Money Management - Help Me With The Basics Please!

WiseOldBird_2

I've been asked to do a 25 minute presentation at church - subject - money management, though with the idea of getting/keeping people out of debt. It is such a HUGE subject to cover in such a short time that I thought I'd ask the experts (ie. you) what you think is important. At the moment I have the following swirling round in my head:
1. How to set a budget (using the 'outgoings' suggestion on the board).
2. Followed by - 'if you haven't enough income then you have to do the following:
3. Boost income (with some suggestions).
4. Cut back on expenditure (e.g. food budgets, discerning between needs and wants, looking for the best deals, etc).
5. Finishing with a big plug for this site which is full of good ideas, thousands of tips and lovely people that will help anyone with any sort of financial problem.

I could do more, but time won't allow me to. What do you think? Any suggestions for improvement welcome. Many thanks for your time in reading and any help.

Ann.

Sunny_Donny

Hi Anne

What a brilliant idea.
What about printing the SOA template as a basic guide to working out a monthly budget as a hand out.
Using the supermarket reduction times chart as a help and also the move down a brand on some items to see how it reduces the budget.

Sunny

hypno06

Take a copy of Martin's Teen cash guide if you can find it - it used to be on the right hand side of the screen but it doesn't seem to be there at the mo (unless I am just not looking properly!!)

This is quite a good place to start as it is basic, yet not patronising, and although initially aimed at teenagers, it is useful for all ages.

RichOneday_2

For what is, let's be honest, quite a dry subject it might be an idea to tell a story or two.

You know the sort of thing:
a) XYZ was in a mess and struggling and was grumpy.

b) XYZ did this
c) XYZ is now a happy, smiley, bubbly individual :j

Now of course you need to find some good examples of interesting case studies. Now where could you find those I wonder.......

RAS

Hi

Ask here for people who can give examples of

1. How to budget -particulalrly those who have made major changes to their budgets. Some people have saved hundreds just taking advice on here.

2. If you are paying your priority debts and your minimum payments on CCs and loans, you are in trouble. Read Martin's article on danger minimumm payments. In many cases it would take decades to pay off the debt on the basis of minimum payments, in other cases the debt will INCREASE over time.

3. Since you are talking to a church group, you might want to ask people to discuss titheing and charitable payments. We have instances on here where people are not even covering their priority debts and minimum payments and they are paying hundreds of pounds in tithes each month. In other cases it may only be £20 per month to charity, but they do not have it.

Apart from the fact that they are getting into increasing debt each month, this money is being borrowed at their highest interest rate - they may be paying £20 off a card which does not even cover the interest payment and then adding £150 more to their debt. Which at 25-35% is never going to get paid off.

What some members here recommend is that pople open a virtual account, into which they record their missed payments, then undertake to pay it back with nterest when they have got their finances on an even keel.

Or donate time instead of money.

4. Even those who think they are OK can come unstuck if they have a lot of debt and their circumstances change.

angelflower_2

It really depends on whether or not you are giving a biblically relevant talk with regards to money as the bible has quite different ideas on how Christians should handle their money as apposed to general societies current spend trends (obviously a generalisation here).

In particular, tithing is a tricky one as speaking to a church group, the bible is quite clear that giving your first 10% away is a priority - speak to the pastor about how he would approach it in terms of his sermons and church vision...I know ours still encourages the 10% tithe when people are in debt as God will meet all needs. (this isnt said to encourage debate on whether its right or wrong but mearly to ensure that you are presenting the idea inline with the church - I do think that RAS has a valuable and potential response above - I know though that the child I sponser in India relies completely on the small amount of money I send every month in order to be educated - if that means my food budget is lower then so be it)

Hope it is ok to link to these talks which might be of interest....

http://www.mbcav.org.uk/listen/series.html just a wee bit down is a bit on money...I found them very helpful. yes, I also agree its a huge subject so keeping it simple is prob the best way to go despite all this information.

Another fantastic resource would be www.capuk.org They will supply materials, speakers etc and will be directly related in terms of helping individuals and developing a culture in helping others get out of debt. Check out their website and give them a call - sure they will be happy to help

savingholmes

angelflower wrote: »

tithing is a tricky one as speaking to a church group, the bible is quite clear that giving your first 10% away is a priority - speak to the pastor about how he would approach it in terms of his sermons and church vision...I know ours still encourages the 10% tithe when people are in debt as God will meet all needs. (this isnt said to encourage debate on whether its right or wrong but mearly to ensure that you are presenting the idea inline with the church - I do think that RAS has a valuable and potential response above - I know though that the child I sponser in India relies completely on the small amount of money I send every month in order to be educated - if that means my food budget is lower then so be it)

I'm still wrestling with the tithing issue - for me it's habit and teaching. I've not quite cancelled my STO yet!

New testament is far more about giving with a cheerful heart - in my case I enjoy sponsoring children like yourself but get much less enjoyment or cheer out of tithing.

I also accept tithing is legalistic and largely old testament.... There is one verse (in the new testament) where Jesus talks about tithing to the pharisees but in the same passage he also talks about the fact they put intolerable burdens on others. Tithing isn't really mentioned again - instead it is all about giving and offerings. Jesus said he came to fulfil the law so that we could then live under grace.

Without meaning any disrespect, churches will always encourage tithing because if you had 10 people tithing in a church then you can pay the minister an average wage.... in reality most churches are bigger than 10 so there could then be a question over what are you funding. If it is a building - is that truly the best use of money... At the same time if you want a church to offer a range of services, someone will need to pay into it to make it possible....

I've just looked up some of the original passages on tithing in the old testament -its purpose was to support the levites (priests) who had no separate inheritance and to support the widowed and the fatherless....

I think Ann it would be helpful to have an honest debate on the subject....

angelflower_2

savingholmes wrote: »

I've just looked up some of the original passages on tithing in the old testament -its purpose was to support the levites (priests) who had no separate inheritance and to support the widowed and the fatherless....

I think Ann it would be helpful to have an honest debate on the subject....

I agree with all you said above......I guess its down to how well you feel each individual church handles the tithes they are given. I know ours uses tithes wisely to impact our community including a debt councilling service....and so am more than happy to give as required/instructed. I 'get' much more from my church than i give.

RAS

Hi

We see people whose tithe is one sixth of their net income and who are going to be in dire financial straits if they do not cut back drastically, the sort of problem that is going to require debt counselling at least and could mean losing their homes.

Others are on benefits only, trying to sort out debts and still make charitable contributions.

I am suggesting that there needs to be an honest discussion of these situations, rather than an assumption that they should just pay it. At the very least any church operating on this basis has a duty to teach people how to live frugally.

Which may explain why Anne has been asked to talk?

angelflower_2

absolutely RAS... I completely agree. I think the biggest teaching a church can give, particularly at this economic climate, is not pay us or you will be condemmed or even frowned upon but lets look at how, in accordance with the bible, we are instructed to steward our finances.

For the most part it is help others sacrificially, do not store up for yourselves things on earth (for they mean nothing in the grand scheme of things)

Our culture is all about, we need this, you are not worth anything unless you have that car, this food processor, that lawnmower....the bible says somethign different. Thats where the teaching comes in....or at least, where it should come in....

I know for me, i need to constantly ask myself...do i really need this....or can I steward my finances in a different way. I often get it wrong but am continuing to strive to get out of debt, primarily so I can provide for my family but also to be a blessing to others. At the moment, I do give more time than financially but I hope this will change over the next few years.

savingholmes

RAS wrote: »

Hi

We see people whose tithe is one sixth of their net income and who are going to be in dire financial straits if they do not cut back drastically, the sort of problem that is going to require debt counselling at least and could mean losing their homes.

Others are on benefits only, trying to sort out debts and still make charitable contributions.

I am suggesting that there needs to be an honest discussion of these situations, rather than an assumption that they should just pay it. At the very least any church operating on this basis has a duty to teach people how to live frugally.

Which may explain why Anne has been asked to talk?

Even where people feel they should tithe - can they not just tithe on their net and use gift aid to reclaim the tax paid reducing the net amount or is the point you are making that they don't earn enough to gift aid. If they wanted to do this there are also accounts you can sign up to so you get the gift aid into a charity account and then pay it from there....