Christian Money
Management
 
 
 
The Biblical Pathway To
Financial Freedom!

 

 


 
 
 
 
 
 
 
 
A course booklet written by
Richard Kornmeier, CPA CFP

© 1992, 1994, 2000,2003,2004  THIS MATERIAL IS COPYRIGHTED. 
ASK NOT, USE NOT, UNLESS THOU SHALT BREAK 
THE EIGHTH COMMANDMENT OF OUR LORD! 
ASK, IN WRITING, AND IT SHALL BE GIVEN UNTO YOU
FOR YOUR NON-COMMERCIAL USE.

 

Rick Kornmeier  CPA CFP

 

Email  me at  CMMGR1@BIBLICALSTEWARDSHIP.COM

 

Leave subject as I don’t read e-mails
unless I know the sender

 

For stewardship materials for individuals, churches, families and businesses,

Check out my website at

 biblicalstewardship.com

Subjects covered include: Church Taxation, Ministerial Taxation, Debt Reduction

Retirement Planning, Retirement Investing, Mutual Fund Investing,

Church Stewardship Newsletter inserts, Finding Financial Freedom and more. In general, all of my

Stewardship materials have been reproduced on my website.



    
ELEMENTS OF A GOOD FINANCIAL PLAN

 

VITAL STEPS IN THE CHRISTIAN MONEY MANAGEMENT PLAN.

 

THE PLANNING PROCESS

 

Step 1. Pray.

 

Step 2. Determine your values, attitudes and outlook toward

money, investments and material possessions.

 

Step 3. Determine where you are at.

A.      Gathering the paper work that will tell us where you are at.

Wills, insurance policies, deeds, business agreements,

 bank  statements, old tax returns, etc.

B.        List your assets and resources. A Net Worth Statement! 

1.                Identify any financial shortcomings.

2.                No will?  Not enough insurance? Too much debt?

3.                  No estate planning?

4.                  Paying too much to our rich uncle?

5.         Not diversified enough?

C.        Determine your expenses and income for last year.

 

Step 4. Establish goals

A.                 List your goals and objectives.

B.                 What is it that YOU need to plan for?

1.                  Retirement?

2.                  College funding?

3.                  Medical problems?

4.                  Just want to be organized?

C.        Family goals, individual goals, church goals

 

Step 5. Develop a management plan.

A.                 Budgets.

B.                 Investments plans.

C.                Methods to attain.

D.                Start the steps to attain the goals.

 

Step 6. Start today!

           

            Step 7. Pray

 

THE PLAN ITSELF

                                                                                                        

 

Involve the entire family in the goal setting and planning stages.

 

Be sure everyone who will be affected has some input into the goals and the attainment plans!

 

Put the plan in writing. Make it clear and easy to understand,

Use plain English, that means no lawyers can be involved.

 

List all the recommendations and necessary steps to reach

The goals. Be clear and detailed. Be as specific as possible.

 

Prepare, The What You Own, What You Owe and What You Spend Forms.

 

Revise these forms.

 

Keep monthly totals of what you spend.

 

Do a cash-flow analysis and then update it every 3 to 6 months,

this shows what is coming in and what is going out.

 

Prepare budget number one--update and revise constantly.

 

Revise goals and objectives. Start over. Keep it organized.

 

Follow the plan! Don't concrete it but follow it. 

 

Start over. Re-evaluate. Re-think. Check the goals.

 

List what has happened since the first plan.

 

When you mess up, start over.

 

 

BEFORE YOU KNOW WHERE

YOU ARE GOING!

 

YOU MUST KNOW WHERE YOU ARE AT!!

A trip to Orlando

In order to get to Orlando we need to know where we are at!

When it comes to financial planning, knowing where you are at can be a real painful experience!  But, we cannot move forward without knowing and understanding where we are going to move from and where we are at today. In order to understand our financial situation we need to fill out the various forms that we've included in this booklet. Let's fill out the next few forms together!

 

WHAT YOU OWN

 

WHAT YOU OWE HOPEFULLY AS LITTLE AS THIS PRINT.

 

                WHAT YOU SPEND

 

These forms are so important to your financial future that I absolutely require that these forms be filled in prior to any individual financial counseling sessions. I cannot emphasize these forms enough!

 

           


WHAT YOU OWN!

 

ASSETS

 

MARKET VALUE OR BALANCE

 

Cash on Hand

 

$

 

Checking Account

 

 

 

Piggy Banks

 

 

 

Savings or Credit Union Accounts

 

 

 

Money Market Funds

 

 

 

Certificates of Deposit

 

 

 

Wife's Hidden Stash (listed here for informational purposes—OFF LIMITS!)

 

 

 

Stocks

 

 

 

Bonds

 

 

 

Mutual Funds

 

 

 

Treasury Bills

 

 

 

Others, GNMA's, Trusts, etc.

 

 

 

Partnership Interests

 

 

 

Business Interests

 

 

 

Cash Surrender Value of Life Insurances

 

 

 

Residence

 

 

 

Vacation Home

 

 

 

Rental Property

 

 

 

Furniture

 

 

 

Gold, Jewelry

 

 

 

Wife's clothes, handbag collection, shoe hoard

 

 

 

Husband's Toys, guns, fishing rods, tools, golf clubs. NOT FOR GARAGE SALES!

 

 

 

Collections, Antiques, Coins, Stamps

 

 

 

 

Boats, motorcycles, wave runners

 

 

 

Campers

 

 

 

Automobiles

 

 

 

Loans and Notes due to you

 

 

 

Retirement Plan Assets that are vested

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

                                                                                                               

 

 

 


WHAT YOU OWE!

 

LIABILITIES

 

AMOUNT OWED OR LOAN BALANCE

 

Bank Overdrafts

 

$

 

Due to the IRS, Doctors, Local Governments

 

 

 

Credit Cards, Visa, MasterCard, Discover

 

 

 

 

 

Credit Cards, Gas companies, department stores

 

 

 

Car Loan Number One

 

 

 

 

Car Loan Number Two

 

 

 

Consumer Loans, Household Finance or others

 

 

 

Loans on Appliances, TV, Washer, Dryer, Stove, Refrig

 

 

 

Christmas Loans

 

 

 

 

Family Loans

 

 

 

Boat Loan

 

 

 

Camper Loan

 

 

 

 

 

 

 

Mortgage Loan House

 

 

 

Mortgage Loan Second on House for Pool or ?

 

 

 

Home Equity Loan House

 

 

 

Mortgages Other, vacation homes, investment properties