“DO WE PUT WAGES INTO A BAG WITH

HOLES?” -Haggai 1:6

Making the most of your financial resources.

“And it came to pass that I, Nephi, did make out of wood a bow, and out of a straight

stick, an arrow; wherefore, I did arm myself with a bow and an arrow, with a sling and with stones. And I said unto my father:

Whither shall I go to obtain food?”

-1 Nephi 16:23

“Let me assure you that your situation is not beyond the reach of our Savior. Through Him, every struggle can be for our experience and our good. Each temptation we overcome is to strengthen us, not destroy us. The Lord will never allow us to suffer beyond what we can endure.”

- Elder Robert D. Hales

“I urge you to be modest in your expenditures;

discipline yourself in your purchases to avoid debt to

the extent possible. Pay off debt as quickly as you

can, and free yourself from bondage.”

-President Gordon B. Hinckley

STEPS TO GREATER FINANCIAL PEACE

1. Pay a full tithe and generous offerings

“The foundation of provident living is the law of the tithe. The primary purpose of this law is to help us develop faith in our Heavenly Father and His Son, Jesus Christ. Tithing helps us overcome our desires for the things of this world and willingly make sacrifices for others.” –Elder Robert D. Hales

STEPS TO GREATER FINANCIAL PEACE

1. Pay a full tithe and generous offerings

2. Develop and follow a monthly budget

“I asked several bishops what self-reliance skills

the sisters in their wards needed most, and they

said budgeting.”

-Sister Julie Beck

BUDGETING STEPS• Hold a planning meeting (determine short and long term

goals)

• Choose a budget tool: You can find budget options at www.personalfinance.byu.edu and www.providentliving.org along with financial software programs (such as Quicken or Microsoft Money)

• Identify all resources (net of tax) and expenses (use historical numbers if available) to enter into budget

• Pay the Lord first with your tithing and yourself second through savings and debt reduction

Sample Budget Jul Aug Sep Oct Nov Dec Total

Income - Total 4,535 4,535 4,535 4,535 4,535 5,035 54,920 Income - Other 0 0 0 0 0 0 0 Bonus 0 0 0 0 0 500 500 Div Income 35 35 35 35 35 35 420 Salary post tax & 401(k) contributions 4,500 4,500 4,500 4,500 4,500 4,500 54,000

Mandatory Expenses - Total -3,155 -3,120 -3,120 -3,120 -3,120 -3,120 -37,510 Tithing -600 -600 -600 -600 -600 -650 -7,250 Debt Payment (from payoff plan) -400 -435 -435 -435 -435 -885 -5600 Auto -200 -200 -200 -200 -200 -200 -2400 Savings -250 -250 -250 -250 -250 -250 -3000 Short Term Savings (for large annual expenses) -300 -300 -300 -300 -300 -300 -3,600 Housing Mortg. -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -12,000 IRA Contribution -250 -250 -250 -250 -250 -250 -3,000 Auto:Fuel -100 -100 -100 -100 -100 -100 -1,200 Auto:Service -50 -50 -50 -50 -50 -50 -600 Fast Offerings -50 -50 -50 -50 -50 -50 -600 Groceries -500 -500 -500 -500 -500 -500 -6,000 Haircuts -40 -40 -40 -40 -40 -40 -480 Home Repair -50 -50 -50 -50 -50 -50 -600 Telephone -40 -40 -40 -40 -40 -40 -480 Utilities:Gas & Electric -150 -150 -150 -150 -150 -150 -1,800 Utilities:Water -75 -40 -40 -40 -40 -40 -550

Discretionary - Total -480 -480 -480 -480 -480 -480 -5,760 Discretionary - Other 0 0 0 0 0 0 0 Clothing -50 -50 -50 -50 -50 -50 -600 Dates -50 -50 -50 -50 -50 -50 -600 Gifts -30 -30 -30 -30 -30 -30 -360 Misc -200 -200 -200 -200 -200 -200 -2,400 Personal Money -100 -100 -100 -100 -100 -100 -1,200 Sports Lessons Preschool -50 -50 -50 -50 -50 -50 -600Total income: 4,535 4,535 4,535 4,535 4,535 5,035 54,920Total expenses: -4,535 -4,535 -4,535 -4,535 -4,535 -5,035 -54,920Difference: 0 0 0 0 0 0 0

BUDGETING TIPS

• Use a short term savings account for large annual expenses: such as property tax, Christmas, vacations, insurance etc. – add them all up, divide by twelve and deposit into a separate savings account monthly

• Don’t set yourself up for failure – budget in a little mad money for yourself

• Use the cash envelope system for expenses that are hard to keep within budget

BUDGETING TIPS

• Review budget often as compared with actual expenses - determine spending habits that can be changed

• Respect different financial perspectives in your home and be sensitive to the emotions that go into money management

• Celebrate your progress: make a spreadsheet charting your progress towards goals

STEPS TO GREATER FINANCIAL PEACE

1. Pay a full tithe and generous offering

2. Set-up a monthly budget

3. Set-aside a small emergency fund and begin working on food storage

STEPS TO GREATER FINANCIAL PEACE

1. Pay a full tithe and generous offering

2. Set-up a monthly budget

3. Set-aside a small emergency fund and begin working on food storage

4. Be modest in your expenditures

“We must remember that the adversary knows where, when, and how to tempt us. If we are obedient to the promptings of the Holy Ghost, we can learn to recognize the adversary’s enticements. Before we yield to temptation, we must learn to say with unflinching resolve, “Get thee behind me, Satan.”–Elder Robert D. Hales

BE MODEST WITH EXPENDITURES

• Have the courage to say “I can’t afford it” and develop the skill of walking away (what you thought was a necessity will likely turn out to be a want)

• Don’t make large purchases quickly – give yourself a while to think about and research the purchase before making your decision

BE MODEST WITH EXPENDITURES

• Develop a love for simple pleasures or find a fulfilling hobby that can be done with little or no expense (joyfully live within our means)

• Limit your visits to any store – go with a list and stick to it (grocery store included!)

• When making a purchase consider if the benefit is temporary or will it have long lasting significance for you or your family

STEPS TO GREATER FINANCIAL PEACE

1. Pay a full tithe and generous offering

2. Set-up a monthly budget

3. Set-aside a small emergency fund and begin working on food storage

4. Be modest in your expenditures

5. Establish a debt reduction plan

“Once in debt, interest is your companion every

minute of the day and night; you cannot shun it or slip away from it; you cannot

dismiss it; it yields neither to entreaties, demands, or

orders; and whenever you get in its way or cross its course or fail to meet its

demands, it crushes you.”

-J. Reuben Clark

DEVELOP A DEBT PAYOFF PLAN

• Prepare and follow a debt payoff plan

• See www.personalfinance.byu.edu Tools and Resources, Learning Tools, TT20 or www.providentliving.org for help

• Or use a financial software package such as Quicken or Microsoft Money

www.providentliving.org

Credit Card Debt

• If you have several cards with balances and high interest rates consider transferring them to a low interest card with a teaser rate and paying it off as quickly as possible

• www.helpwithmycredit.org A source of information for difficult credit card situations

“Pay now or pay later”(remember you can’t get around the

law of the harvest)

-Karen Larkin, My Mom

STEPS TO GREATER FINANCIAL PEACE

6. Save 3-6 months of living expenses and continue working on your food storage

3-6 MONTHS OF LIVING EXPENSES

• Set a reasonable goal and start small

• Use any additional or unexpected sources of income as savings, not a reason to spend (know what is enough for your family)

• Use a savings account with the highest paying interest rate you can find – let your money work for you

BUILD YOUR FOOD STORAGE

• Build a three month supply of food that is a part of your daily diet

• Purchase a few extra items each week

• Build a longer-term supply with basic items such as wheat, white rice and beans

STEPS TO GREATER FINANCIAL PEACE

6. Save 3-6 months of expenses and continue working on your food storage

7. Plan for retirement

RETIREMENT PLANNING

• Start as early as possible

• Aim to save 10-15% of your income for retirement

• Take advantage of company 401(k) plans if your company matches contributions (but actively manage the funds that you invest in)

• Contribute to an IRA: limit is $5,000 annually per person as of the 2008 tax year

STEPS TO GREATER FINANCIAL PEACE

6. Save 3-6 months of expenses and continue working on your food storage

7. Plan for retirement

8. Pay off home mortgage as soon as you can

MORTGAGES AREN’T ETERNAL!

• Utilize low interest rates • Consider a 15 year mortgage

or pay extra principal monthly• Start small :

– Add $50 to your principal each month the first year

– $100 the second year and add $50 more each year until you are at $400 additional principal in year eight.

– Continue paying $400 extra with each payment

– You will finish your payments in less than 19 years and save around $92,000 of interest in the process (example assumes a 30 year fixed $200,000 mortgage at 6% interest)

STEPS TO GREATER FINANCIAL PEACE

6. Save 3-6 months of expenses and continue working on your food storage

7. Plan for retirement

8. Pay off home mortgage

9. Save for children’s education and missions

WAYS TO PAY FOR COLLEGE

• State 529 plans (gives you an additional deduction on state income tax in some states)

• Coverdell education plans (has a large variety of investment options)

STEPS TO GREATER FINANCIAL PEACE

6. Save 3-6 months of expenses and continue working on your food storage

7. Plan for retirement

8. Pay off home mortgage

9. Save for children’s education and missions

10.Develop good financial habits and teach them to your children

“Set your houses in order, If you have paid your debts, if you have a reserve, even though it be small,

then should storms howl about your head, you will have shelter for your

wives and children and peace in your hearts. That’s all I have to say about

it, but I wish to say it with all the emphasis of which I am capable.”

-President Gordon B. Hinckley

“What we learn now, in our present circumstances, can bless us and our posterity for generations to come.” –Elder Robert D. Hales