LOVE & MONEYHow to handle finances together

without killing each other.

And the 2 shall become 1

Indulgences

Indulgences

Financial Feelings

Confident

Financial Feelings

Anxious

Investing

Knowledgeable

“In-to”

Aggressive

Investing

Cautious

Successful

Current Financial Situation

OverstateDebt

OverstateIncome

Current Financial Situation

Spender Saver

Financial Infidelity

Avoid Financial Infidelity

36-50% of couples confess to lying about spending

20% don’t discuss how much they make

60% have no idea when their spouse plans on retiring

Many maintainseparate financial lives

Make a Plan to Succeed(Spending Plan)

Live Below Your Means (Spending Plan)

Create a Spending Plan that will allow you to make the most of what God has provided you – without going into debt

Plan where you want your money to go – rather than fight over where it went

HOW TO : SPENDING PLAN

1. Start with your INCOME2. Add the things you can’t change:

1. FIXED Expenses (Rent/Mortgage, Auto Loan, etc.)

2. VARIABLE Expenses (Hydro, Heat, Insurance, etc.)

3. Include % for GIVING & SAVING3. Adjust LIFE Spending to Balance

(Food, Clothing, Entertainment, Misc.)

4. Compare Against % Guides

HOW TO : SPENDING PLAN

Giving 10%

Saving 10%

Housing 35-40%

Transportation 15%

Life 25%

Debt 0%

Keys to Success

1. All income/expenses tracked by central system

2. Each should have own budgeted category

Give Some Away(Generosity)

Make Generosity a Priority (Give)

Generosity breaks the hold that our money and possessions have on our hearts

God uses generosity to root out selfishness out of our hearts

Being less selfish will help you as a couple

When money and things are not important – people become a priority

> Is Generosity a Virtue or a Sacrifice?

How To

1. Agree on a cause or causes you both care about

2. Give away 10% of your income

Keys to Success

1. Make generosity your first financial priority

2. Base giving on percentage of income

Put Some Away(Save)

Plan for Unexpected & Important Stuff in Life (Save)

Life Happens (both good & bad)

Savings are needed in order to avoid turning to debt

Need to have a plan in place in order to have the important goals/plans actually happen

How To:

1. Build/Maintain Emergency Fund

Debt? 1 month’s exp. No Debt? 3- 6 months’ exp.

2. Save for Irregular Bills & Expenses

3. Start Early on Long Term Investments

Keys to Success1. Separate accounts:

> Checking

> Emergency Savings> Irregular Bills Savings

2. Joint Accounts3. Use the power of

Compound Interest on Long-Term Goals

Avoid Debt(Sufficiency with Contentment)

Avoid Fighting over Debt

Living with debt creates tremendous stress on relationships

Having Debt fuels a sense of financial unease among couples & increases the likelihood that they will fight over money matters

It also raises the likelihood that couples will fight over issues other than money

Guard your Heart Practice Sufficiency

with Contentment(Do not covet) Avoid Malls/TV Choose to live Simply

Be Thankful for whatGod has given

Go on a Mission Trip

How To:

Keys to Success1. Go no further into debt

• Remove cards from wallet• Tell someone (who?)

2. Use Credit Cards Wisely

• Pre-planned budgeted items only

• Record spending• Pay balance in full• Can’t do first three?

> Don’t use cards

Spend Smart(Live Simply & Waste Not)

Use Wisdom When Buying a House

Consider renting first Put at least 20% down

(don’t use up emergency fund)

Mortgage, taxes, insurance = 25% BUDGET (30-40% with utilities, maintenance & other housing costs)

Base it on one income Title correctly

Avoid Delusions of DINKhood

Build lifestyle on one income

Accelerate debt payoff, savings & investing

Enjoy the margin

Waste Not

Live Simply Practice Conservation Avoid wasting money on

unnecessary things Think before you buy

Do we “need” or “want” this? Pray first – “is this what

God wants us to do with His money?

Be willing to ‘let go’ and share un-used stuff with others

Practice a Spending Fast

Fight Fair(Work Together)

“Fighting – when it airs grievances and complaints – can be one of the healthiest things a couple can do for their relationship (indeed, how you fight is one of the most telling ways to diagnose the health of your marriage).”

- John Gottman“Why Marriages Succeed or Fail”

How To Fight Fair1. Complain, Don’t Criticize

2. Avoid Contempt

3. Listen Well Focus Ask Clarifying Questions

4. Don’t Get Defensive

5. Stay with It Don’t check out mentally or physically

Keys to Success

Remember, your relationship is more important than money or anything money can buy

Living the Plan(Living the Plan)

Monitor, Flex & Adjust(Living the Plan)

A budget on it’s own will not help Monitoring (Tracking)

tells you where your money actually went

Tracking lets you know when to Flex in yourcategories in order to stay balanced

Adjusting (managing) your budget as life happens keeps your budget current and working for you (alive)

It lets you tell your money where to go – rather than wondering where it went

HOW TO:

Track all your Expenses(ask/keep receipts)

Take 5 minutes at end of each day to record

Review Monthly Together on how you are doing and what needs to adjust

KEYS TO SUCCESS Accessible/Central System

Paper, Computer, Envelop, On-Line Find a way to record/store receipts Get Organized – Store in accessible

yet safe location

Live for Eternity(Outlive the Plan)

Maintain Perspective

IT’s NOT OUR STUFF We are stewards – not owners

We do not live for ourselves We live for GOD and OTHERS

We do not live for today – but ETERNITY

HOW TO:

Love God with all you have and your neighbour (starting with your closest neighbour – your spouse) as yourself

Seek His Kingdom first (together) Be generous with each other and

anyone God brings into your life Use what He has entrusted to you for

His purpose

The Question to Ask…

“ What are we going to do with everything God has given us?”

Be on your guard against all kinds of greed (v 15) – Guard your hearts

Don’t store up things for yourselves (v 16-21) – Don’t be selfish

Be rich towards God (v 21) – Live for others

Don’t worry (v 22-26) – Trust in God

Don’t set your heart on what you will eat, drink or wear but seek His Kingdom first (v 31) – Maintain Perspective

Be on your guard against all kinds of greed (v 15) – Guard your hearts

Don’t store up things for yourselves (v 16-21) – Don’t be selfish

Be rich towards God (v 21) – Live for others

Don’t worry (v 22-26) – Trust in God

Don’t set your heart on what you will eat, drink or wear but seek His Kingdom first (v 31) – Maintain Perspective