Achieve Financial Freedom: Mastering Cash Flow and Spending Plans

1. Get Financial Controlwww.getfinancialcontrol.net The CFO – Cash Flow Options to Financial Freedom Author: Vonda Ashley

2. Instructions • Open the Excel file • A written instruction page in located on the first tab at the bottom of the screen or you can follow these slides

3. Preparations Tab List monthly net income

4. Income Amount - CRITICAL • Use base pay, not commissions (if applicable) • Use a consistent salary • Don’t add bonuses until they’re in the bank

5. Inconsistent Income • Real estate agents – know how many houses you need to sell in a 3 month period • Insurance Agents – know how many policies you need to sell within a 3 month period • Be accountable for that income

6. List Un-Negotiable Bills Place the AMOUNT due in the WHEN due column

7. List Manageable Expenditures Necessary but “manageable” (when/how much is purchased)

8. List Annual Bills

9. List Optional Purchases

10. List outstanding debts • #1 GOAL – Get out of debt • #2 GOAL – Stay out of debt

11. List outstanding debts • Complete a debt sheet for each debt owed • Sort by amount – smallest to largest • Pay off smallest debt 1st • Use the payment you were paying for that and put towards the next smallest debt and so on

12. Create a Spending Plan • Choose the pay cycle for your household

13. Complete the Spreadsheet • Open the Spreadsheet. Place curser here to add income.

14. Enter the Household Income • Enter the household income using the last check of the month as the first check of the following month Example: Dec 31 paycheck is entered as January income

15. What if that money is spent? • This step is critical or you’ll always be playing ‘catch up’! • Figure out how much of next month’s money you’ve already spent • Find things you can cut back or cut out until you can get “caught up”

16. Look at the “Little Things” • Gum, mints, bottled water • Starbuck’s - $5.00 per day, 5 days a week = $25 a week= $100 per month • Little things add up – watch your cash! • Eat at home instead of eating out - HUGE

17. Adjusting your food budget • Probably the easiest to do and gets the quickest results. Full family meals less than $10.00 • Hamburger helper • Beans and cornbread • Chili • Spaghetti • Soup • Broccoli Chicken Alfredo • Bacon and Eggs or Sausage

18. Complete the Spreadsheet • Fill in the first column. Copy (Ctrl C) and Paste (Ctrl V) to the end of the year.

19. The Next 5 Slides • The next four slides are for those who really want to prosper and not always have a “just getting by” attitude • If you are offended by the Holy Bible and doing things God’s way, skip to slide 30 • If you want a proven way to be successful, continue to the next slide

20. Doing it God’s Way • Tithing is not optional according to Malachi 3: 8-12 • 90% blessed will go farther than 100% unblessed • God gave you the ability to learn and receive knowledge • Without HIM you can do nothing • The first 10% isn’t yours – it’s HIS • You don’t tell Uncle Sam you “can’t afford to pay him”

21. TITHING, SEED, TIME, HARVEST • Tithing is a heart, obedience, and priority issue, not a financial one • God is your source • He uses Seed, Time, and Harvest to multiply His own Kingdom (Mark 4:30, 32) • GALATIANS 6:7 NIV “Do not be deceived: God cannot be mocked. A man reaps what he sows.”

22. Become a Giver • 2 CORINTHIANS 9:6 NIV “Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” • LUKE 6:38 NLT “Give, and you will receive. Your gift will return to you in full -- pressed down, shaken together to make room for more, running over, and poured into your lap. The amount you give will determine the amount you get back."

23. Tithe Amount • Gross vs Net? – Which do you want to be blessed on? • It’s not yours anyway, it belongs to God

24. Tithe Amount • Enter your Tithe for the year on the spreadsheet • Add a line for sowing into a ministry or someone’s life and plan to give

25. Add monthly bills by due date • Using the info from the Preparations Tab, add monthly bills in the first column • Start with Non-negotiable items

26. Add monthly bills by due date • Add manageable bills • Be sure to include credit card balances – use minimum payment due if necessary

27. Add monthly bills by due date • Add a few blank rows for add-ins • Insert rows ABOVE the bottom row of the section • Be sure to copy the formula down to the bottom row

28. Add monthly bills by due date • Add optional items

29. Add monthly bills by due date • Use separate entries if necessary

30. Copy • Copy ONLY the “ITEM” and “AMOUNT” columns • DO NOT copy over the cells containing a zero. These cells contain formulas to make the spreadsheet work.

31. Paste • Paste the information into each month

32. Add Annual Expenses • Enter any annual expenses in the appropriate month • Rows may be added but the formula must be copied to the added cells

33. Add Optional Expenses • Enter any optional expenses in the appropriate month (AAA membership) • Rows may be added but the formula must be copied to the added cells

34. Add Previous Balance • Enter amount from checkbook to first month

35. How to Use the Tool • It becomes an electronic copy of the check register • Adjustments are made on the tool when a bill is paid to reflect the actual amount paid • All purchases are listed on the spreadsheet unless a minimum balance on a credit card is used • If there are minus signs indicating a negative balance, the expenditures are more than the income and adjustments must be made

36. Adjustments • Work with lenders to determine a reasonable monthly payment • Change where you shop for groceries • Use coupons • Buy smaller quantities • Plan what you will buy (see grocery list) • Adjust lifestyle to fit your means

37. Bottom Line • Know where your money is going • Know if you can afford something before purchasing • Plan for the things you really want • Manage your money • Set priorities and choose how to spend your money

38. Priorities • God first – Tithe • Bills come before pleasure • Save for what you want • Make credit work FOR you

39. Manage your Credit Cards • Credit card bill is paid off for the month. There’s still a balance on it. Add it to next month. • Don’t put more on the card than you can pay off next month

40. More than One Credit Card • Make sure they don’t have the same billing cycle so you can be sure you have the resources to pay them off each billing cycle

41. Look Ahead • I’m trying to pay off the car early so I see how much extra I can pay on the car. Wow! We will have an extra $2,000. That’s great!

42. If I Pay the Extra • In 3 months – negative $44.

43. How did it happen? • It’s tax time and we had to pay the Accountant. • The life insurance policy was due • The annual credit card fee was added in • The annual AAA dues were paid • We had extra gas this month because….. • We had five weeks of groceries this month

44. The CFO – Cash Flow Options • This tool works! • You CAN enjoy things • Just make EVERY financial decision using this tool

45. The CFO – Cash Flow Options • Plan for special events and vacation • Save for large purchases and emergencies • Set your priorities • Make wise financial decisions based on your income

46. Enjoy living Debt Free - God’s Way • Malachi 3:8-12 • Deuteronomy 28:1-14 • Proverbs 22:4 • Proverbs 22:9