It’s All God’s Money Living Grace Community Church November, 2014

It’s All God’s MoneyLiving Grace Community Church

November, 2014

Review of Week 1 – It’s All God’s Money

• Everything belongs to God• God promises to meet all our needs• Wealth… and the ability to make wealth… comes from

God• The pursuit of riches can deceive• Be content with what you have• The key to contentedness is to avoid comparison• Managing God’s money well requires consistent

communication with God… and with your spouse

Debt

• What God says about debt

• Romans 13:8Owe nothing to anyone except to love one

another; for he who loves his neighbor has fulfilled the law.

What God says about debt

• Deuteronomy 28:1-2

Now it shall be, if you diligently obey the LORD your God, being careful to do all His commandments which I command you today, the LORD your God will set you high above all the nations of the earth. All these blessings will come upon you and overtake you if you obey the LORD your God:


• Deuteronomy 28:12

The LORD will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.


• Deuteronomy 28:15

But it shall come about, if you do not obey the LORD your God, to observe to do all His commandments and His statutes with which I charge you today, that all these curses will come upon you and overtake you:


• Deuteronomy 28:43-44

The alien who is among you shall rise above you higher and higher, but you will go down lower and lower. He shall lend to you, but you will not lend to him; he shall be the head, and you will be the tail.


• Proverbs 22:7

The rich rules over the poor, And the borrower becomes the lender's slave.

What God says about debt •What if…

• Your lender doesn’t abide by Biblical principles?


• Your lender doesn’t abide by Biblical principles?• Someone else who has financial influence on your

life (typically your employer) doesn’t abide by Biblical principles?


• Your lender doesn’t abide by Biblical principles?• Someone else who has financial influence on your

life (typically your employer) doesn’t abide by Biblical principles?

• God has a less financially lucrative… but more rewarding… plan for you?

What God says about debt •When is debt permissible?

• When buying an appreciating asset• A house



• As an investment for a constant stream of income

• A business



• As an investment for a constant stream of income

• A business• A college education (not recommended)

The Plastic Genie

The Plastic Genie

The Plastic Genie

• Facts about credit cards• About 1.2 billion credit cards in use in the US

today

The Plastic Genie


today• $880 billion in credit card debt was outstanding

in August, 2014

The Plastic Genie



in August, 2014• About 23% of all households do not have a

credit card

The Plastic Genie



in August, 2014• About 23% of all households do not have a

credit card• About 30% of all households pay off their

balance every month

30%

23%

47%

US Credit Card Demographics

Do not use credit cards

Pay off the balance each month

Carry a balance each month.

Average balance = $15,600

Annual Interest = $2,300

Getting out of Debt

• Arrange a date for the Genie with Ms. Shredder

Getting out of Debt

• Arrange a date for the Genie with Ms. Shredder• We must spend less than our take home income if we

want to get out of debt

Getting out of Debt

• A Strategy• List all of your debts, from smallest to largest

Getting out of Debt

• A Strategy• List all of your debts, from smallest to largest• Make minimum payments on all except your smallest

debt

Getting out of Debt


debt• Pay everything you can on the smallest debt until it’s

gone

Getting out of Debt



gone• Make minimum payments on all except your next

smallest debt

Getting out of Debt




smallest debt• Pay everything you can on the next smallest debt until

it’s gone

Getting out of Debt




smallest debt• Pay everything you can on the next smallest debt until

it’s gone• Continue until you are debt-free

Getting out of Debt – An example

• Assume the following:• $6,000 4-year car loan at 8%• Credit card #1 - $200 balance, minimum payment

of $10 per month, 12% interest• Credit card #2 - $1,000 balance, minimum payment

of 2% / $10 per month, 21% interest• Credit card #3 - $2,000 balance, minimum payment

of 2% / $10 per month, 18% interest


• If we pay the minimums…• Car loan will take 4 years to pay off. Interest =

$976



$976• CC #1 will take 23 months to pay off. Interest = $22



$976• CC #1 will take 23 months to pay off. Interest = $22• CC #2 will take over 29 years to pay off. Interest =

$3,642




$3,642• CC #3 will take over 29 years to pay off. Interest =

$4,562




$3,642• CC #3 will take over 29 years to pay off. Interest =

$4,562

• Total loans = $9,200. Total interest = $9,202


• Assume we pay $100 over the minimum each month…• CC #1 will take 2 months to pay off. Interest = $1


• Assume we pay $100 over the minimum each month…• CC #1 will take 2 months to pay off. Interest = $1• CC #2 will take 10 months to pay off. Interest = $93


• Assume we pay $100 over the minimum each month…• CC #1 will take 2 months to pay off. Interest = $1• CC #2 will take 10 months to pay off. Interest = $93• CC #3 will take 22 months to pay off. Interest =

$445



$445• Car loan will take 34 months to pay off. Interest =

$806.



$445• Car loan will take 34 months to pay off. Interest =

$806.

• Total loans = $9,200. Total interest = $1,344


• Benefits of paying an additional $100 per month• All debts (including the car) are paid off in 34

months



months• Save over $7,800 in interest



months• Save over $7,800 in interest• In month 35 we are saving $316 per month

Documents

It’s All God’s Money Living Grace Community Church November, 2014