A personal budget model.

WEEK TWO INTRODUCTION
This week focuses on finances. As we learned, God is owner of all. That includes our finances. When we look
at our finances with that biblical worldview, how we spend, save, and invest should change. To be a good
steward, we must manage all things well, and that includes the money which God has entrusted to us. Topics
addressed include credit, debt, budgeting, and large purchases. You will also continue to track your cash flow.
WEEK TWO OBJECTIVES
By the end of the week, students should be able to:
• Identify and select a personal budget model.
• Discuss the realities of consumer credit
• Understand a systematic process for becoming debt free
• Calculate the effect of large asset purchases.
• Practice stewardship tracking
ONE: WEEK TWO DEVOTIONAL
Instructions
As you enter the week, craft a response to the Week Two Devotional. Feel free to engage with your fellow
students in the forum.
TWO: PERSONAL BUDGET EXERCISE
Instructions
There are innumerable budget models available that fit just about every personality type out there. The key is
to select one that fits your style.
Read “The Truth About Budgeting” and “The Envelope System” on Dave Ramsey’s website:
https://www.daveramsey.com/get-started/budget/?snid=start.budgeting-a
Create a budget for your personal use at www.everydollar.com. Create a free account, and then create a
monthly budget using the application. Try to be as accurate as you can be so that you can use this as a
budgeting tool, if you choose to do so. Remember, this is confidential, so only you have access to it.
Write a 1-2 page paper and describe the benefits of maintaining a budget and what adjustments you would
make to the budget model for your personal budget.
Address the following areas.
o What was your experience with everydollar.com? Did you like the online budgeting software? Why or why
not? Will you use it each month to budget your money?
o What are your thoughts on the envelope system? Is this a personal budget model that you would use? Why
or why not? If not, what type of system would you use?
o How often would you update your budget? Why?
o What value do you see in having a budget?
Use the Paper Writing rubric to guide your efforts and apply the required formatting style.
THREE: MY CREDIT DISCUSSION
Instructions
Consumer credit can be very victimizing, so it is important to recognize you can choose to make consumer
credit benefit you instead. The strategy to handle consumer credit is to keep very aware and intentional with
the decisions that impact your credit!
Watch the video at http://www.myfico.com/credit-education/whats-in-your-credit-score/ and then read “How
FICO Credit Score is Calculated” which is located below the video. As you read about each area that impacts
your credit score, click on the links the definitions to learn more about them.
Review “My Checklist to Financial Freedom” located on your e360 course home page.
Based on what you learned about your FICO Score, what are three things from the checklist that you can do
right now to increase your credit score? Be specific with the strategies you plan to use in order to raise it and
why you think those strategies will be effective.
FOUR: MY DEBT DISC
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Instructions
While it may seem impossible…it isn’t. Remember, with God, all things are possible. You can become debt
free! It will take hard work and commitment. After all, you didn’t get into debt overnight, and you won’t get out
overnight, either. However, there are strategies that can help begin the process today!
Read Dave Ramsey’s “The Seven Baby Steps” at https://www.daveramsey.com/baby-steps/?
snid=start.steps. Click on each step on the menu on the left to read about it.
Read Dave Ramsey’s “How to Get out of Debt with the Debt Snowball” at
https://www.daveramsey.com/blog/get-out-of-debt-with-the-debt-snowball-plan?snid=start.debt-b
Based on what you learned, discuss your thoughts on the Baby Steps and the Debt Snowball. Ensure that
you address the following areas.
o Do you think you could use these strategies to get out of debt? Why or why not?
o Why does the Debt Snowball work and how could you apply it to your effort to get out of debt?
o Which Step do you think would be the most difficult for you to accomplish?
FIVE: LARGE ASSET PURCHASE RESPONSE
Instructions
Read pp. 1-2 of Cramer’s Personal Finance Tips located under “course documents” on your e360 course
home page.
Calculate the length of time it will take to finish paying off your current vehicle.
Make an educated guess as to how long you can drive it once it’s been paid off.
Add up the payments you can pay yourself if you guess correctly on how long the vehicle will last. This
would be your down payment for the next vehicle.
Write 1-2 paragraphs that provide the above information and if this exercise has changed how you look at
large purchase planning.
SIX: WK2 STEWARDSHIP EXERCISE
Instructions
This week, you will continue to track your time and your cash flow using the tools introduced last week.
Download and complete the T-chart.
Download and complete the Weekly Time Tracker.
Are there trends that you can identify and improve? Each week, complete the following instructions.
o Track your cash flow each week. Be sure to indicate which week you are tracking in the spreadsheet.
o Track your time each week. Be sure to indicate which week you are tracking in the spreadsheet.
o Write a 1-2 paragraph reflection on the side on anything that surprised you or helped you plan.