1. PCW and Personal Finances

2. Bloom where you are planted

3. Today's topic is puzzling to some PCWs.

4. Question of the day Since Health Care reform is stalled in congress, costs continue to rise. You become ill and needed emergency surgery one day before starting your new Call. Your health insurance took effect but since this prior condition occurred before your coverage and your parents stopped coverage on you the week before your surgery. (Thinking nothing would happen) you are responsible. The $60,000 surgery, hospital and rehab bill steals your breath. Your old CUAA Roommate says declare bankruptcy. What should you do?

5. Tomorrow A fellow staff member (Assistant Pastor) does not like the Principal. They tell you they are going to send their child to a neighboring Lutheran School instead of yours. They also inform you their child won’t be in your midweek school because of a dance class conflict. How do you respond?

6. Why teachers hate parents? Is this the reality in 2009? Is this the reality in Lutheran Schools? Is this the reality for those who work with parish youth? If we answer yes to any of the above, how do we prevent it from being your reality? Is this good for children?

7. I follow a written budget? 1.Yes 2.No

8. I believe that I will not be able to save any money next year? 1.Yes 2.No

9. I think I will need financial assistance next year? 1.Yes 2.No

10. Doctor Locke talked about 10 month Call vs. 12 month Call yesterday. What is one difference applicable to income in considering the type of call you receive? Can you receive pay checks over the summer? (20 pays vs 24) Can you line up summer employment?

11. If you have budget challenges, you really have two options. They are: Reduce Spending Cheaper apartment/house Roommate Cutting back on wants/needs Additional income streams (Craft, baby sitting, tutoring, music lessons) Second Job Summer Job Side Job like Officiating, Wedding Coordinator Sell on EBay

12. Some Key Concepts to consider in handling personal finances: Debt Interest Rates Budgets Compound Interest Church Agencies to Assist LCEF CEF THRIVENT (?)

13. What are the pros and cons of a written budget? Strategy to follow (P) You know where your $ goes. Takes Discipline* Not Spontaneous* Hard Work to Follow Guides Decisions and Behavior

14. What are sample %’s in a Budget? Charitable Giving 10% Taxes 15-25% Total Housing 30-36% Food 12-17% Auto 15-20% Insurance 3-7% Debt 3-7% Entertainment 3-7% Clothing 5% Savings 5% Medical Expenses 4-9% Misc. 5% Total 110%- 143%

15. $27,000 Salary $2,700 Tithe (10%) $5,400Taxes (30%) $8,100 Rent ($675 monthly) (60%) $3,240 Food (72%) ($270 Monthly) $5,400 Auto Expenses ($450 monthly) 92% $1,350 Insurance 97% $1,350 Debt 102% $1,350 Clothing 107% $1,350 Savings 112% $1,350 Entertainment 117% $1,350 Medical 122% $1,350MISC 127%

16. What do the totals tell you about your budget? Fluid Document Constantly Changing Prioritize Hard Work You must know your income Tempting to Cut Charitable Giving Easy Fix- Bring in more income

17. Can you divide your expenses by pay period? $27,000 divided by 24 pay periods = $1125 each check $112.50 Charitable Giving $225.00 Taxes Time when Due amount of expenses per pay period Source Get a Grip on Your Money by Larry Burkett

18. What happens to your raises? Year 1Year 2Year 3 4% Raise$28,080$29,203$30,371 Base Salary $27,000 Additional Income $1080$1,123$1,168 A 4% Raise on $27,000

19. Savings vs. Charging $1825 Saved YearsPiggy Bank Invested 10% return Charged 20% Rate 5$1825$2,329-$2,957 10$3650$6,080-$10,316 15$5475$12,121-$28,626 20$7300$21,849-$74,190 25$9125$37,518-$187,566 30$10,950$62,752-$469,681

20. When should you start saving? Saving $100 monthly for the first 15 years and nothing after for the next 25 years =$431,702 at 10%. Saving nothing the first 15 years and then $100 for the next 25 = $123,332 at 10%.

21. Home Expenses making a larger payment $100,000 7% x 30 Yrs. Extra Payment Out of DebtTotal Interest 0 Monthly30 years$139,511 $25 Monthly27 years$121,296 $50 Monthly24 years$107,856 $100 Monthly21 Years$89,003

22. If you are in debt Establish a Spartan Lifestyle List debts Smallest to Largest Pay Minimum on everything and max possible on Smallest As Each Item paid off Amount rolls over to next item Continue until all are paid

23. Is there a place for cash payments? Advantages vs. Disadvantages CEF Housing Loan Should you buy a house right away? Advantages vs. Disadvantages

24. What does scripture say about money management?

25. What does scripture say about attitudes towards money?

26. You live near a casino. Should you regularly be seen supporting this local business? Should you borrow from a church friend? Should you accept free doctors visits from a parishioner who offers? Concordia Ann Arbor has a future opening Professor Freudenberg tells you about. He assures you that you are the candidate. Should your congregation pay 100% for your advanced degree, which once you receive you know you will leave there for CUAA?