A Biblical Study

of Personal Finances

Ai Jia

愛家

April 13, 2011

Week #3: Saving and the

Spending Record

Review the Spending Record

• Did everyone start tracking your

spending this week?

• Questions about the form?

• Where are you keeping your receipts?

• Who is responsible for recording

spending?

Spending Plan Guidelines

• Each category should follow these

basic percentages of monthly income:

– Giving 10%

– Housing 33%

– Food 9%

– Transportation 15%

– Debt 5% (hopefully less!)

Saving

• Saving is a crucial part of a

successful financial plan!

Types of Saving

• Emergency – short term savings

in cash. Initially $1000US or

30,000NT. Goal is 6 months of

total living expenses in cash or a

liquid account

Types of Saving

• Replacement – This is the money

you save to replace a specific

item. Your Spending Plan and

Spending Record will have an

entry for Savings – Car or

Savings – Refrigerator or

Savings – Computer.

Types of Saving

• Retirement – This is long-term

savings for your retirement and

should be a very diversified

investment.

Types of Saving

• Retirement – When you are

young, a greater percentage is in

higher risk investments

(stocks).The older you get, your

portfolio should change so that

more and more of your

investment is in cash and cash

equivalents.

Types of Saving

• College – If you have children, and

once you have saved for yourself,

begin building a college fund for

each child. But remember, you have

other options to pay for college, but

you cannot finance or get

scholarships to cover emergencies or

retirement!

The Enemy of Savings

• Debt is the enemy of savings.

You cannot save until you are

debt-free.

From Financial Planners

“If you want to be wealthy, you need

a healthy income and you must

invest wisely. But neither of these

are enough unless you’re saving

enough. Financial advisors often say

convincing clients to save is their

most challenging task …

From Financial Planners

“…At the end of every month, even

clients with six-figure incomes can

find themselves short of cash to

invest. So much money can walk out

the door without us realizing where

it’s going….

From Financial Planners

“…Luxuries are fine, but very often

we don’t distinguish between which

are worthwhile and which are

wasteful. Every dollar spent now is a

dollar you can’t invest toward long-

term goals…

From Financial Planners

“…And, with gas prices rising and

the economy precarious, there is an

added impetus to set aside more

cash for a rainy day.”

~Business Week,

July 22, 2008

From the Wise

“A bank is a place that will lend you

money if you can prove that you

don’t need it.”

~ Bob Hope

(American Comedian)

From the Wise

“Make all you can,

save all you can,

give all you can.”

~ John Wesley (1703 – 1791)

From the Wise

Annual income twenty pounds,

annual expenditure nineteen six,

result happiness.

Annual income twenty pounds,

annual expenditure twenty pound ought

and six (26), result misery

~ Charles Dickens,

(British Author, 1812-2870)

From the Wise

“Never spend money before you

have it.”

~ Thomas Jefferson

(American President, 1743-1826)

From the Bible

Proverbs 6:6-8

Go to the ant, you sluggard; consider

its ways and be wise! It has no

commander, no overseer or ruler,

yet it stores its provisions in summer

and gathers its food at harvest.

From the Bible

Proverbs 21:20

The wise store up choice food and

olive oil, but fools gulp theirs down.

From the Bible

The Bible clearly tells us

to save for the future.

From the Bible

Luke 12:24

Consider the ravens: They do not

sow or reap, they have no storeroom

or barn; yet God feeds them. And

how much more valuable you are

than birds!

From the Bible

Matthew 6:19

Do not store up for yourselves

treasures on earth, where moths and

vermin destroy, and where thieves

break in and steal.

From the Bible

The Bible clearly tells us not to

hoard our money.

Three Kinds of People

• The Squanderer – this person

spends all their money on things

that will fade away.

• The Hoarder – this person “over-

saves”, never spending money or

giving it away.

Three Kinds of People

• The Saver – This person balances

giving, saving, and spending in a

responsible financial plan.

Saver Squanderer

Hoarder

The Spending Record

• Keeping track of our expenses is

the only way to know if we are

following our Spending Plan, if we

need to adjust our Spending Plan,

and if we are meeting our financial

goals.

Keep Track of Your Finances

Proverbs 27:23

Be diligent to know the state of your

flocks, and attend to your herds.

Group Discussion

• What are barriers in our lives to

saving?

• Simple ideas to cut costs and save

money.

Homework

• Discuss the current state of your savings.

– Do you have $1000US/30,000NT in an

emergency fund?

– Is your debt paid off?

– Do you have 6 months of living expenses in

cash?

– Do you need to save to replace anything?

– Are you saving for retirement? College?

• Keep recording your spending this week!

A Biblical Study

of Personal Finances

Ai Jia

愛家

April 13, 2011

Week #3: Saving and the

Spending Record