This is a presentation I gave to members of the 4th Ward of the Liberty Stake of the Church of Jesus Christ of Latter-day Saints on personal financial management or financial self reliance.

1. Financial Self Reliance
4TH Ward
December 30, 2012

2. Tithing
• Pay tithing first
• Get the Lord on your
side
• “Prove me now
herewith…”

3. Buying a Home
• Buying a home should
be your top financial
priority
• Paying off the mortgage
before you retire should
be your next priority
• Utah Housing
Corporation helps low
income families buy a
home with no down
payment

4. Budgeting
• Plan your spending
• Monitor your spending
• Save for the future
• Mint.com is free and
automated

5. Get out of debt
• List your debts smallest to
largest
• Make all scheduled
payments
• Add 1% of your income to
the smallest
• Once it is paid off, apply
the 1% plus the payment
of the smallest loan to the
next smallest.

6. Saving for Retirement
• Start today
• Always contribute to your
401k enough to get the
company match
• Savings in your 20s could
grow 20-fold
• Savings in your 30s could
grow 10-fold
• If you are not yet 40, you
will need $1 million to retire

7. Saving for Missions
Elders Year Estimated Monthly
Missionary Monthly Calculated Savings
Leaves Cost Total Cost Required
2013 $ 400 $ 9,600 $ 400
2014 $ 405 $ 9,720 $ 262
2015 $ 410 $ 9,840 $ 197
2016 $ 415 $ 9,960 $ 158
2017 $ 420 $ 10,080 $ 132
2018 $ 425 $ 10,200 $ 113
2019 $ 430 $ 10,320 $ 99
2020 $ 435 $ 10,440 $ 88
2021 $ 440 $ 10,560 $ 80
2022 $ 445 $ 10,680 $ 72
2023 $ 450 $ 10,800 $ 66
2024 $ 455 $ 10,920 $ 61
2025 $ 460 $ 11,040 $ 57
2026 $ 465 $ 11,160 $ 53
2027 $ 470 $ 11,280 $ 50
2028 $ 475 $ 11,400 $ 47
2029 $ 480 $ 11,520 $ 44
2030 $ 485 $ 11,640 $ 42
2031 $ 490 $ 11,760 $ 40

8. Saving for Missions
Sisters Year Estimated Monthly
Missionary Monthly Calculated Savings
Leaves Cost Total Cost Required
2013 $ 400 $ 7,200 $ 400
2014 $ 405 $ 7,290 $ 237
2015 $ 410 $ 7,380 $ 170
2016 $ 415 $ 7,470 $ 132
2017 $ 420 $ 7,560 $ 108
2018 $ 425 $ 7,650 $ 92
2019 $ 430 $ 7,740 $ 80
2020 $ 435 $ 7,830 $ 70
2021 $ 440 $ 7,920 $ 63
2022 $ 445 $ 8,010 $ 57
2023 $ 450 $ 8,100 $ 52
2024 $ 455 $ 8,190 $ 48
2025 $ 460 $ 8,280 $ 45
2026 $ 465 $ 8,370 $ 42
2027 $ 470 $ 8,460 $ 39
2028 $ 475 $ 8,550 $ 36
2029 $ 480 $ 8,640 $ 34
2030 $ 485 $ 8,730 $ 33
2031 $ 490 $ 8,820 $ 31

9. Saving for College
Saving Plan for BYU (Estimated Costs)
Monthly
Year Student
Annual Cost Total Cost Savings
Starts College
Required
2013 $4,860 $20,618 $413
2014 $5,054 $21,443 $340
2015 $5,257 $22,300 $292
2016
2017
$5,467
$5,686
$23,192
$24,120
$257
$232
• Tuition at BYU is
2018
2019
$5,913
$6,149
$25,085
$26,088
$212
$197
increasing at a faster rate
2020
2021
$6,395
$6,651
$27,132
$28,217
$184
$174
than inflation but slower
2022
2023
$6,917
$7,194
$29,346
$30,520
$165
$158
than the average of
2024
2025
$7,482
$7,781
$31,740
$33,010
$151
$146
tuition inflation at other
2026
2027
$8,092
$8,416
$34,330
$35,704
$141
$137 schools
2028
2029
$8,753
$9,103
$37,132
$38,617
$134
$131 • The chart covers only
2030 $9,467 $40,162 $128
2031 $9,845 $41,768 $126 tuition
• Virtually any other school
2032 $10,239 $43,439 $124
2033 $10,649 $45,177 $122
will cost more

10. Driving a car
• Most people spend too
much on their cars
• Cars will do more to harm
your financial condition
than anything except
addictions to gambling or
drugs and alcohol
• Don’t borrow money to
buy cars
• Don’t replace your car
often (think 7 to 10 years
for new cars and 4 to 7
for used cars)

11. Taxes
• Earned Income
Tax Credit
• Mortgage
interest and
tithing are
deductible only
for high income
households

12. Insurance
• Car insurance
• Life Insurance
• Homeowner’s
Insurance
• Health Insurance-
CHIPs (health
insurance for
Children)

13. Banking
• Financially successful
people use financial
institutions
• Money is safer in the
bank
• Money earns interest
• Payments are easier
and cheaper
• You MUST play by the
rules

14. Investing
• Cash in the bank earns
less than inflation
• Stock picking and day
trading are fun hobbies
that are more expensive
than golf
• Mutual funds and ETFs
were invented so that
regular folks could invest
in stocks and bonds
without too much risk

15. Top Ten Tips
• Pay Tithing • Save for your children
• Buy a home to serve missions
• Pay off your home • Save for your children
before you retire to attend college
• Don’t spend too much • Insure risks you can’t
on cars afford to take
• Save for retirement • Invest wisely using no-
load mutual funds
• Choose the right bank