1. 1 St. Paul Community Baptist Church 2009 Financial Fitness Series Budgeting Presented by Myra Y. Miller www.chosenforservice.com

2. 2 Where do I Begin? What do I want to achieve? What do I want to achieve? How do I maintain it once achieved? How do I maintain it once achieved?

3. 3 Where else?!?!? John 15:5 “Yes, I am the vine, you are the branches. Those who remain in Me, and I in them, will produce much fruit. For apart from Me you can do nothing.” John 15:5 “Yes, I am the vine, you are the branches. Those who remain in Me, and I in them, will produce much fruit. For apart from Me you can do nothing.” I Corinthians 4:2 “Now, a person who is put in charge as a manager must be faithful.” I Corinthians 4:2 “Now, a person who is put in charge as a manager must be faithful.” Matthew 25:15-30 “Faithful over a Few Things…” Parable of the Three Servants Matthew 25:15-30 “Faithful over a Few Things…” Parable of the Three Servants

4. 4 What do I want to achieve and how do I maintain it once it is achieved? Achieve Goal Start tithing Start tithing Get out of debt Get out of debt Increase savings Increase savings Start an emergency fund Start an emergency fund Buy a home Buy a home Build a retirement nest egg Build a retirement nest egg Maintain Goal Continue tithing Continue tithing Stay out of debt Stay out of debt Save it! Save it! Maintain emergency fund Maintain emergency fund Pay off mortgage Pay off mortgage Maintain desired lifestyle in retirement Maintain desired lifestyle in retirement

5. 5 The Dreaded “B” Word

6. 6 What is a “Budget”? A system for tracking and managing your income and expenditures A system for tracking and managing your income and expenditures A budget helps you manage money but also helps you reach your financial goals A budget helps you manage money but also helps you reach your financial goals An active tool to help you maintain and improve your current lifestyle for the long term An active tool to help you maintain and improve your current lifestyle for the long term A plan for spending wisely that allows you to indulge now and then A plan for spending wisely that allows you to indulge now and then A FRIEND A FRIEND “A budget is telling your money where to go instead of wondering where it went.” - John C. Maxwell

7. 7 What is a “Budget”? A penny-pinching exercise that takes the fun out of life A penny-pinching exercise that takes the fun out of life A “spending diet” that keeps you from enjoying the good things A “spending diet” that keeps you from enjoying the good things A straight jacket that keeps you constrained A straight jacket that keeps you constrained The antithesis to freedom The antithesis to freedom - THE ENEMY - THE ENEMY If you view budgeting this way, then you are bound to get frustrated and discouraged.

8. 8 Why Budget? What’s the Point? To critically examine where your income is going To critically examine where your income is going To ensure present needs are covered To ensure present needs are covered To set and fund short- and long-term goals To set and fund short- and long-term goals To create future savings To create future savings To spend your money with intention To spend your money with intention

9. 9 How to Create a Budget All the money you earn – Bills = Cash It’s as easy as ABC!

10. 10 How to Create a Budget Follow these steps: 1. List all income sources for one month 2. List all expenses for one month 1. Categorize expenses to easily examine spending 3. Calculate the % for each expense relative to income and overall expenses

11. 11 How to Create a Budget Tips & Tools Be realistic Be realistic Avoid “surprises” Avoid “surprises” Give every dime a name on paper Give every dime a name on paper Leave “wiggle room” Leave “wiggle room” Budget properly for lump sum payments Budget properly for lump sum payments Experts suggest: Experts suggest: 3-6 months of living expenses saved 3-6 months of living expenses saved $1,000 minimum emergency fund $1,000 minimum emergency fund Invest ~15% of income into pre-tax retirement plans Invest ~15% of income into pre-tax retirement plans *An irregular income is no excuse for not creating a budget*

12. adapted from DaveRamsey.com12 How to Create a Budget 6 Budget B mbs! 1. Cut out all the fun stuff 2. Be hit or miss with savings 3. Overuse debit cards 4. Pay only the minimum on cards/debt 5. Live without an emergency fund 6. Spend more than you earn

13. 13 How to Create a Budget Analyze first draft: What spending adjustments can I make to reach my financial goals? What spending adjustments can I make to reach my financial goals? How much does this change add to my budget? How much does this change add to my budget? What specific ACTIONS will I take to make the adjustment? What specific ACTIONS will I take to make the adjustment? Can I live with this change until I reach my goal? Can I live with this change until I reach my goal?

14. 14 How to Maintain a Budget Record each expense to the penny Record each expense to the penny Monitor progress regularly - don’t wait until the end of the month – correct yourself now! Monitor progress regularly - don’t wait until the end of the month – correct yourself now! Adjust as necessary for financial situation or goal changes Adjust as necessary for financial situation or goal changes Use credit cards wisely Use credit cards wisely Be patient, stick with the program Be patient, stick with the program Discipline until it becomes routine Discipline until it becomes routine DON’T GIVE UP! DON’T GIVE UP!

15. 15 How to Maintain a Budget JUST SAY NO TO I.C.E.! Impulse buying Impulse buying Comfort spending Comfort spending Egotistical spending Egotistical spending *If all else fails, try the “envelope system”

16. 16 How to Maintain a Budget Remember former victories Remember former victories Rehearse God’s promises Rehearse God’s promises Request God’s presence Request God’s presence Recover what was taken Recover what was taken

17. 17 QUESTIONS