Personal

Financial
Management
Bringing It
All Together

Personal Finance Workshops

A. Budgeting and Debt
Reduction
B. Saving and Investing
C. Personal Financial
Management
D. Stewardship
E. Charitable Giving

Our mission today

Financial planning
Overcoming the fear factor!

Building a solid foundation

Where to go for more help

People dont plan to fail..

they fail to plan!
Only 28% of households have a
comprehensive financial plan
Only 19% express an interest in having a
financial plan
Dont understand the value
Dont know what a comprehensive plan is
Believe the cost of having such a plan
developed by a financial professional is high

Did you know?

God provides us with the knowledge and
tools in the bible for sound money
management.
New testament:
215 verses pertaining to faith
218 verses pertaining to salvation

2084 versus dealing with stewardship of and

accountability for money and finance

How do we create a
financial plan?
Define financial
planning
Structure of a sound
financial plan
Commit to action
Who can help?

What is financial planning?

1. Where you are today?

Examine your personal finances

2. Where you want to go?

Define short and long-term goals

3. Creating the plan to get you from

today into tomorrow

Action steps to reach those goals

Your plan will move with you

through the various life stages

Key components of a plan

Speculation

Financial Goals &

Priorities

Protecting
Financial
Security

Speculation

Financial Goals
& Priorities

Protecting
Financial
Security

Key components of a plan

Key components of a plan

Speculation

Financial Goals
& Priorities

Protecting
Financial
Security

Pharaoh's dream
Genesis 41:25-36:
...seven cows, fat and sleek came up out of the Nile;
and they grazed in the marsh grass, seven other
cows came up after them, poor and very ugly and
gaunt; and the lean and ugly cows ate up the first
seven fat cows. Yet when they had devoured them, it
could not be detected that they had devoured them;
for they were just as ugly as before.I saw also in my
dream seven ears, full and good, came up on a single
stalk; and lo, seven ears, withered, thin, and scorched
by the east wind, sprouted up after them; and the thin
ears swallowed the seven good ears.

Risk Management

Long Term Care to preserve

dignity and family ties at old
age (stream of income)

Savings and
Investments for
Retirement Goals,
Education, etc.

Life Insurance for income and estate

protection on death (lump-sum)

Disability Insurance for

income preservation while
living (stream of income)

Life insurance
Financial protection for:
Your family and loved ones
Can supplement lost income
Provide funding for childs
education
Debt relief mortgage, credit
cards
Money for funeral and final
expenses and taxes

Critical Illness Facts

159,900 new
cases of
cancer
diagnosed
and 72,700
deaths in
2007

Over 70,000
heart attacks
in Canada
each year

Statistics Canada, Canadian Cancer Society, Heart and Stroke Foundation

73,000 died
of Heart
Disease and
Stroke in
2003

The need advances in

medicine
We are more likely to survive critical illnesses:

Today 59% of people diagnosed with cancer

will survive as compared to 1 in 3 in the 1960s
80% of heart attack victims survive when
admitted to hospital
75% of stroke victims will survive the initial
event, but 60% will be left with a disability

We are survivors!
Sources: Statistics Canada; Canadian Cancer Society; Heart and Stroke Foundation of Canada

Critical Illness Insurance

Pay the bills and more!

Provides you with options

Allows you to focus on getting well
Eliminates money worries
Return of premium option

Wills and Power of Attorney

A Will helps ensure your personal
wishes are followed. If you own a
personal asset or have children, you
should have a Will.
A property power of attorney will make
financial decisions on your behalf.
A healthcare power of attorney will take
care of your healthcare needs.

Truth about savings and debt

Trend #1: Less Saving
Savings rates: 20.2% in the 1982 to 1.2% in 2005
Half of all Canadians have less than $2500 in
savings

Trend #2: More Debt

Canadians spend, on average 127% of their income
every year
Money is the #1 cause of marital conflict
Source: www.crowncanada.ca / Statistics Canada

Key components of a plan

Speculation

Financial Goals
& Priorities

Protecting
Financial
Security

The Parable of the Talents

Matthew 25:14:
5 talents put his money to work and gained 5 more
2 talents put his money to work and gained 2 more
1 talent went out, dug a hole and hid the money
For the 2 who put the money to work Well done, good and
faithful servant! You have been faithful with a few things. I
will put you in charge of many things.
For the 1 who didnt. Evil and lazy servant!.... Then you
should have deposited my money with the bankers, and on
my return I would have received my money back with
interest!

Wealth creation
The Power of Time
The Power of Compounding
The Importance of Rate of Return

Time, Compounding and Return

Rule of 72

72 / % Interest

Dramatic effect of time, compounding and rate of return.

Your money will approximately DOUBLE at a point in time
determined by dividing 72 by the percent interest you
earn.
2%
4%
6%
8%
10%

Values are for

illustrative
purposes only and
may be subject
to applicable
taxes.

Putting money to work

Who Has More at 65?
Investor A invests
$1,000/year from age 40 to
50 and stops to let it grow

or
Investor B invests
$1,000/year from age 50 to
65?

Retirement savings
Most people begin their career with the hope
of a good retirement. However by age 65:

25% have died

19% have incomes less than $10,000

49% have incomes of $10,000 - $35,000

7% have incomes of over $35,000

Source National Council of Welfare, Canada Customs and Revenue Agency, 2001

If you fail to plan

Inefficient use of resources
Risk of not meeting financial objectives
Unprepared for the storms of life
Pay higher taxes than necessary
Delay retirement; live on less money
May be difficult fulfilling Gods purpose
for your life

Commit to action
Concrete steps for action
Set goals spiritual and practical
Assess current situation
Develop action plans
Put your plan into action
Track your progress
Celebrate your successes

Who can help?

Plans fail for lack of counsel, but with
many advisors they succeed
Proverbs 15:22

Want to go deeper?
To review or start your plan
consider FaithLife Financial
Go Green - www.faithlifefinancial.ca

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