Download - Finding Financial Freedom

Finding Financial Freedom

Wait patiently

Interdependent Truth

• Work Gloriously• Wait Patiently• Live Simply• Give Generously• Celebrate Community

Wait Patiently

• Impatience is very costly

Wait Patiently

• Impatience is very costly• When patience runs out somebody is going to get hurt...

Proverbs 22:7

“The rich rule over the poor and the borrower becomes the lender’s slave.”

Romans 13:8

“Let no debt remain outstanding, except the continuing debt to love one another.”

Case Study

• After working out the numbers you figure that you can buy a car for about R2200/month.

(Excluding maintenance, insurance, running costs etc.)

That means that you could finance:

• A car for R100 000


• A car for R100 000 • @ 11%


• A car for R100 000 • @ 11% • Over 60 months (5 years)


• A car for R100 000 • @ 11% • Over 60 months (5 years) • Monthly payment of R2174


• A car for R100 000 • @ 11% • Over 60 months (5 years) • Monthly payment of R2174• You pay R30 455 in interest.

OR - You could finance:

• A car for R50 000 • @ 11% • Over ??? months (v 5 years) • Same monthly payment of R2174• You pay ??? in interest.

The comparisonPrice R100 000 R50 000Interest Rate 11% 11%Monthly Payment

R2174 R2174

Term 60 Months (5 years)

23 Months (< 2 years)

Total Interest R30 455 R6 409

Because you have learnt to save...

• You then save your R2174 for the remaining 37 months @ 5% = R87 136.

Because you have learnt to save...

• You then save your R2174 for the remaining 37 months @ 5% = R87 136.

• (Actual savings could be even higher if you had placed this money in your bond, should you have one.)

Let’s assume at least 50% depreciation in tradable value over the 5 years.

• R100 000 option: After 60 months you have a car to trade in @ R50 000



• R50 000 option: After 60 months you have a car to trade in @ R25 000 and R87 136 saved for a total of R112 136



• R50 000 option: After 60 months you have a car to trade in @ R25 000 and R87 136 saved for a total of R112 136

• For the exact same monthly expense you have a 124% improvement!

For the boffins...

• Where interest rates go up the advantage will become even greater.

For the boffins...


• While maintenance may be more, this is somewhat offset by lower insurance.

For the boffins...


• While maintenance may be more, this is somewhat offset by lower insurance.

• If the 5 year depreciation is more than 50%, which is not unlikely, the percentage improvement of “option B” would be even greater.

It is not a Trick

• It is nothing less than a lifestyle choice shaped by your values!

It is not a Trick

• It is nothing less than a lifestyle choice shaped by your values!

• You learn to be your own banker, using money from your savings to finance future needs.

• Biblical counsel is not just “spiritual”, it is financially smart.

• Biblical counsel is not just “spiritual”, it is financially smart.

• It is either extravagance or impatience that gets too many of us into a spiral of debt.

• Biblical counsel is not just “spiritual”, it is financially prudent.

• It is either extravagance or impatience that gets too many of us into a spiral of debt.

• If you do not develop the discipline of saving,

you can never avoid the inevitability of debt.

Different Kinds of Debt

• Consumer debt


• Consumer debt• Debt on depreciating assets


• Consumer debt• Debt on depreciating assets• Debt on appreciating assets

Escaping Debt

• If you are in a hole, stop digging!

Escaping Debt

• If you are in a hole, stop digging!• Develop a repayment plan, starting with your most expensive debt.

Escaping Debt

• If you are in a hole, stop digging!• Develop a repayment plan, starting with your most expensive debt.

• Make yourself accountable to someone you trust.