Ch 1 Savings - Take the First Step Ch 1 Savings - Take the First Step **When it comes to money - it is 80% behavior and 20% head knowledge!** **When it comes to money - it is 80% behavior and 20% head knowledge!** **When it comes to money - it is 80% behavior and 20% head knowledge!** Baby Step 1 is _______ in an emergency fund. If you make under $20K a year, put ____ in an emergency fund. _________ must become a priority. Always pay _________ first. The United States has a _______ Savings rate. Saving money is about ________ and ____________, $1,000 $500 What do you know about saving? The 7 Baby Steps are the steps you should take to reach financial peace. Why does this matter? Financial strain is leading cause of divorce, suicide in males. God’s way matters!!! Today we will cover step 1 and step 3 Handling money is 80% behavior, 20% head knowledge. Focus your priorities - If I had to I could do it! If the life of a child depended on you saving $5000 in a year, could you do it. The difference between saving and hoarding is your heart - a clenched fist versus and open hand that money passes through. Read side notes on page 12. Saving yourself negative emotion contentment

1 Timothy 6:7-10 - For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs. Hebrews 13:5 - Keep your life free from the love of money, and be content with what you have. 2 Corinthians 9:10 - Now He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness;

Ch 1 - Take the First Step amoral Emergency Fund Purchases Money is _______. You should save money for three basic reasons: __________________ amoral Definition of amoral - money is neither good or bad. Emergency Fund Purchases Wealth Building

Chapter 1 - Emergency Fund ___________ are going to happen. Count on it. Baby Step 1, a beginner emergency fund, is _______ in the bank (or $500 in your income is <$20k a year). Baby Step 3 is a fully funded emergency fund of 3 - 6 months of expenses. A great place to keep your emergency fund is a ___________ _________ account from a mutual fund company. Your emergency fund is not an __________. It is insurance. Emergencies $1,000 You will always have emergencies - even teenagers. Car problems, lost or stolen phone, trips, last minute needs. Emergency funds are NOT an investment, but insurance. You pay for insurance, don’t look to make a lot of money from an emergency fund. Keep in a MM account, something you can get to easily. DON”T TOUCH IT UNLESS EMERGENCY!! When you have an emergency fund, emergencies tend to go away. Everything is a crisis when you have no money! Money Market investment

Chapter 1 - Emergency Fund Do not ______ this fund for purchases. The emergency fund is your ______ savings priority. Do it quickly. The second thing you save money for is ________. touch first You will always have emergencies - even teenagers. Car problems, lost or stolen phone, trips, last minute needs. Emergency funds are NOT an investment, but insurance. You pay for insurance, don’t look to make a lot of money from an emergency fund. Keep in a MM account, something you can get to easily. DON”T TOUCH IT UNLESS EMERGENCY!! When you have an emergency fund, emergencies tend to go away. Everything is a crisis when you have no money! purchases

Chapter 1 - Purchases borrowing sinking fund Instead of ________ to purchase, pay cash by using a ________ _____ approach. A sinking fund is saving money for a specific purpose to allow interest to work for you rather than against you. borrowing Discuss being able to deal with people when you have cash versus “same as cash” deals offered by companies. (See side note on pg 14) 88% of purchases bought this way are not paid off in the 90 days. That 9 out of 10!! With cash you can deal! Papa did this with cars. sinking fund

Chapter 1 - Wealth Building The third thing you save money for is _______ ________. ________ is a key ingredient when it comes to wealth building. Building wealth is a _________, no a sprint. Pre- __________ __________(PACs) withdrawals are a good way to build discipline. _______________ is a mathematical explosion. You must start ____. Rate of return, or _______ rate, is important. wealth building Discipline Remember - discipline is key! 80% behavior - 20% head knowledge Get rich quick schemes are not real! If it seems too good to be trues, it probably is. Wealth building requires focus, not ADD behavior - shiny penny! If you saved $5 a day from Starbucks from the ages 16-76, you would accumulate $19 million!! Give first, Save second, Spend last The Story of Ben and Arthur - page 16 marathon authorized checking Compound Interest now interest