, property taxes, insurance, etc.

† Develop a “zero sum” budget for your spending accounts

(checking & credit card)

† Make 1 st pass budget starting with priority categories, followed by fixed expenses, and moving to discretionary categories.

† Make 2 nd pass adjustments to discretionary categories to get to “zero sum” cash flow for the month

(checking & credit card)

† Family plan – discussion & agreement.

† Analyze & adjust based on results.

Budgeting Tips

Dave Ramsey Tips:

† Start with what you have † Evaluate your financial priorities † Budget as a Team! The Nerd vs Free Spirit † Make allowances in your budget and pace your spending † Budget for emergencies † Talk about your money

Additional Tips:

† A good budget starts with good data † Be conservative but challenge yourself (this may take some time) † Set appropriate expectations – do not be unrealistic † Establish a monthly review process – how did you do vs budget?

† Reward yourself for success (budget it!) † LIFE HAPPENS! Keep reviewing and adjusting accordingly

Budget Guidelines

(From Crown Financial Ministries)

Gross Income

1. Tithe 2. Taxes

23K Living

10% 20.4%

Single Adults 23K w/ Roommate

10% 21.0%

32K Living

10% 22.7%

32K w/ Roommate

10% 24.0%

~ Net Spendable %'s below add to 100% ~ Single Parent - One Child 15K

10% 3.2%

20K

10% 6.7%

Net Spendable Income

3. Housing 4. Food 5. Auto 6. Insurance 7. Debts 8. Entertainment/Recreation 9. Clothing 10. Savings 11. Medical/Dental 40% 6% 15% 4% 5% 8% 5% 5% 5% 25% 6% 20% 4% 5% 10% 5% 10% 5% 38% 6% 15% 4% 5% 7% 5% 5% 3% 22% 6% 20% 4% 5% 10% 5% 13% 3% 40% 15% 15% 3% 4% 4% 5% 5% 5% 39% 14% 14% 3% 5% 5% 5% 5% 5% 12. Misc 13. Investments

~ if you have the expense below, the % shown must be deducted from other budget categories ~

14. School/Child Care 3% 10% 7% 10% 0% 0% 15. Unallocated Surplus Income 5% 2% 0% 5% 5% 0% 7% 5% 0% 7% 5% 0% 4% 0% 0% 5% 0% 0%

25K

10% 11.8% 0% 0% 39% 14% 14% 4% 5% 4% 5% 5% 5% 5% 0%

Gross Income

1. Tithe 2. Taxes

<= 15K

10% 6.4%

25K

10%

Married Couple 35K

10%

45K

10%

55K

10%

65K

10%

115K <= 25K

10% 15.2% 19.0% 21.2% 22.5% 24.7% 30.0% 10% 3.3%

35K

10%

Family of Four 45K

10%

~ Net Spendable %'s below add to 100% ~ 55K

10%

65K

10%

85K

10%

115K <= 25K

10% 12.3% 15.8% 18.2% 19.9% 24.6% 27.5% 10% 2.3%

Family of Six 35K

10% 9.6%

45K

10%

55K

10%

65K

10% 10.5% 13.8% 16.1%

Net Spendable Income

3. Housing 4. Food 5. Auto 6. Insurance 7. Debts 8. Entertainment/Recreation 9. Clothing 10. Savings 11. Medical/Dental 12. Misc 13. Investments 14. School/Child Care 15. Unallocated Surplus Income 40% 15% 15% 5% 5% 3% 4% 36% 12% 12% 5% 5% 6% 5% 32% 13% 13% 5% 5% 6% 5% 30% 12% 14% 5% 5% 7% 6% 30% 11% 14% 5% 5% 7% 6% 30% 11% 13% 5% 5% 7% 7% 29% 11% 13% 5% 5% 8% 7% 39% 15% 15% 5% 5% 3% 4% 36% 12% 12% 5% 5% 6% 5% 32% 13% 13% 5% 5% 6% 5% 30% 12% 14% 5% 5% 7% 6% 30% 11% 14% 5% 5% 7% 6% 30% 11% 13% 5% 5% 7% 7% 29% 11% 13% 5% 5% 8% 7% 4% 4% 5% 0% 5% 4% 5% 5% 5% 4% 7% 5% 5% 4% 7% 5% 5% 4% 8% 5% 5% 4% 8% 5% 5% 4% 8% 5% 5% 4% 5% 0% 5% 4% 5% 5% 5% 4% 7% 5% 5% 4% 7% 5% 5% 4% 8% 5% 5% 4% 8% 5% 5% 4% 8% 5% 0%

~ if you have the expense below, the % shown must be deducted from other budget categories ~

0% 0% 0% 0% 0% 0% 8% 6% 5% 5% 5% 5% 5% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 38% 15% 14% 5% 5% 4% 5% 5% 5% 4% 0% 10% 0% 38% 15% 14% 5% 5% 4% 5% 5% 5% 4% 0% 8% 0% 34% 14% 12% 5% 5% 5% 6% 5% 5% 6% 3% 6% 0% 33% 14% 12% 5% 5% 6% 6% 5% 5% 6% 3% 6% 0% 32% 14% 11% 5% 5% 6% 7% 5% 5% 6% 4% 5% 0%

Budgeting in Quicken

Budgeting in Yodlee

Budgeting in Yodlee.com

Simply type in budget an save

Excel Budget Tool (Actuals)

Paychecks Deposits Investment Income Other Income Retirement Income TOTAL CASH INFLOWS Expenses:

Charitable Giving Mortgage/Rent Loans Medical Automotive Expenses Child/Dependent Expenses Groceries Gas/Fuel Utilities: Gas Utilities: Water Utilities: Electric Insurance Education Clothing Telephone Cable/Satellite Service Online Services Supplies: Bathroom Supplies: Kitchen Supplies: Household Supplies: Office Pets Service Fees Taxes Home Improvements Home Maintenance Electronics Entertainment General Merchandise Restaurants/Dining Gifts Travel Personal Care Hobbies Transfers ATM/Cash Withdrawals Miscellaneous

CHECKING/CREDIT CASH OUTFLOWS

Deposits Transfers Interest Income

CHANGE IN SAVINGS ACCOUNT NET CASH FLOW CASH BALANCE SUMMARY:

Checking Account Savings Account Credit Card 1

NET CASH BALANCES

Change Variance

Jun09 6,500 6,500 Jul09 6,500 6,500 Aug09 6,500 6,500

765

250 -

250 281

250 -

250 (106)

250 -

250 531 144 Sep09 Oct09 Nov09 Dec09 ACTUALS Jan10 Feb10 Mar10

Must hand key in actuals

Apr10 May10 Jun10

When a new period of actuals begins simply copy over the column – advanced users will be able to automate this.

Jul10 Aug10 Sep10 10,000.00

10,000.00

765.00

10,250.00

11,015.00

1,015.00

1,046.00

10,500.00

11,546.00

531.00

940.00

10,750.00

11,690.00

144.00

Checks & Balances

Excel Budget Tool (Budget)

Simply handkey budget figures in the gray areas

Paychecks Deposits Investment Income Other Income Retirement Income TOTAL CASH INFLOWS Expenses:

CHECKING/CREDIT CASH OUTFLOWS

Deposits Transfers Interest Income

CHANGE IN SAVINGS ACCOUNT NET CASH FLOW CASH BALANCE SUMMARY:

Checking/Credit Card Accounts Savings Account

NET CASH BALANCES

Change Variance

Jun09 6,500 6,500 Jul09 Aug09 Sep09 Oct09 6,500 6,500 Nov09 6,500 6,500 Dec09 6,500 6,500 BUDGET Jan10 Feb10 7,150 7,150 7,150 7,150 Mar10 Apr10 May10 Jun10 7,150 7,150 Jul10 7,150 7,150 Aug10 7,150 7,150 Sep10 7,150 7,150

(650) (1,500) (650) (100) (100) (450) (150) (25) (75) (250) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (150) (350) (25) (150) (60) (100) (100) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (510) (100) (100) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (175) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (35) (100) (100) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (150) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (560) (100) (100) (650) (1,500) (650) (100) (100) (650) (200) (25) (75) (150) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (1,000) (25) (150) 690 (100) (100) (715) (1,500) (650) (100) (100) (650) (150) (25) (75) (125) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (470) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (175) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (1,120) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (190) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (25) (150) (905) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (595) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (1,095) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (250) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (1,500) (25) (150) 655 (100) (100) (715) (1,500) (650) (100) (100) (600) (200) (25) (75) (300) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (295) (100) (100) (715) (1,500) (650) (100) (100) (600) (250) (25) (75) (300) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (745) (100) (100) (715) (1,500) (650) (100) (100) (600) (150) (25) (75) (250) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (25) (150) (695) (100) (100) 100 100 765

250 -

250 281

250 -

250 100 60 22 82 510 23 533 35 23 58 100 560 24 584 100 100 (690) 24 (666) 470 24 494 100 1,120 25 1,145 100 905 27 932 100 595 29 624 100 31 100 100 (655) 31 (624) 295 31 326 100 745 32 777 100 695 34 729 1,015 531 182 633 158 684 (566) 594 1,245 1,032 724 426 877 829 10,000.00

10,000.00

765 10,250 11,015

1,015 -

10,500 11,546

531 -

10,582 11,728

182 -

11,115 12,361

633 -

1,346 11,173 12,519

158 (0)

1,446 11,757 13,203

684 -

1,546 11,090 12,636

(566) -

1,646 1,746 11,584 12,729 13,230 14,475

Budgeted Balances

13,662 15,508

14,286 16,232

724 0

15,412 17,458

2,146 14,788 16,934

(524) (0)

2,246 15,114 17,360

426 0

2,346 15,891 18,237

877 -

2,446 16,620 19,066

829 -

Paychecks Deposits Investment Income Other Income Retirement Income TOTAL CASH INFLOWS Expenses:

CHECKING/CREDIT CASH OUTFLOWS

Deposits Transfers Interest Income

CHANGE IN SAVINGS ACCOUNT NET CASH FLOW

Excel Budget Tool (Actuals vs Budget)

Jun09 Jul09 Aug09 (135) 75 (300) (50) (5) (25) 15 (5) 9 (25) (5) 150 (30) (35) 25 150 (190) 100 75 (206) 190 (22) 168 Sep09 Oct09 Nov09 Dec09 ACTUALS vs BUDGET - B/(W) Jan10 Feb10 Mar10

When a new period to compare begins simply copy over the column

Apr10 May10 Jun10 Jul10 Aug10 Sep10

How did I do?

Excel Budget Tool (Actual + Budget)

Paychecks Deposits Investment Income Other Income Retirement Income TOTAL CASH INFLOWS Expenses:

CHECKING/CREDIT CASH OUTFLOWS

Deposits Transfers Interest Income

CHANGE IN SAVINGS ACCOUNT NET CASH FLOW CASH BALANCE SUMMARY:

Checking Account/Credit Card Savings Account

NET CASH BALANCES

Change Variance

Jun09 (A) 6,500 6,500 Jul09 (A) Aug09 (A) Sep09 (B) 6,500 6,500 Oct09 (B) Nov09 (B) 6,500 6,500 Dec09 (B) ACTUALS + BUDGET Jan10 (B) Feb10 (B) 7,150 7,150 Mar10 (B) Apr10 (B) 7,150 7,150 May10 (B) Jun10 (B) 7,150 7,150 Jul10 (B) Aug10 (B) 7,150 7,150 Sep10 (B) -

(650) (1,500) (650) (150) (50) (550) (150) (20) (60) (250) (150) (250) (100) (60) (125) (30) (25) (20) (20) (15) (135) (425) (250) (100) (650) (1,500) (650) (50) (75) (450) (125) (25) (75) (200) (150) (250) (75) (60) (125) (30) (27) (22) (15) (20) (700) (220) (400) (250) (75) (650) (1,500) (650) (235) (25) (750) (200) (30) (75) (275) (150) (250) (135) (60) (125) (30) (30) (16) (50) (30) (500) (180) (385) (250) (25) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (510) (100) (100) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (175) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (35) (100) (100) (650) (1,500) (650) (100) (100) (450) (150) (25) (75) (150) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (560) (100) (100) (650) (1,500) (650) (100) (100) (650) (200) (25) (75) (150) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (1,000) (25) (150) 690 (100) (100) (715) (1,500) (650) (100) (100) (650) (150) (25) (75) (125) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (470) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (175) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (1,120) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (190) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (25) (150) (905) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (595) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (200) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (1,095) (100) (100) (715) (1,500) (650) (100) (100) (450) (150) (25) (75) (250) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (1,500) (25) (150) 655 (100) (100) (715) (1,500) (650) (100) (100) (600) (200) (25) (75) (300) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (500) (100) (150) (350) (25) (150) (295) (100) (100) (715) (1,500) (650) (100) (100) (600) (250) (25) (75) (300) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (25) (150) (745) (100) (100) (715) (1,500) (650) (100) (100) (600) (150) (25) (75) (250) (150) (250) (150) (60) (125) (30) (25) (25) (25) (25) (150) (100) (150) (350) (200) (25) (150) (695) (100) (100)

765

250 -

250 281

250 -

250 (106)

250 -

250 100

510 23

533 100 100

35 23

560 24

584 100 100

(690) 24

(666)

470 24

494 100

100

905 27

932 100

595 29

624 100

100 100

(655) 31

(624)

295 31

326 100

745 32

777 100

695 34

729 531 144 633 158 684 594 1,245 724 (524) 426 877 829 10,000.00

10,000.00

765.00

10,250.00

11,015.00

1,015.00

1,046.00

10,500.00

11,546.00

531.00

940.00

10,750.00

11,690.00

144.00

1,040.00

11,282.58

12,322.58

632.58

1,140.00

11,340.77

12,480.77

158.19

(0.00)

1,240.00

11,924.63

13,164.63

683.86

1,340.00

11,258.40

12,598.40

(566.23) -

1,440.00

11,752.00

13,192.00

593.59

1,540.00

12,897.30

14,437.30

1,245.30

1,640.00

13,829.76

15,469.76

1,032.46

1,740.00

14,453.84

16,193.84

724.08

0.00

1,840.00

15,579.74

17,419.74

1,225.90

1,940.00

14,956.17

16,896.17

(523.57) (0.00)

2,040.00

15,282.28

17,322.28

426.12

0.00

2,140.00

16,059.55

18,199.55

877.26

2,240.00

16,788.38

19,028.38

828.83

Analyze & Adjust

† Review Budget vs Actual the week following end of month.

† Determine where you missed your budget and why.

† The “why” may be a result of mis-categorization of spending activity.

† Did your budget and spending activity adequately address your priorities, ie giving, savings, discretionary spending, etc.

† Adjust your budget as needed.

† Do you need to add categories/sub-categories – after the first month is the time to do it.

† This process will take several months to master.

What to Expect

† Shock

– this may uncover some unrealized & very negative spending habits.

† Frustration

– with the initial setup (learning something new) and with the changes in spending habits you may need to make.

† Sense of empowerment

– you will gain more control over your finances and will have a sense of accomplishment.

† Sense of prudence

– you will become a better steward of God’s Gifts.

† Happier spending

– you will feel better about some of the discretionary purchases.

Homework for Next Week

 Obtain online access to all your accounts.

 Select a tracking tool & purchase ~or~ setup account.

 Review & learn categories in the tool & add or change as you like.

 Download transactions into tool & correct categorization issues.

 Run monthly category cash flow reports and study current spending habits  Create a 1 st pass budget for October.

September 26

Workshop

† Sign up for a 30 minute slot – these will be hands-on discussions.

† Time will be tight so be prepared.

† Bring any tools that will aid in the discussion  Laptop (We will have several here with internet connections)  Print-outs of excel model ~or~ excel model saved on a thumb drive.

 List of questions

“By wisdom is a house built, by understanding is it made firm; And by knowledge are its rooms filled with every precious and pleasing possession.”

– Proverbs 24:3-4

Contacts

Johnnie Goodner Tim Hess Travis Collier John Peterson

- Email: [email protected]

- Quicken support - Yodlee support - Supplemental schedules support - Email: [email protected]

- Yodlee support - Email: [email protected]

- Spiritual Director - Email: [email protected]

- Ministry Lead - Quicken support

Q&A

“Tools for the Journey”

Transcript “Tools for the Journey”

“Tools for the Journey”

Personal Budgeting Statistics

Personal Budgeting Statistics

Personal Objectives

Practical Tools for the Journey

† Develop a Balance Sheet † Track your spending † Create a budget † Debt Paydown Tool

The Balance Sheet

Balance Sheet

Sample Balance Sheet

NET WORTH

51,000

What can you learn?

†Do you have an adequate emergency fund?

†Did you discover any surprises, like excess debt or forgotten assets?

†Is your insurance coverage adequate to cover the value of your property?

†Are your invested assets working for you to increase your net worth?

†How does your debt compare to your assets?

†Are you building financial resources to help you achieve your long-term goals?

† Track over time to see how your balance sheet improves

Tracking Your Money

Basic Tracking Steps

The Basics:

Taking it to another level!

Tracking & Budgeting Tools

†Yodlee.com

†Quicken Desktop

†Excel Budgeting Tool

Yodlee.com

Yodlee.com

Yodlee.com

Yodlee.com

Quicken Desktop

Quicken Desktop (Main View)

Quicken Desktop (Cash Flow Report)

Quicken Desktop (Cash Flow Report)

Quicken Desktop (Downloading Transactions)

Budgeting

Creating a Budget

Budgeting Tips

Budget Guidelines

Budgeting in Quicken

Budgeting in Quicken

Budgeting in Quicken

Budgeting in Yodlee

Budgeting in Yodlee.com

Excel Budget Tool (Actuals)

Excel Budget Tool (Budget)

Excel Budget Tool (Actuals vs Budget)

Excel Budget Tool (Actual + Budget)

Analyze & Adjust

What to Expect

† Shock

† Frustration

† Sense of empowerment

† Sense of prudence

† Happier spending

Homework for Next Week

September 26

Workshop

Contacts

Directory