LOVE & MONEY How to handle finances together without killing each other.

And the 2 shall become 1

Indulgences

Financial Feelings Confident

Financial Feelings Anxious

Investing Knowledgeable “In-to” Aggressive

Investing Cautious Successful

Current Financial Situation Overstate Debt Overstate Income

Current Financial Situation Spender Saver

Financial Infidelity

Avoid Financial Infidelity 36-50% of couples confess to lying about spending 20% don’t discuss how much they make 60% have no idea when their spouse plans on retiring Many maintain separate financial lives

Make a Plan to Succeed (Spending Plan)

Live Below Your Means (Spending Plan) Create a Spending Plan that will allow you to make the most of what God has provided you – without going into debt Plan where you want your money to go – rather than fight over where it went

HOW TO : SPENDING PLAN 1. Start with your INCOME 2. Add the things you can’t change: 1. FIXED Expenses (Rent/Mortgage, Auto Loan, etc.) 2. VARIABLE Expenses (Hydro, Heat, Insurance, etc.) 3. Include % for GIVING & SAVING 3. Adjust LIFE Spending to Balance (Food, Clothing, Entertainment, Misc.) 4. Compare Against % Guides

HOW TO : SPENDING PLAN

Keys to Success 1. All income/expenses tracked by central system 2. Each should have own budgeted category

Give Some Away (Generosity)

Make Generosity a Priority (Give) Generosity breaks the hold that our money and possessions have on our hearts God uses generosity to root out selfishness out of our hearts Being less selfish will help you as a couple When money and things are not important – people become a priority > Is Generosity a Virtue or a Sacrifice?

How To 1. Agree on a cause or causes you both care about 2. Give away 10% of your income

Keys to Success 1. Make generosity your first financial priority 2. Base giving on percentage of income

Put Some Away (Save)

Plan for Unexpected & Important Stuff in Life (Save) Life Happens (both good & bad) Savings are needed in order to avoid turning to debt Need to have a plan in place in order to have the important goals/plans actually happen

How To: 1. Build/Maintain Emergency Fund  Debt? 1 month’s exp.  No Debt? 3- 6 months’ exp. 2. Save for Irregular Bills & Expenses 3. Start Early on Long Term Investments

Keys to Success 1. Separate accounts: > Checking > Emergency Savings > Irregular Bills Savings 2. Joint Accounts 3. Use the power of Compound Interest on Long-Term Goals

Avoid Debt (Sufficiency with Contentment)

Avoid Fighting over Debt Living with debt creates tremendous stress on relationships Having Debt fuels a sense of financial unease among couples & increases the likelihood that they will fight over money matters It also raises the likelihood that couples will fight over issues other than money

Guard your Heart Practice Sufficiency with Contentment (Do not covet) Avoid Malls/TV Choose to live Simply Be Thankful for what God has given Go on a Mission Trip How To:

Keys to Success 1. Go no further into debt Remove cards from wallet Tell someone (who?) 2. Use Credit Cards Wisely Pre-planned budgeted items only Record spending Pay balance in full Can’t do first three? > Don’t use cards

Spend Smart (Live Simply & Waste Not)

Use Wisdom When Buying a House Consider renting first Put at least 20% down (don’t use up emergency fund) Mortgage, taxes, insurance = 25% BUDGET (30-40% with utilities, maintenance & other housing costs) Base it on one income Title correctly

Avoid Delusions of DINKhood Build lifestyle on one income Accelerate debt payoff, savings & investing Enjoy the margin

Waste Not Live Simply Practice Conservation Avoid wasting money on unnecessary things Think before you buy Do we “need” or “want” this? Pray first – “is this what God wants us to do with His money? Be willing to ‘let go’ and share un-used stuff with others Practice a Spending Fast

Fight Fair (Work Together)

“Fighting – when it airs grievances and complaints – can be one of the healthiest things a couple can do for their relationship (indeed, how you fight is one of the most telling ways to diagnose the health of your marriage).” - John Gottman “Why Marriages Succeed or Fail”

How To Fight Fair 1. Complain, Don’t Criticize 2. Avoid Contempt 3. Listen Well Focus Ask Clarifying Questions 4. Don’t Get Defensive 5. Stay with It Don’t check out mentally or physically

Keys to Success Remember, your relationship is more important than money or anything money can buy

Living the Plan (Living the Plan)

Monitor, Flex & Adjust (Living the Plan) A budget on it’s own will not help Monitoring (Tracking) tells you where your money actually went Tracking lets you know when to Flex in your categories in order to stay balanced Adjusting (managing) your budget as life happens keeps your budget current and working for you (alive) It lets you tell your money where to go – rather than wondering where it went

HOW TO: Track all your Expenses (ask/keep receipts) Take 5 minutes at end of each day to record Review Monthly Together on how you are doing and what needs to adjust

KEYS TO SUCCESS Accessible/Central System Paper, Computer, Envelop, On-Line Find a way to record/store receipts Get Organized – Store in accessible yet safe location

Live for Eternity (Outlive the Plan)

Maintain Perspective IT’s NOT OUR STUFF We are stewards – not owners We do not live for ourselves We live for GOD and OTHERS We do not live for today – but ETERNITY

HOW TO: Love God with all you have and your neighbour (starting with your closest neighbour – your spouse) as yourself Seek His Kingdom first (together) Be generous with each other and anyone God brings into your life Use what He has entrusted to you for His purpose

The Question to Ask… “What are we going to do with everything God has given us?”

Be on your guard against all kinds of greed (v 15) – Guard your hearts Don’t store up things for yourselves (v 16-21) – Don’t be selfish Be rich towards God (v 21) – Live for others Don’t worry (v 22-26) – Trust in God Don’t set your heart on what you will eat, drink or wear but seek His Kingdom first (v 31) – Maintain Perspective Be on your guard against all kinds of greed (v 15) – Guard your hearts Don’t store up things for yourselves (v 16-21) – Don’t be selfish Be rich towards God (v 21) – Live for others Don’t worry (v 22-26) – Trust in God Don’t set your heart on what you will eat, drink or wear but seek His Kingdom first (v 31) – Maintain Perspective