“Tools for the Journey”. “Which of you wishing to construct a tower does not first sit down and calculate the cost to see if there is enough for its completion?

“Tools for the Journey”

“Which of you wishing to construct a tower does not first sit down and calculate the cost to see if there is enough for its completion? Otherwise, after laying the foundation and finding himself unable to finish the work the onlookers should laugh at him and say, ‘This one began to build but did not have the resources to finish.’” – Luke 14:28-30

Personal Budgeting Statistics† According to the Wall Street Journal nearly 70% of consumers live

paycheck to paycheck.

† A Marist Institute poll published in the USA Today stated that 55% of Americans always or sometimes worry about their money.

† According to CNN, the average credit card debt per household reached a record $9,312 in 2004. That's an increase of 116% over the past 10 years.

† Only 25% of Americans feel that they are well informed about managing their personal finances. (1)

† Approximately 40% of families live off 110% of their incomes. (2)

(1) FleetBoston(2) The Observer; Jan 12, 2004

“The plans of the diligent are sure of profit, but all rash haste leads certainly to poverty” – Proverbs 21:5

Personal Budgeting Statistics† According to ADP, 20% of workers would not be able to make a

mortgage, utility, or credit card payment if they missed a paycheck.

† Money magazine states that 75% of families will have a major negative financial event ($10,000) in any ten-year period.

† A survey by Thrivent Financial for Lutherans estimates that one in five pre-retirees age 50 to 64 has less than $5,000 accumulated for retirement.

† According to studies performed by Empty Tomb, Inc., in 2003, Catholics gave 1.2% to their churches.

(1) http://www.family.org/cforum/fosi/marriage/divorce/a0037056.cfm

“Honor the Lord with your wealth, with first fruits of all your produce” – Proverbs 3:9

† Fifty percent of all marriages end in divorce, and money issues are pointed to as a significant cause of many breakups. (1)

Personal Objectives

† To understand where you spend your money

† To gain control of out-of-control spending

† To reduce debt, increase savings, establish emergency fund,

increase Net Worth, etc.

† To feel better about future purchases

† To improve ability to help others

† To improve communication with your spouse

“Then he said to the crowd, "Take care to guard against all greed, for though one may be rich, one's life does not consist of possessions.”” – Luke 12:15

TO BECOME A GOOD STEWARD OF GOD’S BLESSINGS

Practical Tools for the Journey

“but everything must be done properly and in order” – 1st Corinthians 14:40

† Develop a Balance Sheet

† Track your spending

† Create a budget

† Debt Paydown Tool

The Balance Sheet

Balance Sheet

†Net Worth = Assets less Liabilities (What you own less what you owe)

†Net Worth is a snapshot of your financial worth and will help you reflect on the direction you have taken in buying, investing, or insuring against financial risks.

†What should be included in a balance sheet:Assets:CashChecking AccountsRetirement Accounts Stocks & BondsProperty Vehicles Household Contents

Liabilities:Credit CardsMortgagesHome Equity LoansStudent LoansVehicle LoansPersonal LoansOther debts

“Precious treasure remains in the house of the wise, but the fool consumes it.” – Proverbs 21:20

Sample Balance Sheet

Assets:Cash Savings 5,000 Checking Account 1,000 Stock 5,000 401K 10,000 Property: Home 185,000 Property: Contents 30,000 Property: Automobiles 10,000

Total Assets 246,000

Liabilities:Mortgage 164,000 Credit Cards 5,000 Auto Loan 18,500 Student Loan 7,500

Total Liabilities 195,000

NET WORTH (Assets less Liab) 51,000

What can you learn?

†Do you have an adequate emergency fund?

†Did you discover any surprises, like excess debt or forgotten assets?

†Is your insurance coverage adequate to cover the value of your property?

†Are your invested assets working for you to increase your net worth?

†How does your debt compare to your assets?• Debt-to-Asset ratio

†Are you building financial resources to help you achieve your long-term goals?

† Track over time to see how your balance sheet improves

source: www.uwex.edu

Tracking Your Money

Basic Tracking Steps

† Gain online access to your checking, savings, loan accounts.

† Choose a tool to track your spending & to create a budget.

† Utilize excel tool for spending trends and budgeting

† Review all transaction history to ensure proper categorization of spending. Fix any miscategorizations.

† Keep receipts and split out categories for general merchandise vendors.

† Download transactions into planning tool.

The Basics:

Taking it to another level!

† Review transaction categories the tool offers – adjust as desired.

Tracking & Budgeting Tools

† Quicken Online (free)

† Mvelopes (monthly fee)

† You Need a Budget.com (monthly fee)

†Yodlee.com (free)

†Quicken Desktop (software purchase)

†Excel Budgeting Tool (free)

Ministry Supported

Other Tools

† Mint.com (free)

† Microsoft Money (software purchase)

Yodlee.com

Strengths Weaknesses

• No service fee

• Free transaction downloads

• Strong login security

• Ability to group accounts

• Free Billpay

• Robust alerts settings

• Easy to create a budget

• Can split transactions

• Can add sub-categories

• Only allows one budget period

• Cannot create categories

• No account reconciliation

• Must remember where you left off

with transaction categorization

On-line financial transactions database that aggregates all your different financial accounts into one view. Yodlee can connect to bank accounts, retirement accounts, credit card accounts, etc.

Yodlee.com

Yodlee.com

To change category simply click and select from list

Yodlee.com

Quicken Desktop

Strengths Weaknesses

• Software purchase

• Possible bank fee for auto downloads

• Only allows one budget period

• Budget tool is more difficult to use

Desktop “checkbook ledger” used to track and budget spending activities.

• Desktop solution

• Manual downloads are free

• Account reconciliations

• Can split transactions

• Can add/delete categories

• Customized cash flow reports

• Keeps transactions in separate

window until you have categorized

Quicken Desktop (Main View)

Quicken Desktop (Cash Flow Report)

Quicken Desktop (Cash Flow Report)

Quicken Desktop (Downloading Transactions)

Budgeting

Creating a Budget† Design your budget based on your objectives, e.g. increase giving, build

emergency fund, paydown consumer debt, save for car purchase, etc.

† Review % guides – these are guidelines only, every family is different.

† Review spending trends & seasonality of various categories, e.g. electricity,

gifts, property taxes, insurance, etc.

† Develop a “zero sum” budget for your spending accounts (checking & credit card).

† Make 1st pass budget starting with priority categories, followed by fixed

expenses, and moving to discretionary categories.

† Make 2nd pass adjustments to discretionary categories to get to “zero sum”

cash flow for the month (checking & credit card).

† Family plan – discussion & agreement.

† Analyze & adjust based on results.

Budgeting TipsDave Ramsey Tips:

† Start with what you have

† Evaluate your financial priorities

† Budget as a Team! The Nerd vs Free Spirit

† Make allowances in your budget and pace your spending

† Budget for emergencies

† Talk about your money

Additional Tips:

† A good budget starts with good data

† Be conservative but challenge yourself (this may take some time)

† Set appropriate expectations – do not be unrealistic

† Establish a monthly review process – how did you do vs budget?

† Reward yourself for success (budget it!)

† LIFE HAPPENS! Keep reviewing and adjusting accordingly

Budget Guidelines (From Crown Financial Ministries)

Married Couple Family of Four Family of SixGross Income <= 15K 25K 35K 45K 55K 65K 115K <= 25K 35K 45K 55K 65K 85K 115K <= 25K 35K 45K 55K 65K

1. Tithe 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%2. Taxes 6.4% 15.2% 19.0% 21.2% 22.5% 24.7% 30.0% 3.3% 12.3% 15.8% 18.2% 19.9% 24.6% 27.5% 2.3% 9.6% 10.5% 13.8% 16.1%

~ Net Spendable %'s below add to 100% ~Net Spendable Income

3. Housing 40% 36% 32% 30% 30% 30% 29% 39% 36% 32% 30% 30% 30% 29% 38% 38% 34% 33% 32%4. Food 15% 12% 13% 12% 11% 11% 11% 15% 12% 13% 12% 11% 11% 11% 15% 15% 14% 14% 14%5. Auto 15% 12% 13% 14% 14% 13% 13% 15% 12% 13% 14% 14% 13% 13% 14% 14% 12% 12% 11%6. Insurance 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%7. Debts 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%8. Entertainment/Recreation 3% 6% 6% 7% 7% 7% 8% 3% 6% 6% 7% 7% 7% 8% 4% 4% 5% 6% 6%9. Clothing 4% 5% 5% 6% 6% 7% 7% 4% 5% 5% 6% 6% 7% 7% 5% 5% 6% 6% 7%10. Savings 4% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%11. Medical/Dental 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 5% 5% 5% 5% 5%12. Misc 5% 5% 7% 7% 8% 8% 8% 5% 5% 7% 7% 8% 8% 8% 4% 4% 6% 6% 6%13. Investments 0% 5% 5% 5% 5% 5% 5% 0% 5% 5% 5% 5% 5% 5% 0% 0% 3% 3% 4%

~ if you have the expense below, the % shown must be deducted from other budget categories ~14. School/Child Care 0% 0% 0% 0% 0% 0% 0% 8% 6% 5% 5% 5% 5% 5% 10% 8% 6% 6% 5%15. Unallocated Surplus Income 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Single Adults Single Parent - One Child

Gross Income23K

Living 23K w/

Roommate32K

Living 32K w/

Roommate 15K 20K 25K1. Tithe 10% 10% 10% 10% 10% 10% 10%2. Taxes 20.4% 21.0% 22.7% 24.0% 3.2% 6.7% 11.8%

~ Net Spendable %'s below add to 100% ~Net Spendable Income

3. Housing 40% 25% 38% 22% 40% 39% 39%4. Food 6% 6% 6% 6% 15% 14% 14%5. Auto 15% 20% 15% 20% 15% 14% 14%6. Insurance 4% 4% 4% 4% 3% 3% 4%7. Debts 5% 5% 5% 5% 4% 5% 5%8. Entertainment/Recreation 8% 10% 7% 10% 4% 5% 4%9. Clothing 5% 5% 5% 5% 5% 5% 5%10. Savings 5% 10% 5% 13% 5% 5% 5%11. Medical/Dental 5% 5% 3% 3% 5% 5% 5%12. Misc 5% 5% 7% 7% 4% 5% 5%13. Investments 2% 5% 5% 5% 0% 0% 0%

~ if you have the expense below, the % shown must be deducted from other budget categories ~14. School/Child Care 3% 10% 7% 10% 0% 0% 0%15. Unallocated Surplus Income 0% 0% 0% 0% 0% 0% 0%

Budgeting in Quicken

Budgeting in Quicken

Budgeting in Quicken

Budgeting in Yodlee

Budgeting in Yodlee.com

Simply type in budget an

save

ACTUALSJun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10

Paychecks 6,500 6,500 6,500 Deposits - - - Investment Income - - - Other Income - - - Retirement Income - - - TOTAL CASH INFLOWS 6,500 6,500 6,500

Expenses:Charitable Giving (650) (650) (650) Mortgage/Rent (1,500) (1,500) (1,500) Loans (650) (650) (650) Medical (150) (50) (235) Automotive Expenses (50) (75) (25) Child/Dependent Expenses - - - Groceries (550) (450) (750) Gas/Fuel (150) (125) (200) Utilities: Gas (20) (25) (30) Utilities: Water (60) (75) (75) Utilities: Electric (250) (200) (275) Insurance (150) (150) (150) Education (250) (250) (250) Clothing (100) (75) (135) Telephone (60) (60) (60) Cable/Satellite Service (125) (125) (125) Online Services (30) (30) (30) Supplies: Bathroom (25) (27) (30) Supplies: Kitchen (20) (22) (16) Supplies: Household (20) (15) (50) Supplies: Office (15) (20) (30) Pets - - - Service Fees - - - Taxes - - - Home Improvements - - - Home Maintenance - (700) - Electronics - - (500) Entertainment (135) (220) (180) General Merchandise - - - Restaurants/Dining (425) (400) (385) Gifts - - - Travel - - - Personal Care - - - Hobbies - - - Transfers (250) (250) (250) ATM/Cash Withdrawals - - - Miscellaneous (100) (75) (25)

CHECKING/CREDIT CASH OUTFLOWS 765 281 (106)

Deposits - - - Transfers 250 250 250 Interest Income - - -

CHANGE IN SAVINGS ACCOUNT 250 250 250

NET CASH FLOW 1,015 531 144

CASH BALANCE SUMMARY:Checking Account - 765.00 1,046.00 940.00 Savings Account 10,000.00 10,250.00 10,500.00 10,750.00 Credit Card 1 - - - - NET CASH BALANCES 10,000.00 11,015.00 11,546.00 11,690.00 - - - - - - - - - - - - - Change 1,015.00 531.00 144.00 Variance - - - -

Excel Budget Tool (Actuals)

When a new period of actuals begins simply copy over the column

Checks & Balances

Must hand key in actuals – advanced users will be able to automate this.

Excel Budget Tool (Budget)Simply handkey budget figures in the gray areas

Budgeted Balances

BUDGETJun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10

Paychecks 6,500 6,500 6,500 6,500 6,500 6,500 6,500 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 Deposits - - - - - - - - - - - - - - - - Investment Income - - - - - - - - - - - - - - - - Other Income - - - - - - - - - - - - - - - - Retirement Income - - - - - - - - - - - - - - - - TOTAL CASH INFLOWS 6,500 6,500 6,500 6,500 6,500 6,500 6,500 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150

Expenses:Charitable Giving (650) (650) (650) (650) (650) (650) (650) (715) (715) (715) (715) (715) (715) (715) (715) (715) Mortgage/Rent (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) Loans (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) Medical (150) (50) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Automotive Expenses (50) (75) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Child/Dependent Expenses - - - - - - - - - - - - - - - - Groceries (550) (450) (450) (450) (450) (450) (650) (650) (450) (450) (450) (450) (450) (600) (600) (600) Gas/Fuel (150) (125) (150) (150) (150) (150) (200) (150) (150) (150) (150) (150) (150) (200) (250) (150) Utilities: Gas (20) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Utilities: Water (60) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) Utilities: Electric (250) (200) (250) (200) (175) (150) (150) (125) (175) (190) (200) (200) (250) (300) (300) (250) Insurance (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Education (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) Clothing (100) (75) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Telephone (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) Cable/Satellite Service (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) Online Services (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) Supplies: Bathroom (25) (27) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Kitchen (20) (22) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Household (20) (15) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Office (15) (20) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Pets - - - - - - - - - - - - - - - - Service Fees - - - - - - - - - - - - - - - - Taxes - - - - - - - - - - - - - - - - Home Improvements - - (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Home Maintenance - (700) - - (500) - - (500) - - (500) - - (500) - - Electronics - - (500) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Entertainment (135) (220) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) General Merchandise - - - - - - - - - - - - - - - - Restaurants/Dining (425) (400) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) Gifts - - - - - - (1,000) - - (200) - - (200) - - (200) Travel - - - - - - - - - - - - (1,500) - - - Personal Care - - (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Hobbies - - (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Transfers (250) (250) (60) (510) (35) (560) 690 (470) (1,120) (905) (595) (1,095) 655 (295) (745) (695) ATM/Cash Withdrawals - - (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Miscellaneous (100) (75) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100)

CHECKING/CREDIT CASH OUTFLOWS 765 281 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Deposits - - - - - - - - - - - - - - - - Transfers 250 250 60 510 35 560 (690) 470 1,120 905 595 1,095 (655) 295 745 695 Interest Income - - 22 23 23 24 24 24 25 27 29 31 31 31 32 34

CHANGE IN SAVINGS ACCOUNT 250 250 82 533 58 584 (666) 494 1,145 932 624 1,126 (624) 326 777 729

NET CASH FLOW 1,015 531 182 633 158 684 (566) 594 1,245 1,032 724 1,226 (524) 426 877 829

CASH BALANCE SUMMARY:Checking/Credit Card Accounts - 765 1,046 1,146 1,246 1,346 1,446 1,546 1,646 1,746 1,846 1,946 2,046 2,146 2,246 2,346 2,446 Savings Account 10,000.00 10,250 10,500 10,582 11,115 11,173 11,757 11,090 11,584 12,729 13,662 14,286 15,412 14,788 15,114 15,891 16,620 NET CASH BALANCES 10,000.00 11,015 11,546 11,728 12,361 12,519 13,203 12,636 13,230 14,475 15,508 16,232 17,458 16,934 17,360 18,237 19,066 Change 1,015 531 182 633 158 684 (566) 594 1,245 1,032 724 1,226 (524) 426 877 829 Variance - - - - - (0) - - - - - 0 - (0) 0 - -

ACTUALS vs BUDGET - B/(W)Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10

Paychecks - Deposits - Investment Income - Other Income - Retirement Income - TOTAL CASH INFLOWS -

Expenses:Charitable Giving - Mortgage/Rent - Loans - Medical (135) Automotive Expenses 75 Child/Dependent Expenses - Groceries (300) Gas/Fuel (50) Utilities: Gas (5) Utilities: Water - Utilities: Electric (25) Insurance - Education - Clothing 15 Telephone - Cable/Satellite Service - Online Services - Supplies: Bathroom (5) Supplies: Kitchen 9 Supplies: Household (25) Supplies: Office (5) Pets - Service Fees - Taxes - Home Improvements 150 Home Maintenance - Electronics - Entertainment (30) General Merchandise - Restaurants/Dining (35) Gifts - Travel - Personal Care 25 Hobbies 150 Transfers (190) ATM/Cash Withdrawals 100 Miscellaneous 75

CHECKING/CREDIT CASH OUTFLOWS (206)

Deposits - Transfers 190 Interest Income (22)

CHANGE IN SAVINGS ACCOUNT 168

NET CASH FLOW (38)

Excel Budget Tool (Actuals vs Budget)

How did I do?

When a new period to compare begins simply copy over the column

Excel Budget Tool (Actual + Budget)

ACTUALS + BUDGETJun09 (A) Jul09 (A) Aug09 (A) Sep09 (B) Oct09 (B) Nov09 (B) Dec09 (B) Jan10 (B) Feb10 (B) Mar10 (B) Apr10 (B) May10 (B) Jun10 (B) Jul10 (B) Aug10 (B) Sep10 (B)

Paychecks 6,500 6,500 6,500 6,500 6,500 6,500 6,500 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 Deposits - - - - - - - - - - - - - - - - Investment Income - - - - - - - - - - - - - - - - Other Income - - - - - - - - - - - - - - - - Retirement Income - - - - - - - - - - - - - - - - TOTAL CASH INFLOWS 6,500 6,500 6,500 6,500 6,500 6,500 6,500 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150 7,150

Expenses:Charitable Giving (650) (650) (650) (650) (650) (650) (650) (715) (715) (715) (715) (715) (715) (715) (715) (715) Mortgage/Rent (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) Loans (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) (650) Medical (150) (50) (235) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Automotive Expenses (50) (75) (25) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Child/Dependent Expenses - - - - - - - - - - - - - - - - Groceries (550) (450) (750) (450) (450) (450) (650) (650) (450) (450) (450) (450) (450) (600) (600) (600) Gas/Fuel (150) (125) (200) (150) (150) (150) (200) (150) (150) (150) (150) (150) (150) (200) (250) (150) Utilities: Gas (20) (25) (30) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Utilities: Water (60) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) (75) Utilities: Electric (250) (200) (275) (200) (175) (150) (150) (125) (175) (190) (200) (200) (250) (300) (300) (250) Insurance (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Education (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) Clothing (100) (75) (135) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Telephone (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) (60) Cable/Satellite Service (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) (125) Online Services (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) (30) Supplies: Bathroom (25) (27) (30) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Kitchen (20) (22) (16) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Household (20) (15) (50) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Supplies: Office (15) (20) (30) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Pets - - - - - - - - - - - - - - - - Service Fees - - - - - - - - - - - - - - - - Taxes - - - - - - - - - - - - - - - - Home Improvements - - - (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Home Maintenance - (700) - - (500) - - (500) - - (500) - - (500) - - Electronics - - (500) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Entertainment (135) (220) (180) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) General Merchandise - - - - - - - - - - - - - - - - Restaurants/Dining (425) (400) (385) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) Gifts - - - - - - (1,000) - - (200) - - (200) - - (200) Travel - - - - - - - - - - - - (1,500) - - - Personal Care - - - (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Hobbies - - - (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) (150) Transfers (250) (250) (250) (510) (35) (560) 690 (470) (1,120) (905) (595) (1,095) 655 (295) (745) (695) ATM/Cash Withdrawals - - - (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) Miscellaneous (100) (75) (25) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100)

CHECKING/CREDIT CASH OUTFLOWS 765 281 (106) 100 100 100 100 100 100 100 100 100 100 100 100 100

Deposits - - - - - - - - - - - - - - - - Transfers 250 250 250 510 35 560 (690) 470 1,120 905 595 1,095 (655) 295 745 695 Interest Income - - - 23 23 24 24 24 25 27 29 31 31 31 32 34

CHANGE IN SAVINGS ACCOUNT 250 250 250 533 58 584 (666) 494 1,145 932 624 1,126 (624) 326 777 729

NET CASH FLOW 1,015 531 144 633 158 684 (566) 594 1,245 1,032 724 1,226 (524) 426 877 829

CASH BALANCE SUMMARY:Checking Account/Credit Card - 765.00 1,046.00 940.00 1,040.00 1,140.00 1,240.00 1,340.00 1,440.00 1,540.00 1,640.00 1,740.00 1,840.00 1,940.00 2,040.00 2,140.00 2,240.00 Savings Account 10,000.00 10,250.00 10,500.00 10,750.00 11,282.58 11,340.77 11,924.63 11,258.40 11,752.00 12,897.30 13,829.76 14,453.84 15,579.74 14,956.17 15,282.28 16,059.55 16,788.38 NET CASH BALANCES 10,000.00 11,015.00 11,546.00 11,690.00 12,322.58 12,480.77 13,164.63 12,598.40 13,192.00 14,437.30 15,469.76 16,193.84 17,419.74 16,896.17 17,322.28 18,199.55 19,028.38 Change 1,015.00 531.00 144.00 632.58 158.19 683.86 (566.23) 593.59 1,245.30 1,032.46 724.08 1,225.90 (523.57) 426.12 877.26 828.83 Variance - - - - (0.00) - - - - - 0.00 - (0.00) 0.00 - -

Analyze & Adjust

†Review Budget vs Actual the week following end of month.

†Determine where you missed your budget and why.

†The “why” may be a result of mis-categorization of spending

activity.

†Did your budget and spending activity adequately address your

priorities, ie giving, savings, discretionary spending, etc.

†Adjust your budget as needed.

†Do you need to add categories/sub-categories – after the first

month is the time to do it.

†This process will take several months to master.

What to Expect

† Shock – this may uncover some unrealized & very negative spending habits.

† Frustration – with the initial setup (learning something new) and with the changes in spending habits you may need to make.

† Sense of empowerment – you will gain more control over your finances and will have a sense of accomplishment.

† Sense of prudence – you will become a better steward of God’s Gifts.

† Happier spending – you will feel better about some of the discretionary purchases.

Homework for Next Week

Obtain online access to all your accounts.

Select a tracking tool & purchase ~or~ setup account.

Review & learn categories in the tool & add or change as you like.

Download transactions into tool & correct categorization issues.

Run monthly category cash flow reports and study current spending habits

Create a 1st pass budget for October.

September 26th Workshop

† Sign up for a 30 minute slot – these will be hands-on discussions.

† Time will be tight so be prepared.

† Bring any tools that will aid in the discussionLaptop (We will have several here with internet connections)Print-outs of excel model ~or~ excel model saved on a thumb

drive.List of questions

“By wisdom is a house built, by understanding is it made firm; And by knowledge are its rooms filled with every precious and pleasing possession.” – Proverbs 24:3-4

Contacts

Johnnie Goodner - Email: [email protected] Quicken support- Yodlee support- Supplemental schedules support

Tim Hess - Email: [email protected] Yodlee support

Travis Collier - Email: [email protected] Spiritual Director

John Peterson - Email: [email protected] Ministry Lead- Quicken support

Q&A