80% 62% $500 29: 11 (NIV)

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1 Proverbs 21: 5 (NIV) The plans of the diligent lead only to profit as surely as haste leads to poverty (Amp) The thoughts of the [steadily] diligent tend only to plenteousness, but everyone who is impatient and hasty hastens only to want

2 About 80% of new business ventures fail About 62% of Americans do not have enough cash set aside for a $500 car repair bill Leading cause by far is the failure to adequately plan If you fail to plan, you are actually planning by default to fail Jeremiah 29: 11 (NIV) For I know the plans I have for you, declares The Lord, plans to prosper you and not to harm you, plans to give you hope and a future.

3 In the world of the Spirit, our critical planning is done in prayer (communion with Him) Leading cause of failure by far in the Spirit is not spending adequate time in prayer When this happens, we are open for the thief who kills, steals and destroys Always set time aside to pray Always take pen and paper with you to write down anything the Lord gives you

4 A plan Is a method for achieving an end vision/purpose) Is a detailed formulation of a program of action Is an orderly arrangement of parts of an overall design or objective Takes aim at the vision

5 A plan requires Careful and detailed formulation with the end in mind (the end in mind is the vision) Commitment to implement and follow through A driving desire to change Diligence and perseverance Isaiah 46: 10 (NKJV) Declaring the end from the beginning, And from ancient times things that are not yet done, Saying, My counsel shall stand, And I will do all My pleasure

6 If we know the vision is from God, then He is looking for us to be in motion and He will cause us to line up with Him as long as we are sensitive to Him Proverbs 16: 3 (Amp) Roll your works upon the Lord [commit and trust them wholly to Him; He will cause your thoughts to become agreeable to His will, and] so shall your plans be established and succeed

7 In order to construct an effective financial plan, we must address both the natural and the supernatural - attacking in two realms Citizens of Heaven Children of the King Operating in this world

8 Part of planning is putting first things first establishing priorities Proverbs 24: 27 (Amp) [Put first things first] Prepare your work outside and get it ready for yourself in the field; and afterward build your house and establish a home.

9 We will examine three types of plans Plan for where you are Plan for the overflow Plan for the harvest (achievement of the vision)

10 Step 1. Plan for where you are Utilize a budget to Establish priorities You are in charge of your money Set a framework (not a straight jacket) around your finances Provide basis for plans for overflow and for achieving harvest (vision) Provide educational opportunities to other members of the family

11 If it is an ugly picture, just need to face the facts Abraham faced the fact that his body was as good as dead and the deadness of Sarah s womb The first step of faith is to face the facts If you don t deal with it, it will deal with you Pray in the Spirit before, during and after to get you through Don t be embarrassed - I ve been there too!

12 How do I start planning for where I am? Determine your income If you are an employee, then it is your net take home pay Self employed can use prior year average unless significant seasonality involved If seasonal income, then average for that particular season you are working on

13 Determine the breakeven point How much money has to come into the household to meet all payment obligations (have nothing left over) The point of just enough to sustain life Include the tithe but not offerings Include all debt payments (will cover later) Include cost of place to live, vehicle to drive, groceries, insurance and other living expenses Include basic clothing allowances Write all of it down and add it up

14 The difference between your monthly income and your breakeven point is overflow (hopefully it is positive) If it is negative or an Underflow, hang on because there is hope Let s break it down into a simple formula Ingo - Outgo = Overflow

15 Income 3,650 Expenses: Tithe 470 House (including insurance/taxes) 1,100 Utilities 400 Credit cards 500 Car 350 Gas and insurance 300 Groceries/other 400 Breakeven point 3,520 Overflow 130

16 Can we reduce the breakeven point? Let s look for opportunities House Refinancing opportunities to reduce interest costs Do you have too much house? Auto and Homeowners Insurance Required and important Shop around for lower rates Increase deductible if money in savings account to cover

17 Utilities Plan for Success Utility companies will do an energy audit of your home and make suggestions Lights, thermostats and phones, wi-fi/internet services, televisions Security services Credit Cards Rollover to lower rate cards Build savings to reduce reliance on credit cards (will cover in detail later)

18 Groceries Shop around - much competition Change diet Are you eating out too much? Plan for Success Should be at least an annual review of your expenses to determine if you can do better

19 It works that way on paper, but why don t I ever have any money left over? There are leaks in the boat Can you document where every cent of your money goes? Many people carry cash with them and don t remember at all where it went

20 Take the cash flow challenge For a two week period, carry a pen and a little notebook or input it into your phone recording each time you purchase something using cash Write down the date, the items purchased and the amount At the end of two weeks, look over the list and see how much you re spending on various items

21 Cash flow challenge 1/4 Pizza $10 1/6 Movie $12 1/7 Lunch 8 1/7 Parking 6 1/8 Lunch 8 1/9 Church activity 10 1/10 Burger 6 1/12 Gas 25 Total $85

22 Are there any opportunities to reduce the amounts and channel that money into an Overflow plan? Is there any waste? Continue for a longer period of time I have known several people that took me up on this challenge - they were amazed at the amount of money they were actually spending on various things most of them made changes

23 Cash flow challenge 1/4 Pizza $10 1. Carry less cash 1/6 Movie $12 2. Eat out less 1/7 Lunch 8 3. Bring lunch or fast 1/7 Parking 6 and read my Bible 1/8 Lunch 8 4. Rent DVDs 1/9 Church act Put difference into 1/10 Burger 6 savings ($30) 1/12 Gas 25 Total $85

24 Step 2. Plan for the Overflow Overflow is any money that is above and beyond breakeven What would you do with any extra money you may have now or in the future??????????? What would you do if God told you He wanted to give you a million dollars but He first wanted to see your plan?

25 Many fail to receive what they are asking for because they lack a formalized plan to go forward with God is a good steward and expects us to be good stewards also God is also interested in increasing fruit production John 15: 2 (NKJV) Every branch in Me that does not bear fruit He takes away: and every branch that bears fruit, He prunes, that it may bear more fruit.

26 Planning for the overflow is preparing yourself to receive the initial stages of visions Remember in the parable of the talents, they went immediately and invested the money - they had a plan to receive Always be ready to receive and act on what you are believing God for

27 Step 1. Determine critical areas you would like to have money for that would help achieve your visions - Recommend not listing over five areas (each of these areas can have plans attached to them) Keep it simple Step 2. Assign percentages to each area with all of them combined adding up to 100% Step 3. Allocate overflow dollars using these percentages

28 Example of Plan for the Overflow Plan for Success Percent Dollars Overflow 130 Offerings 25% 33 Savings 25% 33 Debt reduction 25% 33 Me 25% 31 All additional income would be distributed using the percentages

29 Now let s link our visions and our plans Review your vision statements and look for items in your monthly budget that would relate to the vision For example, the debt payments would relate to a vision statement about being debt free Any tithes and offerings would relate to a vision statement about being a giver

30 Income 3,650 C Overflow 130 Expenses: Tithe 470 B Offerings 33 B House 1,100 A Savings 33 C Utilities 400 Debt 33 A Credit cards 500 A Me 31 Car 350 A Gas and insurance 300 Groceries/other 400 Breakeven point 3,520 Overflow 130 Visions A. I am debt free B. Give $1,000 per month C. Income of $50,000 per month

31 Step 1. Plan for party and celebration when I become debt free How would you act if you could burn up all your debts including your mortgage????? Step 2. Establish a plan to distribute the cash previously paid on debt payments using an overflow approach such as (for example) Offerings 25% Savings 25% Investments 25% Me 25%

32 Step 3. Plan for the harvest (achievement of the vision) What are you going to do when the money comes in? Mark 11: 24 (NKJV) Therefore I say to you, whatever things you ask when you pray, believe that you receive them, and you will have them.

33 Step 4. Establish new visions and targets Genesis 12: 2 3 (NKJV) I will make you a great nation; I will bless you and make your name great; and you shall be a blessing. I will bless those who bless you, and I will curse him who curses you; And in you all the families of the earth shall be blessed. Psalm 2: 8 (NKJV) Ask of Me, and I will give You The nations for Your inheritance, and the ends of the earth for Your possession

34 Now it is your turn to determine Breakeven point Attack your breakeven point Implement the cash flow challenge Construct your overflow plan Link your visions and plans Plan for the achievement of the visions Develop new visions and targets Faith with corresponding action James 2: 18 (NKJV) and I will show you my faith by my works.