FPU Lesson 3 - Cash Flow Planning

Week 3 - Cash Flow Planning

Dave teaches us step by step how to put together a zero-based monthly budget and how to complete all of the financial management forms. Taking control of your money takes time, effort and patience. Check your progress at LEAST once a week and give your budget 90 days to really start working.

~ Plus, get a refresher on how to balance your check account!

~ Plus, Don't forget to download and print all of your Budget Forms!

Key Points:

~ Spend all money on paper before the month begins.

~ Use the Envelope System for successful cash management.

~ Give your budget 90 days to really start working.


Remember:

~ Set up your Gazelle Budget online.

~ Print a copy of your Gazelle Budget to bring to the next class.

~ Start using at least one (1) envelope in your Deluxe Envelope System



Scriptures from Lesson 3 - "Cash Flow Planning:

1. “Be diligent to know the state of your flocks, And attend to your herds; “ Proverbs 27:23 (New King James Version)

2. “[Put first things first.] Prepare your work outside and get it ready for yourself in the field; and afterward build your house and establish a home.” ~ Proverbs 24:27 (Amplified Bible)

3. "Woe to the obstinate children," declares the LORD, "to those who carry out plans that are not mine, forming an alliance, but not by my Spirit, heaping sin upon sin; ~ Isaiah 30:1 (New International Version)

4. The plans of the diligent lead to profit as surely as haste leads to poverty. ~Proverbs 21:5 (New International Version)

5. Commit to the LORD whatever you do, and your plans will succeed. ~ Proverbs 16:3 (New International Version)

6. May he give you the desire of your heart and make all your plans succeed. Psalm 20:4 (New International Version)

7. “…by his knowledge the deeps were divided, and the clouds let drop the dew. My son, preserve sound judgment and discernment, do not let them out of your sight; they will be life for you, an ornament to grace your neck. ~ Proverbs 3:20-22 (New International Version)

8. “For where your treasure is, there your heart will be also.” - Matthew 6:21 (New International Version)

9. "Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him, saying, 'This fellow began to build and was not able to finish.' ~ Luke 14:28-30 (New International Version)

Next Week: Lesson 4 - Dumping Debt

FPU Lesson 2 - Relating With Money

By Anna D. Banks


In Lesson 2, Dave Ramsey describes the difference in how men and women relate to money. Money is one of the top (if not the top) causes of divorce because money accentuates value differences. Both partners should be involved in budgeting and make money decisions. There are two types of people when dealing with money: nerds and free spirits. Nerds like analyzing and creating complex spreadsheets. Free spirits don’t want to be controlled. If you’re not married, it’s good to get an accountability partner.

Dave then outlines the rules for a budget committee meeting.

* The meeting can’t go longer than 17 minutes
* Nerds make a proposed plan and bring it to the meeting. They give it to the free spirit and then shut up and let them look at it.
* The free spirit has to show up, act like an adult and give positive feedback.

Kids and Money

* Dave talks about teaching kids how to relate to money and the value of paying “commissions” for chores.
* You can teach your kids to be responsible with money by making them save for some of their own purchases.
* Whenever your kids get money, help them separate the funds into three envelopes: giving, spending, and saving.


Next Week:

Lesson 3 - Cash Flow Planning

Financial Peace University Off to a Great Start - FPU Lesson 1 - Super Savers

By Anna D. Banks

On Sunday, May 4, 2008, the first class of Financial Peace University (FPU) at Harambee Center began. The response was great! In fact, it was standing room only in the room reserved for the class. It was a small group but I think it will be a great class. The Super Savers lesson was absolutely hilarious. I think everyone in the class was pleasantly surprised that the video sessions were entertaining as well as informative.

Discussion after the video went very well, according to Small Group leaders (SGLs), Sharon & Billy Brown; Andrea & Carl Davis; and Louise Reeves. In addition to our Elmwood church family, we had families from Staten Island, Woodbridge, and Parsippany drive to the East Orange to be apart of this class. These families, who are faithful listeners of the Dave Ramsey Show, found out about FPU at Harambee from the Dave Ramsey website www.DaveRamsey.com.

Here’s a brief summary of the lesson:

Super Savers (week 1)

Dave Ramsey provides an overview of the program. He covers the value his “Baby Step #1,” a short-term emergency fund which he defines as “$1,000 in the bank.” Do not touch the emergency fund, except for in emergencies. Savings is about emotion and you’ll only save if you make it a priority. Social Security will not provide enough for a secure retirement. Money is amoral - it’s not good or bad but can be used for good or bad purposes. Don’t spend more than you earn.

You must learn to save for three things: emergency fund, purchases, wealth building (retirement, college, etc.). By saving for purchases and paying in cash you can negotiate better deals. Start saving NOW - the sooner you start the more of an impact compound interest can have. He goes through some examples of how compound interest works. He emphasizes the importance of obtaining a high interest rate of return on your savings. Make your long-term savings automatic. Cut up your credit cards and never use them again. Budget ahead for things like clothes, Christmas (and other important holidays) vacations, and all the expenses that you know are coming.

The main “take away” from our first class was that we need to remember, as small as our baby steps may be they are still steps forward. As long as we keep going in this direction we will complete the journey.


Next Week: Lesson 2 - Relating with Money

Don't Buy Stuff You Can't Afford

By Anna D. Banks

If you have not seen this Saturday Night Live (SNL) skit, it will amuse you. Just click this link --> Don't Buy Stuff You Can't Afford


Don't Buy Stuff You Can't Afford
SNL offers a revolutionary debt and money-management program. Chris Parnell teaches Steve Martin and Amy Poehler the secret to financial success. It's all detailed in a new book called, "Don't Buy Stuff You Can't Afford." Every FPU member in America should read it.
_________________________________________________________
Here's the transcript of the video clip:


Wife.....Amy Poehler
Husband.....Steve Martin
Author.....Chris Parnell


[ open on couple trying to balance their checkbook ]

Wife: (sighs) I just can't get these numbers to add up.

Husband: Like we're never going to get out of this hole.

Wife: Credit card debt, does it ever end?

CP: [walks in] Maybe I can help.

Husband: We sure could use it.

Wife: We've tried debt consolidation companies.

Husband: We've even taken out loans to help make payments.

CP: Well, you're not the only ones. Did you know that millions of Americans live with debt they cannot control? That's why I developed this unique new program for managing your debt. It's called [presents book] "Don't Buy Stuff You Cannot Afford."

Wife: Let me see that... [grabs book, reads] "If you don't have any money, you should not buy anything." Hmm, sounds interesting

Husband: Sounds confusing.

Wife: I don't know honey, this makes a lot of sense. There's a whole section here on how to buy expensive things using money you save.

Husband: Give me that... [grabs book, looks at it] And where would you get this saved money?

CP: I tell you where and how in Chapter 3.

Wife: Ok, so what if I want something but I dont' have any money CP: You don't buy it.

Husband: Well let's say I don't have enough money to buy something. Should I buy it anyways?

CP: No-o-o-o.

Husband: Now I'm really confused!

CP: It's a little confusing at first.

Wife: Well what if you have the money, can you buy something?

CP: Yes.

Wife: Now take the money away. Same story?

CP: Nope. You shouldn't buy stuff when you don't have the money.

Husband: I think I got it. I buy something I want, and then hope that I can pay for it right?

CP: No. You make sure you have money, then you buy it.

Husband: Oh, THEN you buy it. But shouldn't you buy it before you have the money?

CP: No-o-o-o.

Wife: Why not?

CP: It's in the book. It's only one page long. The advice is priceless and the book is free.

Wife: Well, I like the sound of that.

Husband: Yeah, we can put it on our credit card.

CP: [shakes head]

Announcer: So get out of debt now, write for your free copy of "Don't Buy Stuff You Cannot Afford." If you buy now you'll also receive, "Seriously, If You Don't Have the Money, Don't Buy It!" Along with a 12-month subscription to "Stop Buying Stuff Magazine." So order today!

To see the actual clip of this Saturday Night Live (SNL) Skit, click the link
Don't Buy Stuff You Can't Afford

FOX Business Network Names Radio Show Personality Dave Ramsey as Primetime Host

By Anna D. Banks, FPU Cordinator, Harambee Center, East Orange, NJ

The Dave Ramsey Showappears every Monday at 7 p.m. Central Time on the Fox Business Network, channel 359. To ask Ramsey a question for the program, call 1-888-825-5225 or send an e-mail to daveonair@daveramsey.com.

NEW YORK--(BUSINESS WIRE)--Nationally syndicated radio talk-show personality and personal finance expert Dave Ramsey has joined FOX Business Network (FBN) as the host of a primetime program, announced Kevin Magee, Executive Vice President, FOX News.

In making the announcement, Magee said, “Dave Ramsey is a welcome addition to FBN’s programming. Our primetime format will offer a new opportunity for Americans to benefit from Ramsey’s practical financial advice.”

Ramsey added, “We’re honored to be part of the FOX Business Network from its launch. Television is a logical step for The Dave Ramsey Show and I’m glad we have the opportunity to take that step with our friends at FOX.”

Ramsey’s radio program Dave Ramsey Showhas been on the air for more than fifteen years and can be heard on over 325 radio stations across the country with an average of more than 3 million weekly listeners. In addition to his new responsibilities with FBN, Ramsey will continue to broadcast his radio show.

Ramsey is also the creator of a 13-week program called Financial Peace University (FPU), which educates participants about how to reduce debt, gain control of their finances, and learn new behaviors around money. He is the author of five best-selling books including Financial Peace, More Than Enough and The Total Money Makeover, among other titles.

Ramsey began his career as a personal finance teacher offering one-on-one debt counseling to individuals in 1991, and based his teachings on his own personal experience in both building and losing a multimillion dollar real estate portfolio by age 30. Today, Ramsey’s radio show, books, speeches and numerous appearances counsel others on his lessons learned about how to build wealth, be financially responsible and give back to the community.