CL Music Initiatives

Wisdom

"The plans of the diligent lead to profit as surely as haste leads to poverty.’” — Book of Proverbs 21:5 “The prudent see danger and take refuge, but the simple keep going and pay the penalty.” – Book of Proverbs 22:3

Overview

Manage income/earnings, needs, savings, investing, debt, insurance, and budgets.

Protect the Bag Budget Example:

Application:

1. If you received $60,000, what would you do with it?
2. Write a letter to your money, your thoughts toward it, and what you think about it.
3. Take some time to look at your expenses. Write down the percentage of where money is currently going: Expenses, Fun, Savings. What sticks out to you?

Other Budget Example:

Start Your Budget Today!

• App: EveryDollar
• Excel: Budget Excel Template
• Printable Paper: Basic Budget

Wisdom

• “Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” - Book of Ecclesiastes 11:1-2

SAVING & INVESTING:

Savings Account:

• ##Same company as your current checking account. (Recommended to start)
• HYSA (High-Yield Savings Accounts)

Investment Companies:

Comparison Chart:

• Charles Schwab
• Fidelity
• Vanguard

Investment Funds:

• Brokerage: Standard brokerage accounts come with more flexibility, but no tax benefits.
• Retirement Accounts: There are many types of retirement accounts, which come with tax benefits but specific rules to follow.
  • Roth IRA
  • Traditional IRA
  • 401K

Insurance:

• HSA (Health Savings Account)
• FSA (Flexible Spending Account)
• Life Insurance

Application:

1. If you received $1,000,000, what would you do with it?
2. What is a goal you have that requires you to "play the long game"?
3. Take some time to look at your expenses. Write down a priority list from most important to least important: Housing, Clothes, Jewelry, Vehicles, Food, Travel, Experiences, Entertainment, Fun, Savings. What sticks out to you?

Wisdom

• “Be sure you know the condition of your flocks, give careful attention to your herds.” – Book of Proverbs 27:23
• “On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.” – Book of 1 Corinthians 16:2

Budgeting Tools:

• App: EveryDollar
• Excel: Budget Excel Template
• Printable Paper: Basic Budget

Application:

1. How much are you spending?
2. Where is every dollar going?
3. Aaron McKie advised Kyle Korver to "Live like a king for a few years, or like a prince for a lifetime." What is one way you can apply that principle?

Wisdom

• “Those who trust in their riches will fall, but the righteous will thrive like a green leaf.” - Book of Proverbs 11:28
• “Like a city whose walls are broken through is a person who lacks self-control.” – Book of Proverbs 25:28
• “The prudent see danger and take refuge, but the simple keep going and pay the penalty.” –Book of Proverbs 27:12

Freeze Your Credit:

Take some time to make accounts and freeze them to protect your identity. Credit Freeze

1. Experian
2. Equifax
3. Transunion

Application:

1. What’s a situation in which you or someone you know was hacked?
2. What did you experience when you lost something in the past?
3. Where do you store your passwords or other sensitive information?

Wisdom

• “The rich rule over the poor, and the borrower is the slave of the lender.” - Book of Proverbs 22:7
• “Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe. By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.” – Book of Proverbs 24:3-4

Resolving Debt:

"There is no bag if it is owned by someone else."

Debt Repayment Strategies:

• Avalanche = pay off highest rate first
• pay less interest overall
• Snowball = pay off smallest to largest
• gain momentum and keep motivation

Debt Management Programs:

National Foundation of Credit Counseling

Application:

1. What percentages are you able to set aside?
2. How fast do you choose to purchase items?
3. If you were given $5,000,000 dollars, what would you do?

Wisdom

• “The rich rule over the poor, and the borrower is the slave of the lender.” - Book of Proverbs 22:7
• “Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” - Book of Proverbs 21:5

Reflect

1. Do you have $1,000 saved in an emergency fund?
2. Are you in debt?
3. Do you have 3-6 months of expenses saved?
4. Do you want kids? Do you want those kids to have access to opportunities?
5. Do you want to own a house?
6. Where do you invest?
7. Where do you give generously?

Wisdom

• “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” - Book of Proverbs 13:11
• “Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” - Book of Ecclesiastes 11:1-2
• “The lambs will provide you with clothing, and the goats with the price of a field.” – Book of Proverbs 27:26.

"Growing the Bag"

• Stocks: own part of a company
• Bonds: lend money to a company
• Funds: join forces to buy stocks

Investing Strategy

• 3rd stocks
• 3rd real estate
• 3rd bonds

Examples of Investment Funds and Applications:

Comparison Chart

• Charles Schwab
• Fidelity
• Vanguard

Applications

• Acorns
• Robinhood

Application:

1. Do you have money you can "forget about"?
2. Do you have any debt?
3. Is there anything you can do to "delay your gratification"?
4. What is one company you know about or value? Where are they positioned in the stock market?
5. What do you think about diversification? Have you heard of one-third stocks, one-third real estate, and one-third bonds before? What other methods have you heard of?
6. If you were given $5,000,000, what would you do with it?

Wisdom

• “The way of a fool is right in his own eyes, but a wise man listens to advice.” - Book of Proverbs 12:15
• “Where there is no guidance, a people falls, but in an abundance of counselors there is safety.” - Book of Proverbs 11:14
• “Listen to advice and accept instruction, that you may gain wisdom in the future.” - Book of Proverbs 19:20

Reflect

1. What are the differences between stocks, bonds, and mutual funds?
2. What area of the marketplace are you most interested in or aware of?
3. What steps do you need to take to be able to start investing?