Fundamentals of Personal Finance

By Bryan VillarosaJCI Bacolod Inc., www.bryanvillarosa.com

Riverside College, Bacolod City

Compass Game(Everybody stands and covers their eyes.

Leader asks them to pointto the north.

They open their eyesand all are not equal.)

What is the problem that caused the confusion?

In life, we desperately need a standard-

a source of direction.

The first step to find a solution is to identifythe real problem.

1. Are you worryingabout money?

2. Do you havea lifetime plan?Or Que sera sera?

Diagnostic Questions:

3. Do you sometimes buy thingsand later on regret?

4. Will you be readywhen rainy days come?

Intro:I. What is Personal Finance?II. Why is it important?III. Where should I begin?

MISCONCEPTIONS

True or False:“Money is the root of all

evil”(1 Timothy 6:10)

Misconception 2:

“YOLO”

“Get a life”

Problem with YOLO:

-You are responsible for your inheritance to your children.Not just material, but lifestyle.

-You have a legacy to leave.

-Our core motivation is intrinsic,not just extrinsic.

What is the best source of financial wisdom?

Compass Game

It’s very crucial to have a standard on which we

operate our lives.

Foundations

When you buy a new appliance or cellphone, what is the little book that

comes with it?

I. God made us and all things for his glory.

(Isaiah 43:7)

II. We are created to imitate His likeness (Genesis 1:28)

And God blessed them. And God said to them, “Be fruitful and multiply and fill the earth and subdue it, and have dominion

over the fish of the sea and over the birds of the heavens and over every living thing that moves on

the earth.” (Gen 1:28)

III. He owns everything. We are just managers.

How we handle money reflects

what we believeand what is in our heart

“Don’t worry about anything, but in everything ask and give thanks…”

(Philippians 4:6)

Things to Overcome:

1. Debt

“The borrower is slave to the lender” (Proverbs 22:7).

The wicked burrows and does not pay back (Psalm 37:21)

Owe nothing to anyone except to love one another… (Romans 13:8)

Debt-living could be a curse.

2. Impulsive Buying

The plans of the diligent lead surely to advantage, But everyone who is

hasty comes surely to poverty. (Prov 21:5)

3. Too much consumption

There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.

Proverbs 21:20

Consumer mentality vs. Producer mentality

4. Materialism/ Covetousness

“Happiness comes from commodities.”

5. Laziness

“Go to the ant you lazy man. Observe her ways. She gathers

her food in the summer. The wise ant plans for the future.”

(Proverbs 6:6)

For Financial Worry

“Seek ye first the Kingdom of God and all these things shall be

added unto you.” Matthew 6:33

The temptation for the rich is to trust his riches, the temptation for

the poor is to doubt God’s provision.

Habits of Sound Personal Finance

1. Work

a. Genesis Formula- 6 Days of Work.

b. God has designed us to work.c. Work brings dignity and self-

respect.

e. Keeps you from being idle.f. Hardwork and productivity

makes you a blessing.

a. Prov 28:19 “He who tills his land will have plenty of

money.”

b. “In all labor there is profit” Proverbs 14:23

2 Thessalonians 3:10“If anyone does not work, he

should not eat.”

A society that does not live on this principle will experience chaos

and disorder.

Philosophy: Material resources must belong to a group of people who have the capability to work it

and make it more fruitful.

Practice Delayed Gratification(Pagtitimpi)

2. Save

“If you live like no one else, later you will live like no one else.” –

Dave Ramsey

3. Invest

Cast your bread upon the waters, for you will find it after many

days. (Ecclesiastes 11:1-6)

“Whoever sows scarcely will also reap scarcely, and whoever sows

bountifully will also reap bountifully.” (2 Corinthians 9:6)

4. Plan

Plans fail for lack of counsel,but with many advisers they

succeed. (Proverbs 15:22)

5. Learn to be content

5. Learn to be content

You make known to me the path of life; in your presence there is fullness of joy; at

your right hand are pleasures forevermore. (Psalm 16:11)

www.bryanvillarosa.com