On Take it to the Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt.
00:00:02.73\00:00:06.00
Solve your credit card problems.
00:00:09.64\00:00:14.74
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,
and thank you for joining me
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for the program
called Take it to the Bank.
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I look forward to
talking to you for a few minutes
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today on this program titled,
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The Single Biggest
Impact to One's Budget.
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What is a budget?
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Do you know what yours is?
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Do you have a budget?
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Many people who have a
budget can tell you in detail
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what items they spend money
on, where their money goes to,
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how much money
they put into savings,
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how much money
goes into investments,
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what they do with their
funds, the fact that they tithe,
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the fact that they do things.
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And this type of individuals
are your wealthy individuals
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because they know
where every bit of money is.
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What is a budget?
What is on a budget?
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And those type of questions
come time after time after time
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when you start talking to people
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about how they
manage their money.
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And then when you begin to
ask them things like, okay,
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what's the greatest expense
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that you have
on a monthly basis?
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Well, it's got to be my
house. Well, of course, it is.
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Your house is
your biggest payment.
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Probably the biggest note
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that you have on your
mortgage or your rent,
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but then you've
got heating bills,
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you've got
electricity, you've got water,
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you've got those
type of resources
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that you have to pay for.
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Then, what is the other areas
that you should be aware of?
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Such as gas, such as automotive,
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such as fuel, such as groceries,
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such as newspaper bills,
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such as internet access
and we can go on and on and on.
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I ask you to go to the website
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and download a free
copy of a budget spreadsheet.
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All you need to do
is plug in the numbers.
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Where's your
revenue stream coming from,
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by revenue I mean,
where is your income.
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What type of jobs do you do
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to bring money
into your household
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and then on the flip side,
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where does your money
go on an ongoing basis.
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What is your expense
factor in many different areas?
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One of the big things
that people don't plan for
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and many in their lives
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have to do with
things like fraud, and scams,
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and or emergency funding.
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Now, the reason
that's not in this
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because none of us
expect to be caught up
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in any type of fraud or scam.
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But it is essential
that as you plan your budget,
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the budget becomes a
contract to you, your wife,
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those that are in your circle
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about how you
will spend your money.
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So if someone comes to
you with this great offer
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about a lottery you won
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in some kind of foreign country,
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it's not a part of your budget
to pay for any type of lottery
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and secondarily the
warning sign comes up
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when you ask that
critical question is,
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if I didn't enter a lottery,
how am I winning this lottery?
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Or how about a
second critical question is,
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why am I paying for
something that's already mine?
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So these are questions you ask.
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And when you
ask those questions,
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people who are not
able to answer them
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or there seems
to be some type of,
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of heehawing on
their side of the phone,
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you begin to know
that something is up,
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something is not right,
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and it's essential
that you ask those questions
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as they will
have a direct impact
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on your life, your budget,
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and what happens
to your household
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expenses and planning.
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So why are we talking about
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the single biggest
impact to your budget?
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Because many
people don't realize
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that it doesn't take that much
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for a budget to go out of whack.
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It doesn't take that much
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for a budget to
go out of alignment.
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It is essential
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that the planning of
your life take place,
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because if it
doesn't take place like,
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in my life I can be willing
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to provide some of the
details of my personal life
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by saying that in
1999, I made a lot of money.
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And in 1999, I
spent a lot of money,
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in fact, my tax
returns will show
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that how much money
I made in that year.
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I probably spent
more than I brought in
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because I didn't have a budget.
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I didn't have any planning,
any methodology for thinking
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through what I'm
going to do with my money.
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And what happened
because I hadn't planned,
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or I had
budgeted, or done anything?
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I spent everything that I made.
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Plus more, because of
course, I had access to credit.
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Now I'm talking to some
of the single guys out there,
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single individuals, and
I try to make this a point,
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because that, at
that time I was single
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and I didn't
think I have anything,
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had anything to worry about.
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But I would ask you to think
differently about being single
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and not have anything
to worry about you do.
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You have to plan for a
future, for your future,
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for where you're
going, for what you're doing.
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Did you know, if
you simply thought
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through the process of
graduating from college
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and putting away $150 a
month for the next 10 years,
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that 10-year timeframe
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when you're young in life
could help that investment,
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could provide you
almost $600,000 plus
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worth of returns
planning for retirement.
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And if you continue to save
along the course of your life,
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you could have well over
$1 million up to $1.6 million,
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depending on different
variables interest rates
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and the like.
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But it's that type of
planning we need to think about
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because many of us
come out of college
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and we're worried
about the college debt,
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a big impact to any
type of beginner's budget.
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And we're worried
about paying that back
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and getting that
bit of information back
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into the hands of the college,
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or organization that
gave us our education.
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But we worry so much
about that kind of a debt,
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we forget about the fact
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that if we are more
proactive in our thinking
00:06:06.26\00:06:09.13
we could be saving money towards
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other areas of our life.
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So paying back the
debts is one thing,
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and then there
are different things
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that you can do to even
postpone paying back that debt
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or you can even
have that debt paid off
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if you get involved
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in certain type
of social services.
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People don't know
these type of things.
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And if you knew that,
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you could spend more
time planning for a future
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that could be
bright, could be wonderful,
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could be effervescent,
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and could provide a
certain sense of happiness
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because you're at peace
and this happiness is provided
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not by how much money you make
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but how you handle your money.
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Now, what I would like to do
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is provide you
a small reference.
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In the Bible there's
a text in 1 Timothy 6:6.
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If you go there for a moment,
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it says something about
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godliness with
contentment is gain.
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"If we brought
nothing into the world
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and will take
nothing out of the world."
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But then it
goes on, in verse 17,
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the place that it says,
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"Command those who are rich,
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in this present world,
in this present world."
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I like the wording that he used,
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"Those who are rich
in this present world
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not to be arrogant, nor
to put their hope in wealth
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which is so uncertain,
but to put their hope in God,
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who richly
provides us with everything
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for our enjoyment."
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Now, this is, this is
a kicker, I love this.
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When you take a look at
studying about happiness,
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happiness is not
about what you have,
00:07:43.39\00:07:45.19
happiness is not about
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what kind of
luxury car you can buy,
00:07:46.59\00:07:48.16
happiness is not about
all this wealth and affluence,
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it has everything
about giving back.
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That's what this
worldly study has provided.
00:07:53.77\00:07:56.20
It's about
something bigger than us.
00:07:56.24\00:07:57.64
It's about a
legacy, it's about family,
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it's about engaging with others,
00:07:59.37\00:08:01.04
it's about giving
away and not taking.
00:08:01.08\00:08:04.45
And it says this,
00:08:04.48\00:08:06.15
"Command those that are wealthy,
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or those that have funds,
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or those that may
not be as wealthy."
00:08:11.35\00:08:13.76
It says,
"Command them to do good,
00:08:13.79\00:08:17.19
to be rich in good deeds
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and to be generous
and willing to share.
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In this way they will lay
up treasure for themselves
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as a firm
foundation for the coming age."
00:08:27.44\00:08:30.11
Can you believe that?
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You that are wealthy
give, give, do, your time,
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your learning,
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provide others with
that same sense of wisdom
00:08:38.75\00:08:41.75
that God has given you.
00:08:41.78\00:08:43.18
Don't be arrogant,
00:08:43.22\00:08:45.22
don't get caught up in
that wealth that you have
00:08:45.25\00:08:47.79
because it can go away
just as easily as it came.
00:08:47.82\00:08:51.26
How do most people
gain wealth in this earth?
00:08:51.29\00:08:53.60
I got a question from
some of you, it's about,
00:08:53.63\00:08:55.60
what about the wealthy,
00:08:55.63\00:08:56.97
they just automatically
have the wealth, don't they?
00:08:57.00\00:08:58.77
Those rich people that
we look at on the internet,
00:08:58.80\00:09:02.37
and in the media?
00:09:02.40\00:09:03.81
Oh, we did a study
on that and to give you,
00:09:03.84\00:09:06.14
if you're watching,
00:09:06.17\00:09:07.71
the feedback on
that is 70% of people
00:09:07.74\00:09:11.08
who are currently
wealthy are entirely self-made.
00:09:11.11\00:09:16.38
Of course self-made
is what the article says.
00:09:16.42\00:09:19.82
God has blessed them.
00:09:19.85\00:09:21.19
It said only...
00:09:21.22\00:09:22.56
this group said that only
30% of this group of members
00:09:22.59\00:09:26.23
inherited their wealth,
00:09:26.26\00:09:28.16
the remaining 70%
were entirely self-made
00:09:28.20\00:09:33.07
or they created wealth
00:09:33.10\00:09:34.67
and planned very creatively
00:09:34.70\00:09:39.64
with how they made money,
00:09:39.67\00:09:41.01
whether it'd be
a small business,
00:09:41.04\00:09:42.61
whether it'd be media,
whatever the case may be.
00:09:42.64\00:09:45.78
So every single one of
us in this United States
00:09:45.81\00:09:50.22
have the
opportunity to gain wealth.
00:09:50.25\00:09:52.85
And now they are
talking about wealth
00:09:52.89\00:09:55.52
from a substantive perspective.
00:09:55.56\00:09:57.43
They labeled the
wealthy anyone that makes...
00:09:57.46\00:10:00.43
In fact, we've been
hearing it in the news
00:10:00.46\00:10:02.10
so many different times
that $250,000 plus a year
00:10:02.13\00:10:05.97
is considered
relatively wealthy.
00:10:06.00\00:10:09.37
And when you take a look
at wealth in my definition,
00:10:09.40\00:10:15.28
wealth has nothing to do
with how much money you make
00:10:15.31\00:10:18.15
but how you use your money.
00:10:18.18\00:10:20.75
So if, in fact,
00:10:20.78\00:10:22.18
in your situation
you make $50, 000 a year
00:10:22.22\00:10:25.79
and not the $250,000 a
year you're doing fine.
00:10:25.82\00:10:29.32
If you have a budget
00:10:29.36\00:10:30.69
and you're
spending less than you make.
00:10:30.73\00:10:32.49
That's as simple as it gets.
00:10:32.53\00:10:33.90
If you're a comfortable
individual that has no debts
00:10:33.93\00:10:36.56
and you're able to
do what you need to do
00:10:36.60\00:10:38.60
and plan for your vacations
and go where you need to go,
00:10:38.63\00:10:41.50
I congratulate you
00:10:41.54\00:10:43.17
and ask you not to get
arrogant in where you're at,
00:10:43.20\00:10:46.21
but to continue
the process of giving,
00:10:46.24\00:10:49.38
and doing, and being,
00:10:49.41\00:10:51.15
and acknowledging what
Christ has to do in your life.
00:10:51.18\00:10:54.58
Because we go to that,
00:10:54.62\00:10:55.95
that story of the
talents in Matthew
00:10:55.98\00:10:57.95
and we realize
00:10:57.99\00:10:59.32
that it's the
individual that worked it
00:10:59.35\00:11:01.16
and was able to double
00:11:01.19\00:11:03.09
the investment
that Christ had in him,
00:11:03.12\00:11:04.83
whatever that talent may be.
00:11:04.86\00:11:07.96
So we're talking
about impacts of the budget.
00:11:08.00\00:11:10.17
And I haven't really
addressed that as yet
00:11:10.20\00:11:11.77
because I want to get into it.
00:11:11.80\00:11:13.17
One of the major
impacts to any budget
00:11:13.20\00:11:15.17
is the lack of preparation.
00:11:15.20\00:11:17.34
So I'm actually
talking to you as,
00:11:17.37\00:11:19.67
if you don't have a budget,
00:11:19.71\00:11:21.04
you're really
setting yourself up
00:11:21.08\00:11:22.41
for some type of disaster.
00:11:22.44\00:11:24.01
The targets that are out
there are those individuals
00:11:24.05\00:11:26.88
who are spending what they make.
00:11:26.92\00:11:28.25
And believe you me,
00:11:28.28\00:11:29.62
that information
is actually out there.
00:11:29.65\00:11:31.65
You know that
your bank sells data
00:11:31.69\00:11:34.26
about bank accounts,
00:11:34.29\00:11:35.62
about balances in
your bank account.
00:11:35.66\00:11:38.19
They sell that data
00:11:38.23\00:11:39.56
so that people can
start assessing information
00:11:39.59\00:11:41.83
about different groups,
00:11:41.86\00:11:43.20
their behavior
patterns, their savings,
00:11:43.23\00:11:45.37
how they spend money.
00:11:45.40\00:11:46.74
And if you are the type
00:11:46.77\00:11:48.10
that spends what
you make, they know.
00:11:48.14\00:11:50.27
And many people are
targeting these individuals
00:11:50.31\00:11:52.87
because they know
00:11:52.91\00:11:54.44
you're looking for a
quick boost to your income.
00:11:54.48\00:11:58.31
So you're
targeted for scams, fraud.
00:11:58.35\00:12:01.72
Many of our older
generation are being targeted
00:12:01.75\00:12:05.89
because our baby-boomers
as well as our octogenarians
00:12:05.92\00:12:11.13
are very wealthy
00:12:11.16\00:12:12.49
and have a very
good spending power,
00:12:12.53\00:12:15.36
$400 billion specific
to the baby-boomer group.
00:12:15.40\00:12:19.93
And our octogenarians
00:12:19.97\00:12:21.40
they buy 25% of all the
toys purchased around the globe.
00:12:21.44\00:12:27.51
And when you think about
that type of buying power,
00:12:27.54\00:12:29.88
these individuals are studied
00:12:29.91\00:12:31.71
and are very much
targets for individuals
00:12:31.75\00:12:34.45
that would like to
get access to your funds.
00:12:34.48\00:12:37.52
So for example, you
might get a call late at night
00:12:37.55\00:12:41.82
asking you to send
money to a foreign country,
00:12:41.86\00:12:45.03
based on the fact
00:12:45.06\00:12:46.39
that they know you
may have grandchildren
00:12:46.43\00:12:49.06
and they ask for funds
00:12:49.10\00:12:51.00
because you're
saying, "Hey, grandpa.
00:12:51.03\00:12:53.40
I'm stuck, I need $250.
Can you send it to me now?
00:12:53.44\00:12:57.61
And make sure you
send it via MoneyGram
00:12:57.64\00:12:59.24
because that's the
fastest way to get it to me."
00:12:59.27\00:13:02.34
And these
parents or grandparents
00:13:02.38\00:13:04.51
will get up and do
it because they have
00:13:04.55\00:13:06.25
the best
interest of their families
00:13:06.28\00:13:08.75
in their hearts.
00:13:08.78\00:13:10.12
But you know that these scams
happen in many different ways.
00:13:10.15\00:13:14.32
And what I ask people to do
00:13:14.36\00:13:15.69
is plan and prepare
for that type of thing.
00:13:15.72\00:13:17.49
Have a plan in place,
00:13:17.53\00:13:19.43
so you know where
your grandkids are,
00:13:19.46\00:13:22.20
you know where
your children are,
00:13:22.23\00:13:24.03
you have a
connection plan to say,
00:13:24.07\00:13:26.27
let me call them up
on their cell phone,
00:13:26.30\00:13:27.80
let me call them
up where they're at,
00:13:27.84\00:13:29.34
and let me ensure that
00:13:29.37\00:13:31.07
this is
actually what's going on.
00:13:31.11\00:13:33.04
These are major targets.
00:13:33.07\00:13:34.71
So your first major impact
00:13:34.74\00:13:37.91
to anybody's finances has to do
with their lack of preparation.
00:13:37.95\00:13:42.45
That lack of
preparation in your life
00:13:42.48\00:13:44.42
can also have
negative impacts on your life
00:13:44.45\00:13:48.92
if you also don't plan
from a budgetary standpoint,
00:13:48.96\00:13:52.59
how you spend your money?
00:13:52.63\00:13:54.13
And one of the other major areas
00:13:54.16\00:13:57.47
that people don't
realize impact the budget
00:13:57.50\00:14:00.27
has everything to do, with what?
00:14:00.30\00:14:05.37
Technology.
00:14:05.41\00:14:06.84
We're taking a
look at millennials
00:14:06.88\00:14:09.28
that are out there now,
00:14:09.31\00:14:10.71
that had, were
born post 1980, '81
00:14:10.75\00:14:14.52
up through the year 2000.
00:14:14.55\00:14:17.09
You're looking at
iGeneration individuals
00:14:17.12\00:14:20.02
that were born post 2000
00:14:20.06\00:14:21.72
that are very well
connected to technology.
00:14:21.76\00:14:26.73
I am talking
about not baby-boomer
00:14:26.76\00:14:29.00
but Gen-X's and millennials
00:14:29.03\00:14:30.60
because the biggest impact
to anyone's budget right now.
00:14:30.63\00:14:34.50
Can you guess what it is?
00:14:34.54\00:14:36.27
That is the
smartphone, the tablet.
00:14:36.30\00:14:39.77
This type of latest technology
00:14:39.81\00:14:41.68
are impacting budgets up
to $3,000 to $4,000 a year.
00:14:41.71\00:14:45.55
If you look at what's
happening in that industry,
00:14:45.58\00:14:48.62
they are the ones
00:14:48.65\00:14:49.98
that understand
that you're a consumer.
00:14:50.02\00:14:51.65
So every single
year they come out
00:14:51.69\00:14:54.16
with a new
upgrade to a smartphone
00:14:54.19\00:14:57.49
and you feel
obligated to have to buy it.
00:14:57.53\00:15:00.00
You know, it was
interesting to me.
00:15:00.03\00:15:01.36
I went into a
store and took my phone
00:15:01.40\00:15:05.27
and asked them, "Hey,
you know, I need a cover,
00:15:05.30\00:15:07.90
protective cover for the phone
00:15:07.94\00:15:09.47
and I'm wondering if
I can buy it from you."
00:15:09.50\00:15:10.97
And they said,
00:15:11.01\00:15:12.34
"What kind of
phone do you have."
00:15:12.37\00:15:13.71
And I told them exactly
what the model was on my phone,
00:15:13.74\00:15:15.94
and they laughed.
00:15:15.98\00:15:17.61
That was really
kind of interesting.
00:15:17.65\00:15:19.41
They laughed at me. I
said, what's so funny.
00:15:19.45\00:15:22.58
And they said, well, we
don't sell that anymore,
00:15:22.62\00:15:25.09
that's two year old technology.
00:15:25.12\00:15:27.06
And we don't sell
those type of covers.
00:15:27.09\00:15:29.39
If you want to
get type of cover,
00:15:29.42\00:15:32.13
I'm sure it's gonna
be hard to get it now.
00:15:32.16\00:15:34.23
You know, of course,
they're going to tell you,
00:15:34.26\00:15:35.60
it's hard to get
because they want to make a sale
00:15:35.63\00:15:37.67
because that's the
exact direction they went.
00:15:37.70\00:15:40.84
They went right
to the approach of...
00:15:40.87\00:15:45.47
Well, since you don't
have the upgraded phone,
00:15:45.51\00:15:47.51
why don't you purchase one?
00:15:47.54\00:15:49.91
I have a great deal for you.
00:15:49.94\00:15:51.41
And there are a
lot of people out there
00:15:51.45\00:15:53.05
that would love to
get that type of phone
00:15:53.08\00:15:55.68
that technology
you currently have.
00:15:55.72\00:15:57.49
So if mine is in
such high demand,
00:15:57.52\00:15:59.82
why do I need
to get a new phone?
00:15:59.85\00:16:02.16
And his comment
back was, well, here,
00:16:02.19\00:16:04.99
if you really want to
get those type of things,
00:16:05.03\00:16:07.53
you need to buy a new phone.
00:16:07.56\00:16:09.63
And, when you get the new phone,
00:16:09.66\00:16:11.70
you don't have this type
of two year old technology.
00:16:11.73\00:16:14.90
You will be able to get
00:16:14.94\00:16:16.27
all of these new
features on this smartphone.
00:16:16.30\00:16:18.87
And he was hounding me,
he was doing the hard sell.
00:16:18.91\00:16:22.18
He wasn't letting
me out of the door.
00:16:22.21\00:16:23.68
In fact, he was standing
00:16:23.71\00:16:25.05
in front of the
exit area to the store,
00:16:25.08\00:16:27.32
trying to get me to buy a phone,
00:16:27.35\00:16:28.78
giving me all the offers.
00:16:28.82\00:16:30.15
And hey, by the way,
00:16:30.19\00:16:31.52
I think, I can
get you a free deal
00:16:31.55\00:16:32.89
where you won't
have to pay via contract
00:16:32.92\00:16:35.92
and all these type of things.
00:16:35.96\00:16:37.43
Well, you know, I
can see through that
00:16:37.46\00:16:39.23
and I realized
that I have a budget
00:16:39.26\00:16:41.70
and I realize that I
didn't have any expectation
00:16:41.73\00:16:45.33
of going to spend
money on a new smartphone.
00:16:45.37\00:16:49.54
So I was held to that contract
00:16:49.57\00:16:52.24
that I had at
home with my family.
00:16:52.27\00:16:54.61
And I wasn't intending
to go and buy anything.
00:16:54.64\00:16:56.95
So I knew that he wasn't
going to get me at that time.
00:16:56.98\00:17:00.25
And I was able to say,
look, I'm not interested.
00:17:00.28\00:17:03.45
I guess I can go online.
00:17:03.49\00:17:04.82
I can find, what I
need, I'll buy it from other,
00:17:04.85\00:17:06.96
some other resource.
00:17:06.99\00:17:08.32
Because I'm not here to
buy any kind of new smartphone,
00:17:08.36\00:17:11.49
I'm here to get
what I was looking for.
00:17:11.53\00:17:14.86
Control your lives,
00:17:14.90\00:17:17.03
control what it is you
want to accomplish every day.
00:17:17.07\00:17:20.10
Because every day,
you go out of your door,
00:17:20.14\00:17:22.40
there are influences, the media,
00:17:22.44\00:17:24.61
there are many
different individuals
00:17:24.64\00:17:25.97
that want to take your time.
00:17:26.01\00:17:27.61
They want to take your
money and they will hound you,
00:17:27.64\00:17:31.68
and manipulate you
into buying that object
00:17:31.71\00:17:35.48
that they would like
to have you purchase.
00:17:35.52\00:17:39.05
A budget is key, a
budget is essential,
00:17:39.09\00:17:42.86
and that
smartphone that you have,
00:17:42.89\00:17:44.69
take a look at what
you have with a smartphone.
00:17:44.73\00:17:47.80
Many of us are
purchasing additional minutes
00:17:47.83\00:17:50.57
that we may not
necessarily need.
00:17:50.60\00:17:52.70
Did you know that there are apps
00:17:52.73\00:17:54.07
that help you with texting?
00:17:54.10\00:17:55.44
So you're paying for fees
00:17:55.47\00:17:56.81
through your
smartphone organization
00:17:56.84\00:18:00.11
for that type of service
00:18:00.14\00:18:03.68
when you may not
necessarily need it,
00:18:03.71\00:18:05.41
you could get it
through an appropriate app
00:18:05.45\00:18:07.68
that you could download.
00:18:07.72\00:18:09.48
You can actually cut back on
a variety of different areas,
00:18:09.52\00:18:12.29
based on the technologies
00:18:12.32\00:18:13.66
that are available
in that smartphone,
00:18:13.69\00:18:15.66
and you can cut your
expense by almost half.
00:18:15.69\00:18:20.06
How many minutes do you use?
00:18:20.10\00:18:21.76
Call up your organization
that has the contract
00:18:21.80\00:18:26.23
with your
smartphone and ask them.
00:18:26.27\00:18:28.37
How many minutes am I
using on an ongoing basis?
00:18:28.40\00:18:30.57
But you might find that,
I have a 1,400 minute plan
00:18:30.61\00:18:34.18
when I'm only using,
300, 400, and 500 minutes.
00:18:34.21\00:18:37.38
They will get you to
pay the $140 to $150 a month
00:18:37.41\00:18:41.12
when all you really needed
was a $75 a month contract.
00:18:41.15\00:18:45.19
And when you look
at $150 to $200 a month
00:18:45.22\00:18:47.82
that's close to $2,400 a year
00:18:47.86\00:18:50.76
that now is going
towards the use of a smartphone.
00:18:50.79\00:18:54.23
And that $2,400 is in addition
to the fact that many people,
00:18:54.26\00:18:59.73
because they haven't really
thought through their budgets,
00:18:59.77\00:19:02.74
also have a landline.
00:19:02.77\00:19:04.44
They also have internet services
00:19:04.47\00:19:06.81
that may have
high capacity bandwidth
00:19:06.84\00:19:10.01
to download
information which could mean
00:19:10.05\00:19:12.11
you could go
with that technology,
00:19:12.15\00:19:15.22
utilizing the internet
for your phone service.
00:19:15.25\00:19:18.15
So there could, you
could cut your phone bill
00:19:18.19\00:19:22.12
in half or even to into a third
00:19:22.16\00:19:24.29
if you thought about
how you utilize the phone,
00:19:24.33\00:19:27.60
what you use the phone for.
00:19:27.63\00:19:29.53
And many people are now
00:19:29.56\00:19:31.40
no longer going
with landlines at home
00:19:31.43\00:19:33.60
because they have a smartphone
that goes wherever they go.
00:19:33.64\00:19:37.04
And you may even opt
for international service
00:19:37.07\00:19:39.14
on your smartphone
00:19:39.17\00:19:40.51
and get rid of the home service
for your long distance calls.
00:19:40.54\00:19:44.95
There are many
different ways of approaching
00:19:44.98\00:19:47.32
the same destination.
00:19:47.35\00:19:48.78
And that destination has to do
00:19:48.82\00:19:50.55
with cutting your
bills in half or into a third
00:19:50.59\00:19:54.36
where you can save that money
00:19:54.39\00:19:55.72
and put it into some other area.
00:19:55.76\00:19:57.86
And it's essential
that you start looking at it
00:19:57.89\00:19:59.56
from that perspective.
00:19:59.59\00:20:00.93
Because if you
are actually in debt,
00:20:00.96\00:20:02.86
which a budget will
tell you that you are,
00:20:02.90\00:20:05.73
then you can begin the process
of taking that extra funds
00:20:05.77\00:20:08.90
you save in this area
00:20:08.94\00:20:10.57
and start putting it
00:20:10.61\00:20:12.44
towards paying down
the debt that you have.
00:20:12.47\00:20:14.58
And that's just one
area of your budget.
00:20:14.61\00:20:17.81
So as I ask you
to look seriously at
00:20:17.85\00:20:20.22
what you spend your money on,
00:20:20.25\00:20:22.72
where your expenditures are,
00:20:22.75\00:20:25.15
what it is that you like
to do, how you can cut back,
00:20:25.19\00:20:29.22
I will guarantee
00:20:29.26\00:20:31.89
that if you look at a budget
and fill that whole thing out
00:20:31.93\00:20:35.36
and then assess where you're
at and how much you're spending.
00:20:35.40\00:20:37.97
You'll be surprised at
00:20:38.00\00:20:40.24
how much money is
actually going out,
00:20:40.27\00:20:41.87
if not everything
that comes in is going out.
00:20:41.90\00:20:45.57
And just a little
bit of analysis could cut
00:20:45.61\00:20:48.88
your expenses significantly.
00:20:48.91\00:20:52.75
I've actually done this type
of process on an ongoing basis
00:20:52.78\00:20:56.85
where I have those
people in the seminar
00:20:56.89\00:21:00.32
go through an actual budget form
00:21:00.36\00:21:01.72
and, we all, 20 of us, 30
of us whatever number is there,
00:21:01.76\00:21:05.19
we talk about this budget.
00:21:05.23\00:21:07.23
And we go through it
line, by line, by line,
00:21:07.26\00:21:09.23
and we tease people at times.
00:21:09.26\00:21:10.60
So I mean, how much
money do you make per month?
00:21:10.63\00:21:12.00
How much money do you
want to make for month?
00:21:12.03\00:21:13.67
Oh, I'm going to
make $5,000 a month.
00:21:13.70\00:21:15.80
And you know what?
00:21:15.84\00:21:17.17
You also probably have
a part time job, right?
00:21:17.21\00:21:18.54
No, I don't.
00:21:18.57\00:21:19.91
Well, why don't we put it in
00:21:19.94\00:21:21.28
because you're going to need it?
00:21:21.31\00:21:22.64
No, I won't.
00:21:22.68\00:21:24.01
I can live under
that $5000 level.
00:21:24.05\00:21:27.12
Well, can you?
00:21:27.15\00:21:28.98
Because when we go
through that budget
00:21:29.02\00:21:32.55
and we go through
every line by line,
00:21:32.59\00:21:34.89
it's interesting you can pick up
00:21:34.92\00:21:36.26
certain bits of
information when you ask,
00:21:36.29\00:21:38.33
what is your water sewage
and trash collection bill?
00:21:38.36\00:21:43.97
Well, I don't know.
00:21:44.00\00:21:45.77
How much do you spend on
cable on a monthly basis?
00:21:45.80\00:21:48.94
I'm not quite sure, I
have to check on that.
00:21:48.97\00:21:51.04
What is it that you do?
00:21:51.07\00:21:53.51
Or how much money do you spend
00:21:53.54\00:21:54.94
in reference to
going out to eat?
00:21:54.98\00:21:59.08
What is your expenditures
for that type of thing?
00:21:59.11\00:22:02.15
I'm not sure but then we start
talking about those elements
00:22:02.18\00:22:05.72
and it's quite interesting.
00:22:05.75\00:22:07.09
How much does it cost to go
out and get a dinner for four?
00:22:07.12\00:22:11.39
A dinner of four at any
type of retail establishment,
00:22:11.43\00:22:14.40
is probably
going to run you what?
00:22:14.43\00:22:16.03
About $60?
00:22:16.06\00:22:18.30
Let's say that's
a convenient bill
00:22:18.33\00:22:19.80
of $60 at one time
to go out to dinner.
00:22:19.83\00:22:22.60
If you do it once a week,
which is what most people say.
00:22:22.64\00:22:25.21
We like to go out at
least once or twice a week.
00:22:25.24\00:22:27.44
So now you're looking at a
number called let's say $50
00:22:27.48\00:22:31.71
each time you go out
to eat, 50 twice a week,
00:22:31.75\00:22:35.18
that's $100 on each
week, 4 times a week.
00:22:35.22\00:22:39.09
So that's $400 a month in bills
00:22:39.12\00:22:45.03
that you get
for going out to eat
00:22:45.06\00:22:46.86
at any type of restaurant.
00:22:46.90\00:22:49.06
And then, you take a
step back and you realize
00:22:49.10\00:22:51.47
that they haven't really thought
00:22:51.50\00:22:52.83
through the fact
that this is a major bill.
00:22:52.87\00:22:55.00
Because a family of four,
00:22:55.04\00:22:57.07
typically groceries is
about $550 plus a month
00:22:57.11\00:23:01.31
to just handle
groceries for a family of four.
00:23:01.34\00:23:03.78
So you're not only spending
00:23:03.81\00:23:05.31
$550 plus a month for groceries,
00:23:05.35\00:23:08.08
you're also
spending $400 a month
00:23:08.12\00:23:10.09
to take people out to eat.
00:23:10.12\00:23:11.45
So that's close to $1,000
for food every single month.
00:23:11.49\00:23:16.96
And you go down,
00:23:16.99\00:23:18.33
again, I ask this
question as we're going through
00:23:18.36\00:23:21.63
the automotive
part of the budget.
00:23:21.66\00:23:23.97
It's got, how much does it cost
00:23:24.00\00:23:25.73
to drive your car on every mile.
00:23:25.77\00:23:29.44
People haven't
really thought about that.
00:23:29.47\00:23:31.07
There is a actual
cost that you have to drive
00:23:31.11\00:23:33.27
your car down the road.
00:23:33.31\00:23:34.68
And I actually
break it down to per mile.
00:23:34.71\00:23:37.15
My car costs
about 40 cents a mile
00:23:37.18\00:23:40.02
to drive from the beginning,
when I bought it up until now.
00:23:40.05\00:23:42.88
And how do I get to that number?
00:23:42.92\00:23:44.25
Here's a simple
way to look at it.
00:23:44.29\00:23:45.82
Look out the mileage on your car
00:23:45.85\00:23:48.59
and then if you had it
for two or three years,
00:23:48.62\00:23:52.59
let's say you have
50,000 miles on the car.
00:23:52.63\00:23:55.40
Then look at the costs
00:23:55.43\00:23:57.23
that it took to
acquire that car.
00:23:57.27\00:23:59.73
The costs that it
took to maintain the car,
00:23:59.77\00:24:03.44
the costs that it
took to put gas in the car,
00:24:03.47\00:24:07.28
the total costs
associated with that car.
00:24:07.31\00:24:10.11
And you can then
take your total mileage
00:24:10.15\00:24:15.08
into the amount of
money you spent on the car.
00:24:15.12\00:24:18.35
And it will give you a per
mile number minus 40 cents.
00:24:18.39\00:24:21.82
I took 250,000 miles on my car
00:24:21.86\00:24:25.39
and divided it into about
$100,000 I've spent on the car.
00:24:25.43\00:24:30.57
You think, that's a
lot of money? It is.
00:24:30.60\00:24:33.13
Over 14 years, I've spent about
00:24:33.17\00:24:35.60
$103,000 on
that car that I have.
00:24:35.64\00:24:39.07
To maintain, to put gas
in it, just pay for the car,
00:24:39.11\00:24:41.44
and to pay it off.
00:24:41.48\00:24:42.81
So it took about,
00:24:42.84\00:24:44.18
it's a $26,000
car it took about,
00:24:44.21\00:24:47.45
how many years to pay it
off at a certain interest rate.
00:24:47.48\00:24:49.58
So it's about $32,000
just for the car itself.
00:24:49.62\00:24:53.05
It costs about
$3,600 a year for gas,
00:24:53.09\00:24:58.36
over the course of 14 years.
00:24:58.39\00:25:00.83
You can see what that is like.
00:25:00.86\00:25:02.63
And then, of
course, to maintain,
00:25:02.66\00:25:04.03
to fixed, to upkeep,
to take care of the car,
00:25:04.07\00:25:06.60
to change the tires
was the remaining portion.
00:25:06.63\00:25:08.94
So, about $103,000 total
00:25:08.97\00:25:12.11
over the past 14
years to take care of a car.
00:25:12.14\00:25:16.54
And then I have
250,000 miles on the car.
00:25:16.58\00:25:18.75
You divide that
100,000 by the 250,000 miles
00:25:18.78\00:25:23.62
and you come up with a figure
00:25:23.65\00:25:24.99
and that figure
is 40 cents a mile.
00:25:25.02\00:25:26.55
And you ask people,
00:25:26.59\00:25:27.92
"Do you know how
much it costs you
00:25:27.96\00:25:29.29
based on the
mileage every month?"
00:25:29.32\00:25:31.03
"Oh, I drive about
15,000 miles a month."
00:25:31.06\00:25:34.33
Now you know exactly
how much on a monthly basis
00:25:34.36\00:25:37.60
your car is costing
you, 15,000 miles a month,
00:25:37.63\00:25:41.97
and if you're spending close
to at 50, 60, 70 cents a mile.
00:25:42.00\00:25:46.88
Did you know
certain luxury brands
00:25:46.91\00:25:48.68
cost $1.80
cents a mile to drive?
00:25:48.71\00:25:53.72
And when you begin that kind
of evaluation of your budget,
00:25:53.75\00:25:57.55
you begin to see certain things
00:25:57.59\00:26:00.76
that stand out to
you and your budget.
00:26:00.79\00:26:04.56
It's really kind of interesting
that when you can graph it
00:26:04.59\00:26:08.16
and look at where
my major expenses are,
00:26:08.20\00:26:10.63
I can tell you, yes,
my household expenses
00:26:10.67\00:26:13.23
are going to be
the vast majority
00:26:13.27\00:26:15.47
of my total
expenses on a monthly basis.
00:26:15.50\00:26:17.21
But what else jumps out at me.
What happened this last month?
00:26:17.24\00:26:20.94
Why in November did my
food bill jump about 20%
00:26:20.98\00:26:25.91
than it was the previous month?
00:26:25.95\00:26:27.65
Well, of course,
there is the holidays.
00:26:27.68\00:26:30.02
There's Thanksgiving,
you're spending more.
00:26:30.05\00:26:32.09
You have guests
coming over to your house.
00:26:32.12\00:26:34.82
So you can assess
those type of things
00:26:34.86\00:26:36.69
and put things in
certain perspective,
00:26:36.73\00:26:39.16
that is key.
00:26:39.19\00:26:40.53
Because when you take a look
at the single biggest impact
00:26:40.56\00:26:43.16
to anyone's budget right now,
00:26:43.20\00:26:44.73
the story they have
out there in the internet,
00:26:44.77\00:26:46.70
it says, is that smartphone.
00:26:46.74\00:26:48.50
But what is your
major area of concern?
00:26:48.54\00:26:50.91
Have you looked
at your budget yet?
00:26:50.94\00:26:52.77
Do you know how much it costs
per mile to drive your car?
00:26:52.81\00:26:55.84
Take a look at it from
an evaluative standpoint
00:26:55.88\00:26:57.85
and you will begin the process
00:26:57.88\00:26:59.71
of now getting excited
about looking at the numbers.
00:26:59.75\00:27:03.12
Understanding how
the numbers work for you.
00:27:03.15\00:27:05.29
Figuring out how I can
better make this budget
00:27:05.32\00:27:09.52
that I have that I develop,
00:27:09.56\00:27:12.49
the best thing that God can use.
00:27:12.53\00:27:15.06
And that I can begin
the process of saving
00:27:15.10\00:27:18.67
and putting money
towards His kingdom.
00:27:18.70\00:27:22.97
And, oh, by the
way, that budget sheet,
00:27:23.00\00:27:26.07
when we go through
the whole budget sheet,
00:27:26.11\00:27:28.54
that they make now
$5,000 a month plus
00:27:28.58\00:27:32.01
the $1,000 in extra income,
00:27:32.05\00:27:34.95
every time we come down
00:27:34.98\00:27:36.32
to the bottom of
that budget sheet,
00:27:36.35\00:27:38.55
it's in the red.
00:27:38.59\00:27:40.39
People don't realize
that unless you budget
00:27:40.42\00:27:43.59
and assess your
specific dynamics,
00:27:43.63\00:27:47.13
you're probably spending
more than what you make.
00:27:47.16\00:27:51.97
Take a look at your budget,
00:27:52.00\00:27:53.77
and take it to
the bank, and save.
00:27:53.80\00:27:56.91
God bless you.
00:27:56.94\00:27:58.27