Week 4 Financial Wisdom Pastor Mark Schwarzbauer PhD Family Worship Center

Steve Kosmoski Family Worship Center INVESTING IN THE POOR Steve Kosmoski Family Worship Center

Part One: Financial Foundations Review Part One: Financial Foundations

1 Chronicles 29:13-14 “Now therefore, our God, We thank You And praise Your glorious name. 14 But who am I, and who are my people, That we should be able to offer so willingly as this? For all things come from You, And of Your own we have given You.”

Financial Foundations When we surrender our lives to the Lord He is to be Lord of our finances and we become stewards to use our finances (that belong to God) according to His principles. Matthew 25:14-30.

Financial Foundations God wants us to be good stewards. Luke 16:11, I Cor. 4:2. God wants us to build our finances and allow Him to bless us in our finances and giving – II Cor. 9:6-11, Deut. 28:13-14 et al. God wants us to be controlled by love for Him and not money. I Tim. 6:10.

Part Two: Practicing Wise Stewardship Review Part Two: Practicing Wise Stewardship

Practice Financial Responsibility Psalm 37:21, Romans 13:8 Practice Financial Responsibility Psalm 37:21, Romans 13:8. Pay bills on time. Save. Don’t buy what you don’t need with money you don’t have to impress people you don’t like.

Teach Financial Responsibility

Part Three: Margin Your Life Review Part Three: Margin Your Life

The wise have wealth and luxury, but fools spend whatever they get. Proverbs 21:20 (NLT) The wise have wealth and luxury, but fools spend whatever they get.

Don’t buy what you can’t afford. Margin your life (So you control your finances and they don’t control you). Leave extra room for the uncertainties that will come. (Money Map #1). Buy less than you need or want so you aren’t stressing yourselves or putting yourself into potential problems. Are you margining your life financially Yes No I need to and will

Review Part Four: The Dangers of Debt

Shakespeare’s Hamlet Scene III – “Neither a borrower nor a lender be.”

Biblical Principle One: Owe No Man Anything Romans 13:8 - Owe no man anything, but to love one another, for he that loves another hath fulfilled the law. Don’t go into debt to people. This is unregulated debt. Be careful not to read in… such as thinking all regulated debt is therefore okay or all debt is unbiblical.

Biblical Principle Two: One Who Borrows becomes a Slave. Borrower becomes servant to the lender! Prov. 22:7. Don’t be enslaved by debt. Don’t enslave others.

Biblical Principle Two: One Who Borrows becomes a Slave. Don’t lend to friends or family unless you are ready to end a relationship and take a total loss. Are you practicing the principle of not loaning? Yes No I need to and will

Biblical Principle Three: Don’t co-sign for loans. Proverbs 6:1-5, 11:15, 17:18, 22:26-27. Never co-sign for anyone else for anything else period. Nike in reverse… Just DON’T Do It! Enabling Vs. Empowering

Enabling vs. Empowering. We need to love people enough to also say “ No. Absolutely not. Nada.” We all desire to help people and some people genuinely need and deserve our help.

Enabling vs. Empowering. But enabling perpetuates the problem rather that solves it. In the financial sense, enabling is solving a short term crisis by giving or loaning money. The person you help is actually rewarded for being irresponsible. They don’t learn responsibility. They learn they can get away with being irresponsible (Money Map 1).

Enabling vs. Empowering. Habitually helping financially irresponsible people creates unhealthy “co-dependence.” You get self-esteem and become the hero by the inappropriate help. But in reality you are making it worse and harming them. You are not making it better.

Enabling vs. Empowering. By rescuing from the deserved consequences you are stealing their motivation to change and dooming them to further failure.

Enabling vs. Empowering. The Bible teaches personal responsibility and rebukes enabling people… Proverbs 19:19 “A hot-tempered person must pay the penalty; rescue them, and you will have to do it again.” (and again and again and…)

Enabling vs. Empowering. The Bible teaches personal responsibility and rebukes enabling people… Proverbs 19:19 2 Thessalonians 3:10-15 Galatians 6:5 Ephesians 5:11 Proverbs 10:4 2 John 1:11

Enabling vs. Empowering. Exception- Empowering – For a child of PROVEN responsibility, for an equity producing investment (house at a great deal - not a car) for which you have the ENTIRE amount of the loan available as cash, and are prepared to gift it times the number of kids you have-and again only to a child of PROVEN responsibility.

Enabling vs. Empowering. God’s Empowerment - God sent His Son to pay your unpayable debt. Not so you could live an irresponsible sinful life. But so you could start fresh with His power, blessing and guidance.

Biblical Principle Three: Don’t co-sign for loans. Are you practicing the principle of not co-signing? Yes No I need to and will

No unsecured loans period. Avoid loans on depreciating assets. Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. No unsecured loans period. Avoid loans on depreciating assets. Illustration of producing revenue - washer/dryer (still better to buy with cash).

Owning instead of Renting a House can build equity. Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. Owning instead of Renting a House can build equity.

Proverbs 24:27 “Don't build your house and establish a home until your fields are ready, and you are sure that you can earn a living.”

Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. Owning instead of Renting a House can build equity. http://www.daveramsey.com/get-started/home-buying/ http://www.daveramsey.com/blog/the-truth-about-mortgages http://www.preachitteachit.org/ask-roger/detail/what-does-the-bible-say-about-buying-a-house/

Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. Learn to save for your vehicles. Proverbs 4:5 “Wisdom is the principal thing; Therefore get wisdom. And in all your getting, get understanding.” If you absolutely have to use debt for a vehicle, it is not a sin. But use KBB.com and be sure NOT to overpay and pay the loan back early and keep paying into savings for the next one.

Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. Use credit cards ONLY if for asset protection, profit and if PAID completely every month. 1. Asset protection. 2. Only if you have required self-control. 3. Debt payback help ~ Destination #2 http://info.crown.org/debthelp

Biblical Principle Four: Don’t go into debt for anything that doesn’t produce revenue. Business loans – will it produce revenue without undue risk? Are you practicing these debt principles? Yes No I need to and will

Biblical Principle Five: Save Regularly Save regularly (follow the money map). Proverbs 6:6-8. Are you saving regularly? Yes No I need to and will

Financial Wisdom Seek wisdom ~ ask biblically grounded financially successful people for advice. “In the multitude of counselors there is safety.” Proverbs 15:22 Who will you ask wisdom from for your next big financial decision ?_____________