Building a Foundation Part 2: Baby Steps 4-7 Treasure Principle

Matthew 25:14-18 (MSG)

Building a Foundation: Part 1 Budget Basics and Baby Steps 1-3 (Recap)

• Budgeting Basics
  • Budget Committee Meeting
    • Nerds and Free Spirits
  • Zero-Based Budget
• Baby Steps 1-3

1. Save $1,000 for your starter emergency fund
   1. Murphy Insurance
2. Pay off all debt (except the house) using the Debt Snowball 
   1. Organize your debts smallest to largest
   2. Make minimum payment
   3. Add extra money to debt service
   4. As you pay off the debt, add other payments to the snowball
3. Save 3 – 6 months of expenses in a fully funded emergency fund

Cash Flow Planning – Zero-Based Budget

Debt Snowball example

Resources

– Budget-Beater_Tips

– Budgeting_Forms

– The_Power_Of_Budgeting

– Debt_Snowball

– Dumping_Debt

Building a Foundation: Part 2 Baby Steps 4 – 7 (Treasure Principle)

• Financial “Baby Steps” to Building a Strong Foundation (Dave Ramsey)

1. Invest 15% of your household income in retirement
2. Save for your children’s college fund
3. Pay off your home early
4. Build wealth and give

• The Treasure Principle

Baby Step 4: Invest 15% of your household income in retirement

• Proverbs 21:20 (ESV)

Baby Step 5: Save for you children’s college fund

• Children’s college comes after retirement

Baby Step 6: Pay off your home early

• This will not happen by accident

Baby Step 7: Build wealth and give

“The poorest man I know is the man who has nothing but money.” John D. Rockefeller

The Treasure Principle

• Matt 6:19-21

 

• Budget Basics
  • Budget Committee Meeting
  • Zero Based Budget
• Financial Foundation Baby Steps
  • 1. Save $1,000 for your starter emergency fund
  • 2. Pay off all debt (except the house) using the debt snowball
  • 3. Save 3 – 6 months of expenses in a fully funded emergency fund
  • 4 Invest 15% of your household income in retirement
  • 5. Save for your children’s college fund
  • 6. Pay off your home early
  • 7. Build wealth and give
• The Treasure Principle