MANAGING FINANCES

“For where your treasure is, there your heart will be also.” (Matthew 6:21 ESV)

Jonathan LeeChina Outreach MinistriesUniversity of MinnesotaMay 18, 2013

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Goals2

Enable you to become more informed about personal finances.

Understand personal financial issues and choices.

Learn basic skills about managing money, no matter how much money you have.

Briefly: My Story3

My Journey from Merrill Lynch to China

EVERGREEN FAMILY

FRIENDSHIP SERVICEServing Shanxi, Reflecting Christ

History

Peter and Valborg Torjesen came from Norway in 1919 to serve in China.

His school and his wife’s medical clinic came to an end in 1939 when Japanese bombers struck his church while he and hundreds of Chinese refuges were inside. His family was spared…but he died….

Shanxi Province

Three regions: Taiyuan

(1993)太

原 Yangqu

(1996)阳

曲 Yuci (2003)

榆 次

Evergreen’s Purpose To assist Shanxi and other

Chinese provinces by developing public benefit services for the common people,

continuing the good works of Peter Torjesen,

acknowledging God’s gracious calling in our lives, and

reflecting the credibility of Christ.

Medical Work and Public Health

Educational Programs Agricultural Development

Business Incubation

Orphan Care

Global Consulting

Family Services

Areas of Professional Service

Back to our topic tonight: Review of Goals9

Enable you to become more informed about personal finances.

Understand personal financial issues and choices.

Learn basic skills about managing money, no matter how much money you have.

Managing Money is Important to...10

Meet daily needs; Deal with life’s occurrences; Handle unexpected emergencies; Take advantage of opportunities when

they arrive; and Plan for the future.

Challenges to Money Management 11

Pressure on cash flow is persistent and urgent.

Planning time period is short and related to immediate needs, e.g., expenses or school fees.

Limited time to plan to save money for illness, unexpected social demands or the future.

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"My monthly income is how much?“ “How much money is left for me each

month? "My greatest financial burden is?“ “Am I prepared to deal with this

problem?“ “Do I have enough money available if……"

Personal Reflection

Concerning money, what is my greatest concern?

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My Biggest Economic Concern Is..？14

Finding a good job;Children’s education;My health;A comfortable life; and/orTaking care of elderly parents.

Money Values

People's money values and goals are different.

Different countries / cultures have different money values.

People's money, values and objectives dictate how they use money.

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Does money control you？16

Why should money not control you？ Is there a way to break/gain control？What guidance does Scripture give？

Matthew 6:24 (ESV)17

“No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.”

Matthew 6:19-20 (ESV)18

“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal.”

How then should we view money？19

Life is not a competition to see who can get the most money.

Some questions to consider…20

Then why save or care?Why do this talk?

Luke 16:10 (ESV)21

“One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.”

Why I care about financial management?22

If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches?

Luke 16:11 (ESV)

Points to Consider23

Ensuring proper use of money shows we are able to manage what is given to us.

If we cannot properly view and use money, are we able to manage other responsibilities?

Other Considerations

Prepare as well as possible, (and then completely trust God.)

Even if you save half of the money, you reduce the problem.

Need balance. Money does not represent everything.

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Furthermore…

There are things in life more important than money.

Money arrangements do correspond to each person’s values, so don’t judge others.

Avoid the phenomenon of “saving more is better.” Life is not a competition to save the most money.

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Three Points26

No matter the work, continue to persevere, don’t easily give up.

A little income compared to no income is better.

A loan is a heavy burden, don’t take lightly borrowing money.

Four Basic Steps27

Give first to God (For Christians) Spend less than income Avoid debt Develop long-term goals

Giving to God (For believers) 28

This is our first financial priority. The Bible instructs us to give. Therefore, giving is a matter of

obeying God.

Spend Less Than You Earn29

Consider spending only a part of your monthly income.

If you spend within your income, you can then save money.

Avoid Borrowing Money30

Borrowing money is not the problem. Not paying it back is. Borrowing is always easier than

paying back. Interest makes repayment difficult.

Review31

When you spend less than you earn, you create savings.

If you avoid debt, you will have the disposable income to do other things, rather than pay down debt.

Review32

Here is a process that will help you generate liquidity and：

Secure your financial position Have money for a rainy day

Now what？

Develop Long-Term Goals33

Goals provide direction in life. Goals are the motivations for

our actions. If long-term goals are clear,

they will help you make better current decisions.

Develop Long-Term Goals34

Create goals early but, it is not too late to start now!

Being short sighted will adversely affect your plans.

Goals must be reasonable.

Personal Assessment35

Is my financial situation satisfactory? How much money will be left to me

each month? Can I reduce some expenses? In what ways can I save money? How much money could I save? Do I have the right priorities? Is my heart in the right place?

Discussion Questions36

What do you think about the advice in this talk? Was anything particularly helpful?

Why do you think Jesus said we should not serve money but serve God?

Do you have any other questions from this talk?

Resources37

Randy Alcorn: http://www.epm.org/resources/category/money-and-giving/

Crown Financial: http://www.crown.org/ Dallas Federal Reserve:

http://www.dallasfed.org/assets/documents/cd/wealth/wealth.pdf

Khan Academy: http://www.bettermoneyhabitscom