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Analyzing My Monthly Cash Flow

Analyzing My Monthly Cash Flow

by Kristi LaMontagne

Failure to use a flexible spending plan is one of the leading causes for financial woes. Many people lack a clear understanding of basic accounting principles; therefore, learning a few of these simple principles can help you better manage your money (Prov.27: 23). Cash flow analysis on a monthly basis shows you whether you are generating enough cash to meet your financial obligations and how your expenditures (outflow) relate to the money coming in (inflow). A monthly cash flow analysis helps you determine where you lack capital or have a surplus. This information can then be compared monthly to the records that you have accumulated in the past months. Putting God in the center of developing your flexible spending plan will give you an assurance and peace that you are moving toward a well balanced cash flow.

Financial Freedom in 7 Weeks Plus is a Bible-based workbook that will guide singles, couples and families step-by-step through all the basics of managing money. Chapters 4 – 7 focus on the Flexible Spending Plan concept and Cash Flow Management.

Biblical Giving in Your Family

Biblical Giving in Your Family

by Joyce Shoemaker

My parents never talked to me about tithing, giving, or the sowing of alms. I went to church only when my parents felt like taking me. My only example of biblical giving while growing up was when the offering plate came around; dad would reach in his wallet and drop in a $20 bill, since they only took me to church for Vacation Bible School, Christmas and Easter, I did not develop an understanding of responsible biblical giving. When I began to understand what God’s Word says about biblical giving, I fully realized it was my responsibility to pass on a legacy of financial principles to our children so that their children’s children would walk in the prosperity of God’s promises.

I like what The Message Bible says in Malachi 3:8-10 about being blessed or cursed when we tithe or don’t tithe. “Begin by being honest. Do honest people rob God? But you rob me day after day. You ask, How have we robbed you? The tithe and the offering—that’s how! And now you’re under a curse —the whole lot of you—because you’re robbing me. Bring your full tithe to the Temple treasury so there will be ample provisions in my Temple. Test me in this and see if I don’t open up heaven itself to you and pour out blessings beyond your wildest dreams. For my part, I will defend you against marauders, protect your wheat fields and vegetable gardens against plunderers.”

When both of our children began to receive monies, we taught them the principle of the tithe. When they cheerfully gave of their tithe, they received blessings. When they withheld their tithe, they got dropped from their work schedule, or got their hours reduced. They quickly learned and lived the lessons of Malachi. Have you passed the torch of biblical giving to your children? What have you modeled in your generation that will carry on from generation to generation? 
The Message Bible tells us in 2 Corinthians 9:6-8:

“Remember: A stingy planter gets a stingy crop; a lavish planter gets a lavish crop. I want each of you to take plenty of time to think it over, and make up your own mind what you will give. That will protect you against sob stories and arm-twisting. God loves it when the giver delights in the giving. God can pour on the blessings in astonishing ways so that you’re ready for anything and everything, more than just ready to do what needs to be done. As one psalmist puts it, He throws caution to the winds, giving to the needy in reckless abandon. His right-living, right-giving ways never run out, never wear out. This most generous God who gives seed to the farmer that becomes bread for your meals is more than extravagant with you. He gives you something you can then give away, which grows into full-formed lives, robust in God, wealthy in every way, so that you can be generous in every way, producing with us great praise to God.”

As covenant-keeping Christians, it’s our responsibility to learn what God’s Word says about resources, tithing and giving beyond the tithe. God owns everything and He is our only source of resources. Our children will learn, live and do what we have modeled for them…let it be a godly legacy.

Bankruptcy

Bankruptcy

by Elaine Bechtel

Ever ask yourself: “How did my finances get into such a mess?” Or “Is bankruptcy my only option?”

Most often, financial mismanagement or even greed brings us to the point where we feel bankruptcy may be our only option…however, it is almost never a good solution. The Bible warns us in Proverbs 21:17 (NAS) “He who loves pleasure will become a poor man: He who loves wine will not become rich.” And in Psalms 37:21 (NAS) we read, “The wicked borrows and does not pay back. But the righteous is gracious and gives.” Being unable to pay our obligations does not speak well of a God who supplies all of our needs. We may need to ask ourselves a tough question: Are our financial problems the result of satisfying our wants (greed) rather than meeting genuine needs? There is a big difference.

Whatever happened, here are some action steps to help us climb back from the brink of bankruptcy:

  1. Admit your spending habits need to change.
  2. Ask God for help and find an accountability partner.
  3. Take a financial course (like Financial Freedom in 7 Weeks Plus) and learn about freedom from debt action plans.
  4. Put a hold on credit card purchases for now.
  5. Create a debt repayment schedule and commit to repayment.
  6. Call each creditor and discuss your options. Ask that they reduce the interest rate. Let them know that you intend to pay them back.
  7. Outline your repayment plan for them in a letter stating that if you get no response then you will believe that they agree to the plan, and send it by certified mail. (This may possibly help you if they take you to court or turn you over to a collection agency.)

Coming back from the brink of bankruptcy is not easy, but it is the right thing to do. So let Romans 13:8 (NAS) be your guide “Owe nothing to anyone except to love one another; for he who loves his neighbor fulfills the law.” And draw strength and confidence from Philippians 4:13 (NAS) “I can do all things through Him who strengthens me.”

What are Assets?

What are Assets?

by Elaine Bechtel

Deuteronomy 8:18 (NAS) “But you shall remember the Lord your God for it is He who is giving you power to make wealth, that He may confirm His covenant which He swore to your fathers, as it is this day.”

Proverbs 10:22 (NAS) “It is the blessing of the Lord that makes rich, and He adds no sorrow to it.”

If you ask an accountant what assets are, they will tell you that assets are items of value; which is a true statement. To Christians it is much more. Assets include our time, talent and resources. Bill & Maureen Sitter, in their book Financial Freedom in 7 Weeks Plus, define prosperity as “Having all the time, talent, and resources needed to accomplish what God has called us to do”. This broadens the scope of what assets are, and speaks to where your heart is. What will you classify as an asset in your life?

In the accounting realm assets come in two types: Liquid and Non-Liquid. Liquid assets are those that can be converted into cash in 1 year or less. A partial list of examples are:

  1. Cash in your wallet.
  2. Cash in your checking or savings accounts.
  3. Stocks or Bonds.
  4. Life insurance cash values.

These items when totaled equal your liquid assets. Non-Liquid assets are those that take longer than 1 year to convert to cash. A partial list of examples are:

  1. Market value of your home or land.
  2. Net worth of a business.
  3. Vehicles as in cars, RV’s, ATV’s, Jet skis, boats, etc.
  4. Furniture.
  5. Collections like stamps, coins, crystal etc.
  6. Retirement fund balances.
  7. Money due to you from others.

These would equal your Non-Liquid Assets.

Together, Liquid and Non-Liquid assets are your total assets. This information is used to determine your net worth, which will be discussed in another article.

If you have more assets than you need, consider selling any surplus or idle assets to reduce your debts, so you can achieve your financial goals.

Do you need a Will?

Do you need a Will?

by Debt Free Legacy

A will is one of the most important documents you can create in your lifetime. Think of a will as the financial blueprint of the distribution of your assets after your death. Your will can clearly state who will be guardian of your minor children, who will inherit your assets, when they will inherit your assets, and any conditions that must be met for them to receive your assets.

If you die without a valid will, the court does not have your instructions to follow. Therefore, it has no way of knowing how you may have wanted to distribute your assets. The state where you lived steps in and makes the decisions for you, according to the distribution schedule set forth in its intestacy statutes. The state’s decisions may or may not conform to your wishes, or to what is best for the people closest to you. And your loved ones will likely have to hire an attorney and incur delays to determine who will receive your assets.

Common Misconceptions
Myth #1: My assets are so small that a will is not necessary.
Think again. You are generally worth more than you think. Even if some possessions do not hold great monetary value, they could hold an enormous amount of sentimental value — and that’s something you can’t put a price on. Failing to indicate who receives these treasures in your will can cause friction among family members that lasts for decades.

Myth #2: When I die, my spouse will get all of my assets.
Maybe, and maybe not. Any assets held jointly with right of survivorship automatically pass to the joint owner. And assets with a beneficiary designation, such as IRAs, life insurance and annuities, pass as stated on the beneficiary form. What happens when your surviving spouse dies? What happens if your beneficiary form is outdated? Will your children receive their share at too early an age? Does your spouse have the financial skill to manage the family wealth?

Myth #3: I can create a will on my own and save the legal costs.
“Do-it-yourself” wills often do not contain all of the necessary components as required by state law. Anyone who might benefit from an invalidation of your will can contest it, and if the courts decide in his or her favor, your estate may have to pay for all legal costs. The few dollars you save now can cost your loved ones thousands of dollars later.

Myth #4: I don’t want my final wishes to be set in stone. I’ll create a will later in my life. 
The terms of a will can change as often as needed. Legal experts agree that you should reexamine your will periodically to make sure it is up-to-date. A will should receive a “checkup” whenever there is a substantial change in your life.

How Do You Create a Will?
Drafting a will is difficult and is not an endeavor you want to tackle single-handedly. It’s important that you call on the services of an estate-planning lawyer. A lawyer might help you:
Determine what type of will you need
Help you make the right decisions as to how your assets should pass
Change the terms of an existing will, if appropriate
Save on estate taxes
Take advantage of estate planning opportunities people often overlook

Life Insurance and Wills
How does life insurance fit into the picture? Life insurance is a vehicle you can use to help make sure your estate has the cash needed to pay expenses at your death, such as funeral costs, debts and estate taxes. Without liquid assets, the estate may be forced to sell assets — securities may have to be sold in a down market and other assets may have to be liquidated at a discount. In most instances, life insurance proceeds are paid income tax-free to your beneficiaries. If desired, life insurance can be owned by a trust or a third party and also not be subject to estate taxes.

Don’t Wait Until It’s Too Late
Despite the importance of an estate plan that includes a will, 65% of Americans today do not have a will. Why? Creating a will forces each of us to come face-to-face with our own mortality — and dealing with death is difficult. But it will be much more difficult for your loved ones if you don’t have a will. To ensure that your will is legally viable, seek the services of a qualified attorney to draft and refine it.

Get out of Debt Fast!

Get out of Debt Fast!

by Debt Free Legacy

GET OUT OF DEBT FAST….A CHRISTIAN PERSPECTIVE

I confess to watching too much TV, especially football and golf.  As a result, like many people I know, I have seen hundreds of PAID commercials for rapid debt repayment companies.  We are certainly not claiming to have full knowledge of these companies but we are pretty confident of their desire to appeal to debt strapped people by providing what appears to be fast and painless solutions.  We also believe that most, if not all, of these companies expect to earn a sizable profit from “you”.  After all, prime commercial time costs big bucks and every staffer and manager requires a salary, and there has to be a profit after all business expenses.

We understand that one of the debt reduction tactics may be to “negotiate” with a client’s creditors for reduced balances, which may be well below the amount of debt the client accepted when purchases were made.  If a creditor has any reason to believe that there is a possible bankruptcy, or that a greatly reduced payment is all they’ll ever get, then they may accept the “negotiation” and settle for less than is actually owed.  (This sounds a lot like manipulation, doesn’t it?)

Well, how does this line up with scripture?  And what should Christians do when they have serious debt issues?  Chapters 3 & 4 in the “Legacy Edition of Financial Freedom in 7 Weeks Plus” workbook tackle these difficult challenges.  In the brief space of this article, we will outline a few keys to freedom from debt God’s Way.

  • Romans 8:1 makes it clear that we are not to feel condemnation as believers in Christ.  So shame and guilt are from the devil and they drag us down.  Conviction to change is good and comes from the Holy Spirit.
  • Psalm 37:21 and Romans 13:8 shed light on the fact that while it is no sin to have debt, it is sin (wickedness) not to repay what we owe.  In fact, the reference to a Godly debt is clearly our obligation to love one another.
  • Proverbs 22:7 (KJV):  “The rich ruleth over the poor and the borrower is servant to the lender.”  For any of us who have borrowed money, whether from family, from a bank or in the form of credit card debt, we know the uncomfortable feeling of being in debt.
  • Proverbs 21:1 (NIV) emphasizes how important it is for Christians to conduct all financial transactions with excellence, so late or skipped debt payments send the wrong signal to the very people we may be trying win for Christ.  “A good name is more desirable than great riches, to be esteemed is better than silver and gold.”
  • The worst debt is high interest consumer and credit card debt.  (See pages 78-81 of the “Legacy Edition of Financial Freedom in 7 Weeks Plus” for a clear explanation of compound interest.)

The pathway to freedom from the bondage of debt starts by listing ALL debts, to include: the Lender’s (creditor’s) name, current debt balance, amount of the minimum required monthly payment, the annual compound interest rate, the number of remaining payments, and the targeted payoff date.  To simplify this process, download the Debt Repayment Schedule form form.

Money, Prosperity, the Devil and Spiritual Warfare

Money, Prosperity, the Devil and Spiritual Warfare

by Bill Sitter

For over twenty years I, (Bill Sitter) owned a successful executive recruiting firm. A vital component of a successful executive search initiative was, and is, the development of a clean and comprehensive position description. We devoted hours of Q&A and pages of detail to the formulation of an excellent job description. We invested this effort because we knew how essential it was to delineate the exact target….The bull’s eye, before launching a nationwide recruiting campaign.
In John 10:10 Jesus provides the two most important jobs descriptions, and as believers we must know them well! 
“The thief (devil) comes only to steal and kill and destroy. I came that they may have life and have it abundantly.” (ESV). This one passage of scripture makes it clear, beyond any doubt, that our enemy is the devil and his mission, as explained by Jesus, is to steal from all of us; to kill us; and to destroy us and our loved ones. Fortunately our Lord explains that He alone is the life- giving and redeeming answer. And, God’s Word provides specifics for believers to be pro-active in our Spiritual Warfare. Ephesians 6:10-18 describes the “Whole Armor of God” that we are to put on and never take-off. We, like our military, only need armor for battle, but we see from the devil’s job description that we must be ready for battle day and night 24×7. 
“Financial Freedom in 7 Weeks Plus – Legacy Edition” devotes an entire chapter to the topic of:  “Spiritual Warfare… Breaking Curses, Blockages, Judgments and Strongholds that Control Our Finances”. Our lead scripture is Ephesians 6:12 (KJV) “For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.” 
When we hear the public testimonies of graduates of the small group 7 week study we are no longer surprised to hear that most major breakthroughs resulted from practical application of 2 core course concepts: Biblical Giving and Spiritual Warfare.
In case you have yet to acquire your copy of the work book, I’d like to leave you with a basic Spiritual Warfare example “from page 33” that believers can adapt to almost any situation.  You may find it helpful to put copies of this on your mirror, refrigerator or PC.

Spiritual Warfare Example:  “In the might Name of Jesus Christ, and in accordance with God’s Word, we take authority over Satan and all his demonic forces that try to come against us.  We are God’s children, protected by the blood of Jesus, and we declare that you – devil – were defeated at the cross and at the grave of Jesus and you remain defeated.  Your weapons will not succeed or prosper.  So we command you to take your hands off in Jesus’ Might name!  And all God’s people said…Amen!”

Is it okay to Tithe via Credit Card?

Is it okay to Tithe via Credit Card?

by Debt Free Legacy

In this brief article we will not delve into the Old Testament and New Testament concept of paying a first fruits, ten percent, tithe to the church (storehouse) where we are spiritually fed. However, Chapter Two of the workbook “Financial Freedom in Seven Weeks Plus” is devoted to a three part Biblical Giving Plan, consisting of tithes, offerings, and alms. So let’s narrow this discussion to the question: “Is it okay to Tithe via Credit Card”? 
Although we hate the fact that so many people are in credit card debt bondage, we also understand the practicality of needing one card for various uses: renting a car, hotel and airline reservations, etc. Our ministry urges people to NEVER fall into the minimum payment trap but rather to ALWAYS pay the full balance, on time, each month.
Common sense tells us that credit card companies are in business to make a profit. They do this by charging a transaction fee to the merchant who accepts your card purchase and from interest and other fees paid by card holders. So – YES it is acceptable to pay tithes or give freewill offerings or alms via credit card… but you should find out what fee (percentage) the church or ministry will have to forego and add enough to your gift to cover the fees. For example,  lets just assume that you want to pay a tithe of $100 and you use a credit card that charges the church a three percent fee. Then, in this example, the church really only gets to keep $97. Since this is less than the full amount of the tithe you intended the church to receive, you should increase the tithe to (approximately) $103 so the church really does receive the full $100.

We understand that many churches and ministries are very hesitant to mention this because they do not want to put – up any giving road blocks. Our ministry believes that sincere Christians seek knowledge and have a desire to give wisely… and part of their giving plan will be a full ten percent tithe.

Financial Knowledge & Wisdom

Financial Knowledge & Wisdom

by Debt Free Legacy

Today there are more books, courses, TV programs, CD’s and DVD’s on money than ever before. Despite this deluge of “information”, it appears that families, businesses, countries and many churches are in really bad financial straits. How can that be? This short article will address some basic problems that we believe are root causes and will provide advice for reversing this trend. 
Most folks would consider “prosperity” to be their top financial goal. Since this means different things to different people, we will use the definition of “Godly Prosperity” from the Legacy Edition of “Financial Freedom in 7 Weeks Plus”: “Having all the resources (time, talent/skills, and money) needed to accomplish the mission you have been called by God, to accomplish.” The Bible warns us not to compare ourselves to others and not to envy or covet. So, it’s logical to conclude that we are “prosperous” if we have all the resources necessary to fulfill the roles we individually are assigned Our Creator. For some this may be caring for a family, or running a business, or participating in ministry or mission work, or possibly as a professional athlete or a doctor. 
Knowledge may be equated with having a grasp of factual information. For example, a financial expert may be informed on the latest accounting and tax regulations and have a solid grasp of principles, such as compound interest, how to calculate present and future values, and the pluses and minus of leasing versus renting versus outright ownership. So, let’s simply say that knowledge means knowing the facts… In this case – money facts.  
Wisdom is far more precious (than factual knowledge), as we see in the following scriptures:
Ecclesiastes 2:26 (NIV): “To the man who pleases Him, God gives wisdom, knowledge, happiness, but to the sinner He gives the task of gathering and storing up wealth to hand it over to the one who pleases God.” 
Proverbs 16:16 (NIV): “How much better to get wisdom than gold, to choose understanding than silver.” 
Proverbs 4:6-7 (NIV): “Do not forsake wisdom, and she will protect you; love her, and she will watch over you. Wisdom is supreme; therefore get wisdom. Though it cost all you have get understanding.” 

I like to explain true Godly wisdom as being able to use factual knowledge in the framework of practical application advice, as found throughout God’s Word. Psalm 37:30 (NLT) makes it abundantly clear that wise Christians should seek Godly wisdom from trusted council: “The Godly offer good counsel; they teach right from wrong.” Therefore, we should seek out and listen to men and women who have factual knowledge in our areas of concern (financial, medical, marriage, etc.) but also have established a proven track record as Godly counselors.

Greed and the Taiwanese Monkey Trap

Greed and the Taiwanese Monkey Trap

by Debt Free Legacy

We understand that the Taiwanese utilize a very simple device to trap monkeys; one that is painless and works great. A box with a small opening, just large enough for the monkey’s open hand, contains a juicy banana. The monkey reaches in, grasps the fruit, but can’t get the closed fist and banana out of the hole. Rather than let go of the enticing meal, the greedy monkey refuses to let go and is easily captured. Since most of us are not in the monkey trapping business, you might wonder what this has to do with Godly financial principles. The common thread of truth is GREED… As we see in 1Timothy 6:10 (NIV): “For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with griefs.”
Money is not good, nor is it bad! It is merely a form of exchange that can be used for evil purposes, for wasteful pursuit, or for the well being of our families and the growth of The Kingdom of God. In the “Financial Freedom in 7 Weeks Plus” course and workbook, it is made clear that how each of us spends money, or use other resources (time and talents), is important; therefore “all financial decisions are spiritual decisions.”

We live in a modern world where much of the advertising is aimed at making us crave things we don’t have and often don’t need. The appeals may seem harmless but many have the effect of stimulating envy and greed. This becomes a slippery slope that, just like the trapped monkey, can lead to making idols of things and of money itself. Falling for the “greed trap” can lead to making hasty and unwise decisions that are out of line with God’s best plans for us. So what’s the solution? Let God, not money, be at the center of our hearts. If we start to be enticed by “the money banana”, let go and ask God how He wants us to steward the resources he has provided. Let’s close this article with Matthew 6:24 (NIV): “No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and money.”