On Take It To The Bank,
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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 on Take It To The Bank.
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Hi, my name is Cordell Thomas,
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and welcome to
Take It To The Bank.
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Today, we're gonna talk
about saving versus investing.
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They are very important topics,
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I think, as it applies to
how you manage your money.
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We've talked about
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or we're planning to
talk about several things,
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but one of the things
I'd like to say upfront
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is there's a process,
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acronym -
ACCSAS, assess your debt,
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assess where you're at.
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Then of course, create a budget.
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After you've
created that budget,
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take a look at
cutting your spending.
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After you've cut the spending
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to where you can feel
comfortable, start saving.
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After you start saving,
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then you can
apply some of the saving
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to aggressively
going after your debt.
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The most important aspect
that I asked you think about
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is creating a budget.
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The budget is essential
for you to know where you're at
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and to know where you're going.
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It's a planning
tool, it gives you an idea
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of what your
short term goals can be,
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your mid-term goals should be,
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and what your long
term goals should be.
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I would ask you to make a
list of what your goals are.
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Is it about retiring?
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Is it about
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putting your
children through school?
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Is it about paying for college?
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Is it more short term
in nature where you need
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three to six
months emergency fund?
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Is it all about the
context of just being able
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to put a little
bit of money away?
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Or are we
already saving some money
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and what can we do to
create a cash flow process
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where we can invest in assets
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that can help
us build a business
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and/or give back to the church
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in helping them
reach other for Christ.
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There's so many
different things we can do.
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A budget is prime,
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so the first thing
I'd would like you to do
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at a time that's
convenient for you
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is develop the habit
of writing things down
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and writing those things
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that are goals and
priorities for you.
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Once you written the
goals and priorities,
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we can begin to
take an assessment
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of where we're at
and what we'll need to do
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to address the debt
issue, if that's the case.
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They say that, in America,
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the average household
credit card debt is $14,750.
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It's essential
that we understand
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what that is and how we
can address those concerns.
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Did you know that
saving just 35 cents per day,
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in a savings account
comes to about $125 per year?
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A university did
an interesting study
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and they looked
over the past 81 years
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up through 2009.
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They started, I believe,
in 1928 and assessed money
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that was put into a stock market
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and money that was
put into savings account.
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And you look at the
difference between the two.
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Those that, they
said a $100 dollars
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that was placed
in a savings account
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versus a $100 that was
invested in the stock market,
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the $100 in the savings account
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through 2009 came
up to about $1,900
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of simple interest
accrued on that amount of money.
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And though that
was, the amount of $100
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that was invested
in the stock market
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as of 2009, 81 years
later, was about $142,000.
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You take a look
at the difference
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between the two
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and you deal
with simple interest
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versus compound interest.
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What is the difference
between simple and compound?
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Well, simple interest is
basically gaining interest
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on the principle.
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What's the principle?
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The principle is basically
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the initial amount
you put in the account.
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For example, if I put $200
into a simple savings account,
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a simple interest at
5.5 percent interest,
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what will that
be over five years?
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Well, you take your principle,
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the $200 you
place into the account
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and you multiply it times 0.055.
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That comes to
what? Eleven dollars.
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So, each year you accrued $11
on that $200 dollars you place
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in the savings account.
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After five years,
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eleven times five is fifty five.
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So simple interest tells you
that my $200 after five years
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is worth $255.
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In compound interest,
what we're talking about
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is compounding
that interest you have.
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So you have the principle
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and the interest
that you gain interest on.
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So it's not just the principle
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but it's a principle
and interest that you accrue
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and that
accumulates that much quicker.
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And now, I give you the
eight wonder of the world.
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It came out as the rule of 72.
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What does that mean?
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Okay, so I take, $1,000
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and I put it
into the stock market
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or I invest it and
I'm getting six percent
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on that compound interest.
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If I take 72 and
divide 6 into 72,
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the six being the interest rate,
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I can tell you how
quickly that money will double.
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So 6 into 72 is 12.
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So every 12 years my $1,000
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that I put into that
investment should double.
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Therefore, you can understand
the difference between
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simple interest in a
simple savings account
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versus compound
interest in an investment,
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and that's where this
whole conversation will start
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in comparing the benefits
and how should you think about
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a savings account
versus an investment.
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Now, there is a Bible
verse that talks about this race
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that we're all going through.
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I run a marathon
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and there's this
thing called A Wall.
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The wall in marathon
is an interesting thing,
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because there comes a point
in time when you're running
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and you're
running and you're running
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and things
begin to irritate you.
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After mile nine,
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I felt every time
I jog and took a step
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my shirt bounced on my shoulder.
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And it was bothersome,
it started irritating me
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because every step I had,
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the thing hitting
the same spot on my body
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and I said, man, this
is getting irritating.
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And then of course, I
dealt with different things
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because I had to
have a orthotic device
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that I wasn't
quite used to in my shoe.
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So it kind of put my balance off
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just a little bit and
my knee started hurting me.
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And as of mile 15, I
ran on my first wall.
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I couldn't run
anymore, my knee was killing me
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and I had to sit on
the side of the curve.
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And I still remember
that part of the trip
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because I believe
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I was running down
Constitution Avenue.
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And oh, by the way, it
was the Marine Corps Marathon,
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I was harden type
of guy at that time.
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But then
couldn't go a step further
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because of the pain in my knee,
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and I remember sitting
down at that time in my life
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and I said, I didn't
come this far not to make it.
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That was the first
hurdle I had to overcome
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in my dream of completing
this race, this marathon.
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The second hurdle
was mile 20 to 22.
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And that time, I was just out,
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I couldn't do it anymore,
I had run 20 miles and wow.
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I had to face
this wall where I felt
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it was a place I
couldn't get over.
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But guess what?
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You can, I can,
this marathon of life,
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this brace that we're taking
on is about completing it,
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and there gonna be things
and challenges in our lives,
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hurtful things,
thinks about our budget,
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things about savings,
things about cutting spending
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and not going out as much.
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There are things that
we're going to have to overcome
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to get to the goals
that we set for ourselves
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as you've written
down in your priorities
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and your goals.
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So I ask you to think about that
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as you think about
the analogy of the race.
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Did I finish the race?
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Of course, I did, I
over came that hurdle.
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And it was interesting
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how I overcame
that hurdle in my life,
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it was about a gentleman
that I had no clue who it was.
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A gentleman with
black and white hair,
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long hair down the
back, biker dude, it seems.
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And he came up to me
and without batting an eye,
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he knelt down and
grab my knees and said,
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"Dude, you look
like you're in pain."
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"Well, yeah."
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And he rub some
stuff into my knee,
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heated up my knee and
said, "Come, let's go."
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When you look like you
can't get over that hurdle
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and you run into a wall of life
I ask you to have a partner,
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have someone that
you are responsible to,
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it may be your spouse,
it may be your good friend.
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But don't go
away from that budget
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that you've set up.
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Secondarily, make certain
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that you follow those rules,
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the priorities and those goals
that you set for your life.
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If in fact you want to save
$1,000 in the next six months,
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if in fact you want to
pay off that credit card debt
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over the next
two to three years,
00:10:03.37\00:10:05.53
if you want to get debt free,
00:10:05.57\00:10:07.74
if you want to pay
for that college tuition,
00:10:07.77\00:10:12.07
if you want to begin
saving for retirement,
00:10:12.11\00:10:15.98
what is it that's
important about...
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what we're talking about
in savings and investing?
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It means, you need to overcome,
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you need to place
yourself at the end of the race
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and realize what life can
feel like being debt free.
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Imagine yourself
not having the burden
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of credit card
debt that you may have
00:10:34.96\00:10:37.53
or the concerns you
may have by overspending
00:10:37.57\00:10:40.24
and not knowing where you're
at from a budgetary stand point.
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Understanding
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that you are Christ's servant,
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using the Holy
Spirit of the gifts
00:10:51.21\00:10:53.18
that He has provided you
00:10:53.21\00:10:55.05
that you're now held responsible
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for how you use the
money God has given to you.
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There are many other
issues we can talk about,
00:11:06.39\00:11:08.56
but I want to limit it now
00:11:08.60\00:11:11.27
to just the issue of
saving versus investing.
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And I have verse for you
in reference to the race.
00:11:15.27\00:11:18.67
1 Timothy 4: 7.
00:11:18.71\00:11:21.08
1 Timothy...
00:11:21.11\00:11:22.44
excuses me, 2 Timothy 4:7.
00:11:22.48\00:11:25.01
2 Timothy 4:7, 2 Timothy says"
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I have fought the good fight,
00:11:31.69\00:11:34.32
I have finished the
race, I have kept the faith.
00:11:34.36\00:11:38.96
Now there is in store for
me the crown of righteousness."
00:11:38.99\00:11:42.63
Understand that
God is telling you
00:11:42.66\00:11:45.30
if you complete the race
00:11:45.33\00:11:47.14
there is
something in store for you.
00:11:47.17\00:11:50.44
I finished the race, when
I got to the end of the race
00:11:50.47\00:11:54.41
I felt no pain.
00:11:54.44\00:11:55.98
Yeah, for the first
few minutes, of course,
00:11:56.01\00:11:57.68
after that things
started contracting,
00:11:57.71\00:11:59.61
my muscles started hurting,
00:11:59.65\00:12:00.98
it is results of
putting your body
00:12:01.02\00:12:02.58
through something
that's not really normal.
00:12:02.62\00:12:05.29
But when I got
to the finish line
00:12:05.32\00:12:07.09
and imagine getting into heaven,
00:12:07.12\00:12:08.72
there will be no more
pain, you finished it.
00:12:08.76\00:12:11.16
And being debt free,
the pain and the languish
00:12:11.19\00:12:14.90
and the weight of those
debts are no longer with you,
00:12:14.93\00:12:18.70
and there is a certain
sense of peace that you'll have.
00:12:18.73\00:12:23.27
Finish the race.
00:12:23.30\00:12:24.64
Let's finish this race together.
00:12:24.67\00:12:26.98
As a tool I'd like you
to use 21 days, 21 days.
00:12:27.01\00:12:31.71
If you can assess
and look at a budget
00:12:31.75\00:12:35.12
and look at your priorities
each day for next 21 days,
00:12:35.15\00:12:39.29
it will form a habit.
00:12:39.32\00:12:41.39
You'll get in the
habit of looking at it,
00:12:41.42\00:12:43.69
and addressing
it, and assessing it,
00:12:43.73\00:12:46.16
and cutting
spending where you can,
00:12:46.19\00:12:48.20
and creating a larger margin
00:12:48.23\00:12:50.47
between your
income and your expenses.
00:12:50.50\00:12:55.27
Such that you can put
away that 35 cents a day,
00:12:55.30\00:12:59.17
or $35 a day, or $100 a
month and understand that
00:12:59.21\00:13:03.85
that money will
begin to accumulate.
00:13:03.88\00:13:06.65
There are various saving plans
that you should be aware of,
00:13:06.68\00:13:09.32
there are things like
a regular saving plan,
00:13:09.35\00:13:11.59
that's simple interest.
00:13:11.62\00:13:12.95
There are things
called money market accounts,
00:13:12.99\00:13:15.46
there are things
concerns like CDs,
00:13:15.49\00:13:18.86
which are
Certificates of Deposits.
00:13:18.89\00:13:20.83
And we'll talk a little
bit about that as we go through
00:13:20.86\00:13:25.40
this comparison
between savings and investing.
00:13:25.43\00:13:29.90
And I ask you to
bear with me as we talk
00:13:29.94\00:13:31.67
because that's the
most exciting subject.
00:13:31.71\00:13:34.81
But it is something
that's very important,
00:13:34.84\00:13:36.44
and it can become very exciting
for you if you begin to think
00:13:36.48\00:13:40.05
in a way that says
00:13:40.08\00:13:42.58
that I too can get to a
place that I'm debt free.
00:13:42.62\00:13:46.79
Okay.
00:13:46.82\00:13:48.16
The goal is to address
some of the disadvantages
00:13:48.19\00:13:50.09
and some of the advantages
00:13:50.13\00:13:51.46
of different
methodology of saving
00:13:51.49\00:13:53.16
and different
investment vehicles
00:13:53.19\00:13:54.70
that you can use to
make your money work
00:13:54.73\00:13:57.73
a little bit better for you.
00:13:57.77\00:13:59.10
Remember, the
parable of the talents,
00:13:59.13\00:14:01.57
the servant that
received five talents
00:14:01.60\00:14:05.37
put his money to work and
he doubled his investments.
00:14:05.41\00:14:09.24
The man that got
four... there was two talents.
00:14:09.28\00:14:12.78
The second servant
that got two talents
00:14:12.81\00:14:15.08
invested those two talents
and it became four talents
00:14:15.12\00:14:18.42
regardless if it
was $20,000, $2,000,
00:14:18.45\00:14:20.76
whatever the case may
be, he took the money,
00:14:20.79\00:14:23.36
invested in some
product or some asset
00:14:23.39\00:14:26.23
and used the
production methodology
00:14:26.26\00:14:28.03
and double that money.
00:14:28.06\00:14:29.40
The third
servant took the talent
00:14:29.43\00:14:31.90
based on his own
ability and he buried it.
00:14:31.93\00:14:35.57
Wow, you know, it's
too much weight on me
00:14:35.60\00:14:38.31
to take this money
and do anything with it.
00:14:38.34\00:14:41.34
And it was in that we learn
00:14:41.38\00:14:43.58
that that talent
was taken from him
00:14:43.61\00:14:45.88
and given to somebody else.
00:14:45.91\00:14:48.72
Okay, we talked about
simple versus compound interest,
00:14:48.75\00:14:54.16
Now let's understand savings,
00:14:54.19\00:14:57.96
and we'll talk
about savings for now
00:14:57.99\00:15:00.73
and then talk about
investing a little bit later on.
00:15:00.76\00:15:03.57
Why do people save?
00:15:03.60\00:15:04.93
People save for
two primary purposes.
00:15:04.97\00:15:08.00
One is for emergencies.
00:15:08.04\00:15:11.97
It's essential that you
have some money put away,
00:15:12.01\00:15:15.74
because there are
many different things
00:15:15.78\00:15:17.68
that can happen in your
life that are unexpected.
00:15:17.71\00:15:20.62
They can be from the standpoint
00:15:20.65\00:15:23.02
of losing a job.
00:15:23.05\00:15:24.65
And one of the recommendations
that people have is
00:15:24.69\00:15:27.16
try to ensure that you
have three to six months savings
00:15:27.19\00:15:30.96
for... three to six months
based on your typical expenses
00:15:30.99\00:15:35.03
so that you can carry
yourself for those six months.
00:15:35.06\00:15:37.30
Now we know that if
you hit the jobless mark
00:15:37.33\00:15:40.54
and many of those
individuals that are out there
00:15:40.57\00:15:43.04
can't find work for
upwards of 24 to 28 months,
00:15:43.07\00:15:47.48
the average amount of
time someone is out of work.
00:15:47.51\00:15:50.75
Different things
can be discussed about
00:15:50.78\00:15:52.78
tapping an
unemployment insurance
00:15:52.81\00:15:55.15
and using some other
talents you may have,
00:15:55.18\00:15:57.69
and developing a
different business
00:15:57.72\00:15:59.59
and those type of things.
00:15:59.62\00:16:01.12
But the context is you
need to save for that rainy day.
00:16:01.16\00:16:05.69
Secondarily, things can happen
such as medical emergencies,
00:16:05.73\00:16:10.43
illness, and
those type of things
00:16:10.47\00:16:12.50
can wipe out
people's wealth very quickly.
00:16:12.53\00:16:14.90
So it's
essential that you budget
00:16:14.94\00:16:16.74
for sometimes
of health insurance
00:16:16.77\00:16:18.77
within that context.
00:16:18.81\00:16:20.98
But the two purposes
00:16:21.01\00:16:22.68
that you have is
for the emergencies.
00:16:22.71\00:16:25.08
Emergency fund
could entail car repairs,
00:16:25.11\00:16:29.18
it could entail layoffs,
it could entail disabilities.
00:16:29.22\00:16:34.12
Three to six months, I'd say
00:16:34.16\00:16:35.89
save as much as you possibly can
00:16:35.92\00:16:37.43
because if you have 10,
12, 14 months worth of savings,
00:16:37.46\00:16:40.96
that is a good thing.
00:16:41.00\00:16:42.70
Now, if we think about
some of those saving tools,
00:16:42.73\00:16:48.34
one would be a
money market account
00:16:48.37\00:16:52.57
where you basically
saying, okay, Mr. Banker,
00:16:52.61\00:16:54.58
I want to put this money
into money market account.
00:16:54.61\00:16:56.48
Which basically says,
00:16:56.51\00:16:57.85
I'd like you to take the
funds that I have in there
00:16:57.88\00:17:00.68
and invested into government
or corporate securities
00:17:00.72\00:17:05.09
and as your
performance does well
00:17:05.12\00:17:07.39
on your side of things,
give me some of that profit
00:17:07.42\00:17:10.59
and help my small amount
grow that much more quicker.
00:17:10.63\00:17:15.96
There's also,
00:17:16.00\00:17:17.37
now what are the drawbacks
about of money market account?
00:17:17.40\00:17:19.50
I can't see really
too much of drawback
00:17:19.53\00:17:21.34
except that, that bank
is investing your money.
00:17:21.37\00:17:24.67
Did you know that the bank
00:17:24.71\00:17:26.04
as you put the money
in the savings account
00:17:26.07\00:17:27.41
or whatever the case may be,
00:17:27.44\00:17:28.78
that bank takes your
money and invests it.
00:17:28.81\00:17:31.21
The banker may
make 24, 26, 28 percent
00:17:31.25\00:17:34.42
on the money they invest
00:17:34.45\00:17:36.08
and they can give you
as simple as you know,
00:17:36.12\00:17:37.85
one percent back on your
00:17:37.89\00:17:39.22
savings account simple interest.
00:17:39.25\00:17:40.76
But if you know
how to talk to a banker
00:17:40.79\00:17:42.82
and know some of
the different avenues
00:17:42.86\00:17:45.39
for saving your money
00:17:45.43\00:17:46.76
and getting the
best from your money,
00:17:46.80\00:17:49.06
that context then tells you
00:17:49.10\00:17:50.53
that I too can
become a wealthy person
00:17:50.57\00:17:55.74
from a savings standpoint
00:17:55.77\00:17:57.11
and I can understand the concept
00:17:57.14\00:17:58.71
of how can I
invest some of the money
00:17:58.74\00:18:00.68
to make even make more money.
00:18:00.71\00:18:03.31
There is also
the context of CDs,
00:18:03.35\00:18:07.25
the CD is a
Certificate of Deposits.
00:18:07.28\00:18:09.38
What is the
Certificate of Deposit?
00:18:09.42\00:18:11.05
Well, I go to
the banker and say,
00:18:11.09\00:18:12.62
you know, I
want to open up a CD.
00:18:12.65\00:18:14.76
The CD in of
itself can be $10,000
00:18:14.79\00:18:17.46
or I can have a
Jumbo CD over a $100,000.
00:18:17.49\00:18:21.26
The CD says that the bank
00:18:21.30\00:18:24.13
will give you a promissory note,
00:18:24.17\00:18:26.13
a promissory note is a promise
to pay you a certain thing
00:18:26.17\00:18:28.70
over a certain amount of time.
00:18:28.74\00:18:30.07
A CD has a maturity date.
00:18:30.11\00:18:31.94
You can have CDs open
for as little as three months
00:18:31.97\00:18:34.68
and for as long as five years.
00:18:34.71\00:18:37.18
Now, in that you have agreed
upon percentage that you're
00:18:37.21\00:18:41.92
or interest rate that
you're guaranteed from the bank.
00:18:41.95\00:18:44.32
The bank says that
in the promissory note
00:18:44.35\00:18:47.26
or this promise to you,
is that we will promise you,
00:18:47.29\00:18:51.56
for example
five percent interest
00:18:51.59\00:18:53.83
over the 12 months
that you have this CD open.
00:18:53.86\00:18:58.27
Over that 12 months time
00:18:58.30\00:18:59.63
we promise you
five percent interest
00:18:59.67\00:19:01.40
and your maturity is
12 months from today.
00:19:01.44\00:19:04.11
So it basically says,
I put $10,000 into a CD,
00:19:04.14\00:19:07.61
the bank takes it,
00:19:07.64\00:19:09.04
and basically gives
you five percent interest
00:19:09.08\00:19:12.31
continuously over
that amount of time.
00:19:12.35\00:19:15.82
Simple interest.
00:19:15.85\00:19:17.32
At the end of that 12 months
00:19:17.35\00:19:18.72
you would then
have how much money?
00:19:18.75\00:19:20.82
You take the $10,000
times 1.05 or 0.5 percent,
00:19:20.86\00:19:25.59
five percent, gives you $500.
00:19:25.63\00:19:28.36
So at the end of 12
months, I don't have the $10,000
00:19:28.40\00:19:31.70
but I have $10,500,
and your CD matures,
00:19:31.73\00:19:35.47
you can withdraw the money.
00:19:35.50\00:19:37.41
Now if you put a CD in
for more than $100,000,
00:19:37.44\00:19:42.44
you have the right to negotiate
00:19:42.48\00:19:43.81
with the bank
about how much that CD,
00:19:43.85\00:19:46.55
the interest you
can get on that CD.
00:19:46.58\00:19:49.52
The drawback of CD is
this, if you put in five,
00:19:49.55\00:19:52.65
you can't pull it
out for that five years.
00:19:52.69\00:19:55.59
And within that five years,
00:19:55.62\00:19:56.96
what if the interest
rate goes up or goes down?
00:19:56.99\00:19:59.76
Well, if it goes, if
the interest rate goes up
00:19:59.79\00:20:03.63
you suffer because you're stuck
at that five percent interest.
00:20:03.67\00:20:07.30
If the interest rate
drops, the bank suffer
00:20:07.34\00:20:09.67
because they're gonna pay you
that five percent regardless.
00:20:09.70\00:20:14.34
That's one potential drawback,
but their is another drawback
00:20:14.38\00:20:17.95
that you cannot
take that money out
00:20:17.98\00:20:19.31
for that five years.
00:20:19.35\00:20:20.68
So you can't access that amount
00:20:20.72\00:20:22.05
and if it's an
emergency savings account,
00:20:22.08\00:20:23.42
it really isn't
00:20:23.45\00:20:24.79
because you'll
have to wait five years
00:20:24.82\00:20:26.15
or absorb a
penalty for withdrawal.
00:20:26.19\00:20:29.82
The benefits of
understanding money
00:20:29.86\00:20:32.03
now tells you that
there are different venues.
00:20:32.06\00:20:34.33
Investing is
another specific areas.
00:20:34.36\00:20:36.93
Why invest?
00:20:36.97\00:20:38.30
Well, we told you about
that simple $100 invested
00:20:38.33\00:20:40.74
and compound
interest will actually double
00:20:40.77\00:20:44.24
over the course of
certain amount of time,
00:20:44.27\00:20:46.41
based on the interest rate.
00:20:46.44\00:20:49.91
What I would tell you
about investing is this,
00:20:49.94\00:20:53.25
investment is a risk.
00:20:53.28\00:20:54.98
There's many different
investment methodologies.
00:20:55.02\00:20:57.59
And if you plan to invest,
invest for the long term.
00:20:57.62\00:21:01.49
The key is this,
00:21:01.52\00:21:02.86
we saw the
volatizing in stock market
00:21:02.89\00:21:04.49
over the past several months.
00:21:04.53\00:21:07.10
We see it going up by 400 points
00:21:07.13\00:21:09.43
and down by
several hundred points,
00:21:09.46\00:21:11.70
and we don't know what to think.
00:21:11.73\00:21:13.90
But those who are in the market
00:21:13.94\00:21:15.47
should be in it
for the long haul.
00:21:15.50\00:21:16.84
Here is my point,
you as an individual
00:21:16.87\00:21:21.81
need to understand that
if you don't have a budget
00:21:21.84\00:21:24.28
you have no right
being in the stock market.
00:21:24.31\00:21:26.01
If you don't know how
much of a margin you have
00:21:26.05\00:21:28.48
between your
income and your expenses,
00:21:28.52\00:21:31.22
you have no reason investing
in something that's risky.
00:21:31.25\00:21:34.96
And the fact that
you're thinking long-term
00:21:34.99\00:21:37.49
is a good thing,
00:21:37.53\00:21:38.86
because if you
do look at a budget
00:21:38.89\00:21:40.43
and understand that,
okay, I've this margin
00:21:40.46\00:21:42.86
and I can save here
and I can invest here,
00:21:42.90\00:21:45.20
that is key.
00:21:45.23\00:21:46.57
You have the
funds that are necessary
00:21:46.60\00:21:48.84
for that specific
investment purpose.
00:21:48.87\00:21:52.24
If you don't have the money,
it makes no sense to invest
00:21:52.27\00:21:55.18
because if you lose that
money, that money is gone.
00:21:55.21\00:21:58.88
And if you invest the money,
00:21:58.91\00:22:00.38
you shouldn't really
want to touch that money
00:22:00.42\00:22:04.35
for the long term,
it could be for 401K,
00:22:04.39\00:22:07.26
it could be any different IRA,
00:22:07.29\00:22:09.32
it could be some
type of investment tool
00:22:09.36\00:22:11.33
that can take you to retirement.
00:22:11.36\00:22:13.16
If you have toddlers right now,
00:22:13.19\00:22:15.20
you can invest for
the college education,
00:22:15.23\00:22:17.43
that's the long term process.
00:22:17.47\00:22:19.17
And as a result of you
taking the necessary steps,
00:22:19.20\00:22:23.41
taking those
necessary steps of understanding
00:22:23.44\00:22:26.34
where you are from a
budgetary stand point,
00:22:26.37\00:22:28.98
where you are in reference to
00:22:29.01\00:22:30.48
how much money
you can actually save.
00:22:30.51\00:22:32.35
And then, once you're
saving a good amount of money
00:22:32.38\00:22:35.42
and you cut your expenses,
00:22:35.45\00:22:37.02
and you are
adhering to a budget,
00:22:37.05\00:22:40.09
then you can start
the process of talking
00:22:40.12\00:22:42.56
to a financial advisor
and asking them, "Where is it,
00:22:42.59\00:22:46.59
I can take this
talent God has given me
00:22:46.63\00:22:49.96
and get a little bit more back?"
00:22:50.00\00:22:52.13
As the servant in the
Parable of the Talents did.
00:22:52.17\00:22:56.44
It's essential that we
take those necessary steps
00:22:56.47\00:22:59.57
and understand it is a key issue
00:22:59.61\00:23:02.38
to knowing what the
values is in the savings
00:23:02.41\00:23:07.25
as well as the
investment products.
00:23:07.28\00:23:08.75
So here's what we'll
talk about, set goals,
00:23:08.78\00:23:11.95
get a direction of
where you want to go.
00:23:11.99\00:23:14.42
Start taking actions now,
00:23:14.46\00:23:16.79
start the
process of prioritizing,
00:23:16.83\00:23:21.50
setting those goals, and
look at your short term goals,
00:23:21.53\00:23:25.00
which should be
between one and four weeks
00:23:25.03\00:23:26.87
or it could be between
one month and three months.
00:23:26.90\00:23:29.54
Short term,
where do you want to be
00:23:29.57\00:23:31.04
over the next three months?
00:23:31.07\00:23:32.74
I'd ask you to begin
to assess your budget
00:23:32.77\00:23:37.61
and see how much you can
at least just start to save.
00:23:37.65\00:23:41.02
Then take a look at what
your medium-term goals would be.
00:23:41.05\00:23:45.55
And what's a medium-term goal?
00:23:45.59\00:23:47.06
Something between three months
and a year, mid-term goal.
00:23:47.09\00:23:51.39
A mid- term
could be, I wanna start
00:23:51.43\00:23:53.26
cutting into my credit
card debts significantly
00:23:53.29\00:23:56.40
and start paying it off.
00:23:56.43\00:23:57.77
That's a good mid-term goal.
00:23:57.80\00:23:59.57
And long-term goals
range from one year or longer.
00:23:59.60\00:24:03.51
We know that
credit card debt, $14,000
00:24:03.54\00:24:07.11
with interest is
gonna take approximately
00:24:07.14\00:24:09.44
two to three
years to pay that off.
00:24:09.48\00:24:11.08
So part of your long-term goals
00:24:11.11\00:24:12.45
is paying off that debt.
00:24:12.48\00:24:14.88
But additionally,
it would be investment,
00:24:14.92\00:24:17.82
or investing in
retirement, and taking a look at
00:24:17.85\00:24:20.72
where you want to be from
a state savings perspective
00:24:20.76\00:24:23.86
that I'd like to have
15 months to 24 months
00:24:23.89\00:24:26.16
with the savings in
cases the crisis that hits.
00:24:26.19\00:24:29.03
And then also take a look at
00:24:29.06\00:24:31.20
where I want to be at retirement
00:24:31.23\00:24:33.07
and how comfortable life
00:24:33.10\00:24:34.74
I would like to live
from that standpoint.
00:24:34.77\00:24:36.87
And understanding all
of that, you still know
00:24:36.91\00:24:39.87
that it's not a
matter of your possessions
00:24:39.91\00:24:43.78
that matter to Christ,
00:24:43.81\00:24:45.51
it's a matter of
how you use the funds.
00:24:45.55\00:24:48.65
It's interesting.
00:24:48.68\00:24:50.55
Biblically, when you take a look
00:24:50.59\00:24:52.55
at Luke 12, 13, 14, and 15,
00:24:52.59\00:24:55.59
many of us don't know
the rest of the story.
00:24:55.62\00:25:01.00
Look there with me.
00:25:01.03\00:25:03.37
It was the
parable of the rich fool.
00:25:03.40\00:25:05.40
And you remember Christ said,
00:25:05.43\00:25:08.04
"Be on your guard
against all kinds of greed.
00:25:08.07\00:25:13.88
A man's life doesn't
consist in the abundance
00:25:13.91\00:25:16.95
of his possessions."
00:25:16.98\00:25:19.68
Verse 16, and he
told in this parable,
00:25:19.71\00:25:23.35
the ground of a certain
man produce a good crop.
00:25:23.39\00:25:27.42
"He thought to
himself, what shall I do?
00:25:27.46\00:25:30.56
I have no place
to store my crops.
00:25:30.59\00:25:32.79
Then he said,
this is what'll do,
00:25:32.83\00:25:35.66
I will tear down my barns
and I'll build bigger ones,
00:25:35.70\00:25:40.14
and there I will store
all the stuff that I have,
00:25:40.17\00:25:43.17
the grain and all of my goods.
00:25:43.20\00:25:45.91
And I'll say to
myself, myself speaking,
00:25:45.94\00:25:49.71
you have plenty of good laid up
for many years, take life easy,
00:25:49.74\00:25:54.38
eat, drink and be merry."
00:25:54.42\00:25:58.12
Next verse is quit interesting,
it says, "But God said to him,
00:25:58.15\00:26:03.53
'You fool, this very night
00:26:03.56\00:26:07.23
your life will
be demanded from you
00:26:07.26\00:26:10.97
then who will get
00:26:11.00\00:26:13.57
what you have
prepared for yourself?'
00:26:13.60\00:26:17.54
This is how it
will be with anyone
00:26:17.57\00:26:19.31
who stores up
things for himself,
00:26:19.34\00:26:21.71
but it's not rich towards God."
00:26:21.74\00:26:24.81
This ties right into
the Parable of the Talents.
00:26:24.85\00:26:27.42
A man's life does not
consist of your possessions,
00:26:27.45\00:26:31.25
a man's life consists
of how he uses the talents
00:26:31.29\00:26:34.99
that God has given him,
the Holy Spirit has given him.
00:26:35.02\00:26:38.49
To get the word out
about the Gospel of Christ,
00:26:38.53\00:26:43.50
your immediate need
in developing a budget
00:26:43.53\00:26:47.44
is to create a margin between
your income and your expenses.
00:26:47.47\00:26:51.31
You'll hear me say
that over and over again,
00:26:51.34\00:26:54.28
because when you
can increase that margin
00:26:54.31\00:26:56.38
you can take more
money and save it,
00:26:56.41\00:26:58.21
you can prepare
for that rainy day.
00:26:58.25\00:26:59.91
You can prepare for the problems
00:26:59.95\00:27:03.99
that life may have
00:27:04.02\00:27:05.35
and you can prepare to
pay off all off your debt.
00:27:05.39\00:27:09.09
But here's key, of that
money that you have saved
00:27:09.12\00:27:12.96
and you have as in an abundance
that God has given you,
00:27:12.99\00:27:16.36
you can turn
around and say, 3ABN,
00:27:16.40\00:27:19.87
I have $5,000 that you can use
00:27:19.90\00:27:23.04
to help share the word
of God in a foreign country.
00:27:23.07\00:27:27.78
I have $5,000 I can
give to a local charity
00:27:27.81\00:27:32.01
to help in inter-city needs
00:27:32.05\00:27:34.58
and help people begin
to exist on a higher level,
00:27:34.62\00:27:37.35
and to begin to get better,
00:27:37.39\00:27:38.99
and to begin to get economically
00:27:39.02\00:27:42.02
aware of what's going on
00:27:42.06\00:27:43.56
and they can also
pass things forward.
00:27:43.59\00:27:46.76
I share these things with you
00:27:46.80\00:27:48.13
because it's essential
to understand the value
00:27:48.16\00:27:50.63
of what's saving and
investing can mean in our lives.
00:27:50.67\00:27:54.94
So, Take it the Bank and save.
00:27:54.97\00:27:58.41
God bless.
00:27:58.44\00:28:00.08