Session Two A Financial Physical Living Wi$ely Session Two A Financial Physical

Questions If your financial situation were perfect what would be different ? Should it be a Christian goal to get out of debt ?

Homework Review Questions about part two of Three Simple Rules Questions about the addendum

Personal Financial Goals Examples of Specific, Measurable, Achievable Goals Having savings Able to give more Not living paycheck to paycheck Having reliable transportation Getting out of debt Able to have a family vacation No calls from creditors Able to send children to college Having retirement savings

Financial Physical Two Parts Personal financial statement or net worth statement Current income and expenses or cash flow statement

Personal Financial Statement Assets: things you own Cash Savings Investments Pension or retirement plans Other assets Total these 6

Personal Financial Statement Liabilities: debts you owe Houses, cars, furniture, etc. Credit cards Debts to friends and relatives Educational loans Medical expenses Bank loans Other debt Total these 7

Personal Financial Statement Assets – Liabilities = Net Worth

Current Income and Expenses Record your monthly income Salaries Interest and dividends Other income

Current Income and Expenses Monthly spending totals Giving Saving Debt Housing Transportation Household / personal Entertainment Professional services Miscellaneous / small cash 10

Current Income and Expenses Total Income – Total Expenses = Surplus or Deficit

Homework List at least three personal financial goals Complete the two forms Read Three Simple Rules Part 3 Diagnosis and Prescription