Charles Dickens’ David Copperfield:

1. Never do tomorrow what you can do today – Procrastination is the thief of time.

2. Annual income, £20 pounds; annual expenditure, £19.96 pounds;

result… HAPPINESS.

Annual income, £20 pounds; annual expenditure, £20.06 pounds;

result… MISERY.

That pretty much sums up today’s message...

Spend less than you earn—don’t wait for tomorrow

—start doing it today!
The KEYS to Debt Management
(& to Financial Security):
• Pay Tithes & Offerings
• Avoid Debt
• Use a budget
• Build a reserve:
1) Emergency Savings
2) Retirement Savings
• Teach (& involve) all family
members
Pay Tithes and
Offerings
Who is most important? Pay Him first.

MALACHI 3: 7-12
7 …Return unto me, and I will return unto you, saith the LORD of hosts. But ye said,
Wherein shall we return?
8 ¶ Will a man rob God? Yet ye have robbed me. But ye say, Wherein have we robbed thee?
In tithes and offerings.
9 Ye are cursed with a curse: for ye have robbed me, even this whole nation.
10 Bring ye all the tithes into the storehouse, that there may be meat in mine house, and
prove me now herewith, saith the LORD of hosts, if I will not open you the windows of
heaven, and pour you out a blessing, that there shall not be room enough to receive it.
11 And I will rebuke the devourer for your sakes, and he shall not destroy the fruits of your
ground; neither shall your vine cast her fruit before the time in the field, saith the LORD of
hosts.
12 And all nations shall call you blessed: for ye shall be a delightsome land, saith the LORD
of hosts.

(I Count 7 promises from the Lord)

Dallin H. Oaks, "Tithing," Ensign, May 1994, 33–35.
– During World War II, my widowed mother supported
her three young children on a schoolteacher’s salary
that was meager. When I became conscious that we
went without some desirable things because we didn’t
have enough money, I asked my mother why she paid
so much of her salary as tithing. I have never
forgotten her explanation: “Dallin, there might be
some people who can get along without paying
tithing, but we can’t. The Lord has chosen to take
your father and leave me to raise you children. I
cannot do that without the blessings of the Lord, and I
obtain those blessings by paying an honest tithing.
When I pay my tithing, I have the Lord’s promise that
he will bless us, and we must have those blessings if
we are to get along.”
Jeffrey R. Holland, "Like a Watered Garden," Ensign, Nov. 2001, 33–35.
Pay your tithing as a declaration that possession of
material goods and the accumulation of worldly
wealth are not the uppermost goals of your
existence. As one young husband and father, living
on a student budget, recently told me, “Perhaps our
most pivotal moments as Latter-day Saints come
when we have to swim directly against the current of
the culture in which we live. Tithing provides just
such a moment. Living in a world that emphasizes
material acquisition and cultivates distrust for
anyone or anything that has designs on our money,
we shed that self-absorption to give freely,
trustingly, and generously. By this act, we say—
indeed—we are different, that we are God’s peculiar
people. In a society that tells us money is our most
important asset, we declare emphatically it is not.”
 AVOID DEBT

President J. Reuben Clark Jr., who many years ago was a

member of the First Presidency said:
“It is a rule of our financial and economic life in all the world that
interest is to be paid on borrowed money. …
“Interest never sleeps nor sickens nor dies; it never goes to the
hospital; it works on Sundays and holidays; it never takes a
vacation; it never visits nor travels; it takes no pleasure; it is
never laid off work nor discharged from employment; it never
works on reduced hours. … Once in debt, interest is your
companion every minute of the day and night; you cannot shun
it or slip away from it; you cannot dismiss it; it yields neither to
entreaties, demands, or orders; and whenever you get in its
way or cross its course or fail to meet its demands, it crushes
you.”
 WHEN IS DEBT OKAY?
"With the exception of buying a home, paying for education, or making other vital investments,
avoid debt and the resulting finance charges. Buy consumer durables and vacations with cash.
Avoid installment credit, and be careful with your use of credit cards... Buy used items until you
have saved sufficiently to purchase quality new items.“ Elder Marvin J. Ashton

So these are the exceptions:

1. Buying a home;
2. Paying for an education;
3. Making other vital investments.
What are other vital investments? President N. Eldon Tanner, a former member of the First
Presidency, stated that such “investment debt should be fully secured so as not to encumber a
family’s security.”
Some simple questions may help us determine if it is appropriate to borrow to make a purchase
(including purchases made using credit cards):
1. Will the item for which I am borrowing still be usable after I have finished making the
payments?
2. Have I discussed this purchase with my spouse? Asking this question will eliminate most
impulse purchases.
3. Does the purchase qualify as a “vital investment;” and could it be sold at any time to pay off
the full amount of the indebtedness if our situation changes?
4. Who am I fooling? If this isn’t a house or an education then it is probably a “consumer
durable” (such as a car, appliance, or furniture) and should be purchased with cash, not credit.
Buy a used one or do without until you save enough to purchase a new one.
 DEBT MANAGEMENT

Where are you… on the “Mountain of debt”???

Debt Free

Barely holding on ?

Fallen off the cliff ?

 MAKING TOUGH FINANCIAL DECISIONS

Can you relate to these statements?

• We are barely making it each month!
• My Home is worth less than I owe to the bank!
• At this rate, we will never be able to retire!

Options frequently discussed in today’s economy:

• Bankruptcy
• Short sale
• Foreclosure
• Deed in lue of foreclosure

What is the Church’s counsel?

Provident Living website at www.LDS.org:
“Honor your debts. We are a people of integrity. We believe in honoring our
debts and being honest in our dealings with our fellow men.”
"Please listen carefully to this—
and if it makes some of you
feel uncomfortable, it is on
purpose: Latter-day Saints
who ignore or avoid their
creditors are entitled to feel the
inner frustrations that such
conduct merits, and they are
not living as Latter-day Saints
should! Bankruptcy should be
avoided, except only under the
most unique and irreversible
circumstances, and then
utilized only after prayerful
thought and thorough legal
and financial consultation."

Elder Marvin J. Ashton, One for the

Money—a Guide to family finance
10 Simple Steps to Pay Your Debts and Become Debt-Free
by Clark B. Hinckley (President Hinckley’s son—currently serving as the Spain Barcelona Mission President)

BACKGROUND:
This plan will work for almost everyone, even if you think you are hopelessly in debt. It takes discipline and
perseverance, but so does everything that is worthwhile. It may seem hard, almost impossible, at first. Living
the Word of Wisdom may seem impossible for a life-long smoker, but do you doubt that he can do it, or that he
should, or that he will be blessed? You can pay your debts. You should. And you will be blessed.

But first, a word about why. In a world filled with voices that encourage us to spend more than we earn (think
unsolicited credit card offers, 100% loan-to-value home equity lines of credit, adjustable rate or option-ARM
mortgages, 5-year car loans, auto leases with nothing down, etc.), sometimes sacrificing to pay our debts
doesn’t seem to make a lot of sense. As with any Gospel principle, understanding the doctrine helps us realize
that the Lord’s ways are different from man’s ways.

• What the Scriptures Say

– Mosiah 4:28 "And I would that ye should remember, that whosoever among you borroweth of his neighbor
should return the thing that he borroweth, according as he doth agree, or else thou shalt commit sin."
– D&C 19:35 "Pay the debt thou hast contracted with the printer. Release thyself from bondage."
– D&C 64:27 "It is said in my laws, or forbidden, to get in debt with thine enemies."
– D&C 104:78 "It is my will that you shall pay all your debts."

• What the Prophets Say

– Brigham Young: “Pay your debts…do not run into debt any more.”
– Joseph F. Smith: "If there is anyone here who is in debt, I would advise that when he goes home, and when
I go home, too, that we will begin with a determination that we will pay our debts and meet all of our
obligations just as quickly as the Lord will enable us to do it."
– Gordon B. Hinckley: “I urge you as members of this Church to get free of debt.
– The First Presidency (Feb 2008): "We are concerned that some Church members ignore the oft-repeated
direction to ... avoid consumer debt."
– Thomas S. Monson: Debt can “crush our self-esteem, ruin relationships, and leave us in desperate
circumstances.”
– Thomas S. Monson: "Changes occur: people become ill or incapacitated, companies fail or downsize, jobs
are lost, natural disasters befall us. For many reasons, payments on large amounts of debt can no longer
be made.”
 Summary of
10 Simple Steps to Become Debt-Free
for the full article see http://marginofmastery.blogspot.com/

• Ask someone to be your advisor and confidant as you follow this program. Report to this
person weekly on your progress, and consult with them on any financial matters that come
up.
• Keep a journal for one month of everything you spend. Everything… Gum, candy, parking
meters, eating out… everything.
• Then take a look at this journal at the end of the month and determine what you can
eliminate. There was a time in your life when you lived very well without internet access on
your cell phone; how essential are 50 cable sports channels to your eternal well being? You
will be surprised and amazed at what you can cut if you are serious about this. Almost
everyone can come up with an extra $100 a month; and many can come with several
hundred dollars.
• Divide the “extra money” you are now saving in half. Each month, use the 1st half to pay
down your smallest debt, and put the other half in a savings account that you cannot easily
access (no ATM card, no Internet transfers). This 2nd half money is for emergencies
(replacing a broken water heater, unexpected medical bills, car repairs, etc.). Not sure if
something is an emergency? If you have any question, it isn’t!
• When you have paid off your first debt, choose the next smallest debt that is still remaining
and, in addition to paying the minimum monthly payment, include the amount you were
paying on the first debt which you just paid off. One by one, as the months and years go by
(for most people, this process takes several years), you will see one debt after another
disappear and your total indebtedness will begin to shrink faster and faster as your
payments on the next debt become larger.
More thoughts from… 10 Simple Steps to Become Debt-Free…

• For most people, one of the larger debts they have is a car loan. When you
get this debt paid off, you have made real progress. You should also have
some money in your emergency fund. Your goal now is to make that car last
until you have saved enough to purchase a car with cash. That’s right, cash.
Remember your mantra, “No new debt.” That means no car loans and no
car leases. It also means you’ll be buying used cars, not new, at least unless
you have a financial windfall. And in doing so, 1) you will have the
satisfaction of knowing that you have successfully withstood millions of
dollars and years of indoctrination by automotive companies designed to
seduce you into thinking you need or deserve that new car smell (which is a
$4,000 option), and 2) you will have the peace of mind of knowing that even
in the face of an unexpected financial setback, you will still have a car.

• Ultimately, the last debt you will probably tackle is your home mortgage.
Somewhere over the last decade, the idea of actually owning a home free
and clear was lost in the myth that a home was a financial investment. It is
not. It is your home. In fact, as an investment, homes have been nothing
more than an inflation hedge – for most of the past 50 years, home
appreciation has averaged less than ½ of 1% a year over inflation. Few
things in your temporal affairs can bring greater peace than knowing that
you and your family own a home – no bank can foreclose on it, no landlord
can serve an eviction notice. Except in the very most dire of circumstances,
you will never be homeless.
 “The most powerful force in the
universe is compound interest”.
Albert Einstein
The Power of Compound Interest
The growth of $1 compounded monthly at 8%
30
25 $ 24.27

20
$ Value $

15
2nd 20 years of growth = $ 19.27
10
5 $5
1st 20 years of growth = $ 4
$1
0
1 20 40
Years
 Compound Interest can be used for good or bad (savings or debt)…
How are you using it???

“Thems that understands interest receives it, thems that don’t pays it.” -- L. Tom
Perry, Ensign, November 1995

“We have often heard that interest is a good servant but a terrible master” -- Joseph B.
Wirthlin, Ensign, May 2004

In Robert Kiyosaki's book “Rich Dad, Poor Dad”, each dollar saved is referred to as your own
soldier or employee… one that gets up and goes to work for you everyday. Combine that
idea with interest’s work ethic as described by President J. Reuben Clark and you get a
soldier or employee who goes out to work for you everyday and…
– Never gets sick
– Never dies
– Never goes to the hospital
– Works weekends and holidays
– Never takes vacation or travels
– Takes no pleasures
– Is never laid off, nor discharged from employment
– Never works on reduced hours
 Use a Budget
Discipline yourself to live within your budget plan.

Tithing: 10%
Fixed Budget Percentages
(based on self employed family of 5 earning $75k year) Savings: 10% minimum

10% Tithing Soc. Sec. & Medicare: 7.65%

26.7% Other Self Employment Tax:
10% Savings 7.65%

Fed Income Tax (net of

deductions): 8%
State Income Tax (net of
deductions): 2%
Total Taxes: 25.3%
Housing (PITI): 28%

Other: ?? 26.7% ??
25.3% taxes
28% Housing
 Build a Reserve

If God is the person we choose to pay

FIRST – before any other bill or
obligation… what then, is our
SECOND most important obligation?
Our Family Savings!
The same program…

10 Simple Steps to Become Debt-Free…

Contains a formula to “BUILD A RESERVE”

including:

1) Emergency Savings
2) Retirement Savings
 EMERGENCY SAVINGS CALCULATOR

Emergency Expenses Insurance Deductibles

Emergency Medical Insurance Deductible Medical
Emergency Auto Repair Insurance Deductible Auto
Emergency Legal Insurance Deductible Property
Emergency Property Damage Insurance Deductible Other
Emergency Other Total
Total

Living Expenses Total Emergency Expenses

Monthly Living Expenses Total Insurance Deductibles
x Months of Unemployment Total Living Expenses
Total
TOTAL EMERGENCY SAVINGS

See detailed instructions for emergency savings calculator at www.360financialliteracy.org

 How Much Do You Need To Retire?

See a Simple Retirement Calculator at:

http://www.banksite.com/calc/retire
RETIREMENT SAVINGS ENEMY
In fla tio n 's Im p a c t o n P u rc h a s in g P o w e r

3 .5
3
2 .5
$ Dollars $

2
1 .5
1
0 .5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Y e ars
 Teach Family Members

Teach family members the principles of financial

management.
1. Involve them in creating a budget and setting
family financial goals.
2. Teach the principles of hard work, frugality, and
saving.
3. Stress the importance of obtaining as much
education as possible.
 Motivational Wisdom

• If you think you can do a thing, or think you can't do a thing, you're
right. (Henry Ford)

• When you sow an action, you reap a habit; when you sow a habit, you
reap a character; and when you sow a character, you reap a destiny.
(Zig Ziglar)

• Habit is a cable; we weave a thread of it each day until it becomes too

strong to break… Then the strength of that habit cable takes us to the
Top -- or ties us to the bottom, depending on whether it is a good habit
or a bad one. (Zig Ziglar)

• All bad habits start slowly and gradually and before you know you have
the habit, the habit has you. (Zig Ziglar)

• Mark 9: 23 – all things are possible to him that believeth. Mark 9: 24 –

Lord, I believe: help thou mine unbelief.
 You Can Do Anything You Must Do
By Vaughn J. Featherstone

If you want a thing bad enough

To go out and fight for it,
Work day and night for it,
Give up your time and your peace and your sleep for it;
If only desire of it
Makes your aim strong enough
Never to tire of it,
If life seems all empty and useless without it
And all that you scheme and you dream is about it,
If gladly you’ll sweat for it,
Fret for it,
Plan for it,
Pray with all your strength for it,
If you’ll simply go after the thing that you want,
With all your capacity,
Strength and sagacity,
Faith, hope, and confidence; stern pertinacity,
If neither cold or poverty, famished and gaunt,
Nor sickness, nor pain,
Of body or brain,
Can turn you away from the aim that you want,
If dogged and grim you besiege and beset it,
You’ll get it.