E-Devotional-Week 17

NET WORTH-WEEK 4

HOW MUCH DOES A PERSON NEED?

By: Barry G. Allen- President & CEO

“Dad, if you had as much money as Bill Gates, would we live in a bigger house?  With that, my younger son, Glen, at age 13 presented me the opportunity (a) to bear witness to him of my stewardship convictions and (b) to test the integrity of those convictions.

How much does a person need? The Russian novelist Tolstoy wrote a story titled, “How Much Land Does A Man Need?”  It was the story of a simple peasant who had lived on someone else’s land until he heard an estate was going to be divided and sold to the peasants.  Excited, he went to the extraordinary lengths to gain 20 acres for himself.

Soon he discovered owning 20 acres was not as satisfying as he expected; he wanted more.  So he sold the 20 acres and purchased 200 acres in another place.  The same pangs of dissatisfaction set in.  He discovered another opportunity where the regional chief would sell him all the land he could walk around in one day with the condition he had to return where he started by sundown.

At sunrise he set out to encircle all the land possible.  With so much at stake he did not stop to eat, drink or rest.  Anxious to acquire as much as possible he failed to measure the time and distance.  As the sun began to set he realized how far away he was from the starting point.  Fear gripped him.  Because of his greed, he might lose it all.  As fast as he could he ran, and as the last beam of sun disappeared, he staggered back to the starting point.  He had acquired an immense tract of land, but having overtaxed his heart, he fell to the ground and died on the spot.

The story ends with the question of the title, “how much land does a man need?”  In this case, only a plot six feet long, three feet wide and four feet deep – enough to bury him.

The answer I gave my son was “I hope not. Even though it would be tempting, I have learned seeking to satisfy my deepest hungers with possessions does not work. 

Prayer Focus: Ask God to help you measure your net worth not just by the things you have, but also by the things you have for which you would not take money.

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

E-Devotional-Week 16

NET WORTH-WEEK 3


HOW MUCH SHOULD YOUR NET WORTH BE?

By: Barry G. Allen- President & CEO

Last week you calculated your current net worth.  We suggest you periodically update this calculation as your circumstances change.  As you reduce your indebtedness, your net worth should increase.  Regularly compare your net worth to your financial goals to determine what progress you are making in achieving those goals.

How much should my net worth be? There are several different formulas financial planners use to determine the appropriate level of one’s net worth at different phases in one’s life cycle.  The different life cycle phases are: independence/young adult phase; establishment phase – wedding to birth of first child; childbearing phase; childrearing phase; child launching phase; empty nest phase; retirement phase; single partner phase – death of a spouse.

To oversimplify this determination, let me suggest for your consideration the formula presented in the popular book, The Millionaire Next Door.  It suggests this formula to compute your expected net worth: multiply your age times your realized pre-tax annual household income from all sources except inheritances.  Divide by ten.  This, less any inherited wealth, is what your net worth should be.

Here’s an example: age 30 times annual household income of $50,000, divided by 10 equals an expected net worth of $150,000.  If you’re short of this expected amount, let me suggest you contact a certified financial planner to assist you in developing a plan for corrective action in the future.

Prayer Focus: Ask God to help you better to live beneath your means so you can accumulate your net worth for the accomplishment of His purposes for your possessions.

Next Week: How Much Does A Person Need?

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

E-Devotional- Week 15

NET WORTH-WEEK 2 


DETERMINING YOUR NET WORTH

By: Barry G. Allen- President & CEO

Remember from the previous lesson your net worth is the difference between the current value of everything you own (assets) and the current balance due on all your debts/obligations (liabilities).

How do I determine my current net worth? The best method is to prepare a statement of your net worth. To facilitate and simplify this, contact our office for a net worth worksheet.

First, list the value of each asset you own. The value listed should be its current market value, which is the value at which it could be sold. The total of this list represents your total assets. If you are married, list individually owned and jointly owned assets.

Second, list the current balance due on each debt you and/or your spouse owe. The total of this list represents your total liabilities.

Third, subtract your total liabilities from your total assets the result of which is your net worth. Hopefully, the balance is positive, which means your assets exceed your liabilities.

Prayer Focus: Ask God to help you to commit back to Him the resources He has entrusted to you, and to pledge to Him to continue to be serious about financial planning and money management from a Christian perspective.


Next Week: How Much Should Your Net Worth Be?

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

E-Devotional- Week 14

WHAT IS YOUR NET WORTH? WEEK 1 INTRODUCTION


By: Barry G. Allen- President & CEO 

“Be sure you know the condition of your flocks; give careful attention to your herds.” (Psalm 27:23)

You cannot plan where you are going if you do not know where you are.

Why is it important to determine your net worth? To know without a doubt where you are financially is absolutely necessary before you can begin to do any serious financial planning to accomplish your goals, dreams and desires. In fact, the first step in financial planning is to determine where you are now, that is, determining your net worth.

The next four lessons will focus on your net worth. What is it? How do you determine it? How much is enough? What does it have to do with the Christian discipline of financial stewardship?

What is the definition of net worth? According to Webster, worth is monetary value, or the equivalent of a specified amount or dollar figure. Your “net” worth is the difference between the current value of everything you own (assets) and the balance due on all of your debts/obligations (liabilities).

Prayer Focus: Ask God to deliver you from one of Satan’s most devious plots, namely, the concept that your net worth belongs to you and not to God.

Next Week: Determining Your Net Worth

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.