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
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 (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 Quicken
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
(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)
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:
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/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) (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) (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:
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
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:
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/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
58
560 24
584 100 100
(690) 24
(666)
470 24
494 100
25
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
729 531 144 633 158 684 594 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
th
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