Moving at the Speed of Creativity

Moving at the Speed of Creativity by Wesley Fryer

Super Savers

Dave Ramsey
Financial Peace University
Session 1: Super Savers

This is a Wednesday night class we are taking this fall at our church

have to let your desire to save money overcome your want to spend it

Savings must become a priority: must learn to pay yourself first
– give, save, and then pay bills
– if you don’t make savings a priority, do it first, you are likely to not do it

Average Japanese family is saving 18.2% of income, US has negative savings rate (-2.2%)

for thinking of saving for your children: think of needing a $10K vaccine in the next 9 months to save our children
– point is: when savings becomes important enough, we can do it
– we have a whole generation moving toward retirement that are counting on social security
– mathematics of social security is a done deal: if you can do 4th grade compound interest, you can see why the system is working

You have to make a DECISION to save money (get EMOTIONAL about it)

money is amoral: it doesn’t have morals
– Bible doesn’t say money is the root of all evil, it says the LOVE of money is the root of all evil

When you place money in the hands of people, it starts to take on the char

difference between hoarding and savings is attitude

3 basic reasons to save
1- for an emergency fund
2- for purchases (don’t ask how much down, ask how much: if you can’t afford to buy it, you are not ready to buy it)
3- Wealth building (for your good, your children and family’s good, and the good of others)

Proverbs 21:20
– wise people save money
– if you spend everything you make, you are a fool (God said this, don’t get mad at Dave)

money is for fun, giving, and growing things
– money is a blast but don’t get confused, it is not just to be hoarded and held

better start RIGHT NOW savings
– chart of ben and arthur saving
http://www.coeinc.org/AllSections/LongTermSubSections/BasicsofInvesting.htm

Col Sanders didn’t start KFC till 67
– Michaelangelo was 72 when he painted the Cistine Chapel

1st thing to save for: an emergency fund
– GOK fund: “God Only Knows”
– you need an umbrella, unexpected events will come!
– 8 out of 10 people will have a major financial event every 10 years

Step 1:
– $1000 in the bank
– do this before you do anything else, you have to have a cushion
– when you do this right, you end up with 3-6 months of personal expenses (10-15K), that is coming up as step 3
– don’t mess with this money, it is not a furniture fund, it is for emergencies only
– best placed in a money market account, paying 5-6%, get check writing abilities
– this account is for protection only, do not TOUCH this fund for anything, this is an insurance policy against life

it is great when you have a life crisis and you don’t have a money crisis
– wouldn’t it be different to be in control

emergency fund is murphy repellant
– when you have 5-7K just lying around, murphy leaves
– murphy will leave you alone
– it will get rid of your bad luck
– it changes the way you look at this stuff permanently

STEP 2
– use mony
– 78% 90 days same as cash ends up on a great deal for the finance companies
– if you play with snakes you are going to get bit, don’t play 90 days same as cash
– you end up with 24% interest

When you go in a furniture store with $100 bills, you get good deals
– you can buy a $4000 dining room suit with $3800

If you want to buy a $5000 car, start saving $500 per month
– then pay cash and get a great deal

1 definition of maturity: learning to delay pleasure
– children do what feels good
– adults devise a plan and follow it

Later we will have an entire session on investing, another on retirement planning
– when it comes to saving long term, it doesn’t matter until you do it

We are talking about the dirty word: DISCIPLINE
– discipline is not in my nature
– a real good way to get what I want is with discipline

goal is to be faithful over time
– keep doing it over time, over and over
– saving is every month, no matter what happens, every month
— that is the real hard part: consistent over time

Save $100 per month for 40 years age 25 to 65
– then you’d have $1,176,477 at 12% interest

it was 15 years ago when Dave went broke

A little bit steady makes a lot
– don’t let the lack of money manage you
– the marathoners win, the sprinters lose

The average millionaire takes 15-17 years to build their wealth

pre-authorized checking drafts can help you have instant discipline
– automatically move that money into your money market account

compound interest is a mathematical explosion
– you can choose to either take advantage of this, or it will always take advantage of you
– look at your mortgage payments, the snowball is rolling
– you can either push it (save) or run from it (debt)

interest makes a big difference
– John Wesley: Save all you can, give all you can

compound interest is a geometric progression: it grows on a curve
– interest rate doubling does not mean money at the end doubles: it increases big time

Do NOT use your credit cards for an emergency

often life happens without a plan, and we let visa catch up our slack

every time you don’t spend 18%
– you have got to make a decision to be DONE with the stupidity

Next step: save up and pay for it
– you don’t DESERVE something just because you are sucking wind

Third thing: really do the wealth building
– scripture says this: if you spend everything

Average college student graduates with over 15K in student loans and 7K in credit card debt

Proverbs 21:20 (New International Version)
In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.

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