Kingdom Empowerment Concerning Economics

“This time tomorrow, things are about to change:  Father, in the name of Jesus, I confess Your will over my finances this day. I have placed my tithe, which is Holy, in the Kingdom and I claim heaven’s blessings over my life.  We are 100% tithe givers. Our property and debt are paid in full and we owe no man. Confessions

 Today, I'm blessed that there is no lack, all my needs are met, I’m out of debt, and I have more than enough to be a blessing.  All financial doors are opened and I’m free to bring seed to be sown into the Kingdom. Endless bounty comes to me. I’m healed and Spirit-filled. Sickness and disease are far from me. I walk in dominion and authority. Confessions

 Everything about me is changing for the best. My body is strong and healthy. My mind is fortified and resolute. My emotions are sound and stable. My faith is steadfast and unwavering. Confessions

 Track Spending for a Month  Put Savings on Autopilot  Prioritize Spending  Use Cash for Daily Spending  Tackle Credit Card Debt  Build Emergency Savings Account  7 Ways to Live Within Your Means

Using a cash budget envelope system will help you control spending and save money.

 Spending cash "forces you to come up with a spending plan beforehand.” When you use cash, “it gives you a good feeling, you walk away not owing anyone.”  It provides more convenience and security.

4 Morsels to Taste-Test in an ALL-CASH DIET  Is an all-cash spending plan for you?  Is a debit card paper or plastic?  Is there still a need for a credit card?  Can you protect your credit score?

4 Steps to an ALL-CASH DIET Living on Cash Alone  Go Cold Turkey or Take Baby Steps  Before You Start, Track Your Spending  Decide what Form of "Cash" You Should Spend  Have a Safety Valve

What is our Role in Managing Debt in this “Fragile” Economy?

 Good Debt – Debt is good when it is tied to an asset of value, an investment. Good Debt is also used to make purchases that you can pay off in a short period of time (90 days same as cash) and paying more than the minimum due.

 Bad Debt – Debt that is accumulated and does not get paid off monthly, resulting in high interest rates and perhaps even late fees. An example of bad debt are Pay-Day Loans (a form of post dating your pay check). Bad debt is debt that has accumulated and became unmanageable.

 Missed Payments Lack of Time Management or Lack of Funds  Calls from Collection Agencies  “Robbing Peter to Pay Paul”  Making Payments in the Grace Periods

 Exhausted All Limits on Credit Cards and the Creditor Closes the Account  Taking Cash Advance on Credit Cards  Current Monthly Payment is Not Enough to Cover at Least the Interest Due on the Outstanding Balance

 The debt-snowball method is a debt reduction strategy, whereby you pay off the accounts starting with the smallest balances first while paying the minimum on larger debts.

 Once the smallest debt is paid off, the money proceeds to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later.  Dare to be Different – What you do in the worst of times really tells who you are.

 Talk About Your Debt – They can be part of the solution or part of the problem.  Take Baby Steps – It builds confidence and motivation, achieving a long-term goal like debt elimination. Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God; (Philippians 4:6)

Item NameCategory Monthly Balance Monthly Payment Interest RateDue Date Date Paid Off VisaPersonnel $ $ %26-May-1326-Nov Months

Medical Bills Major Car Repairs Major House Repairs “To provide adequate income to meet your emergencies “

 Funds needed if you lost your job  Funds needed if you change jobs and your income changes  Funds needed for unexpectancies, especially if you are self-employed  Funds needed to meet your expenses for a set period of time

Your Emergency Fund:  What is your total net income after taxes? Income per month: $_____________  Net Amount x 12 = Minimum in EF  Net Amount x 24 = Maximum in EF

 Turns a crisis into an inconvenience.  Keeps you focused on reducing rather than increasing debt.  Dollar amount should be set by the person who has the greatest need for financial security.  Changes your money habits & makes you less likely to use your emergency fund. Changes your idea about what truly constitutes an emergency. Emergency Fund - Advantages:

 Once an emergency fund is in place, life-altering events become simple budget challenges  Even with guaranteed income (i.e. pension plan), you still need an emergency fund  By living life on financial principals, a very high percentage of your decisions are already made  Note: A generous emergency fund can be a wonderful gift to your spouse and add strength to your marriage. Emergency Fund - Advantages:

Conquer the Most Important Steps to Debt Freedom Balance Needs & Wants Cut Spending Track Spending

 Know how much you make  Spend less money than you bring in  Boost your income  Stop relying on credit cards No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it. (Hebrew 12: 11 )

 Don't try to keep up with the Joneses or the Hiltons.  Save up for purchases instead of using credit.  Start an emergency fund. Bonus: It's equally important to pay your bills on time!

 Pray – Ask for the Lord’s Guidance  Establish a Written Budget - Helps you Plan Ahead  List Your Assets – Everything You Own  List Your Liabilities – Everything You Owe

 Establish a Debt Repayment Schedule for Each Creditor – No one gets out of debt by accident.  Consider Earning Additional Income – Pay off debt with additional income.  Accumulate No New Debt – Start paying for your purchases with cash.

 Be Content with What You Have – Throw away catalogs and magazines.  Consider a Change in Lifestyle – Downsize (home, car, phone, etc.)  Do Not Give Up – Follow through on your commitment.