On Take It To The Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt.
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Solve your credit card problems.
00:00:09.64\00:00:12.14
How to make and
stick with the budget.
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Simple ways to save...
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buying or selling a home,
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and many more financial
matters on Take It To The Bank.
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Hi. My name is Cordell Thomas.
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I'll be your host here
on this program called,
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Take It To The Bank.
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As we start, and
as an introduction,
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I'd like to talk to
you a little bit about
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what my role is here.
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And my role is simple.
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It's to get you to
think a little differently
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about money and about wealth,
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to actually get you motivated
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to change some
of your bad habits
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in reference to
how you handle money.
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And maybe how you can become
a better steward of God's money
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and His talents towards you,
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because wealth is
not just about money
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and we're going to
find out biblically
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as we take an introductory look
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at what financial
literacy is all about.
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It's more so about
how we manage the funds
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and or the
talents that God gives us
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for each one of us to use.
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Before we get started,
I have a quote for you.
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"Youth would be an ideal state
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if it came along later in life."
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Herbert Henry.
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I look back on my life
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and if I knew
then what I know now,
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my life would be
completely different.
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But then again, I had to
go through what I went through
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to understand a little bit more
about how money actually works.
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The context of
money is very serious
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and I think that we all
have to take a serious approach
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at how we take
care of those talents
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and I'd like to,
in this introduction,
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take a look at the
biblical perspective
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of how financial literacy works.
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I can give you definition.
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Financial literacy is
basically the ability to manage
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and to
communicate about finances.
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And taking a step further,
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it's the ability to
make wise decisions about
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how you handle that money.
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But what does the Bible
actually say about money.
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I'd like you, had to
ask you at your convenience,
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if you have your
Bible, take it out
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and look with me at,
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first of all, 1 Corinthians 4:2.
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In 1 Corinthians
4:2, the Bible states,
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"Now it is required that those
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who have been given a
trust must prove faithful."
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A good steward is
someone that is faithful.
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Okay, let's look
at another verse.
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First of all, being a
steward of God's money means
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that you must be
considered faithful.
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If you take a look in
Luke verses 12, 13 and 14...
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The Bible talks about
the parable of the rich fool.
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Jesus in verse 14 said,
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"Man, who
appointed me to be judge
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or an arbiter between you two?"
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Then He said on
to them, "Watch out!
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Be on your guard
against all kinds of greed,
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a man's life does not consist
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in the abundance
of his possessions."
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The abundance of
one's possessions,
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well, man's life, a
man's life is not about
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what we corral, and we hoard,
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and we buy and
put into our homes.
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But it's more so about
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what I think is going
on in Matthew 25:14-24.
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And if you realize what that,
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if you remember
what that's about,
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it's the story of the talents.
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Turn with me there
if you get a chance.
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And it's pretty intriguing.
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First of all, in verse
24, the preceding chapter,
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it talks about signs
of the end of the age.
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And it moves forward
and talks a little bit about
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the parable of the
wise and foolish virgins,
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which is kind of intriguing,
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because if you take
a look at the virgins
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and it came to an issue
of saving for a rainy day.
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I mean, you talk
about the oil that they had
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and about their ability to
have the oil at the right time,
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kind of works along
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with that philosophy of
saving your money or saving,
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in that case, the
oil for a situation
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that came up unexpectedly.
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And then it moves forward
into the story of the talents.
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A landowner is leaving.
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And he's coming back again.
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It seems to parallel
to the story of Christ.
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He left.
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And He's coming back
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and He's going to
hold us accountable
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to how we manage the funds
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and or the
talents that we're given.
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Now read into that.
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You have a
landowner who's leaving
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and he calls his
servants into him
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and he says, "Hey, I'm leaving
but I'm going to come back.
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But I'd like you to manage."
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In this case, the
talent was called money,
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which tells me something.
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There are more venues of wealth
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than just the venue
of money for wealth.
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In this case, he
handed his servant
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five talents of money.
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It could be $50,000,
if it's in the $5000,
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whatever the case may be,
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the Bible says that he
gave the person five talents.
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And you remember, he gave
the second servant two talents
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and the third servant
he provided one talent.
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Now he gave it to, in
context to their ability,
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again in context
to their abilities.
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So God looks at each one of us
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and says, you have an
ability that I see in you.
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That talent could
be the talent of music,
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it could be the
talent of teaching,
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it could be the talent of faith,
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it could be so many other
different type of talents.
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But in this case, there
is a talent called money.
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And He knows that there
are several of us that know
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how to build and
utilize that talent.
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The first servant, if
you continue with the study.
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It says, "After a long time
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the master of
those servants return
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and settled accounts with them.
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The man who had
received the five talents
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bought the other five and said,
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'Master, you
entrusted me with five,
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so I've gained five more."
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He put his money to work.
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And when you
consider the fact that
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he had five talents and
double the five talents,
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and then you consider
what happened to the individual
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with just one talent,
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you understand that
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the one that buried his
talent was told by the master.
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"Why didn't you
do anything more?
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At least you could
have taken the money
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and you could
have put it in a bank
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where it could have
gained simple interest."
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This case it tells
me that the gentleman
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understood how to
make money work for him.
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It could be that he
bought some equipment,
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he bought some assets,
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he developed a
type of talent to teach
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or he used the
money to do something.
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And in the end he was able
to return on that investment,
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a double, doubling
the amount of money
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he was given.
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The same with two.
He doubled the money.
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The one that buried it,
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it's like stashing
your cash in your mattress,
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because the money that you have
is not really working for you.
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And so he says to the one
that one was entrusted one,
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he said now,
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"Then the man who had
received the one talent came,
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'Master he said,
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I knew that you are a
hard man harvesting here
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and you have not
sown and gather it,
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where you have
not scattered seed
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so I was afraid
that if I went out
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and hid your
talent in the ground."
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See, I hid it and I
was secure in knowing
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that it would stay there.
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He did not make
that money work for him.
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So what am I
actually saying here?
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In this case, it was
in a different approach
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that we should all have
to what money is all about.
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Because what I'm
going to say to you
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is something that has
intrigued me for a while.
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In James 2:5-9,
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it tells a story of...
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how we as
individuals should take a look
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at what wealth actually means.
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When you're a
wealthy individual,
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and as I find the verse,
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James 2:5-9,
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it says, "My brothers,
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and we'll start at the
beginning of the chapter.
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It says favoritism
should be forbidden."
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My brothers, as believers in
our glorious Lord Jesus Christ,
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don't show favoritism.
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Suppose a man
comes into your meeting
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wearing a gold
ring and fine clothing
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and a poor man in shabby clothes
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also comes in.
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If you show special attention
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to the man wearing fine clothes,
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and say, 'Here's a
good seat for you,'
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but say to the poor
man, 'You stand over here,'
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or 'Sit on the
floor at my feet,'
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have you not discriminated
against among yourselves
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and become judges
with evil thoughts?
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Listen, my dear
brothers, has not God chosen
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those who are poor
in the eyes of the world
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to be rich in faith
and to inherit the kingdom
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He has promised
those who love him.
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But you have insulted the poor.
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Is it not the rich
who are exploiting you?
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Are you not the ones who
are dragging others into court?
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Are they not the ones
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who are slandering
the noble name of Him
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who you belong?
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If you really keep the royal law
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found in the Scriptures,
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'Love your
neighbor as yourself,'
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you're doing right.
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But if you show favoritism,
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you sin and are convicted
by the law as law breakers."
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This is heavy information.
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Most individuals see
wealth and wealthy individuals
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and treat them
in a different way
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than they treat individuals
who are considered poor.
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Remember the Bible
verse talked about the faith.
00:10:02.03\00:10:05.70
Faith is a wealth.
It's a form of wealth.
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And those who are
poor are wealthy in faith.
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Those who are poor could
be wealthy in other talents.
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It's not
necessarily the talent of money
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that should cause
you as an individual,
00:10:17.68\00:10:19.31
if you have a lot of it,
to treat others differently.
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In fact, your responsibility
grows all the more.
00:10:21.85\00:10:25.69
You should be far more humble.
00:10:25.72\00:10:27.72
And you should be
far more appreciative
00:10:27.76\00:10:31.09
of what those who may not have
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the monetary
advantages that you have,
00:10:33.40\00:10:36.53
they still have to go through
in practicing their talents
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that could include
and incorporate faith.
00:10:40.54\00:10:43.77
So my request to use
as we go through these,
00:10:43.81\00:10:48.98
these programs on
financial literacy.
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I ask you to think
differently about wealth
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and begin the
process of thinking
00:10:56.55\00:10:59.19
that we all as
individuals are wealthy
00:10:59.22\00:11:03.16
because God has given
each one of us talents
00:11:03.19\00:11:06.73
according to our own abilities.
00:11:06.76\00:11:08.76
And the fact that you have money
00:11:08.80\00:11:10.37
and someone may not have money
00:11:10.40\00:11:11.83
doesn't mean that they should
be treated any differently.
00:11:11.87\00:11:17.27
So consider that as we
talk about financial literacy
00:11:17.31\00:11:20.18
and continue to consider
the issues that are involved
00:11:20.21\00:11:24.21
with how we manage our money.
00:11:24.25\00:11:26.25
With that said, I'm
going to begin the process
00:11:26.28\00:11:28.88
of dialoguing with
you about the basics.
00:11:28.92\00:11:32.15
One of the things
we're going to talk about,
00:11:32.19\00:11:33.66
and there are four basic areas,
00:11:33.69\00:11:35.02
we're going to talk about debt.
00:11:35.06\00:11:36.66
We're going to
talk about cash flow.
00:11:36.69\00:11:38.66
We will talk about
the issue of budgeting
00:11:38.69\00:11:41.46
which is
critical to understanding
00:11:41.50\00:11:43.73
how you can
manage your money well.
00:11:43.77\00:11:45.43
And the fourth area
we'll discuss will be credit.
00:11:45.47\00:11:48.60
There are many different issues
00:11:48.64\00:11:50.27
that are going on right
now in reference to credit,
00:11:50.31\00:11:53.61
ID theft, fraud
and many other issues
00:11:53.64\00:11:56.88
that are associated with it.
00:11:56.91\00:11:58.25
So let's start out with
the simple issue of a budget.
00:11:58.28\00:12:01.12
The reason we
talk about budgeting
00:12:01.15\00:12:03.39
as a key form of
understanding where you are,
00:12:03.42\00:12:06.96
it also provides you
00:12:06.99\00:12:08.42
the understanding
of where you can be
00:12:08.46\00:12:11.49
and where you would like to be.
00:12:11.53\00:12:13.90
It gives you planning,
the opportunities of planning.
00:12:13.93\00:12:16.97
But from a simple perspective,
00:12:17.00\00:12:18.40
I'll take a step back
and make this statement.
00:12:18.43\00:12:23.91
If you know where
your money comes from
00:12:26.71\00:12:33.55
and you know
where your money goes,
00:12:33.58\00:12:37.49
you are in pretty good shape.
00:12:37.52\00:12:38.95
A lot of people don't know.
00:12:38.99\00:12:41.06
I remember when
I was in college,
00:12:41.09\00:12:42.56
you know, it was
my checking account
00:12:42.59\00:12:44.36
was basically
up here in my head.
00:12:44.39\00:12:45.93
I pretty much wrote checks
00:12:45.96\00:12:47.63
and say, "I think I
got the $25 in the account.
00:12:47.66\00:12:50.07
That should be no
problem." And wrote the check.
00:12:50.10\00:12:52.10
That was my
managerial perspective
00:12:52.13\00:12:54.67
of my holding on to my checking
account and managing it.
00:12:54.70\00:12:59.57
The first time though
that I bounced a check
00:12:59.61\00:13:01.74
would change my all, my
perspective all together.
00:13:01.78\00:13:04.08
And I knew at that point in time
00:13:04.11\00:13:05.98
that I had to take
a different approach
00:13:06.01\00:13:08.58
to managing what it was
00:13:08.62\00:13:10.09
if I wanted to get
to a different place.
00:13:10.12\00:13:12.72
Now a budget basically says
00:13:12.75\00:13:15.09
that I know where
my revenue comes from.
00:13:15.12\00:13:18.06
I know where my
expenses are paid.
00:13:18.09\00:13:20.86
If you are
spending the same amount
00:13:20.90\00:13:23.87
that you are bringing in,
00:13:23.90\00:13:25.50
you're in a very
dangerous position.
00:13:25.53\00:13:27.47
And I ask you to
take a look very seriously
00:13:27.50\00:13:29.74
how much money you're spending
00:13:29.77\00:13:31.37
and try to increase the margin
between revenue and expenses.
00:13:31.41\00:13:37.48
It's that area
between revenue and expenses
00:13:37.51\00:13:39.61
that you have the option
00:13:39.65\00:13:41.12
of putting more
money into savings.
00:13:41.15\00:13:43.65
You have the option of
investing some of that money,
00:13:43.69\00:13:47.29
and you have the
opportunity of acquiring assets.
00:13:47.32\00:13:50.09
And that's where I believe
00:13:50.13\00:13:51.63
this issue of financial
literacy comes to play,
00:13:51.66\00:13:54.90
because it's not about,
00:13:54.93\00:13:56.43
remember the
Bible verse that says,
00:13:56.46\00:13:58.63
it's not about the amount
of possessions that you carry,
00:13:58.67\00:14:03.71
it's how you use the talents
that God has given to you.
00:14:03.74\00:14:08.04
So it's essential
that you save, you invest,
00:14:08.08\00:14:11.78
you have an emergency fund,
00:14:11.81\00:14:13.38
but you also have
another bond of money
00:14:13.42\00:14:15.42
that you can actually
use to give to charities,
00:14:15.45\00:14:20.69
to give to these organizations
00:14:20.72\00:14:22.96
such as 3ABN and
support the ministry.
00:14:22.99\00:14:25.86
Because the overall objective
00:14:25.89\00:14:28.93
about the parable is to tell you
00:14:28.96\00:14:30.93
that Jesus is coming again soon.
00:14:30.97\00:14:33.80
And He's gonna
hold you accountable
00:14:33.84\00:14:35.50
to how you
dealt with the talents
00:14:35.54\00:14:37.17
that He gave to you.
00:14:37.21\00:14:39.57
And so it's essential
that we begin to think about
00:14:39.61\00:14:42.41
how we spend our
money based on the revenue
00:14:42.44\00:14:45.41
and through the
talents that God has given us.
00:14:45.45\00:14:47.92
And it's that amount of
money that we can use to save,
00:14:47.95\00:14:51.02
set up an emergency fund,
00:14:51.05\00:14:52.49
understand and
study how banks work,
00:14:52.52\00:14:54.76
to talk about
it on a high level,
00:14:54.79\00:14:57.39
and then at the same time,
00:14:57.43\00:14:58.76
have that additional
fund that you can give.
00:14:58.79\00:15:00.80
I have a story
that's kind of interesting.
00:15:00.83\00:15:03.43
When I worked at
another organization
00:15:03.47\00:15:05.97
and it dealt with the donations
of outside contributors.
00:15:06.00\00:15:10.74
I remember a conversation
I had about one of the donors
00:15:10.77\00:15:13.24
and it was interesting to see
00:15:13.27\00:15:14.71
how she dealt with the funds
that she had or didn't have.
00:15:14.74\00:15:19.18
She was retired.
00:15:19.21\00:15:20.55
She was dealing
on a fixed income
00:15:20.58\00:15:22.25
and the question came up about--
00:15:22.28\00:15:24.22
"But if you're on a fixed income
00:15:24.25\00:15:26.02
and you have increased
costs during the winter time,
00:15:26.05\00:15:29.06
how do you
maintain a steady giving
00:15:29.09\00:15:32.16
every single
month of every year?
00:15:32.19\00:15:33.70
We can count on your giving.
00:15:33.73\00:15:36.03
How is it that
you dealt with that?"
00:15:36.06\00:15:37.70
And she said, "You
know, during the winter times,
00:15:37.73\00:15:40.50
I know it gets
difficult for all of us
00:15:40.54\00:15:42.34
and especially those
who are on a fixed income.
00:15:42.37\00:15:44.04
But God has given me the
wisdom to know that I can.
00:15:44.07\00:15:47.98
When the heating bills come in,
00:15:48.01\00:15:49.51
I can shut down
different portions of my home.
00:15:49.54\00:15:52.51
And only heat the areas
in my home that are necessary
00:15:52.55\00:15:55.68
and I can use the
savings from those expenses
00:15:55.72\00:15:59.79
and I can continue
to give my $25 a month."
00:15:59.82\00:16:03.12
Twenty five dollars a
month doesn't seem like much,
00:16:03.16\00:16:05.79
but it is in the eyes of
God because it's her giving,
00:16:05.83\00:16:09.40
it's helping sustain many of
our non-profit organizations.
00:16:09.43\00:16:12.97
And then you begin to understand
00:16:13.00\00:16:14.34
what God meant when He
talked about the widow's mite.
00:16:14.37\00:16:19.11
The lady gave as much
as she possibly could,
00:16:19.14\00:16:23.45
which looked very little
00:16:23.48\00:16:25.11
in the side of the
wealthy people looking on.
00:16:25.15\00:16:27.92
But Jesus said
something that's powerful.
00:16:27.95\00:16:30.82
She gave far more than
those wealthy people did
00:16:30.85\00:16:35.79
because she gave
all that she could.
00:16:35.82\00:16:39.56
And that's a context
of where we want to go
00:16:39.59\00:16:42.70
with this understanding
of financial literacy.
00:16:42.73\00:16:44.33
I don't want you
to start thinking
00:16:44.37\00:16:46.10
about the context of
wealth and riches and travel
00:16:46.13\00:16:49.90
and new cars and
new things to acquire
00:16:49.94\00:16:52.51
because possessions is not it.
00:16:52.54\00:16:55.54
The context is,
understanding that
00:16:55.58\00:16:58.78
God has given you a talent.
00:16:58.81\00:17:02.08
That talent has
to be used for Him
00:17:02.12\00:17:04.85
and if you use it for Him,
00:17:04.89\00:17:06.45
it will draw
other people onto Him
00:17:06.49\00:17:08.89
and help us close out
this history in this world
00:17:08.92\00:17:12.63
and take us to be with Him.
00:17:12.66\00:17:14.86
So I'm gonna move forward
00:17:14.90\00:17:16.23
and talk a little bit more
00:17:16.26\00:17:17.60
about the context
of financial literacy
00:17:17.63\00:17:20.07
and with doing that,
00:17:20.10\00:17:21.60
I would like to bring
on a resource of mine,
00:17:21.64\00:17:24.81
Mr. Rodney Watson.
00:17:24.84\00:17:26.37
He's a fantastic individual
that I talk to all the time.
00:17:26.41\00:17:29.51
He has these games that we play
00:17:29.54\00:17:31.88
and things that we
do that reference money
00:17:31.91\00:17:35.15
and management, cash
flow, that type of thing.
00:17:35.18\00:17:37.95
And I asked him a
question the other day
00:17:37.99\00:17:39.55
and that question was,
00:17:39.59\00:17:41.32
"How does cash flow management
fit into financial literacy?"
00:17:41.36\00:17:45.93
Rodney, can you give
us the answer please?
00:17:45.96\00:17:48.36
Whenever you think
of cash flow management
00:17:51.37\00:17:53.47
and financial literacy,
they both go hand in hand.
00:17:53.50\00:17:56.27
The reason is, whenever
you need to manage something,
00:17:56.30\00:17:59.31
you have to know about
it to be able to manage it.
00:17:59.34\00:18:02.44
So to know about money,
00:18:02.48\00:18:04.11
you have to
learn how money flows
00:18:04.15\00:18:06.45
and money flows
just like air flows,
00:18:06.48\00:18:09.12
just like water flows
or just like anything else.
00:18:09.15\00:18:11.95
So whenever money comes to you,
00:18:11.99\00:18:14.56
it's gonna flow through
you and to someone else.
00:18:14.59\00:18:18.29
Hopefully it doesn't
flow to all your creditors.
00:18:18.33\00:18:20.93
Hopefully it does
flow to some assets.
00:18:20.96\00:18:23.37
Rich people, what they do is,
00:18:23.40\00:18:25.03
they take
money, it flows to them
00:18:25.07\00:18:27.07
and they keep a
portion of it first.
00:18:27.10\00:18:29.67
And they keep a portion of
that first, and they save it
00:18:29.70\00:18:32.27
and that money goes to
buy assets, assets only.
00:18:32.31\00:18:35.81
Then after that, they
take the rest of the money
00:18:35.84\00:18:38.11
and they use it for savings
00:18:38.15\00:18:39.85
and they also use it to live on.
00:18:39.88\00:18:41.98
So whenever
you're thinking about
00:18:42.02\00:18:43.35
financial literacy
and cash management,
00:18:43.39\00:18:45.55
manage your cash,
00:18:45.59\00:18:47.06
so your cash will
end up managing you.
00:18:47.09\00:18:49.66
Thank you, Rodney.
00:18:49.69\00:18:51.03
Thank you very much. You know.
00:18:51.06\00:18:52.76
Those that are able to
live within their means
00:18:52.79\00:18:54.73
and plan for their future,
00:18:54.76\00:18:56.10
have an idea of how they
manage their own budgets,
00:18:56.13\00:18:59.17
their own personal budgets
00:18:59.20\00:19:00.54
and each budget that we
have is gonna be different,
00:19:00.57\00:19:02.67
it's gonna be separate.
00:19:02.70\00:19:04.04
Each one of us
are unique individuals
00:19:04.07\00:19:06.01
with different circumstances.
00:19:06.04\00:19:07.48
So I ask you to take a look
and begin the process today.
00:19:07.51\00:19:10.98
Because the next time we talk,
00:19:11.01\00:19:12.68
I would like for you to
have written down your expenses.
00:19:12.71\00:19:15.62
Look where the money goes.
00:19:15.65\00:19:16.99
Write down everything you spend.
00:19:17.02\00:19:18.35
Write down the cash purchases
that you make and as well,
00:19:18.39\00:19:22.46
write down the areas
00:19:22.49\00:19:24.23
where you think
you have talents,
00:19:24.26\00:19:25.79
where you can generate revenue.
00:19:25.83\00:19:27.66
Take a look at your expenses,
take a look at your income
00:19:27.70\00:19:31.03
and begin the
process of understanding,
00:19:31.07\00:19:33.23
if you can
develop more of a margin
00:19:33.27\00:19:35.77
between your
revenues and expenses,
00:19:35.80\00:19:38.01
ensuring that you're making
more than you are sending out.
00:19:38.04\00:19:42.21
Now one of the things
00:19:42.24\00:19:44.25
that's very important
about cash flow is that
00:19:44.28\00:19:48.25
you have funds set
away for emergencies.
00:19:48.28\00:19:52.05
I have seen circumstance
00:19:52.09\00:19:53.59
where individuals
have been wiped out
00:19:53.62\00:19:56.22
based on a medical emergency
00:19:56.26\00:19:58.83
because we
haven't spent the money
00:19:58.86\00:20:00.53
or budgeted enough to have
00:20:00.56\00:20:02.20
maybe health insurance on tap
00:20:02.23\00:20:04.13
or if in fact, we
had a lot of money saved,
00:20:04.17\00:20:07.60
we find that
there are emergencies
00:20:07.64\00:20:09.30
that can arise
on our daily basis
00:20:09.34\00:20:12.11
and on monthly or
whatever the case may be
00:20:12.14\00:20:14.18
to each individual life.
00:20:14.21\00:20:16.01
Many times we think
it will never affect us.
00:20:16.04\00:20:18.51
But it does at
some point in time,
00:20:18.55\00:20:21.02
it comes in and
impacts our lives.
00:20:21.05\00:20:23.39
For example, the last,
00:20:23.42\00:20:26.35
I bought a house
like back in 2004.
00:20:26.39\00:20:28.56
The house right now
is only seven years old
00:20:28.59\00:20:30.33
and you hearing a
little bit of irritability
00:20:30.36\00:20:31.93
on this side of things.
00:20:31.96\00:20:33.63
Because the water heater
went out after seven years
00:20:33.66\00:20:36.77
and of course, you know
00:20:36.80\00:20:38.13
when your water heater goes out,
00:20:38.17\00:20:39.50
you go to shop for
another water heater, right?
00:20:39.53\00:20:41.77
And you run into
people who are, you got it,
00:20:41.80\00:20:44.94
shopping for water heaters.
00:20:44.97\00:20:46.64
And you happen to run
into a person that said,
00:20:46.68\00:20:48.21
this young lady was
telling me, "Yes, I am so upset.
00:20:48.24\00:20:52.35
My water heater
broke down after 22 years."
00:20:52.38\00:20:56.58
Mine broke down
after seven years.
00:20:56.62\00:20:58.42
And that's couple of
things you have to look at
00:20:58.45\00:20:59.85
because you never know
when that emergency will arise.
00:20:59.89\00:21:02.96
So for me, I had to
make a $600 acquisition
00:21:02.99\00:21:05.59
to go and put a new
water heater into my home.
00:21:05.63\00:21:08.63
Fortunately, I had a
brother-in-law that came by
00:21:08.66\00:21:11.47
and was able to help me
put all of that equipment in
00:21:11.50\00:21:14.14
and get me back to square
zero with hot water in my home.
00:21:14.17\00:21:17.87
Now it's interesting as we take
a look at financial literacy.
00:21:17.91\00:21:21.91
The context is really
00:21:21.94\00:21:23.61
that we plan for
those type of emergencies.
00:21:23.65\00:21:27.22
You'll never know when
the job loss might happen.
00:21:27.25\00:21:29.92
You'll never know
00:21:29.95\00:21:31.29
when any critical
issue might happen at home.
00:21:31.32\00:21:33.49
And one of the major issues
that people don't think about
00:21:33.52\00:21:35.76
is the context of health
00:21:35.79\00:21:37.86
and how that can wipe out
00:21:37.89\00:21:39.39
people's savings
very, very quickly.
00:21:39.43\00:21:42.86
I believe that people
have been told in the past
00:21:42.90\00:21:46.47
that they should
have a six month,
00:21:46.50\00:21:48.77
six months worth of savings
00:21:48.80\00:21:50.41
available in case of
any type of emergencies.
00:21:50.44\00:21:53.74
Job loss now,
00:21:53.78\00:21:55.41
it may take people
upwards of 24 to 28 months
00:21:55.44\00:21:57.91
to find a new job.
00:21:57.95\00:21:59.48
How do you plan for that?
00:21:59.51\00:22:00.85
What is the
context of the planning
00:22:00.88\00:22:04.59
in savings to help alleviate
a lot of those concerns?
00:22:04.62\00:22:08.02
We know that some employers
00:22:08.06\00:22:09.39
don't pay into
unemployment insurance.
00:22:09.42\00:22:11.39
And people are left out
there without that income
00:22:11.43\00:22:14.46
to support the
needs that they have
00:22:14.50\00:22:16.70
and support the
context of their budgets.
00:22:16.73\00:22:21.20
One of the things
that might help is,
00:22:21.24\00:22:22.90
if we weren't necessarily
getting in too much debt,
00:22:22.94\00:22:25.57
if we didn't
have credit card debt,
00:22:25.61\00:22:26.94
and we didn't have a
lot of those type of debts
00:22:26.98\00:22:28.64
that people typically recommend
to help build credit histories.
00:22:28.68\00:22:33.48
There's a 20-10
rule that's out there.
00:22:33.52\00:22:35.22
It basically says that you,
your budget should not exceed
00:22:35.25\00:22:39.52
or your credit or indebtedness
00:22:39.55\00:22:42.39
should not exceed 20 percent
of your yearly annual income,
00:22:42.42\00:22:47.33
your net income for the year.
00:22:47.36\00:22:48.93
And that your
monthly expenditures
00:22:48.96\00:22:51.73
on repayment of that debt
00:22:51.77\00:22:53.10
should not exceed 10 percent
of your monthly net income.
00:22:53.13\00:22:56.27
That's a 20-10 rule.
00:22:56.30\00:22:58.27
I don't believe that anyone
should have any type of debt.
00:22:58.31\00:23:01.61
If you cannot
afford it by paying cash,
00:23:01.64\00:23:05.81
why are you gonna
put it on a credit card
00:23:05.85\00:23:07.68
and pay that additional expense
00:23:07.72\00:23:09.72
of paying off with the interest
that you typically incur?
00:23:09.75\00:23:13.86
If you're not able
to pay the full amount
00:23:13.89\00:23:17.23
to get what you
need, just leave it alone.
00:23:17.26\00:23:19.59
And so it goes back
00:23:19.63\00:23:20.96
to preparing for
those emergencies.
00:23:21.00\00:23:22.33
If you don't
have a high overhead
00:23:22.36\00:23:23.93
in reference to expenses,
00:23:23.97\00:23:25.97
then you shouldn't
have as much to worry about
00:23:26.00\00:23:29.54
if you go through
a specific job loss
00:23:29.57\00:23:31.54
because your
expenses are minimized.
00:23:31.57\00:23:35.78
Look, we're coming to
the end of our first program,
00:23:35.81\00:23:38.78
but I really want to
emphasize this in an end
00:23:38.81\00:23:41.85
as an introduction
00:23:41.88\00:23:43.39
that understanding
where you're at now
00:23:43.42\00:23:46.76
is the best thing to understand
where you can go from now.
00:23:46.79\00:23:50.39
And my intent in this case
00:23:50.43\00:23:52.69
is to help you to
think more so about money
00:23:52.73\00:23:55.20
and about how you save
00:23:55.23\00:23:57.73
and how you plan
for future events.
00:23:57.77\00:24:00.80
That's the key.
00:24:00.84\00:24:02.27
And that's what we
want to accomplish today.
00:24:02.30\00:24:04.87
But more so, this introduction
was to talk about James 2:5-9.
00:24:04.91\00:24:11.78
James 2:5-9.
00:24:11.81\00:24:13.95
The key is to understand
00:24:13.98\00:24:17.45
that wealth comes in
many different forms.
00:24:17.49\00:24:21.22
And people have
different talents
00:24:21.26\00:24:23.46
that Christ has given them.
00:24:23.49\00:24:25.73
When you take a look at
your own personal situation,
00:24:25.76\00:24:29.80
it doesn't matter if
you make $24,000 a year
00:24:29.83\00:24:33.30
or two and a half
million dollars year,
00:24:33.34\00:24:35.40
if you are able to save ten
00:24:35.44\00:24:38.34
or you know, 10 percent
or 15 or even 50 percent
00:24:38.37\00:24:41.78
of what you make
on the yearly basis,
00:24:41.81\00:24:43.31
you're far better
than a millionaire
00:24:43.35\00:24:45.45
that spends the
million dollars each year.
00:24:45.48\00:24:47.65
We see time and time again,
00:24:47.68\00:24:49.65
million dollar homes
going up foreclosure,
00:24:49.68\00:24:51.85
we hear of millionaires
00:24:51.89\00:24:53.22
and we shouldn't
really call them millionaires
00:24:53.25\00:24:54.89
but they are people who
make a million dollars a year
00:24:54.92\00:24:57.46
or spending a
million dollars a year,
00:24:57.49\00:24:59.43
and those
individuals who get unemployed,
00:24:59.46\00:25:01.83
are actually tapping into
unemployment insurance now
00:25:01.86\00:25:04.60
and finding that many of
our people are doing that.
00:25:04.63\00:25:07.04
So this crisis of
money can be alleviated
00:25:07.07\00:25:10.97
by addressing a
few simple issues.
00:25:11.01\00:25:15.31
In closing for today,
00:25:15.34\00:25:17.71
we understand that
financial literacy is a key.
00:25:17.75\00:25:19.71
Understanding how money
works can be very valuable
00:25:19.75\00:25:22.98
and maintaining a budget is
beneficial not only short term,
00:25:23.02\00:25:26.62
but it will sustain
you on a long term basis.
00:25:26.65\00:25:30.19
As we do go
through this closing,
00:25:30.23\00:25:31.56
I'd like to give you
two different questions
00:25:31.59\00:25:34.86
that I'd like you to think over
as we go to the next program.
00:25:34.90\00:25:38.60
Those questions include,
00:25:38.63\00:25:40.50
one, who insures your
stocks in the stock market?
00:25:40.54\00:25:45.07
Is it A, The Federal
Deposit Insurance Corporation?
00:25:45.11\00:25:48.58
Is it B, The Securities
and Exchange Commission?
00:25:48.61\00:25:51.01
Is it C, The U.S.
Department of Treasure?
00:25:51.05\00:25:53.62
Or is it D, No one?
00:25:53.65\00:25:57.65
The other question I would like
you to answer for me is also,
00:25:57.69\00:26:02.82
and think about is,
00:26:02.86\00:26:06.16
Federal law gives you three days
00:26:06.19\00:26:08.80
to cancel the
purchase of a new or used car
00:26:08.83\00:26:11.27
from the dealer.
00:26:11.30\00:26:12.63
Is that true? Is that false?
00:26:12.67\00:26:16.07
As we look at
financial literacy,
00:26:19.21\00:26:21.78
I want us to take a
whole different approach
00:26:21.81\00:26:23.71
in understanding that
wealth is a wonderful thing
00:26:23.75\00:26:27.88
and wealth
takes different forms.
00:26:27.92\00:26:30.12
The fact that we may
be monetarily wealthy
00:26:30.15\00:26:32.72
doesn't mean we treat
anyone any differently,
00:26:32.75\00:26:35.36
because that other person
00:26:35.39\00:26:36.73
could be wealthy from
the standpoint of faith,
00:26:36.76\00:26:39.76
could be wealthy from
the standpoint of ministry,
00:26:39.79\00:26:42.26
from be wealthy from the
standpoint of leadership.
00:26:42.30\00:26:44.80
Let's get rid
of those situations
00:26:44.83\00:26:48.77
where we can treat
people in different ways
00:26:48.80\00:26:51.51
because of who we think we are.
00:26:51.54\00:26:52.87
Let's not use favoritism.
00:26:52.91\00:26:55.74
Let's begin the
process of thinking more so
00:26:55.78\00:26:58.41
about wealth from the standpoint
00:26:58.45\00:27:00.12
of being obligated to God
00:27:00.15\00:27:03.42
for what He's given us
in the form of talents.
00:27:03.45\00:27:06.52
And to manage our money in a way
00:27:06.55\00:27:09.89
that provides a
benefit to others.
00:27:09.92\00:27:13.83
Specifically,
enlightening others about
00:27:13.86\00:27:16.97
Christ's soon return.
00:27:17.00\00:27:19.60
And I will constantly lead you
00:27:19.63\00:27:21.20
back to that
parable of the talent,
00:27:21.24\00:27:26.24
because I think it resonates
00:27:26.27\00:27:28.21
with how we as individuals
should make the money work.
00:27:28.24\00:27:33.42
And if we are able
to make money work,
00:27:33.45\00:27:37.42
we are able to give
money to the resources
00:27:37.45\00:27:41.69
that can get the gospel
to others around the world.
00:27:41.72\00:27:46.43
Thank you for
participating in this program.
00:27:46.46\00:27:48.60
Thank you for being a part.
00:27:48.63\00:27:50.10
And as we...
00:27:50.13\00:27:53.00
as we talk more about
financial literacy issues,
00:27:53.03\00:27:55.97
please remember,
00:27:56.00\00:27:57.34
let's Take It To
The Bank and save.
00:27:57.37\00:27:59.77