Stewardship:

What is it?Why is it important?How can we be good stewards?

Steward:a person who manages another's property or

financial affairs; one who administers anything as the agent of another or others.

New Testament Passages1 Timothy 6:6-10

Godliness with contentment Temptation and a snareLove of money is the root of evil

Mark 10:24Hard for those who trust in riches to enter heaven

Romans 1:29Covetousness is worthy of death

Matthew 6:19-34Where your treasure is, there your heart will be

also

Wealth in itself is not condemnedGod blessed many great men with riches

(Abraham, David, Solomon, Job..)They were not condemned for being wealthyMany good people are presently wealthy

They gained their wealth honestly and without greed.

Their riches should be viewed as a blessing from God.

What does Godexpect of us financially?

We are expected to workIn order to provide for our own families

(1Tim 5:8)In order to be givers (2 Cor. 9:6,7; Luke 6:38;

Acts 20:35; Prov. 3:9,10)In order to leave an inheritance (Prov 13:22)We should make good use of the $ we are

blessed with. (Mat 25:14ff)

Tips on Good Stewardshipfrom Dave Ramsey

What to Avoid

Avoid CreditToo easy to buy things you don't have money forDebit cards can be used instead of credit cards &

they have the same protection.Teens are now the #1 target of credit card

companies.19% of people who filed bankruptcy last year were

college students.Payday loans, rent-to-own, title pawning, tote-the-

note car lots, 90 days same as cash – all generally result in paying exorbitant interest and fees

Other Pitfalls to AvoidGet rich schemes & scams. If it sounds too good to be

true - it is. Don't even try to find the flaws. Run from them.

Infomercials (real estate, stock market, Ebay...)Cash value life insurance is one of the worst financial

products available. Don't combine life insurance with savings.

Loaning money to a friend or relative - it will change the relationship (Prov. 22:7)

Cosigning a loan – (Prov. 17:18 CEV) If you cosign a loan, expect to have to repay it. The bank needs a cosigner because they don't expect the person borrowing money to be able to repay it.

Making Wise Decisionson Large Purchases

Items with Wheels Lose ValueCars, Boats, ATVs, Trailer houses, etc.New cars, trailers, and similar purchases lose

value quickly.Double wide will lose nearly 70% of its value in 3

years.New car loses 60% of value in the first 4 years.Hard to get out of when you're upside down

Leasing is the most expensive way to operate a vehicle.

Financing and leasing just put more money in the dealer’s pocket. Better to save up and pay cash.

Check KBB.com or NADA.com for values.

Home OwnershipHome ownership should be a blessing, not a

curse. Don't buy a house until you can afford it. Always get a 15yr or less noteA good down payment save you a lot in the

long run.You don't have to get credit cards to build your

credit in order to get a mortgage - that's a mythYou can qualify by:

paying landlord on time for 2+ yearshaving the same career for 2+ yearshaving a good down paymenthaving no other credit - good or badnot trying to get too big of a loan

Dave Ramsey’s Advicefor Financial Responsibility

Dave’s Plan: BudgetingHave a budget, and put it in writing.Minimize expensesPlan for emergencies

$1000 emergency fund and 3-6 month living expenses emergency fund

Murphy-repellentGender differences"Even if you don't 'get' the emergency fund, get

one"

What is an Emergency?Emergencies Not Emergencies•Deductibles on insurance•Job loss•Blown engine / transmission

•Christmas•Starting a new business•Something on sale•A new car•Vacation

Dave’s Plan: InsuranceBe insured:

Home & Auto - get high deductibles Life - 20 year level term insurance equal to 10

times your income - don't include savings hereLong term disability - 50-70% of your income - best

place is through your workHealth

Large deductibles to reduce premiums Health Savings Account to save for medical expenses tax

freeLong term care - buy when over 60. Nursing homes

average $40k/yr - Dave says to make your parents get it

An Ounce of PreventionIs Worth a Pound of Cure

Preventive maintenance will save $ in the long run

Home (insulation, air filters, foundation, etc.)Vehicles (Oil Changes, tires, air filter, tune up,

etc.) Boats (lube change, tires, water pump, plugs, etc.)

Health (eat right, exercise, stretch, brush teeth,

good hygiene)

Dave’s Plan:Planning for the Future

Make a will to ensure who gets your inheritance

Give and invest continuallySave for and go to college if possible

Only if you mix college with attitude, character, perseverance, vision, diligence, and extreme levels of work will your college degree work for you.

Much more on this and investing in his book

Dave Ramsey’s Advicefor Dealing With Debt

For Those in DebtMaximize income (part time job if necessary)“Beans and rice” dietAvoid restaurantsBe debt free except the houseDebt snowball - small to largestCollectors are not your friends. Get any

settlement in writing and keep forever. Never let them have access to your bank account.

Bankruptcy is bad. Avoid it at all costs. Pay your debts. Rom 13:8

Debt “Fixes” to AvoidDebt consolidation - targets the symptom, not

the problem. 78% of the time, the debt grows back.

Debt management - companies destroy your credit as well as only target the symptom.

Credit Report Clean-Up Kits - Only inaccuracies can be cleaned from credit reports, so clean up kits are a scam. Some push for a new SSN - that's criminal.

A Few More Wordsof Advice

Additional ConsiderationsBeware of timeshares.Stay away from convenience store items that

could be purchased much cheaper at supermarkets.

Look for generics, items on sale, coupons, rebates (with caution).

Always save receipts on things that could be returned or deducted.

Take advantage of special offers: lunch specials, matinee, buy bulk.

Avoid expensive sodas at restaurants or theatersYou don't always get what you pay for.

Extended Warranties: Bathtub Curve

Conclusion:Attitude of thankfulness, not greedOur hearts should be on spiritual things.Trust in God for our blessings.Work hard, but not overwork to be rich (Prov

23:4).Be givers.Think about the future but not worry. (Mat 6:34)BudgetAvoid credit and debtBeware of pitfallsRemember that everything belongs to God. We

are merely stewards.

How are you using what God has given you stewardship of?