Planning – Step 1 – Getting in Touch
Financial Assessment-Part 3
Now we are going to finish getting in touch financially. I want you to make a list of all your debts using the form below. Remember what we call these? They are called “liabilities”.
Liabilities………….Monthly Pmt…………..Interest Rt………Paymts Lft……………….Still Owd
Mortgage 1…. $_______ %_____ ________ $______
Mortgage 2…. $_______ %_____ ________ $______
Mortgage 3….. $_______ %_____ ________ $______
Auto loan 1…… $_______ %_____ ________ $______
Auto loan 2……. $_______ %_____ ________ $______
Auto loan 3……. $_______ %_____ ________ $______
Credit Card 1….. $_______ %_____ ________ $______
Credit Card 2….. $_______ %_____ ________ $______
Credit Card 3….. $_______ %_____ ________ $______
Credit Card 4….. $_______ %_____ ________ $______
Credit Card 5….. $_______ %_____ ________ $______
Credit Card 6….. $_______ %_____ ________ $______
Credit Card 7….. $_______ %_____ ________ $______
Credit Card 8….. $_______ %_____ ________ $______
Credit Card 9….. $_______ %_____ ________ $______
Credit Card 10… $_______ %_____ ________ $______
Store Account 1. $_______ %_____ ________ $______
Store Account 2..$_______ %_____ ________ $______
Store Account 3..$_______ %_____ ________ $______
Store Account 4..$_______ %_____ ________ $______
Store Account 5. $_______ %_____ ________ $______
$ Owed to others $_______ %_____ ________ $______
$ Owed to others $_______ %_____ ________ $______
$ Owed to others $_______ %_____ ________ $______
$ Owed to others $_______ %_____ ________ $______
$ Owed to others $_______ %_____ ________ $______
GRAND TOTAL …..……………………………………………………………………….. $______
Just a couple comments before we move on. I left space for only 10 credit cards. If you have more than 10, just improvise and use one of the other lines. Yes, you can have more than 10 credit cards. The largest number I have ever heard is 50 but I suppose there are people with more than that. Secondly, if you use your credit cards or store accounts as a convenience and don’t ordinarily carry a balance, then don’t list them here as a debt/liability. Those expenditures will show up on your cost of living/cash flow statement in the appropriate categories.
Now for the scary part. Go get your total assets figure from last time and subtract from it the total liabilities figure you just calculated. Was your answer positive or negative? If it was positive, PRAISE THE LORD. If it was negative, you are bankrupt or insolvent. That means if we sold all your stuff/possessions/assets we wouldn’t get enough money to pay off all your debts/liabilities. Truly a sad state of affairs.
I don’t think this is the place to preach a full blown sermon on borrowing and lending, but let me say just a few things about it before we move on. I can find no direct/absolute/thus-says-the-Lord prohibition of borrowing in the Bible. However, if you look at it from the perspective of our different roles (God’s role and our individual role) in the economy of the universe, the whole concept of borrowing doesn’t make any sense.
Remember, God is LORD AND MASTER, owner of everything and in control of everything. We are business/financial managers seeking to use God’s resources in the most efficient and effective way possible to accomplish His goals and objectives. Secular managers borrow money all the time as a natural obvious part of their job. However, the question we have to ask is: “Does He (God) need for us to borrow money on His behalf to accomplish His objectives?” I don’t think so. If He needs a particular piece of equipment, or a special building, or a person with specific skills to accomplish one of his objectives, is He able to obtain the equipment, build the building, train the person without borrowing any money? What do you think? I agree! I think Hudson Taylor was right when he said “God’s work, done God’s way, will not lack God’s supply.”
So why do we have all this money borrowed? Why all the credit card dept? Why all the car loans? Why all the student loans? Why all the mortgages? Perhaps you are thinking about all the passages that tell us that God will provide for our needs [Gen 22:14, Matt 6:24-34, Ps 37:25, Heb 13:5, Phil 4:19, 2 Sam 12:7-8, 1 Tim 6:17-19]. If God is so willing to provide for our needs, then doesn’t that free us to provide for all our wants? And oh, by the way, if it weren’t for auto loans, we would all be riding bicycles. If it weren’t for mortgages, we would all be living in tents. If it weren’t for student loans, nobody could go to college. If it weren’t for all these credit cards, we wouldn’t be able to live beyond our means. If we get right down to it and admit the truth, isn’t the basic reason we use credit a timing issue? We are very impatient people; we just can’t wait.
OK, I’ve meddled enough for now. We will return to this issue later. In the mean time, I want you to start thinking about getting out of debt and how you might benefit and how God might benefit.
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Genesis 22:14 Abraham called the name of that place [a]The Lord Will Provide, as it is said to this day, “In the mount of the Lord it will [b]be provided.”(NASB)
Matthew 6:24-34 “No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to one and despise the other. You cannot serve God and [a]wealth)25 “For this reason I say to you, [b]do not be worried about your [c]life, as to what you will eat or what you will drink; nor for your body, as to what you will put on. Is not life more than food, and the body more than clothing? 26 Look at the birds of the [d]air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they? 27 And who of you by being worried can add a single [e]hour to his [f]life? 28 And why are you worried about clothing? Observe how the lilies of the field grow; they do not toil nor do they spin, 29 yet I say to you that not even Solomon in all his glory clothed himself like one of these. 30 But if God so clothes the grass of the field, which is alive today and tomorrow is thrown into the furnace, will He not much more clothe you? You of little faith! 31 Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ 32 For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. 33 But [g]seek first [h]His kingdom and His righteousness, and all these things will be [i]added to you.34 “So do not worry about tomorrow; for tomorrow will [j]care for itself. [k]Each day has enough trouble of its own..(NASB
Psalm 37:25 I have been young and now I am old, Yet I have not seen the righteous forsaken Or his [a]descendants begging bread.(NASB)
Hebrews 13:5 Make sure that your character is free from the love of money, being content with what you have; for He Himself has said, “I will never desert you, nor will I ever forsake you,”(NASB)
Philippians 4:19 And my God will supply [a]all your needs according to His riches in glory in Christ Jesus.(NASB)
2 Samuel 12:7-8 Nathan then said to David, “You are the man! Thus says the Lord God of Israel, ‘It is I who anointed you king over Israel and it is I who delivered you from the hand of Saul. 8 I also gave you your master’s house and your master’s wives into your [a]care, and I gave you the house of Israel and Judah; and if that had been too little, I would have added to you many more things like these!(NASB)
1 Timothy 6:17-19 Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy. 18 Instruct them to do good, to be rich in good [a]works, to be generous and ready to share, 19 storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.(NASB)