Master Your Money

A Financial Wellness Ministry

LEARNING THE BASICS TO

Learning the Basics to Master Your Money A Financial Wellness Ministry

Benefits for Churches help heal marriages, families to bring financial health, wellness,

to fulfill and fund the great commission of sharing the gospel of Jesus Christ

assist individuals, couples, families to get their “houses” in order in the area of finances

establish financial peace of mind

enable and equip the church as a whole to consistently be obedient to tithing and giving of offerings to have church needs met

enable and equip the church as a whole to have a surplus of finances to help people and families in need, as well as when a crisis happens in surrounding communities and other parts of the world.

to encourage healthy and responsible biblical stewardship of God’s gifts and financial blessing

encourage change and healthier financial habits (ie. Maintain and manage household budgets)

encourage and attain financial freedom and become completely debt free

encourage financial protection for families

encourage financial growth and savings through responsible investment strategies

There are 3,522 times that “money” is mentioned in the Bible. Table of Contents

• The Purpose__________________________________page 2

• The Process __________________________________page 3

• Benefits of Cash Flow Management_____________page 4

• Your Financial Goals (Worksheet A) _____________page 6

• My Daily Expenditures (Worksheet B) ___________page 9

• Areas to Re-evaluate: Finding Ways to Save Money (Worksheet C) _________________________page 10

• My Credit Card Debt (Worksheet D) ____________ page 11

• My Assets / Liabilities / Net Worth (Worksheet E) _page 12

• Family Budget Worksheets: Weekly / Monthly

Cash Inflow and Cash Outflow _________________ page 13

• Program Cost_________________________________page 20

Learning the Basics to Master Your Money A Financial Wellness Ministry

Learning the Basics to Master Your Money A Financial Wellness Ministry

The Purpose •To provide education, knowledge about finances to achieve peace of mind of financial security •Financial freedom allows you to achieve and pursue the needs and goals you and your family have set. •Building a strong Financial Foundation •Allows believers to fulfill financial stewardship regarding Tithes and Offering (Malachi 3:10–12 and Mark 12:41–44)

1 Timothy 6:10Proverbs 22: 7

3 John 1: 2

The Process 1. Complete Financial Goals Worksheet - short term,

mid term, or long term goals 2. Create a budget based on their current financial

situation 3. Commit to Weekly accountability - an income and

expenses excel spreadsheet for 4-5 consecutive weeks submitted every Friday by midnight to financial counselor

4. Supply supporting documentation of income and expenses (online bank statement and credit card statement provided weekly to financial counselor)

5. Meet with financial counselor at the end of the month, to go over your cash flow management of the prior month.

6. Evaluate progress - celebrate financial achievements, big or small.

Benefits of Cash Flow Management 1. Reducing your adjusted gross income (AGI) to qualify for Deductions a) IRA deductibility ($5500 or $6500) is not allowed if AGI is too high b) Roth eligibility is not allowed if income is too high c) Tuition deduction is disallowed if income is too high d) Student loan interest deduction is disallowed if income is too high e) Social Security benefits will be taxable due to high income f) Might qualify to deduct medical expenses g) Mortgage insurance premium is disallowed if income is too high h) Rental losses might not be deductible in the current year if income is too high i) Reduce or avoiding Alternative Minimum Tax (AMT)

2. Reducing your AGI to qualify for Tax Credits a) Child Credit of $2000 is phase-out if income is too high b) Retirement savings contributions credit is disallowed if income is too high c) Education credits is disallowed if income is too high d) Child and Dependent care expenses e) Adoption Credit f) Earned Income Credit - can be offset to your tax liability or can generate a refund.

3. Increase or Reduce your withholding a) Increase if your withholding is not enough to avoid underpayment penalties of

taxes at year-end. b) Reduce withholding if current withholding shows a large of refund at year-end.

4. Spread the taxable income among various members in your family

5. Knowing where you money is spent every month - reviewing your financial snapshot monthly

6. No more stress or worries on what is the tax impact of your income at year-end, avoiding penalties and interest for underpayment of estimated taxes

7. Couples are in agreement on spending, saving, debt reduction, and long term planning with the help of an financial counselor.

Benefits of Cash Flow Management (continued)

8. Your family's financial priorities are monitored monthly- savings, getting out of debts, retirement, college funding, vacation, etc

9. Having a personal trainer/coach in implementing the monthly household budget

10. Having peace of mind - every time you accomplished your goals or achieved the plan(s) put together specifically for your situation

11. Have a written cash flow or predetermined budget every month to follow, and keeping your bank accounts balanced every month

12. You will identify where your problem areas in your finances and what you have to do to fix it before it's too late

13. Set-aside some money for unexpected events, life happens - and having savings for unexpected will reduce stress in the family

Your Financial Goals

CATEGORY MY GOALSACTIONS TO TAKE TO REACH

MY GOALSS AREAS I NEED IMPROVEMENT

Cash Flow Management

(Income vs. Expenses)

Short Term Spending/

Savings Goals

(Buying a Home, Car, etc.)

Mid Term Spending/

Savings Goals

(Buying a Home, Car, etc.)

Long Term Spending/

Savings Goals

(Buying a Home, Car, etc.)

Retirement Savings

Family Savings

(college, legacy, etc.)

Tax Management

Net Worth

Income Protection

(Planning for a decrease in

income)

Family Protection

(Planning for a premature

death)

Estate Transfer

(Planning to reduce estate

tax liability)

WORKSHEET (A)

Areas to a Re-evaluate: Finding Ways to Save MoneyPossible Monthly

SavingsPossible Monthly

Savings

1. Increase Federal tax refunds

(increasing your deductions puts more in your monthly check)> Check with your HR/payroll

department

$

14. Cancel magazine subscriptions on

automatic renewal

$

2. Eliminate or reduce premium cable or satellite to basic level $ 15. Organize errands and carpool with

others $3. Consider larger deductibles on auto, RV, trailer, homeowners, collision

insurance policies > Check out $1000 deductible

$16. Do you own chores

$

4. Reduce number of lattes/alcohol/cigarettes each month $ 17. Keep warmer/cooler house $5. Cancel extras on cell phone (data, features) > Corporate discounts

$18. Use coupons (for groceries and dining out) $

6. If you have ever over 20% equity in the home, eliminate insurance premium $ 19. Owner of your own business (for

tax deductions) $7. If you want to keep cell phone, cancel regular landline $ 20. Consider buying used cars $8. Cancel or lower accidental death and

dismemberment policies $ 21. Play free video games $9. Credit line on auto, appliances, cycles, trailer> Items you finance

$22. Cut down on online subscriptions

$10. Eat out early - Choose happy hour

menus $23. Avoid ATM fees, checking and

savings accounts fees, overdraft charges, bounce checks, money orders, etc

$

11. Re-evaluate your property & casualty insurance on a regular basis $

24. Reduce gas and parking costs. Save by carpooling, walking, biking or

taking public transport.$

12. Take a sack lunch 2-3 days per week $ 25. Cut down on shopping (clothes,

gadgets) $13. Cancel gym membership you don’t use; find alternate ways to exercise $ 26. Spend less on gifts for family and

friends $TOTAL MONTHLY SAVINGS $

WORKSHEET (C)

28 “But don’t begin until you count the cost. For who would

begin construction of a building without first calculating the cost to see if there is enough money to finish it? 29 Otherwise, you might

complete only the foundation before running out of money, and

then everyone would laugh at you. 30 They would say, ‘There’s

the person who started that building and couldn’t afford

to finish it!’ Luke 14:28-30

Family Budget Worksheets

Weekly/Monthly Cash Inflow and

Cash Outflow

FIXED VARIABLE INDEXED

SAVINGS ACCOUNTS BANK CD's

BROKERAGEACCOUNTS

MUTUAL FUNDS

401(k)/403(b)

IRA/SEP IRA

ANNUITIES

PENSION PLANS

MUNICIPAL BONDS

ROTH IRA

EXECUTIVE BONUS PLANS

CASH ACCUMULATION IN AN INSURANCE POLICY

TAX NOW TAX ADVANTAGEDTAX LATER

RULE OF 72

HOW MONEY GROWS

HOW MONEY GETS TAXED

COMPOUNDING INTEREST3 RULES OF MONEY

1% 72 years 29 $10,000 101 $20,000

4% 18 years 29 $10,000 47 $20,000 65 $40,000

6% 12 years 29 $10,000 41 $20,000 53 $40,000 65 $80,000

10% 7.2 years 29 $10,000 36 $20,000 43 $40,000 50 $80,000 57 $160,000 64 $320,000 71 $640,000

Program Cost • There is a very minimal fee for this plan to be

accomplished. We are able to charge only this minimal fee because we want you to work side by side with us.

• We prefer people to stick with this plan for at least 6 months, if the person is not willing to commit to this plan, this plan will not work.

• We want people to build healthier money habits before going on their own, to avoid having to start again from Stage #1 in their financial wellness process.