The Richest Man in Babylon Seven Cures for a Lean Purse

2 09/29/13LTAF The Richest Man in Babylon “ Can We Talk? “ The Successful manager of finances is the one who is...? 2

3 09/29/13LTAF The Richest Man in Babylon A Word on Goals and budgets

4 09/29/13LTAF The Richest Man in Babylon Seven Cures for a Lean Purse Let’s go to Work How do we do this ? Financial Goals - write ‘em down 4

5 09/29/13LTAF The Richest Man in Babylon Seven Cures for a Lean Purse

6 09/29/13LTAF The Richest Man in Babylon Dave Ramsey Style Baby Step 1 $1,000 to start an Emergency Fund An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen Baby Step 2 Pay off all debt using the Debt Snowball Pay off all debt using the Debt Snowball List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first. Baby Step 3 3 to 6 months of expenses in savings Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. 6

7 09/29/13LTAF The Richest Man in Babylon Dave Ramsey Style Baby Step 4 Invest 15% of household income into Roth IRAs and pre-tax retirementInvest 15% of household income into Roth IRAs and pre-tax retirement When you reach this step, you’ll have no payments—except the house—and a fully funded emergency fund. Now it’s time to get serious about building wealth. Baby Step 5 College funding for children By this point, you should have already started Baby Step 4—investing 15% of your income—before saving for college. Whether you are saving for you or your child to go to college, you need to start now. Baby Step 6 Pay off home early Now it’s time to begin chunking all of your extra money toward the mortgage. You are getting closer to realizing the dream of a life with no house payments. 7

8 09/29/13LTAF The Richest Man in Babylon Dave Ramsey Style Baby Step 7 Build wealth and give! It’s time to build wealth and give like never before. Leave an inheritance for future generations, and bless others now with your excess. It's really the only way to live!. 8

9 09/29/13LTAF The Richest Man in Babylon  Hebrews 13:6-6 (Amp) 5 Let your character or moral disposition be free from love of money [including greed, avarice, lust, and craving for earthly possessions] and be satisfied with your present [circumstances and with what you have]; for He [God] Himself has said, I will not in any way fail you nor give you up nor leave you without support. [I will] not, I will] not, [I will] not in any degree leave you helpless nor forsake nor let [you] down (relax My hold on you)! [Assuredly not!] 6 So we take comfort and are encouraged and confidently and boldly say, The Lord is my Helper; I will not be seized with alarm [I will not fear or dread or be terrified]. What can man do to me? –Fear, Worry or Anxiety over lack or loss of Money  1 John 4:18 18 (NKJ) 18 There is no fear in love; but perfect love casts out fear, because fear involves torment. But he who fears has not been made perfect in love. 19 We love Him because He first loved us. 9

10 09/29/13LTAF The Richest Man in Babylon –Poor money management & financial lack  Luke 14:28-30 (NKJ) 28 For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it— 29 lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, 30 saying, ‘This man began to build and was not able to finish’? –Bondage to debt  Proverbs 22:7 The rich rules over the poor, and the borrower is servant to the lender.  Deuteronomy 28:9,12 if you keep the commandments of the Lord your God and walk in His ways. ….12 The Lord will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow. 10

11 09/29/13LTAF The Richest Man in Babylon –Miserliness & Stinginess Miserliness - Extreme frugality or tight fisted in the use of finances. Stinginess - A reluctance or unwillingness to share, give or spend money or possessions; a lack of generosity  1 Timothy 6:17 (NKJ) 17 Command those who are rich in this present age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy.. Buying on Impulse –Impulse buying is the inability to resist the desire to buy something whether we need it or not (or can afford it or not), often because it is ‘cheap’ or on sale. 11

12 09/29/13LTAF The Richest Man in Babylon –Greed Greed is an excessive desire to acquire wealth or possessions.  Luke 12:15 (NKJ) 15 Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.” Buying on Impulse –Impulse buying is the inability to resist the desire to buy something whether we need it or not (or can afford it or not), often because it is ‘cheap’ or on sale. –Discontentment – Lust, Jealousy Discontentment - Dissatisfaction, displeasure or a restless desire for something we don’t have Lust – An intense longing or craving Jealousy – An unhappy or angry feeling of wanting something someone else has. 12

Seven Cures for a Lean Purse The Richest Man in Babylon