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Planning Your Life for Success Living Comfortably on a Pastors Salary


... they live their lives without God's promised wisdom ... In this life it is a snare to the soul, drawing the affections away from the heavenly treasure. ... – PowerPoint PPT presentation

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Title: Planning Your Life for Success Living Comfortably on a Pastors Salary

Planning Your Life for SuccessLiving
Comfortably on a Pastors Salary
  • G. Edward Reid, Presenter

  • 85 percent of pastors have not been taught Gods
    way of handling money and are facing personal
    financial challenges.
  • Financial problems are the number one reason
    pastors leave the ministry.
  • Crown Financial Ministries
  • Money Matters, January 2003

  • The way you manage your money has a
  • great deal to do with
  • Your personal happiness.
  • Your stress level.
  • The quality of your family life.
  • The stability of your marriage.
  • And success in your career.

  • It would NOT take a genius to figure out that
    the devil would like to see everyone of these
    areas of your life messed up. And in many cases
    he has been quite successful at this!

  • You must either live within your income or your
    creditors will eat you alive!
  • He who rides a tiger cannot dismount.
  • From a financial perspective, that tiger is
    debt. Debt and its resulting bankruptcy have
    drastically changed the American financial

  • There was once a lady from Niger
  • Who smiled as she rode on a Tiger
  • They returned from the ride with the lady inside
  • And the smile on the face of the Tiger.

  • Determine your investment needs and stage
  • in life.
  • Laying the foundation runs into the 40s.
  • Accumulating assets your forties and 50s.
  • Preserving assets your 60s and into 70s.
  • Distributing assets age 75 and beyond.
  • Learning years - birth to 30
  • Earning years - 30 to 60
  • Returning years - 60 till laid to rest

Part VI Controlling Your Financial Future
Part 1 Planning Your Personal Finances
Retirement and Estate Planning
Part V Investing Your Financial Resources
Managing Risk
Part IV Insuring Your Resources
Part II Managing Your Personal Finances
Part III Making Your Purchasing Decisions
  • Dimensions of Stewardship Maturity

Phases in a Life of Faithful Stewardship
  • Annual Giving
  • Regular giving
  • Special offerings and projects
  • Budget development and communication
  • Stewardship education for all ages
  • Financial policies

Basic Expression of Faithfulness Your commitment
of prayers, presence, gifts and service.
  • Dimensions of Stewardship Maturity

Phases in a Life of Faithful Stewardship
  • Major Giving
  • Land purchase
  • New facilities
  • Renovation
  • Debt reduction
  • Mission opportunities
  • Cash for Endowment

Growing Expression of Faithfulness Rearranging
your priorities to give.
  • Annual Giving
  • Regular giving
  • Special offerings and projects
  • Budget development and communication
  • Stewardship education for all ages
  • Financial policies

Basic Expression of Faithfulness Your commitment
of prayers, presence, gifts and service.
  • Dimensions of Stewardship Maturity

Phases in a Life of Faithful Stewardship
  • Estate or
  • Planned Giving
  • Bequests
  • Planned Gifts

Ultimate Expression of a Life of Faithfulness
Your commitment to a legacy, a testimony that
will endure.
  • Major Giving
  • Land purchase
  • New facilities
  • Renovation
  • Debt reduction
  • Mission opportunities
  • Cash for Endowment

Growing Expression of Faithfulness Rearranging
your priorities to give.
Basic Expression of Faithfulness Your
commitment of prayers, presence, gifts and
  • Annual Giving
  • Regular giving
  • Special offerings and projects
  • Budget development and communication
  • Stewardship education for all ages
  • Financial policies

  • 3 main reasons why people have money
  • and likely in the following order in frequency

1. Ignorance many people/couples
are financially illiterate. They were
simply never taught the Biblical principles of
money management. There is hope for these
people!!! But you dont learn this at the
2. Greed and Selfishness they live beyond
their means. They are not willing to live in,
drive, or wear what they can really afford. Many
of these people also feel they are just too poor
to tithe. Consequently, they live their lives
without Gods promised wisdom and blessing.
(Prov. 35-9)
  • He who embezzles his Lords goods not only loses
    the talent lent him of God, but loses eternal
  • 3T 387

  • They rob God of the tenth, which He claims as
    His own, and in robbing Him they rob themselves
    of the heavenly treasure.
  • 3T 398

  • An Unfortunate Tragedy
  • -a serious illness without adequate insurance
  • -being abandoned by a spendthrift marriage
  • -a natural disaster
  • -a major financial loss not of your own doing

  • Get rich quick schemes

a. Promise of high returns - wealth
b. Something new that you dont really understand
c. Must risk money you cant afford to lose
d. Make a quick decision
  • Enough about the problems!
  • What can YOU do to experience financial freedom?

7 Points to Success
  • Get organized develop a budget have a plan
  • Spend less than you earn determine to live
    within your means
  • Save a little every pay period start with only
    50 (not just your retirement)
  • Avoid debt like AIDS. Interest is one expense
    you can live without.

7 Points to Success
  • Be a diligent worker. (Prov. 2229)
  • Be faithful to God. Hes given us so many
    promises (Deut. 281-14) Your family cannot
    afford to live without Gods blessing.
  • Remember that this earth is not your home. Our
    management here determines our eternal destiny.
    (See Matt. 25)

Budget Suggestions
  • 1. How much is enough? 1 Tim. 66-8
  • 2. What is a budget--counting the cost.
  • 3. Proper uses of money. COL 351
  • 4. Where does the money go?

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  • Money has great value, because it can do great
    good But money is of no more value than sand,
    only as it is put to use
  • - in providing for the necessities of life,
  • - in blessing others
  • - and advancing the cause of Christ
  • COL 351

The Tyranny of Debt
  • 1. What is debt?
  • (Prov. 227)
  • 2. Bankruptcy--a Christian
  • alternative? (Deut. 151)
  • 3. Surety (Prov. 61-5)
  • 4. Personal surety
  • (6T 448 AH 393)

  • The borrower is the slave of the lender.
    Prov. 227

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  • Let no debt remain outstanding except the
    continuing debt to love one another.
  • Rom. 138

Debt Elimination
  • Basic premise establish the tithe
  • (See Prov. 3 Deut. 28 Mal. 3 Matt. 6 Matt
  • Step 1 - declare a moratorium on
  • additional debt
  • Step 2 - make a covenant with God
  • Step 3 - list your debts from largest to

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Additional Assistance
  • 1. Establish a budget
  • 2. Set goals for your family
  • 3. Destroy credit cards if--
  • 4. Purchase depreciating items with cash
  • 5. Begin economy measures
  • 6. Have a sale--inventory your possessions and
    sell off what you dont absolutely need

  • Learn all you can about money management and then
    practice what applies to your family situation.
    Read books, attend seminars, talk with those who
    know whats going on.
  • Pray for Gods wisdom and blessing
    (Prov. 35-9)
  • Ask God to transform your heart from selfishness
    to love. When we become unselfish we are ready
    for heaven. (DA 641, chap. 70 The Least of
    These My Brethren)

  • Christian Education
  • 1. Counting the cost--one year at a time
  • What will it profit a man
  • Our children belong to God
  • The ultimate goal
  • 2. Student loans
    Prov. 227

  • Christian Education
  • 3. Finding a way
  • Student initiative
  • Parental assistance
  • Family sacrifice--
  • prudent living
  • Grants and
  • scholarship


Worry-free Investments 1. Understanding
Matt. 619 2. Understanding do
Matt. 620 3.
Looking for a safe place to keep money 4.
Savings versus hoarding
The one fundamental rule of investing that you
should never, ever forget is The greater the
return being offered, the greater risk youre
taking. (This is always the case whether
those making the offer tell you or not, whether
its obvious or not, and whether you know it or
Problems With Hoarding 1. Loss in a
failing economy
1 Tim 6 2. Holding the assets
too long James 51 1T 173-175 3. Cant
buy or sell Rev 317 Mark 836, 37 4.
Documented evidence of selfishness
James 51-3 Col 352


The very means that is now so sparingly invested
in the cause of God, and that is selfishly
retained, will in a little while be cast with all
idols to the moles and to the bats. Money will
soon depreciate in value very suddenly when the
reality of eternal scenes opens to the scenes of
man. Ev 63

The time is coming when we cannot sell at any
price. The decree will soon go forth prohibiting
men to buy or sell of any man save him that hath
the mark of the beast. 5T 152
Hoarded wealth is not merely useless, it is a
curse. In this life it is a snare to the soul,
drawing the affections away from the heavenly
treasure. In the great day of God its witness to
unused talents and neglected opportunities will
condemn its possessor. COL 352
Giving Principles
1. We do not give because we have too much.
We give in response to experienced grace and
in thanksgiving for Gods blessings. 2. We give
to the things that we believe will advance
the cause of God. 3. Christians understand that
since God is the rightful owner of
everything, when they are finished with the
resources, they return them to God by
helping others or making contribu- tions to
advance the cause of God.
Four levels of financial fitness The first
level Getting debt free - This is the only
proper foundation. - Develop your spending
plan. - Use credit and credit cards
properly. - Pay off your house.
Keep this truth in mind No investment is as
secure as a repaid debt. Putting your desire to
invest ahead of repaying your debt obligations is
usually a sign of immaturity, not financial
sophistication. Pryor, p. 36
The second level Saving for future needs. -
Develop an emergency savings fund. - Develop an
accumulation fund for future purchases or
expenditures (taxes). - Develop a plan for your
childrens education.
The third level of financial fitness -
Investing your surplus - Learn about the various
types of investments -lending investments -owner
ship investments Spend time learning about mutual
funds - Understand the tax consequences
  • There are only two basic choices with investing
  • 1. The investments where you become a lender
    savings accounts, CDs, corp. bonds, government
    bonds, state and local bonds, annuities you get
    a fixed return.
  • 2. The investments where you become an owner
    stocks, mutual funds, real estate, precious
    metals, farmland you make money if the value
    goes up or the company is successful.

  • The fourth level of financial fitness
  • -Diversifying for safety.
  • -Understand investing, know what you want to
    accomplish set goals.
  • -Spread out the risk.

  • Time is rapidly passing into eternity. Let us
    not keep back from God that which is His own.
    Let us not refuse him that which, though it
    cannot be given with merit, cannot be denied
    without ruin. He asks for a whole heart give it
    to Him it is His, both by creation and by
    redemption. He asks for your intellect give it
    to Him it is His. He asks for your money give
    it to Him it is His. Ye are not your own, for
    ye are bought with a price. 1Corinthians 619,
    20. AA 566

The love of money, the desire for wealth, is
the golden chain that binds them people to
Satan.SC 44
  • No scheme of business or plan of life can be
    sound or complete that embraces only the brief
    years of this present life and makes no provision
    for the unending future. Ed 145

  • No one can serve two masters for either he will
    hate the one and love the other, or else he will
    be loyal to the one and despise the other. You
    cannot serve God and mammon.
  • Matt. 624

Financial Planning and Its Benefits
  • Personal financial planning is the process of
    managing your money to achieve personal economic
    satisfaction. There are several advantages of
    personal financial planning.


Financial Planning and Its Benefits
  • Increased effectiveness in obtaining, using, and
    protecting your financial resources.
  • Increased control of your financial affairs.
  • Improved personal relationships.
  • A sense of freedom from financial worries
    obtained by looking to the future.


The Financial Planning Process
  • Determine your current financial situation.
  • Develop financial goals.
  • Identify alternative courses of action.
  • Evaluate alternatives.
  • Create and implement a financial action plan.
  • Reevaluate and revise your plan


Financial Planning Information Sources
  • Printed materials.
  • Financial institutions.
  • School courses and educational seminars.
  • Computer software, World Wide Web, and on-line
    information sources.
  • Financial specialists.


Developing a Flexible Financial Plan
A financial plan is a formalized report
that.. -Summarizes your current financial
situation. -Analyzes your financial
needs. -Recommends future financial
activities. Your financial plan can be created
by you, done with assistance from a financial
planner, or made using a money management
software package.
Implementing Your Financial Plan
Develop good financial habits. - Use a well
conceived spending plan to help you stay within
your income, while allowing you to save and
invest for the future. - Have appropriate
insurance protection to prevent financial
disasters. - Become informed about tax and
investment alternatives. Achieving your
financial objectives requires - A willingness
to learn. - Appropriate information sources.

3 Major Money Management Activities
1. Store and maintain personal financial records
and documents.
2. Create personal financial statements of income
and outflow (balance sheet and cash flow).
3. Create and implement a plan for spending
(budgeting) and saving.
6 Reasons to Keep Financial Records
1. To help in making spending decisions.
2. To plan future spending.
3. To pay bills on time.
4. To see changes in net worth.
5. To make good investment decisions.
6. To prepare your income tax forms.
Purpose of Personal Financial Statements
  • Report your current financial position in
    relation to the value of the items you own and
    the amounts you owe.
  • Measure your progress toward your financial
  • Maintain information on your financial
  • Provide information you can use when preparing
    tax forms or applying for credit.

Components of a Balance Sheet (net worth
  • Assets what you own
  • -Liquid assets
  • -Real estate
  • -Personal possessions
  • -Investment assets
  • Liabilities what you owe
  • -Current liabilities
  • -Long term liabilities
  • Net Worth
  • -Assets minus liabilities
  • -Insolvent means liabilities far exceed assets

Components of a Cash Flow Statement
Shows inflow/outflow during a given time
period. Record income. -Income from
employment -Savings and investment
income -Other sources Record cash
outflows. -Fixed and variable expenses -Net
cash flow can be a surplus or a deficit Used as a
basis for creating a spending, saving and
investment plan.
Creating and Implementing Budget
  • Assessing your current situation.
  • -Measure your current financial position.
  • -Determine your needs, values and life
  • Planning your financial direction.
  • -Setting financial goals.
  • -Creating budget allocations.
  • -Budget amount for an emergency fund, periodic
    expenses and financial goals.
  • -Budget set amounts that you are obligated to
  • -Budget estimated amounts to be spent for
    various household and living expenses

Creating and Implementing Budget
  • Implementing your budget.
  • -Monitoring spending, saving and investment
  • -Selecting a budget system.
  • -Budgeting systems include
  • -Mental budget, physical budget, written budget,
    and computerized budget.
  • Evaluating your budgeting program.
  • -Reviewing your financial progress.
  • -Revising (as needed) your financial goals and
    your budget allocations.

Saving to Achieve Financial Goals
5 common reasons for saving include
1. To set money aside for irregular and
unexpected expenses.
2. To pay for replacement of expensive items
such as appliances, cars or a down payment on a
3. Save to buy special items or pay for a
4. Put money aside for long-term expenses such
as retirement or childrens education.
5. To earn income from the interest on savings
for use in paying living expenses.
  • Successful Budgets Are
  • Well planned.
  • Realistic.
  • Flexible.
  • Clearly Communicated.

Evaluating Housing Alternatives Rent or Own
  • Advantages of renting
  • -Mobility
  • -Fewer maintenance responsibilities
  • -Lower initial costs
  • Disadvantages of renting
  • -Few Financial benefits
  • -Restricted lifestyle
  • -Legal concerns of a lease
  • -Costs including a security deposit, utilities
    and renters insurance

Advantages of Owning
  • Pride of ownership
  • -American dream/norm
  • Reduced income taxes
  • -Deduct property taxes
  • -Deduct mortgage interest
  • Build equity by paying down the loan or by price
  • Builds your credit rating
  • Hedge against inflation
  • Lifestyle flexibility express your individuality

Disadvantages of Owning
  • Financial uncertainty
  • -Get down payment and financing
  • -Home values could drop
  • Limited mobility
  • -Can take time to sell
  • Higher living costs
  • -Maintenance
  • -Repairs and improvements
  • -Real estate taxes

Assess Types of Housing that Can Be Purchased
  • Single-family dwelling
  • Multi-unit dwelling
  • -Duplex
  • -Townhouse
  • Condominium
  • -You own your unit in a building of units
  • -It is not a type of structure but a form of
  • Cooperative housing
  • Members own shares in and rent a unit in a
    building with multiple units

Assess Types of Housing that Can Be Purchased
  • Manufactured homes
  • -Fully or partially assembled in a factory and
    then moved to the housing site
  • -Prefabricated type has components built in the
    factory and assembled at the site
  • -Lower cost than site built homes
  • Mobile homes
  • -Type of manufactured home often less than 1,000
    square feet
  • -Offer same features as a conventional house
  • -Safety is debated and they tend to depreciate

Home Buying Process Step 1Determine
Homeownership Needs
  • Determine how much you can afford
  • -Consider both price and quality
  • Price and down payment
  • -Available funds for a down payment
  • -Your income and living expenses
  • -Your ability to make the payments
  • -Get pre-qualified
  • Size and quality
  • -As you move to a second and third home you
    can include more of the features you want.
  • -Look at the condition of the home

Home Buying Process Step 2Finding and
Evaluating a Property to Purchase
  • Select a location
  • -Be aware of zoning laws
  • -Assess the school system if you have
  • Using a real estate agent
  • -They present your offer, negotiate the price,
    assist you in obtaining financing, and
    represent you at the closing
  • Conduct a home inspection
  • Obtain an appraisal

Home Buying Process Step 3Pricing and Property
  • Determining the home price
  • Negotiating the purchase price
  • -Buyer-agents
  • -Sellers or buyers market
  • -Earnest money
  • Contingency clauses
  • -Buyer can obtain financing
  • -Sale contingent on the sale of the buyers

Home Buying Process Step 4Obtaining Financing
  • Determine amount of the down payment
  • -Mortgage insurance if less than 20
  • Qualifying for a mortgage
  • -Can be pre-qualified based on income, assets,
    debts, credit history, mortgage rate, and
    length of loan
  • Evaluating points (prepaid interest)
  • Home loan application process
  • Fixed or adjustable rate mortgage

Why Think About Retirement Planning Now?
  • People are spending more years (16-20) in
  • A private pension and Social Security are most
    often insufficient to cover the cost of living.
  • Inflation may diminish the purchasing power of
    your retirement savings.

Planning Your Retirement Housing
  • Think about where you want to live
  • Consider the cost of living and taxes
  • Type of housing as needs change
  • -Staying in their present home is what most
    people prefer
  • -Universal design is a home built to allow for
    potential physical limitations
  • -If not built using universal design, home may
    need to be retrofitted
  • -Continuing care retirement community provide
    increasing levels of care

What is an Annuity?
An annuity is a life insurance product to provide
a guaranteed income. Annuity options include
income for a set number of years, for as long as
you live, or for as long as you and your partner
lives if he or she outlives you. The amount you
get is based on which of the above options you
pick, how much you have contributed, and how you
have your annuity premiums invested.
Anticipated Sources of Retirement Income
Social Security
Part-time work
Spouses pension
Home Equity
Living on Your Retirement Income
  • Estimate your income at retirement from pensions
    and Social Security.
  • Together, your pension and Social Security will
    cover about 60 of retirement income needs.
  • Determine how much you will need in investments
    to supply the other 40. Develop a plan to
    accumulate this amount in assets.
  • Monitor your investments.
  • Take advantage of all tax savings retirees
  • Develop a spending plan for retirement.

Living on Your Retirement Income
  • Retirees get a variety of tax savings.
  • Fewer senior discounts as boomers retire.
  • Working during retirement.
  • Invest some of your retirement income for growth
    to allow for inflation and increased health care
  • Consider 60 stocks and 40 bonds.
  • Dip into savings with caution, since you do not
    know how long you will live.

If ministers give themselves wholly to the work
of God, and devote all their energies to building
up His cause, they will have no lack. As regards
temporal things, they have a better portion than
their Lord and better than His chosen disciples
whom He sent forth to save perishing
man. 2T 345
Offer unto God thanksgiving and pay thy vows
unto the most High And call upon me in the day
of trouble I will deliver thee, and thou shalt
glorify me. - Psalm 50 14,15 I
have been young, and now am old yet have I not
seen the righteous forsaken, nor his seed begging
bread. - Psalm 3725
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