Money Cent$

Thanks to all who came and helped with our financial planning Relief Society meeting last Thursday!

We wanted to pass along the documents and links to some of the resources that we used for those who weren't able to make it and so that everyone could have master copies of the pdf's for your personal use.

Awesome online financial course--goes through budgeting, getting out of debt, saving, etc.
http://providentliving.org/media/training/peaceheart/main.html

Church website "Family Finances" link
http://www.providentliving.org/channel/1,11677,1709-1,00.html

Family Finances Pamphlet http://www.providentliving.org/ff/pdf/WE_FamilyFinancesGuide_International_04007_000.pdf

One For the Money Pamphlet http://www.providentliving.org/pfw/multimedia/files/pfw/pdf/88720_33293_OneForTheMoney_pdf.pdf

Budget Worksheet http://providentliving.org/pfw/multimedia/files/pfw/pdf/33293budgetworksheet.pdf

Debt Elimination Calendar http://providentliving.org/pfw/multimedia/files/pfw/pdf/33293DebtEliminationCalendar.pdf

Online Financial Calculators
http://providentliving.org/content/display/0,11666,6657-1-3438-1,00.html

Great talks from General Authorities, including info on unemployment http://www.providentliving.org/content/display/0,11666,7443-1-4021-1,00.html

Employment resources
https://www.ldsjobs.org/ers/ct/home.jsf

Attached is the document we used as a handout. (I've copied the handout below)

May the Lord bless you in your efforts to live providently!

Much Love,
The Additional Relief Society Meetings Committee

Money Cent$: Financial Planning Workshop
Hermann Park Relief Society January 2010

Here's the Handout (I had to modify the format a bit)

Money Management: The Big Picture…This is actually not about money at all…

“As we live providently and increase our gifts and talents, we become more self-reliant. Self-reliance is taking responsibility for our own spiritual and temporal welfare and for those whom Heavenly Father has entrusted to our care. Only when we are self-reliant can we truly emulate the Savior in serving and blessing others. It is important to understand that self-reliance is a means to an end. Our ultimate goal is to become like the Savior, and that goal is enhanced by our unselfish service to others. Our ability to serve is increased or diminished by the level of our self-reliance.”
Elder Robert D. Hales of the Quorum of the Twelve Apostles
Visiting Teaching Message, January 2010

“For behold, are we not all beggars? Do we not all depend upon the same Being, even God, for all the substance which we have, for both food and raiment, and for gold, and for silver, and for all the riches which we have of every kind?…And now, if God, who has created you, on whom you are dependent for your lives and for all that ye have and are doth grant unto you whatsoever ye ask that is right…O then, how ye ought to impart of the substance that ye have one to another.”
King Benjamin, Mosiah 4:19-21

“Our resources are a stewardship, not our possessions. I am confident that we will literally be called upon to make an accounting before God concerning how we have used them to bless lives and build the kingdom.”
Joe J. Christensen, Presidency of the Seventy

Money Management: Inspired Counsel

1. Pay honest tithe (10% of income) and a “generous” fast offering

“Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing that there shall not be room enough to receive it.”
Malachi 3:10

2. Avoid debt

“My brothers and sisters, avoid the philosophy that yesterday’s luxuries have become today’s necessities. They aren’t necessities unless we make them so. Many enter into long-term debt only to find that changes occur: people become ill or incapacitated, companies fail or downsize, jobs are lost, natural disasters befall us. For many reasons, payments on large amounts of debt can no longer be made. Our debt becomes as a Damocles sword hanging over our heads and threatening to destroy us.
I urge you to live within your means. One cannot spend more than one earns and remain solvent. I promise you that you will then be happier than you would be if you were constantly worrying about how to make the next payment on nonessential debt. In the Doctrine and Covenants we read: ‘Pay the debt thou hast contracted. … Release thyself from bondage.’”
President Thomas S. Monson

a. Spend less than you earn

1. Distinguish between wants and needs
2. Use a budget (see below)
3. Self-discipline and self-restraint

b. Debt only for “modest home,” “education,” “perhaps a needed first car,” or “other vital needs.”

c. Save money to purchase what you need

1. Buy used items until you can pay for quality new items—purchasing poor quality merchandise almost always ends up being very expensive
2. Take good care of your stuff

d. If you are in debt, pay it off as quickly as possible

1. Debt calculator (debt ÷ income); Add up all monthly debt payments and divide by sum of monthly take-home pay and other monthly income; Less than 20% is good, Between 20-30% is caution, More than 30% is DANGER
2. Debt elimination calendar (see DEBT ELIMINATION CALENDAR worksheet); Experiment with different options (maybe highest interest rates first, etc.); Get interest working for you; Pay off debt early for big savings

Helpful hints:

• Take time to think through purchases—is it a need or a want? Don’t feel pressure from salesmen or the Joneses
• Avoid consolidating short-term expenses into long-term debt
• Do not use home equity loans for “lifestyle” purchases—don’t jeopardize your home
• Don’t be enticed by low-interest or zero-interest loans—they usually mean inflated prices
• Do not use interest-only mortgages—resize your desires to fit a mortgage that pays down debt

e. A note on unemployment: Work hard and seek education

2. Use a Budget (see MONEY MANAGEMENT: YOUR ACTION PLAN detailed below)

• Keep a record of expenditures
• Record and review budget monthly
• Reduce spending on non-essentials (and reevaluate the “essentials”)
• Use information to establish a family budget
• Discipline!
• Make your budget goal-oriented—how will you best use your surplus—to eliminate debt, to establish your emergency savings, and then invest in long-term savings goals??

4. Build a Reserve

“Financial consultants indicate that ‘most people have it all wrong about wealth. … Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.’”
Joe J. Christensen, Presidency of the Seventy

a. Becoming self-reliant enables us to help others

b. Look ahead—make your plans based on “worst-case-scenario”

“Too often, people assume that they probably never will be injured, get sick, lose their jobs, or see their investments evaporate. To make matters worse, often people make purchases today based upon optimistic predictions of what they hope will happen tomorrow.”
Elder Joseph B. Wirthlin, The Quorum of the Twelve Apostles

c. Save regularly

1. Emergency savings to cover 3 months of all essential family obligations—keep liquid
2. Long-term savings for missions, education, retirement

d. Have adequate insurance (medical, auto, home owners, and life insurances)—study out alternatives before deciding.

e. Have adequate food storage and be prepared for emergencies

5. Teach Family Members

• If married, work with your spouse as a partnership
• Involve family in creating budget and setting family financial goal
• Teach principles of hard work, frugality and saving
• Stress importance of gaining as much education as possible

Money Management: YOUR Action Plan, YOUR Budget

1. Know how much money is available

2. List expenses--Review statements, checkbook, receipts, cash purchases and add up each category (see MY EXPENDITURES worksheet)

3. Prepare budget (see BUDGET WORKSHEET)

• Adjust spending to fit income
• Prioritize expenses
• Pay Lord first
• Pay yourself (savings) second--“Saving” what is “leftover” at the end of the month does not work. Pay yourself a predetermined amount (maybe a certain percentage of your income—10-50%) directly into savings

4. HOMEWORK: Implement budget and regularly compare actual spending to budget

5. Helpful Hints:

• It may take time to change habits, be patient
• Work together toward a common goal
• Consider including an amount for personal spending
• Find creative, inexpensive entertainment
• Use other sound money-saving strategies