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A Message From Buffy: Dear Friend,   It is our desire that all be debt free. Please use this tool to assist you to achieve that goal, so that you can be all that God wants you to be.   Our quest is to share the gospel of Jesus Christ and equip His people. Therefore, we strive to present the Word of God through various forms of media enabling you to receive what you need for your salvation, but also for your spiritual growth.   For the church, we trust that these teaching and training tools will richly bless, edify and minister to every believer.   May God Richly Bless You!     In His Service, for His Glory,                                                                                       Buffy St. John

Contents TABLE OF CONTENTS                 FINANCIAL FREEDOM……………...................………. 2   DEBT FREE LIVING………………...........................……5   BUDGET FORMS…………………………………....……10   UNDERSTANDING AMORTIZATION TABLES…….....12   TAX SEASON POINTS TO CHECK AND CONSIDER…14         For a complete catalog of resources available please contact us.     Published by:       Declare The Word International Buffy St. John Ministries P.O. Box 1695 Springfield, MO. 65801                                                                       www.declaretheword.com   Copyright 2007 All Rights Reserved

Financial Freedom Every spending decision is a Spiritual decision           THE PROBLEM: a.         Generational – look to how your parents handled money b.         Unprepared for retirement c.         Too wise in our own eyes d.         Want in three years what it took our parents a lifetime to acquire e.         Instant gratification     THE SOLUTION:      Romans 12:1-2 1  I beseech you therefore, brethren, by the mercies of God, that         ye present your bodies a living sacrifice, holy, acceptable unto    God, which is your reasonable service. 2  And be not conformed to this world: but be ye transformed by     the renewing of your mind, that ye may prove what is that      good, and acceptable, and perfect, will of God.   a.         Our attitude must be right before God b.         Don’t conform to the patterns of the world             1.         debt and no savings             2.         credit card debt             3.         buy now pay later   Isaiah 55: 8-9  8  For my thoughts are not your thoughts, neither are your ways my ways, saith the LORD. 9  For as the heavens are higher than the earth, so are my ways higher than your ways, and my thoughts than your thoughts.   Deuteronomy 8:18   18  But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day. Proverb 13:4   4  The soul of the sluggard desireth, and hath nothing: but the soul of the diligent shall be made fat.   Philippians 4:12-13   12  I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need. 13  I can do all things through Christ which strengtheneth me.   Psalm 50: 10, 12 10  For every beast of the forest is mine, and the cattle upon a thousand hills. 12  If I were hungry, I would not tell thee: for the world is mine, and the fulness thereof.     BUDGET: A budget is NOT :  a ball and chain A budget is:   a Plan A budget is:   a means to achieve our prayerfully considered goals.  A budget is:   a necessity     TIPS ON SETTING A BUDGET: Numbers 30:2 2  If a man vow a vow unto the LORD, or swear an oath to bind his soul with a bond; he shall not break his word, he shall do according to all that proceedeth out of his mouth.   1.         Gather info; set goals 2.         Keep a spending diary 3.         Set up a budget             a.         Envelope method (cash for groceries, fuel, etc.)             b.         Cash spending instead of checks or credit 4.         Budget review     SIX CATEGORIES INTO WHICH ALL MONIES FALL:   1.         INCOME : God’s provision for our lives             Deuteronomy 8:18 18  But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day.   2.         GIVING: Put first - God’s things and He will provide             Matthew 6:1-4, also 5-34 1   Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven. 2  Therefore when thou doest thine alms, do not sound a trumpet before thee, as the hypocrites do in the synagogues and in the streets, that they may have glory of men. Verily I say unto you, They have their reward. 3  But when thou doest alms, let not thy left hand know what thy right hand doeth: 4  That thine alms may be in secret: and thy Father which seeth in secret himself shall reward thee openly.   Further scripture readings: Haggai 1:2-11 Malachi 3:6-12             Proverb 3:9-10   3.         TAXES  -  must be paid - no if ands or buts             Matthew 22:17-21 17  Tell us therefore, What thinkest thou? Is it lawful to give tribute unto Caesar, or not? 18  But Jesus perceived their wickedness, and said, Why tempt ye me, ye hypocrites? 19  Shew me the tribute money. And they brought unto him a penny.            20  And he saith unto them, Whose is this image and superscription?            21  They say unto him, Caesar’s. Then saith he unto them, Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.           22  When they had heard these words, they marvelled, and left him, and went their way.   4.   SAVINGS  -  Margin Proverb 21:20       There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.     Proverb 13:11b … but he that gathereth by labour shall increase.   5.   DEBT  REPAYMENT       Proverb 22:7       The rich ruleth over the poor, and the borrower is servant to the lender.   6.  LIFE STYLE:  - living expenses (the only negotiable item)             A.        Rent or Mortgage             B.         Grocery a.         loss leaders – discount stores, damaged freight                         b.         coupons                         c.         rebates d.         determine your costly items and find ways to cut down on these costs                                     1.         breakfast cereals                                     2.         baby foods                                     3.         diapers & baby wipes                                     4.         juice boxes                                     5.         salad dressings                                     6.         cookies                                     7.         milk                                     8.         pizza – especially take out                                     9.         cleaning supplies             C.         Gifts             D.        Christmas E.         Children’s clothing and toys – shop at garage sales, Goodwill, Salvation Army, DAV F.         Gym – if unaffordable, don’t forget, exercise can be free G.         Hair –consider a lower maintenance style, i.e. skip the chemical treatments. H.        Auto Insurance –shop around. Consider a higher deductible. I.          Bartering –exchange services, or even do toy or video swap with friends.       If you have debt, ACT like it. Don’t pretend that its not there. God doesn’t want his people to be in debt.   Read Deuteronomy 15:6 (lend and not borrow)     TYPICAL CREDIT CARD DEBT:   Purchased:        Sofa Price:                $1000 Interest:            18% Payment:          approximately $20 per month minimum   The above debt on one piece of furniture will take 8 years to pay in full, if minimum payments are made, costing a total of $1809. And this is assuming that during that eight years you do not buy anything else on credit!       NEVER MAKE MINIMUM PAYMENT ON DEBT!!! Singles & Couples: live a lifestyle that requires a budget!

Debt Free Living Plan   Before you get started – PRAY. If you are COMMITTED, you will SUCCEED!   IF YOU TAKE YOUR CREDIT CARD OUT OF YOUR WALLET, YOU ARE SPENDING NOT SAVING. IT DOESN’T MATTER WHAT A GREAT DEAL IT IS!   If you want to know how much that suit is worth, just go to the thrift shop and see what it sells for.   Habakkuk 2:2 Write the vision and make it plain     SET GOALS:   One of the many reasons that people fail to stay out of debt is that they don’t have goals. The human being can put up with practically anything if   1.         there is a time limit 2.         there is a purpose 3.         there is a plan   What do you want to accomplish? By when?  How will you do it?   Let’s say you want to be debt free, have money in a mutual fund and have a down payment for a house.  Those are three goals. In the following pages I’ll give you the steps to accomplish that. So… what are your goals?   GOALS     GOAL                                                BY WHEN                                          HOW ?     Buying a house?  You’ll probably need to have 20% of sale price as a down payment plus closing costs. It is good to have another five to ten thousands dollars for repairs, furniture, emergencies, etc.   There are a number of ways to start this plan but I decided to use the following excerpt from my book Declare The Word. The Lord said we are to be lenders not borrowers.   Deuteronomy15:6 For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee.   Romans 3:4 Let God be true, but every man a liar.   When we disagree with God, we disregard the truth; we try to destroy the system that He has put into place for a reason and a purpose. We upset the apple cart. What we consider fair and just, will eventually turn into pain and confusion. God will not bow Himself to our whims, desires and ways of thinking. We must subject ourselves to His standards and His will for us.   God wants absolute obedience, not just mere empty words or a half hearted commitment based on fear of punishment. There are many examples of obedience in the Bible. Abraham obeyed God to the point of almost sacrificing his own son, even though God promised that this son was the son of the promise to make him a great nation. When he laid Isaac on the alter and pulled back his hand to kill him, he still knew that God was God and what He promised was truth. Abraham knew that God would work it out and that He would provide; and as we see God provided a ram for the sacrifice and spared Isaac.   Let’s get a revelation here. This is key; When you focus on His promises and His love for you instead of your sacrifice or what you have to give up, then He will provide and you can move forward. (excerpt Declare The Word).   The road to obedience is not an easy one. It means that we will have to discipline our eyes, minds, and our soul (mind, will and emotions). We are constantly being bombarded by temptations to buy; whether via the media or through our pride in keeping up with the Joneses or by maintaining a self indulgent life style.   How we relate to money says a lot about our relationship with God and attitude towards God about money. Here are a couple of examples.   How we see money                                                                  Our selfish attitude toward God I earned it and it is mine to spend as I wish If I work for God; I get blessed. (we act as if He owes us something) I’m entitled to have nice things.   I want…. Give me….. I need….. It’s my money   I pay my tithe (don’t ask for more)   I can offer a whole case for the Lord but I would just recommend your read “Putting God First” from the Declare The Word book.   Right now I’d like to get to the applicable side of Debt Free Living. I will be providing templates and tables to help you get started. You’ll need a pen/pencil and a calculator.

Debt/Expenses Step 1:             List all your credit card debts Step 2:             List all outstanding loans Step 3:             List all monthly bills (rent, utilities, car payments, etc.) Step 4:             List your spending habits (restaurants, cleaners, coffee shops, books, etc.)     CREDIT CARD                     AMOUNT OWED                              INTEREST (APR)                             TOTAL OWED:         OUTSTANDING LOANS                  AMOUNT OWED                              INTEREST                             TOTAL OWED:                 LIVING EXPENSES (Monthly Bills):                                       PAYMENT:   RENT/ MORTGAGE   PROPERTY TAX   PROPERTY INSURANCE (RENTER’S)   ELECTRIC (utilities) *   GAS              (utilities) *   WATER       (utilities) *   SEWER        (utilities) *   TELEPHONE   CELL PHONE   CABLE   GROCERIES   AUTO PAYMENT   AUTO FUEL   VEHICLE INSURANCE   AUTO REPAIR **   DOCTORS   MEDICATIONS   SUBSCRIPTIONS-magazines, newspapers   WIFE ALLOWANCE   HUSBAND ALLOWANCE   PET FOOD & VET                                   TOTAL MONTHLY EXPENSES:   * Utilities are sometimes billed as a complete package and paid as one bill   ** Auto Repair is calculated by totaling all repair and maintenance for the past year and dividing by 12 and that will be you monthly debt. You must put that away and use it only for maintenance. Think of it as an account for your car; add a bit more a month and you can buy another car in cash (it’s not unreasonable, my mom did it)   You have just listed all your debts and bills. That was the easy part; now comes the hard part.   In order to make this work you will have to be committed to give up frivolous spending; cut up  credit cards; change lifestyle; put God first; and give Him reign in your life and be willing to obey Him.   Let’s get started on the road to Debt Free Living:

Income LIST YOUR MONTHLY or WEEKLY INCOME:   Head of Household                             Spouse’s Wages                                 Other Income                                                             (if applicable)                                      (if applicable)   TOTAL COMBINED INCOME:   At this point I would have to advise that you total your living expenses and subtract the total from the total income amount. If you have multiple incomes; is it possible to live off of one pay check (pay all living expenses from one check)? This does not include the credit cards.   The balance of your income after living expenses is what will be applied to paying off the credit card debt and reaching your goals (i.e. house, vacations, car, etc.)         THE CRITICAL STEP!   SAVE ONE CREDIT CARD (emergency card) AND CUT UP THE OTHER CREDIT CARDS!   As you pay off a card – close the account. DO NOT keep it open, this will help you stay debt free.   Individual allotments (allowances) are a privilege for coffee, misc. They are not a right. If married, remember it took two people to get into debt and it will take two committed people to get out of debt. During this time no frivolous spending is allowed.   If your budget can afford restaurants and movies curtail this to once a month and combined it should be less than $50 total. (Use creativity like ordering take-out; making popcorn and having a movie night at home)   No new subscriptions allowed; but plenty of ingenuity in spending your individual allotment is encouraged. (Recommended allowance $25 monthly for each spouse).   May God Bless You as you step out into DEBT FREE LIVING.

Budget Forms MONTHLY LIVING EXPENSE BUDGET PAGE (print one out for each month)   MONTH:_____________________________            Debt:                                                    Payment                                   Balance Due Tithe (10% of the Gross)   None SAVINGS (10% of the Gross) *   None Offerings   None Mortgage/Rent     Property/Renter’s Insurance     Property Taxes     Electric     Gas     Water     Sewer     Telephone     Cell Phones     Cable TV     Groceries     Auto Fuel     Auto Repair     Auto Insurance     Medications     Doctor Visits     Subscriptions     Pet Food     Vet                       American Express     Discover     Mastercard     Visa                                                                   * We tithe on the gross because we benefit from the taxes that are taken out for roadways, city services, police, fire, schools, etc. (the gross is what we really earn).       MONTHLY LIVING EXPENSE BUDGET PAGE  2 (Additional space for items not listed previously)   MONTH:_____________________________            Debt:                                             Payment                                   Balance Due

Amortization Tables UNDERSTAND AMORTIZATION TABLES: (a bankers secret – pay extra principal payments)       HOME MORTGAGE (Example)   Principle: $150,000 Interest:  8% fixed Term:   30 years Monthly payment = $1100.65                Payment #                  Principal          Interest          Loan Balance 1 100.65 1000.00 149,899.35 2 101.32 999.33 149,798.03 3 102.00 998.65 149,696.03 4 102.68 997.97 149,593.35 5 103.36 997.29 149,489.99 6 104.05 996.60 149,385.94                 357 1071.81 28.84 3254.25 358 1078.95 21.70 2175.30 359 1086.15 14.50 1089.15 360 1089.15 7.26 0.00         If you pay your monthly house payment of $1100.65 and added an extra prepayment of $100.00 a month to your principle balance; when the loan is completed, extra principal payments reduce the length of the loan and the amount of the overall interest paid.   You could not only pay off your house quicker but save thousands of dollars that would have gone to pay the interest on the loan. (Remember the bank takes out their interest first, which is how they make their money).        Question:  Why bother to make prepayments on a home mortgage? Most people don’t stay in their first home for more than 5 – 7 years.     Answer:            I.          7 years in this home mortgage             No pre-payments made             Amount of loan (principle) paid off = $11,284   (If you sell your home for only $150,000 your equity would be $11,284).   Equity can be used as a down payment on your next home.   II.         7 years in this home mortgage             1 extra $100 “principal only” payment made each month             Amount of loan (principal) paid off = $19,684     Note: The extra $8,400.00 used to reduce mortgage principle would be better utilized in paying off higher interest credit card loans first, or perhaps in building an investment account.   Remember, equity in a home is built by principal reduction as well as increased market value. Perhaps some of the $8,400.00 can be invested in home improvements which would enhance its value.

Taxes   TAX SEASON POINTS TO CHECK AND CONSIDER To gain the most from your tax preparation always remember:  1.         An important and often disastrous item overlooked is the correct beneficiary on all insurance policies, retirement funds (current and previous employers), real estate holdings, business ownerships, savings and checking accounts, automobile titles, and safe deposit boxes. 2.         Check for individuals that may now qualify as dependents who did not, or could not, in prior years. 3.         Verify the mileage you drove for business, ministry, charitable, and medical as the rates go up. 4.         Check your long-term health insurance coverage through your employer. If you do not have any coverage at all, get some. Medicare will only pay once you have exhausted all other financial resources including your house. Health insurance is deductible within limits also. 5.         Do a financial health check and plan. 6.         This is the time to start or add to your current retirement plan. You may also qualify for a tax credit for contributing to a retirement plan either through work or individually. 7.         Tax planning is vital nowadays with so many tax laws changing and financial events and transactions occurring. 8.         Review any itemized business travel and expenses versus per diem. 9.         Medical deductions are a very broad acceptance area with the IRS. Call and check to see if you have collected all your possible medical expenses. 10.        Don't forget such items as investment expenses, job-related, job search, education and training expenses, hobby expenses, casualty losses and theft, and professional fees for tax advice and preparation among many others. 11.        Carefully analyze your prescriptions and medical treatments. Are your doctors treating the symptoms or the causes? This can have a great bearing on your income taxes and finances over the remainder of you life. 12.        The overall goal is to save on taxes while helping to accumulate and manage your money, preserve your life style, increase your giving, and guarantee an adequate retirement income.  This is much of what it means to be a good and faithful steward. Tax Season Points to Check and Consider contributed by JR Beushausen Tax & Accounting Services.

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Resources Now Available on Audio Cassette     “Tell me are we desperate enough for God? Are we desperate for change in our lives, or are you still clinging to this world’s system? Are you desperate enough to hang onto His every word? Are you desperate enough to Declare His Word and trust that His truth will set you free? Grow Up to Go Up! Get Up and Get Going. Take that faith step — that leads to the trust step — that leads to the last victorious step into the glory and majesty of all the Lord has for you!”  So writes author Buffy St. John in her inimitable “no holds barred” style. This book is all about Christian accountability and responsibility to know the word, speak the word, and live the word.   Declare The Word, now available as an eight cassette tape Audio Book and Leadership Guide for Bible Studies and small groups. A must have in your library. DTW-3003B $45.00 US   Available online at www.declaretheword.com   Check Out Our Bookstore For More Resources!!