Money matters in marriage

MONEY MATTERS IN MARRIAGE 1

COUPLES AGLOW

SEMINAR

2 July 2011

DELIVERANCE CHURCH

MONEY MATTERS IN MARRIAGE 22 July 2011

Money Matters in Marriage

Presented by: Bro. Henry Mahugu Wanjohi


MONEY MATTERS:

1.Power & Control2.Stewardship3. Investments4.Retirement

2 July 2011


POWER & CONTROL

Husband/Wife Balance

Husband

Wife

Wife Personal- Food Shopping- Children clothes- House help management

Husband Personal- Rent/Transport- Security/Insurance- Medical/Pension

- Catering/Entertainment- Social responsibility- Family visits

- School fees- Gas/Water/Electricity- Holiday/Parties

Consolidated Income and Expenditure

Mr. & Mrs. A.N. Other

Agreement on Operating Standards

Power & Control Struggle

MarriageEagle vs.

Duck Combinatio

n

Amos 3:3

Living together> 24yrsAccepting one

Another15 – 24yrs

Coping and Understanding one another7 – 14 yrs

Meeting and knowing one another1 – 7yrs

Vision:Till death do us

part.

How soon do you give up?

When do you give up?

What do you give up?

Where do you give up?

Matu

rit

y

Time (Yrs)

0

Relationship Maturity curve

1

2

3

4

Sources of Stress

Family

Boss

Spouse

DebtsHealthSecurity

Ageing

Marriage

Money

DeathPolitics

Clothing

In-LawsSchool Fees

Home Ownership

Retirement

Matthew 11:29-30“Take my yoke upon you

and learn from me..”

http://www.google.co.uk/imgres?imgurl=http://www.pensionriskmatters.com/uploads/image/Cracks.jpg&imgrefurl=http://www.pensionriskmatters.com/2008/11/articles/pension-deficit/cracks-in-the-pension-safety-net-system/&h=701&w=1050&sz=971&tbnid=y_-Wm6meO83ONM:&tbnh=100&tbnw=150&prev=/images?q=picture+of+cracks&zoom=1&q=picture+of+cracks&usg=__IrzqUKT6lWIq7DjOFZm0tyo2vx8=&sa=X&ei=XJlkTfbEOMbKhAe-q7XRBw&ved=0CCcQ9QEwAw

http://www.google.co.uk/imgres?imgurl=http://www.pensionriskmatters.com/uploads/image/Cracks.jpg&imgrefurl=http://www.pensionriskmatters.com/2008/11/articles/pension-deficit/cracks-in-the-pension-safety-net-system/&h=701&w=1050&sz=971&tbnid=y_-Wm6meO83ONM:&tbnh=100&tbnw=150&prev=/images?q=picture+of+cracks&zoom=1&q=picture+of+cracks&usg=__IrzqUKT6lWIq7DjOFZm0tyo2vx8=&sa=X&ei=XJlkTfbEOMbKhAe-q7XRBw&ved=0CCcQ9QEwAw


STEWARDSHIP

2 July 2011


Stewardship - Definition In general stewardship is the responsibility for taking good care of resources entrusted to someone.

2 July 2011


Stewardship in Christianity

In a Christian context, stewardship refers to the responsibility that Christians have for the gifts that God has bestowed on them. In some settings, stewardship is operationalised as time, talent and treasure.

In this context: (Management of 3Ts)

Stewardship = Time + Talent + Treasure2 July 2011


GoodFaithfulSteward

Time

TreasureTalent

God Rewards Stewards

hip

Investment driven by

Stewardship

KnowledgeUnderstandi

ngWisdom

Isa. 11


Definitions:

1.Time quantifies or measures the interval between events, or the duration of events.

2.A gift can be a special talent or ability that was not earned through the usual amount of long and difficult practice but instead comes easily to the recipient in a natural way.

3.Treasure is a concentration of riches, often that which is considered lost or forgotten until being rediscovered

2 July 2011


Treasures in Heaven Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal (Matthew 6:19)

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

2 July 2011


Retirement Quotes:The question isn't at what age I want to retire, it's at what income. ~George Foreman

Don't simply retire from something; have something to retire to. ~Harry Emerson Fosdick

Retirement kills more people than hard work ever did. ~Malcolm Forbes

2 July 2011


INVESTMENTS

2 July 2011


INVESTMENTS During your

Youth


20 –

30 Yrs

•Finish College

•Get a permanent job/business

•Open Pension Account

•Get Married

30 –

40 Yrs

•Parenting

•Investments/Mortgages

•Loans/Acquisitions/Mergers

•Increase Contributions to Pension Account

40 –

50 Yrs

•Late entry New Loans

•Settlement of old loans

•Launch Children into Labour market


Increase Expenditure

SCENARIO 1 Original Plan

% of

Income Scenario 1 % of

Income Absolute Change % Variance

Income/Salary 100,000 100.0% 100,000 100.0% - 0.0%

Domestic Expenditure 60,000 60.0% 61,000 61.0% 1,000 1.7%

Surplus/(Deficit) 40,000 40.0% 39,000 39.0% (1,000) -2.5%

Reduce Expenditure

SCENARIO 2 Original Plan

% of

Income Scenario 2 % of

Income Absolute Change % Variance

Income/Salary 100,000 100.0% 100,000 100.0% - 0.0%

Domestic Expenditure 60,000 60.0% 58,000 58.0% (2,000) -3.3%

Surplus/(Deficit) 40,000 40.0% 42,000 42.0% 2,000 5.0%

2 July 2011


Loan Calculator

Enter Values Loan Summary

Loan Amount 3,000,000.00 Scheduled Payment 39,503.69

Annual Interest Rate 15.00 % Scheduled Number of

Payments 240

Loan Period in Years 20 Actual Number of Payments 240

Number of Payments Per Year 12 Total Early Payments -

Start Date of Loan 30/06/2011 Total Interest 6,480,884.99

Optional Extra Payments

Lender Name:Mr. Henry Mahugu

PmtNo.

Payment Date

Beginning Balance

Scheduled Payment

Extra Payment

Total Payment Principal Interest

Ending Balance

1 30/07/2011 3,000,000.00 39,503.69 - 39,503.69 2,003.69 37,500.00 2,997,996.31

2 30/08/2011 2,997,996.31 39,503.69 - 39,503.69 2,028.73 37,474.95 2,995,967.58

3 30/09/2011 2,995,967.58 39,503.69 - 39,503.69 2,054.09 37,449.59 2,993,913.49

4 30/10/2011 2,993,913.49 39,503.69 - 39,503.69 2,079.77 37,423.92 2,991,833.72

5 30/11/2011 2,991,833.72 39,503.69 - 39,503.69 2,105.77 37,397.92 2,989,727.95

6 30/12/2011 2,989,727.95 39,503.69 - 39,503.69 2,132.09 37,371.60 2,987,595.86

Scenario 1

Net savings Invested in a

house Note Interest expense

2 July 2011


Loan CalculatorIncrease Mortgage Payment by: KES 3,000.00

ONLY!




Payments 240

Loan Period in Years 20 Actual Number of Payments 173 67

Number of Payments Per Year 12 Total Early Payments 516,000.00

Start Date of Loan 30/06/2011 Total Interest 4,320,062.36 6,480,884.99

Optional Extra Payments 3,000.00

Savings 2,160,822.63


PmtNo.

Payment Date

Beginning Balance

Scheduled Payment

Extra Payment


Ending Balance

1 30/07/2011 3,000,000.00 39,503.69 3,000.00 42,503.69 5,003.69 37,500.00 2,994,996.31

2 30/08/2011 2,994,996.31 39,503.69 3,000.00 42,503.69 5,066.23 37,437.45 2,989,930.08

3 30/09/2011 2,989,930.08 39,503.69 3,000.00 42,503.69 5,129.56 37,374.13 2,984,800.52

4 30/10/2011 2,984,800.52 39,503.69 3,000.00 42,503.69 5,193.68 37,310.01 2,979,606.84

5 30/11/2011 2,979,606.84 39,503.69 3,000.00 42,503.69 5,258.60 37,245.09 2,974,348.23

6 30/12/2011 2,974,348.23 39,503.69 3,000.00 42,503.69 5,324.33 37,179.35 2,969,023.90

Scenario 2

5 YrsAdditional Kshs.

3K

Savings

2 July 2011


Loan Calculator




Payments 240

Loan Period in Years 20 Actual Number of Payments 126 114

Number of Payments Per Year 12 Total Early Payments 1,000,000.00

Start Date of Loan 30/06/2011 Total Interest 2,957,299.56 6,480,884.99

Optional Extra Payments 8,000.00

Savings 3,523,585.43


PmtNo.

Payment Date

Beginning Balance

Scheduled Payment

Extra Payment


Ending Balance

1 30/07/2011 3,000,000.00 39,503.69 8,000.00 47,503.69 10,003.69 37,500.00 2,989,996.31

2 30/08/2011 2,989,996.31 39,503.69 8,000.00 47,503.69 10,128.73 37,374.95 2,979,867.58

3 30/09/2011 2,979,867.58 39,503.69 8,000.00 47,503.69 10,255.34 37,248.34 2,969,612.24

4 30/10/2011 2,969,612.24 39,503.69 8,000.00 47,503.69 10,383.53 37,120.15 2,959,228.70

5 30/11/2011 2,959,228.70 39,503.69 8,000.00 47,503.69 10,513.33 36,990.36 2,948,715.37

6 30/12/2011 2,948,715.37 39,503.69 8,000.00 47,503.69 10,644.75 36,858.94 2,938,070.63

Scenario 3

Reduce Period

by almost 50%

Additional Kshs.

8K

Notice Impact

2 July 2011


Loan Calculator




Payments 240

Loan Period in Years 20 Actual Number of Payments 240

Number of Payments Per Year 12 Total Early Payments -

Start Date of Loan 30/06/2011 Total Interest 5,831,253.86

Optional Extra Payments


PmtNo.

Payment Date

Beginning Balance

Scheduled Payment

Extra Payment


Ending Balance

1 30/07/2011 3,550,000.00 39,088.56 - 39,088.56 3,588.56 35,500.00 3,546,411.44 2 30/08/2011 3,546,411.44 39,088.56 - 39,088.56 3,624.44 35,464.11 3,542,787.003 30/09/2011 3,542,787.00 39,088.56 - 39,088.56 3,660.69 35,427.87 3,539,126.314 30/10/2011 3,539,126.31 39,088.56 - 39,088.56 3,697.29 35,391.26 3,535,429.025 30/11/2011 3,535,429.02 39,088.56 - 39,088.56 3,734.27 35,354.29 3,531,694.756 30/12/2011 3,531,694.75 39,088.56 - 39,088.56 3,771.61 35,316.95 3,527,923.14

Change Interest

Rate

Principal amount

increases

Pay same amount

2 July 2011


RETIREMENTCycle

(Investment in old age)

2 July 2011


IN YOUR 20s Key points:

1. Focus on clearing your debts.

2. But make sure you open an Investment plan.

3. Then save what you can afford.


1. Reassess your debts and outgoings

2. Join your company pension scheme as soon as possible

3. Think long-term with your investments.


1. If you haven't started saving, do something about it!

2. Keep building your Investment Account.

3. Your earnings should be peaking - dedicate some to a pension


1. Maximise your contributions

2. Remove risk from your pension investment plan

3. Consider using a Self Investment Personal Plan for greater control


1. Check that all your debts, including mortgage, are in order

2. Decide on whether you'll buy an annuity immediately or take drawdown

3. Talk to an expert before you take any action.

70yrsRetire

happily

2 July 2011

Handover Assets


Great Grandfath

er

Grandfather

Parent

Children

Transferred Value

Kes. 100K

Transferred Values

KES. 800K

Transferred Value

Kes. 1.5M

Children receive

accumulated blessings

NB: Some people

started with ZERO

Prov. 20:21 An inheritance claimed too soon will not be blessed at the end.


Facts & Figures

KES 10MAge 55

No Guarantee

KES 96,872 p.m.

KES 10MAge 555 Yrs

Guarantee

KES 92,872 p.m.

KES 10MAge 55 10 Yrs

Guarantee

KES 91,061 p.m.

Subject to TAX


Thank You & God richly Bless

you.

Education

Money matters in marriage