On Take It To The Bank,
00:00:01.36\00:00:02.70
you will find ways
to get out of debt,
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solve your credit card problems,
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how to make and
stick with a 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,
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on Take It To The Bank.
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Hi.
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My name is Cordell Thomas
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and welcome to this program
called Take it to the bank.
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We have an exciting
program for you today
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because this is the
core of understanding
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what financial
literacy is all about.
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We are going to
talk about budgeting,
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setting up a budget, the
art of setting up a budget.
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And many people
have different approaches
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to setting up their budgets.
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But basically, a budget
is your revenue, your income,
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your paycheck,
and your expenses,
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where your money
goes on a monthly basis,
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to take care of those
things that you have to pay for.
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Many people get caught
up in the budgeting process.
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And those that really enjoy it
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begin to make
budgets very complex.
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My budget has six different,
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eleven different
segments of expenses.
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I have broken it down
to areas such as home,
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daily living,
health costs, groceries,
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I have broken financial areas
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and then, of course
miscellaneous expenses.
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You're gonna see a graphic
of a budget that I have set up
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and I'll give you a context
of how you can approach it.
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It doesn't have
to be that complex.
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I'm getting into it because
I can begin to see trends
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in how I spend
things, and what I do.
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I'm gonna tell you a few stories
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of things that
came up in my life
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that caused specific concern.
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It's good to have a partner
in this thing called budgeting.
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It's good to have someone
that holds you accountable
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in sticking with the budget.
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You stick with a budget
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which is a
comprehensive financial
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look at what you are doing
on a monthly and annual basis.
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And give you a context of
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how to continue to cut spending,
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increase savings
and make the best use
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of your paycheck
and or your revenues.
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So I'm going to start
with this, this little story.
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It was interesting
from my standpoint.
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I had to go on a
short trip and I took,
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I had a nice car at the time
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and some friends had
need of transportation.
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So I went on
the trip but I said,
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"Hey, here's my keys to the car.
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Take care of the car
and use it appropriately
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but, you know, I am
entrusting in your care."
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It's not the
wisest move I ever made
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because there's a
couple of issues involved here.
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I'm paying for a car.
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I have a vested
interest in that car.
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There's a value
that that car has to me
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because I'm taking care
of that specific expense.
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For those friends of
mine, it was quite interesting
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because there is no
vested interest in the car,
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they aren't paying for the car,
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there wasn't really any need
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for them to really take care of.
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And you could tell because
when I got back from my trip,
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there were scratches on the car.
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The wheel had a
major gash across
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because they ran over a curb.
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There's a couple of
things that happened to my car
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that upset me.
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And we had a
conversation with those friends
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and we got most of that
those problems taken care of
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but what is my point
in telling that story?
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When you pay for something,
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and you have a vested
interest in something,
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you take care of it better.
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There's a concern with
credit in our communities.
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We're in debt.
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And we're using
other people's money
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to pay for certain items.
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We shouldn't be.
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If you don't have the
money to spend for something,
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if you don't have a
vested interest in saving
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and then paying for something,
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then it doesn't mean
as much to you as an item.
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And as I talk
about those things,
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we have to consider
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specific issues as it
applies to our budgets.
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So as we talk about budget,
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I'm gonna give you
a little humor here.
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We have a lot to cover today.
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So I need to
budget my time wisely.
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Why?
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If I don't
budget my time wisely,
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I'm going to run out of time.
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And thus, you won't
see all of the commercials
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and then the
different interviews that we had
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and that supports
a lot of the things
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we're going to discuss today.
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So if I don't
budget, I run out of time.
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If you don't
budget for your finances,
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as well as all of
us, you run out of money.
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The context is, understanding
your financial situation
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is key and a budget is
a start of understanding
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what it is your
finances can do for you.
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It's a good way of tracking.
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I want to start though,
with a quote from a newspaper.
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And it tells us
where we are as individuals
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in the United States.
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It tells us we're
all in the same boat.
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There's no one any
different and no one any better.
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But the quote is this.
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"The financial
crisis of the last few years
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and the accompanying
housing market meltdown exposes
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how many Americans
are ill equipped to master
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the financial ABCs."
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Understanding how finance work,
understanding how money works,
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understanding cash
flow can be dealt with
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by understanding a
budget and the art of budgeting.
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So as we start this, I
want to begin to ask you
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some questions.
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Why do we set goals?
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When I was a young person,
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I wanted always
to go into business,
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I want to
develop my own business.
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I wanted to do something.
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So back when I was a child,
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I set the goal of
possibly going to school,
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going to college,
getting a master's
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and going and working
for some corporate entity,
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which started but it
all of a sudden changed.
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God had a different
plan but I set that goal,
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meaning, if I wanted to
get where I wanted to be,
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I had to plan for a future
of going to a specific school.
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So it's essential
that if you have a goal
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of, number one,
paying off your debt.
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Set a goal, set a time
frame which is the next issue
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that I'd like to talk
about is your goal ranges.
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So the first
thing I want you to do
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is, take out a piece of paper.
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I'll give you
second. Second's up.
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Take the piece of paper
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and write down
some of your goals.
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What that would be.
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List them. Just list them out.
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I want to be out of
debt. I want to buy a car.
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I want to get a
new into a new home.
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I want to pay for
educational expenses.
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I want to plan for retirement,
what are those specific goals.
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Okay.
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Once you've
dealt with those goals,
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I'm going to ask you
to do something different.
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The second step
I'd like you to take
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is to prioritize those goals,
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what is most important,
what is least important.
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And then when you
prioritize those goals,
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take a look at the ones
that are most important.
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And take a look
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at whether or not
they are short term goals.
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Short term is typically
one for weeks, a month,
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maybe three months,
one to three months.
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Mid term goals, I
would suggest a mid term goal
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is between three months
and a year what that would be.
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If it's paying off your debt
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you want to
target into getting clear
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of your credit
card debt in one year,
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that's possible
objective that you can reach.
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Make it reasonable.
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And long term goals
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could be
planning for retirement,
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planning for, planning
for kids going to school.
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A variety of
those type of things.
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Prioritize and then
pick out whether or not
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they are short term, mid
term and long term goals.
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And I gave you examples of each.
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Once you've done
that, begin to think about
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how you can get to
accomplishing those goals,
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how you can get to
accomplishing those goals.
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It's essential that we
educate our young people.
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If you have kids,
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ask them what their goals are.
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I've asked my son what
his goal is and he says.
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"I want to buy a new bike, Dad."
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He has a bike
that we had for him
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and he's learned
how to ride that bike
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and now as a
seven year old he says,
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"There's this other
bike that's out there
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that I really would like to get.
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Okay.
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How do you plan to get
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to the goal of
acquiring the bike?
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"Well, I don't know.
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I can do jobs, I
can fold clothes,
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I can help mom
clean up the house,
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I can do these different items."
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How much is the bike?
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"Well, the bike
is about $75, Dad.
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And I-- I know
it's really expensive
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but I think I can get there.
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And so every day I can
see him putting his quarters
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and his dollar
bills into a little bank
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that he has at home.
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And he has this plan
of attaining that goal
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over the next six months.
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I think he'll get
there a lot earlier.
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But the context is key.
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We teach our young people
how to attain their goals.
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And there are many
different software methods.
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There are different
things you can do online.
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There are places you can go.
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There are different methods
you can use to teach your kids
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but it's a matter of
talking to them about it.
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I asked one of our area experts
on literacy and she asked.
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I asked her the question about,
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is money management emphasized
enough in our schools?
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Regina, what are your thoughts?
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In my opinion, schools are not
emphasizing money management.
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What they're actually doing is,
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they are showing them
how to balance a checkbook.
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The time frame that
they're giving the children
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to learn is not enough.
00:09:56.46\00:09:58.39
But the psychology of money,
00:09:58.43\00:10:00.43
they're not getting that at all.
00:10:00.46\00:10:01.80
So they're not getting
00:10:01.83\00:10:03.16
the understanding of
how money actually works.
00:10:03.20\00:10:05.27
Investing, tithing, saving,
they're not getting that all.
00:10:05.30\00:10:09.34
So it makes it difficult
for the children to know
00:10:09.37\00:10:11.21
what to do at a later time.
00:10:11.24\00:10:14.64
Regina helps us teach a
financial literacy course
00:10:14.68\00:10:17.48
in the Riverside area
00:10:17.51\00:10:18.85
and she's a fantastic resource
as she's also an educator.
00:10:18.88\00:10:22.02
And it's
interesting as I talk to her
00:10:22.05\00:10:23.42
about some of
the ongoing dilemma
00:10:23.45\00:10:24.82
in our educational systems.
00:10:24.85\00:10:26.52
It's interesting that we
teach our kids how to read,
00:10:26.55\00:10:30.39
we teach them about mathematics,
00:10:30.43\00:10:31.96
we teach them about economics.
00:10:31.99\00:10:33.90
And they hear all these
stories about the debt ceiling
00:10:33.93\00:10:36.13
and all these kind of
things going on around our...
00:10:36.16\00:10:37.97
in our world and
around the globe.
00:10:38.00\00:10:40.50
And yet, we don't teach them
about finance, about budgeting,
00:10:40.54\00:10:47.31
about planning
for your acquisitions
00:10:47.34\00:10:49.04
and the benefits
that come from planning
00:10:49.08\00:10:51.15
for an acquisition without
using someone else's money.
00:10:51.18\00:10:54.82
And so as we move
forward with this context,
00:10:54.85\00:10:57.19
this conversation on budgeting,
00:10:57.22\00:10:58.82
I'd like to talk to you
about a couple of things.
00:10:58.85\00:11:00.96
When you begin the
process of budgeting,
00:11:03.79\00:11:06.49
the first thing you
want to put in a budget
00:11:06.53\00:11:09.06
is where your money comes from.
00:11:09.10\00:11:11.97
If you're single mom,
00:11:12.00\00:11:14.54
take a look at
things like alimony,
00:11:14.57\00:11:17.27
take a look at paychecks,
take a look at parents,
00:11:17.31\00:11:21.34
take a look at
many different aspects.
00:11:21.38\00:11:23.28
And if you have a specific skill
00:11:23.31\00:11:25.75
or talent that God
has given you a wealth in,
00:11:25.78\00:11:29.65
such as teaching
music, such as mechanics,
00:11:29.68\00:11:33.59
there in could be
additional income.
00:11:33.62\00:11:36.62
My wife is a financial,
excuse me, a fitness trainer.
00:11:36.66\00:11:41.20
And so there is
some additional income
00:11:41.23\00:11:43.26
that can come in when she goes
and does some fitness classes
00:11:43.30\00:11:47.30
with some other individuals.
00:11:47.34\00:11:49.20
Those are little
things you can put in
00:11:49.24\00:11:51.11
and that can help in defraying
other type of expenses.
00:11:51.14\00:11:54.31
So the first thing I
want you look at in a budget
00:11:54.34\00:11:57.45
is where the money comes from.
00:11:57.48\00:12:01.42
The second thing I want
you to start thinking about now
00:12:01.45\00:12:04.92
is about the feeling of
what independence is like.
00:12:04.95\00:12:09.79
I don't have
anything on my back.
00:12:09.82\00:12:11.83
I don't have these
debts that I have to deal with
00:12:11.86\00:12:14.33
and envision
yourself down the road
00:12:14.36\00:12:17.10
having a debt free lifestyle.
00:12:17.13\00:12:19.67
The next thing I would
like to talk to you about is,
00:12:21.50\00:12:23.84
where the money goes.
00:12:23.87\00:12:25.47
This part of the budget
is the most important part
00:12:25.51\00:12:27.51
because it gives us
an opportunity to track
00:12:27.54\00:12:30.95
our spending.
00:12:30.98\00:12:33.28
Where does the money
go? Why did I buy this item?
00:12:33.31\00:12:36.85
Was it a necessity? Was
it a need versus a want?
00:12:36.89\00:12:41.06
If I needed to purchase a car
00:12:41.09\00:12:43.79
that I think through the process
00:12:43.83\00:12:45.63
and add that in as
a long term project
00:12:45.66\00:12:50.20
and goal that I wanted to have.
00:12:50.23\00:12:52.17
So as a part of my
full financial picture,
00:12:52.20\00:12:55.54
I now have these
expenses that I can use to track
00:12:55.57\00:13:01.08
where I'm at and
what I would like to do
00:13:01.11\00:13:04.01
in order that I can
accomplish my objectives.
00:13:04.05\00:13:07.35
So if I have a
short term objectives of,
00:13:07.38\00:13:09.15
I'd like to begin saving
an additional $250 per month,
00:13:09.18\00:13:13.69
I now know what I need to
do to get to that $250 mark.
00:13:13.72\00:13:18.43
But unless I budget for it,
and take a look at my expenses,
00:13:18.46\00:13:21.66
and know where my expenses are,
00:13:21.70\00:13:23.70
I will never be able
to cut in certain areas
00:13:23.73\00:13:26.33
to get to that objectives,
00:13:26.37\00:13:28.70
that specific
objective in this case.
00:13:28.74\00:13:31.87
The other thing with budgeting
00:13:31.91\00:13:34.71
and finding out
where your expenses are,
00:13:34.74\00:13:36.81
is you can begin to see trends.
00:13:36.85\00:13:39.58
Hey, I'm spending $150
more on my phone expense
00:13:39.61\00:13:45.05
than I did two
and a half months ago.
00:13:45.09\00:13:47.56
What happened?
00:13:47.59\00:13:48.92
Hey, my travel
expense went up about $600.
00:13:48.96\00:13:52.89
What happened,
did I account for it,
00:13:52.93\00:13:54.90
was it a part of my budget,
00:13:54.93\00:13:56.36
was it something that was
an emergency that came up?
00:13:56.40\00:13:59.60
Hey, I didn't realize
that I had so many things
00:13:59.63\00:14:02.87
that were going to
be a problem this year
00:14:02.90\00:14:05.61
because I had book
expense for school.
00:14:05.64\00:14:08.24
And I also had a travel expense
00:14:08.28\00:14:09.61
and I had a moving
expense that came up.
00:14:09.64\00:14:11.61
You can begin to see
cycles in your expenditures
00:14:11.65\00:14:14.42
on a yearly basis
00:14:14.45\00:14:15.78
and it can help you
plan for those things
00:14:15.82\00:14:17.99
that you never knew would arise.
00:14:18.02\00:14:21.36
What did you
need? what did you want?
00:14:21.39\00:14:25.59
Did I plan for it? Is
it there in the budget?
00:14:25.63\00:14:29.86
Am I being a good steward,
00:14:29.90\00:14:33.23
a good faithful
trusted individual
00:14:33.27\00:14:36.74
that can begin the
process of managing
00:14:36.77\00:14:40.38
and doing
something with the talent
00:14:40.41\00:14:43.45
that Christ has given me?
00:14:43.48\00:14:45.21
And in this case,
it's managing the money,
00:14:45.25\00:14:48.15
decreasing the expenses,
and utilizing the profits
00:14:48.18\00:14:51.89
and or your paycheck
00:14:51.92\00:14:53.36
that comes in on a monthly basis
00:14:53.39\00:14:55.16
to do what needs to be done.
00:14:55.19\00:14:57.16
What did you
decide to spend money for?
00:15:00.73\00:15:04.07
Where did you
decide to spend the money?
00:15:04.10\00:15:07.44
Categorize how
your money is spent.
00:15:07.47\00:15:11.37
I spent this amount on clothing.
00:15:11.41\00:15:13.84
I bought a couple
of CDs last month.
00:15:13.88\00:15:16.85
I had an unexpected expense
because I had to buy ten Bibles
00:15:16.88\00:15:21.15
for a Bible study
that we're planning to have
00:15:21.18\00:15:23.59
at a friend's house.
00:15:23.62\00:15:25.42
We were planning to do
some things with the kids
00:15:25.45\00:15:27.46
where they would get together,
00:15:27.49\00:15:28.82
have a get
together and we had to buy
00:15:28.86\00:15:31.56
$75 worth of pizzas
00:15:31.59\00:15:33.66
to satisfy the
cravings of the young people
00:15:33.70\00:15:35.90
at the party.
00:15:35.93\00:15:37.27
All of these things
00:15:37.30\00:15:38.63
can become categorized
now as a food expense,
00:15:38.67\00:15:41.47
as may be a clothing expense.
00:15:41.50\00:15:44.51
And we can better have a grasp
of those trends in the expenses
00:15:44.54\00:15:49.21
that we have in
an ongoing basis.
00:15:49.24\00:15:52.41
Review the concept
00:15:52.45\00:15:53.92
that I have
provided with you, for you.
00:15:53.95\00:15:55.92
Begin the process over
the next couple of weeks
00:15:55.95\00:15:58.35
of writing down
where the money goes.
00:15:58.39\00:16:01.32
Take a look at
what your paycheck says.
00:16:01.36\00:16:03.96
Is it net income
or is it gross income?
00:16:03.99\00:16:07.10
Taking out the taxes
makes it a net income
00:16:07.13\00:16:09.80
and ensures that you
know exactly how much money
00:16:09.83\00:16:12.97
is going into your bank account,
00:16:13.00\00:16:14.60
and how much
money you can draw from
00:16:14.64\00:16:17.47
to pay those expenses.
00:16:17.51\00:16:20.74
A budget again, is
understanding the money,
00:16:20.78\00:16:24.65
understanding
where it's coming from,
00:16:24.68\00:16:26.92
understanding where it's going,
00:16:26.95\00:16:28.78
understanding the trends
00:16:28.82\00:16:30.52
and understanding
where you can look
00:16:30.55\00:16:32.42
at cutting some expenses
00:16:32.45\00:16:34.86
and putting it more into savings
00:16:34.89\00:16:36.93
into emergency funds and
into paying off that debt.
00:16:36.96\00:16:41.43
Debt is real.
00:16:41.46\00:16:44.10
We did a few interviews
out there on the street
00:16:44.13\00:16:47.54
and asked people about
00:16:47.57\00:16:49.04
how do you track
your monthly expenses.
00:16:49.07\00:16:52.64
And here's what they said.
00:16:52.67\00:16:54.01
That's a very good question.
00:16:58.08\00:16:59.41
I don't know if I necessarily
plan for financial emergencies.
00:16:59.45\00:17:04.05
Sometimes if I know
00:17:04.09\00:17:06.12
that I have
something come up like a trip
00:17:06.15\00:17:08.12
or something, I go
ahead put some moneys away.
00:17:08.16\00:17:10.69
But I got to-- I must be honest,
00:17:10.73\00:17:12.96
that's probably
a bad area for me.
00:17:12.99\00:17:14.90
I don't necessarily
have the greatest in planning
00:17:14.93\00:17:18.07
for financial emergency.
00:17:18.10\00:17:19.43
So I don't really
have all that together.
00:17:19.47\00:17:22.27
I have a savings
00:17:22.30\00:17:24.44
and I take out a certain percent
00:17:24.47\00:17:28.54
every month for the
savings for emergencies.
00:17:28.58\00:17:35.08
Depends what the emergency is.
00:17:35.12\00:17:37.75
To be honest,
00:17:37.79\00:17:39.12
my situation right
now, I really don't plan.
00:17:39.15\00:17:41.92
That's the problem.
00:17:41.96\00:17:43.29
Interesting.
00:17:46.39\00:17:47.73
Interesting responses
how people save what they do,
00:17:47.76\00:17:49.93
how they plan
on their budgeting.
00:17:49.96\00:17:52.00
Some don't plan. Some do.
00:17:52.03\00:17:54.14
And the context right now
is hammering across the issue
00:17:54.17\00:17:57.31
of budget, budget, budget.
00:17:57.34\00:17:59.37
I'm budgeting time right now
00:17:59.41\00:18:00.74
because I'm
going to run out of it.
00:18:00.78\00:18:02.11
There's so many things I
want to share with you today
00:18:02.14\00:18:03.68
and the context right now
00:18:03.71\00:18:05.65
is we are constantly
going to try to talk today
00:18:05.68\00:18:09.32
about budget, budget, budget.
00:18:09.35\00:18:11.65
Okay, with that
said, are you planning
00:18:11.69\00:18:15.39
for what you spend the money on?
00:18:15.42\00:18:18.26
Are you planning to
figure out how you can save
00:18:18.29\00:18:20.40
additional money.
00:18:20.43\00:18:22.46
The context is understanding
00:18:22.50\00:18:25.37
that if I can
decrease the amount of money
00:18:25.40\00:18:27.47
I'm paying out each month,
00:18:27.50\00:18:29.20
I have now this
value of a paycheck
00:18:29.24\00:18:31.17
that comes in each month.
00:18:31.21\00:18:32.54
And that margin the
difference between my revenue,
00:18:32.57\00:18:36.34
my paycheck, my
profit and my expenses
00:18:36.38\00:18:40.45
gives me the amount of
money I can allocate to savings,
00:18:40.48\00:18:44.02
I can allocate to investments
more longer term type of thing,
00:18:44.05\00:18:47.99
and then of
course, what I can allocate
00:18:48.02\00:18:50.73
to free cash flow that
I can use to pay off debt
00:18:50.76\00:18:54.53
and in the case of
the rich and wealthy,
00:18:54.56\00:18:58.13
how they deal with money,
00:18:58.17\00:19:00.30
how I can use cash
flow in understanding
00:19:00.34\00:19:04.27
where I can actually
get and reach my goals.
00:19:04.31\00:19:07.41
I asked Mr. Rodney
Watson a key question.
00:19:07.44\00:19:11.11
And I think it'll be valuable
for you to hear his response.
00:19:11.15\00:19:14.95
The question is, "Rodney,
what is key to understanding
00:19:14.98\00:19:19.29
how cash flow works?
00:19:19.32\00:19:20.99
Can you explain?
00:19:21.02\00:19:22.76
I was watching
one of nature programs
00:19:24.19\00:19:26.29
that I love to watch.
00:19:26.33\00:19:27.66
And I notice how the young lion,
00:19:27.70\00:19:30.53
lioness brought a little gazelle
00:19:30.57\00:19:33.00
to her cubs.
00:19:33.03\00:19:34.54
And the little cubs was
playing with the gazelle.
00:19:34.57\00:19:36.87
But the mother brought
this live gazelle to her cubs
00:19:36.91\00:19:39.84
so the cubs
could learn how to hunt
00:19:39.87\00:19:41.91
when they get older,
00:19:41.94\00:19:43.48
so one of the principles
00:19:43.51\00:19:44.85
of teaching your
children financial literacy
00:19:44.88\00:19:46.61
is to introduce
games to them early on
00:19:46.65\00:19:49.52
just like the
cheetah and the lion
00:19:49.55\00:19:51.35
and all the other animals do
00:19:51.39\00:19:52.89
so they could learn how
to be financially literate
00:19:52.92\00:19:55.12
when they become older.
00:19:55.16\00:19:56.96
There are many games
that can accomplish that.
00:19:56.99\00:19:58.86
Monopoly is a
good introductory game
00:19:58.89\00:20:01.63
to get you there.
00:20:01.66\00:20:03.00
But there are also
00:20:03.03\00:20:04.37
many video games
that they will love.
00:20:04.40\00:20:05.87
SimCity Sea World.
00:20:05.90\00:20:07.97
We have a Shamu type games.
00:20:08.00\00:20:10.31
You have games where
you can build schools,
00:20:10.34\00:20:12.21
built malls,
built shopping centers.
00:20:12.24\00:20:14.68
My kids love to
play these games.
00:20:14.71\00:20:16.88
And with these games
00:20:16.91\00:20:18.25
the kids learn
how to hire people,
00:20:18.28\00:20:20.32
how to fire people.
00:20:20.35\00:20:21.68
They learn how much
00:20:21.72\00:20:23.05
the tree costs to put over here,
00:20:23.08\00:20:24.42
the concrete cost
to put over there.
00:20:24.45\00:20:26.25
They learn how
much that building cost.
00:20:26.29\00:20:28.46
And my daughter, she
made a million dollars.
00:20:28.49\00:20:30.56
She put the ATM
machine over there,
00:20:30.59\00:20:32.73
bought a arcade machines
and make sure there were
00:20:32.76\00:20:34.46
plenty of
restrooms and all that.
00:20:34.50\00:20:35.83
So they get to learn
00:20:35.86\00:20:37.33
what it takes to run a business.
00:20:37.37\00:20:39.37
Schools are not in a
position to teach your child
00:20:39.40\00:20:41.50
how to run a business.
00:20:41.54\00:20:42.87
They teach your child
how to be an employee.
00:20:42.90\00:20:44.67
It's up to you
to teach your child
00:20:44.71\00:20:46.57
how to become an employer.
00:20:46.61\00:20:49.08
And employers, of
course make more money
00:20:49.11\00:20:51.18
than the employee, right.
00:20:51.21\00:20:53.15
So that's what you
want to teach your child.
00:20:53.18\00:20:55.62
The key to doing this
is, just remember this.
00:20:55.65\00:20:58.85
Someone once told me
00:20:58.89\00:21:00.69
watch what poor
people do and don't do it.
00:21:00.72\00:21:03.49
That's why they're poor.
And I always say this also.
00:21:03.53\00:21:07.03
Watch what rich
people do and do that.
00:21:07.06\00:21:10.03
That's why they are rich.
00:21:10.07\00:21:11.40
So the key to teach your child
00:21:11.43\00:21:13.67
financial literacy is
to introduce it early on
00:21:13.70\00:21:16.57
and introduce it
in such a fun way
00:21:16.60\00:21:18.91
that they're
learning financial literacy
00:21:18.94\00:21:21.21
and also gaining experience
in money matters as well.
00:21:21.24\00:21:24.71
You know, I love swivel chairs
00:21:28.28\00:21:30.39
and its twisting
back and forth is great.
00:21:30.42\00:21:32.99
But that was when I was a child.
00:21:33.02\00:21:34.66
I would spin
around these chairs,
00:21:34.69\00:21:36.36
and spend time doing
those type of things,
00:21:36.39\00:21:37.83
and lose sense of
what time really is
00:21:37.86\00:21:40.46
and wouldn't budget my
time the best way possible.
00:21:40.50\00:21:43.03
I had fun doing the
simple things in life
00:21:43.06\00:21:45.23
and then as I grew up,
00:21:45.27\00:21:46.63
I never really know
about the budgeting process,
00:21:46.67\00:21:49.10
and using money,
00:21:49.14\00:21:50.64
and understanding
the context of being
00:21:50.67\00:21:53.41
a producer versus a consumer.
00:21:53.44\00:21:58.61
We are driven by
the media to buy things.
00:21:58.65\00:22:01.58
We are driven to purchase.
00:22:01.62\00:22:03.75
We hear about Black Friday
during the holiday timeframe
00:22:03.79\00:22:07.56
so that all of these
00:22:07.59\00:22:10.06
merchandisers can
make up their profits
00:22:10.09\00:22:12.46
for the course of the year.
00:22:12.49\00:22:13.83
We see so many of
these things going on
00:22:13.86\00:22:15.76
and we get this mentality
that we are the employee,
00:22:15.80\00:22:19.73
we are the consumer
00:22:19.77\00:22:21.37
and we don't get
the concept in place
00:22:21.40\00:22:23.44
and don't teach our
young people, as Rodney said,
00:22:23.47\00:22:26.44
that kids can learn
how to be the employer
00:22:26.47\00:22:30.05
and understand how to use
cash flow to get to that goal.
00:22:30.08\00:22:35.82
It's about setting goals.
00:22:35.85\00:22:38.45
It's about
teaching our young people
00:22:38.49\00:22:41.02
about what it is all about.
00:22:41.06\00:22:43.83
I have a graphic.
I'd like you to look at.
00:22:43.86\00:22:45.99
And this is an
example of my personal budget.
00:22:46.03\00:22:49.36
Personal budget
actually gives you a context
00:22:49.40\00:22:51.33
of what a budget looks like.
00:22:51.37\00:22:52.70
In this case, what I'd
like you to glean from it,
00:22:52.73\00:22:54.57
you can't read it.
00:22:54.60\00:22:55.94
But look at the layout.
00:22:55.97\00:22:57.31
It's month by month
for the course of the year.
00:22:57.34\00:22:59.31
This is my annual budget
00:22:59.34\00:23:00.94
and how I track
my actual expenses
00:23:00.98\00:23:03.28
as it relates to what
I had actually budgeted.
00:23:03.31\00:23:06.05
The context here
is to take a look
00:23:06.08\00:23:07.82
at the segments in a budget.
00:23:07.85\00:23:10.62
The top portion is
basically my income,
00:23:10.65\00:23:14.16
my revenue, paycheck
00:23:14.19\00:23:15.82
and different forms or
places that I make money.
00:23:15.86\00:23:18.73
The bottom portion is more
so with where money goes out.
00:23:18.76\00:23:22.53
And examples of those
expenses on my sheet it include,
00:23:22.56\00:23:26.13
areas that
include the home expense,
00:23:26.17\00:23:28.20
daily living
expense, transportation
00:23:28.24\00:23:30.97
and entertainment.
00:23:31.01\00:23:32.34
If you look at daily living,
you can see different areas.
00:23:32.37\00:23:35.21
Groceries, $350, childcare,
we don't spend on childcare.
00:23:35.24\00:23:39.88
Dry-cleaning, dining out,
00:23:39.91\00:23:41.88
those type of things
that go into a daily living
00:23:41.92\00:23:45.75
portion of my budget.
00:23:45.79\00:23:47.52
And you do the same
and you can be as detailed
00:23:47.56\00:23:51.33
as you would like
to be on your budget.
00:23:51.36\00:23:53.03
You don't have to
be as detailed as me.
00:23:53.06\00:23:56.16
You can provide just a synopsis
00:23:56.20\00:23:58.40
where it can be
your income and expenses,
00:23:58.43\00:24:00.70
it can be as easy
as just your income,
00:24:00.74\00:24:02.77
your fixed and
your variable expenses.
00:24:02.80\00:24:05.01
And you can actually download
free budget forms from online,
00:24:05.04\00:24:08.34
if you like to do that
00:24:08.38\00:24:09.71
and if you're a little bit
more savvy in computer use,
00:24:09.74\00:24:12.81
you can actually
develop one through Excel.
00:24:12.85\00:24:16.02
Okay.
00:24:16.05\00:24:17.39
So as we look at
different elements of a budget,
00:24:17.42\00:24:22.99
I want you to
consider four things
00:24:23.02\00:24:26.80
in reference to what
we talked about today.
00:24:26.83\00:24:28.60
Simple things. One,
become a good consumer.
00:24:28.63\00:24:32.27
Learn how to get
the most of your money.
00:24:32.30\00:24:34.30
For example,
00:24:34.34\00:24:35.84
many of us may
have health insurance
00:24:35.87\00:24:37.71
and when we need to go get,
00:24:37.74\00:24:39.14
maybe, some type of antibiotic
we have to pay a co-pay,
00:24:39.17\00:24:41.88
a $15 co-pay, for example,
00:24:41.91\00:24:43.81
and then we have to go in
00:24:43.85\00:24:45.18
and then
purchase the actual drug
00:24:45.21\00:24:47.08
at a discounted price.
00:24:47.12\00:24:48.45
All right.
00:24:48.48\00:24:50.32
Did you know
that their pharmacists
00:24:50.35\00:24:52.75
have a support by
law in different states
00:24:52.79\00:24:55.76
that they can offer
generic forms of that drug?
00:24:55.79\00:24:59.09
The context is to understand
00:24:59.13\00:25:00.46
that you may not
have to use your co-pay
00:25:00.50\00:25:03.26
and spend $22 for a specific
drug that you might need
00:25:03.30\00:25:06.60
when there are
there are manufacturers
00:25:06.63\00:25:09.50
and or retail establishments
00:25:09.54\00:25:10.87
that offer those
same type of generic drugs
00:25:10.91\00:25:14.38
for a simple $4 price.
00:25:14.41\00:25:17.68
There are different
ways that you can become
00:25:17.71\00:25:20.85
a very good consumer
00:25:20.88\00:25:22.22
and that's the first thing
is just become a good consumer,
00:25:22.25\00:25:24.65
look at the best way
00:25:24.69\00:25:26.02
you can get the
most of your money.
00:25:26.05\00:25:27.39
Second, exercise will
power and self-control.
00:25:27.42\00:25:30.16
The essence of what
I'm talking about here is,
00:25:30.19\00:25:32.46
have a partner that
can hold you accountable.
00:25:32.49\00:25:34.93
And when you have
that budget set up,
00:25:34.96\00:25:36.87
abide by it.
00:25:36.90\00:25:38.23
Stick with it.
00:25:38.27\00:25:39.60
Don't deviate from it
00:25:39.63\00:25:40.97
because your goal is
to pay off debt, to save,
00:25:41.00\00:25:44.41
become a producer
00:25:44.44\00:25:45.77
instead of just
a basic consumer.
00:25:45.81\00:25:48.14
And then of course, three,
00:25:48.18\00:25:49.94
develop a good
record keeping situation.
00:25:49.98\00:25:53.05
Don't go through and
have unnecessary expenses.
00:25:53.08\00:25:58.05
The context that you really want
00:25:58.09\00:25:59.99
in this case is to
keep the budget working.
00:26:00.02\00:26:05.09
Record where those expenses are
and keep that budget updated.
00:26:05.13\00:26:09.36
Four, evaluate your
budget on a regular basis.
00:26:09.40\00:26:15.64
I can't say
anything more about that.
00:26:15.67\00:26:17.74
Look at it on an
ongoing basis. Look at it daily.
00:26:17.77\00:26:20.54
Every time you spend
money, make sure it's updated,
00:26:20.58\00:26:23.61
make sure it is as
accurate as possible.
00:26:23.65\00:26:27.95
There are many things
that we can talk about
00:26:27.98\00:26:30.29
in reference to the budget.
00:26:30.32\00:26:31.72
And the context of
what it's all about.
00:26:31.75\00:26:35.32
But my primary
concern for you is this,
00:26:35.36\00:26:40.56
financial goals that
you have set for yourself,
00:26:40.60\00:26:45.03
whether or not they'd
be long term, mid term
00:26:45.07\00:26:49.24
or short term.
00:26:49.27\00:26:50.81
And they must
include these three elements.
00:26:50.84\00:26:54.61
Financial goals
should be realistic.
00:26:54.64\00:26:58.91
Don't think you're
going to be able to save
00:26:58.95\00:27:00.65
a million dollars
over the next year.
00:27:00.68\00:27:02.05
It's not realistic.
The bottom line is start.
00:27:02.08\00:27:05.99
Start this journey with us.
00:27:06.02\00:27:07.69
Let's do it together
00:27:07.72\00:27:09.12
and begin the process
of getting to the place
00:27:09.16\00:27:11.69
that you can save.
00:27:11.73\00:27:13.06
And that you
can possibly invest.
00:27:13.09\00:27:14.83
And that you can
possibly become a more
00:27:14.86\00:27:17.23
proactive individual
00:27:17.27\00:27:18.60
using the talents
that God has given you
00:27:18.63\00:27:20.84
to help in His ministry.
00:27:20.87\00:27:23.64
Remember that as
they are realistic goals
00:27:23.67\00:27:29.18
that they
should also be specific
00:27:29.21\00:27:31.15
and they should also be
in a specific time frame.
00:27:31.18\00:27:35.62
These are the things
that you should think about
00:27:35.65\00:27:38.12
when you consider a budget,
00:27:38.15\00:27:40.12
the budget that helps
you become a consumer,
00:27:40.16\00:27:44.29
a producer, a saver and someone
they can pay off their debts.
00:27:44.33\00:27:48.60
Remember what Luke
12: 13 and 14 said.
00:27:48.63\00:27:52.27
"Man's Life does not consist
00:27:52.30\00:27:53.94
of the abundance
of their possessions."
00:27:53.97\00:27:56.57
Key.
00:27:56.60\00:27:57.94
Remember, Take It
To The Bank and save.
00:27:57.97\00:28:00.94
God bless.
00:28:00.98\00:28:02.31