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ACT YOUR OWN WAGEMANAGING MONEY

GOD’S WAY

LUNCH SESSION-CARS

What God’s Word says about money

• Proverbs 22:7

“Just as the rich rule the poor,    so the borrower is servant to the lender.”

So… Who which side of the coin are you on???Borrower OR Lender

Slave to Lender

Cars the right way• Keep your current car 3 years longer than

your payment.

• Make the car payment to an account to prepare for your next car

• That account pays cash for the next car – how much you have is how much car you get

Cars the right way

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

Auto Depreciation Schedule

Resa

le V

alue

RED ZONE - STAY AWAY! GREEN ZONE

Cost of Ownership

** Cost per 10,000 miles 2500 HD Nissan P/U Variance

Oil Change $ 100.00

$ 30.00

$ 70.00

Tires $ 200.00

$ 71.00

$ 129.00

Fuel $ 2,100.00 $ 1,300.00 $ 800.00

TOTAL $ 2,400.00 $ 1,401.00 $ 999.00

200K is the new 100KWhen was your Birthday?

What does your car really cost you?

Video

ACT YOUR OWN WAGEMANAGING MONEY

GOD’S WAY

LUNCH SESSION-MORTGAGES

Fun Facts• Only 30% of homeowners own their homes

outright

• 65 to 74 year olds are most likely to own their home outright followed by 74 to 84 years old

• 33% of ALL borrowers are upside down in their homes (this locks you into a location by the way)

Mortgage Plans30 Year Rate - 90% of home

buyers

15 Year Rate - 8% of home buyers

Adjustable Rate (ARM) - 3% of home buyers

0 Year Rate - 1%of home buyers

So – Why a 15 year fixed?• More of your payment goes towards

principal than interest on day one• It set’s a realistic goal for your “Net

Worth”

Spreadsheet Example

Mortgage Breakdown15 Year 30 Year

Why so much down?• PMI – (Private Mortgage Insurance)

Insurance taken out on a property by the lender to cover any costs incurred as a result of foreclosure.

• Interest expense – Amortization schedules are designed to equal out around the 15 year mark.

• You get closer to financial independence

American’s top 5 causes for housing stress

1. Buying too much house

2. Loss or Dip in Income

3. No Savings

4. Not making repairs

5. Too much debt

When should I buy a house• Your house purchase should fit your Debt-Free plan• Have a minimum of 6 months of living expenses in

the bank• Have 10% down payment (20% is better to save PMI)• If you are married – you should be married for at least

1 year• 25% of your NET MONTHLY INCOME must cover your

mortgage• Have properly allocated monthly savings to

retirement• When you can afford the 15 year fixed rate