Day 37: Calculate Your Assets and Liabilities

Scripture to Memorize:
She opens her arms to the poor
and extends her hands to the needy.
When it snows, she has no fear for her household;
for all of them are clothed in scarlet.
Proverbs 31:20-21
Passage to Read:
No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.
Matthew 6:24
Prayer:
Heavenly Father thank you for your guidance concerning money. I admit that I have at times tried to serve two masters and failed miserably. Trying to meet the worlds standards regarding money I have made myself and my husband frustrated, angry, and exhausted. Instead of turning to your, I have tried to find the answers in the guidance of the world. This just added to the frustration and anger. I don't want to live through that again and I do not want to subject my husband to my irritability that arose from my frustration. Now that I have learned your guidelines regarding money and am following Biblical standards in my financial planning I pray that you will help me adhere to your precepts regarding money. I choose to serve you, Lord. Holy Spirit keep me from seeking the world's standards and allowing the deceiver to gain a foothold in my life again. These things I ask in the mighty name of Jesus, Amen.
Personal:
Today's lesson from Donna deals with money. She touts Dave Ramsey's guidelines of (1) set up an emergency fund of $1,000; (2) pay off consumer (credit card) debt; (3) put 3 months expenses into the emergency fund. She further recommends that instead of spending all our effort on obsessively monitoring and controlling what we have earn more. She says that the "simplest way to understand your money is in terms of assets and liabilities. Anything that brings you money is an asset. Anything that costs you money is a liability."
Donna further counsels that when we get any windfall instead of spending that on things we want to instead invest it and then take the earnings of the investment to purchase those things that we want. Say you inherited $50,000. Instead of spending that on something that will only depreciate over time like an expensive new car. Invest that $50,000 in something that is going to provided you with a regular (or semiregular) income. Such as money market accounts or rental property. Both of these investment will provide a steady income that you can then use to purchase a fleet of cars.
She also recommends that if you do not already have a way of organizing your finances that you invest is a software program (if it is not already on your computer) such as Quicken or Microsoft Money. She even recommends that you set up your savings, checking, and investment accounts online so that, on a regular timeframe they automatically download all transactions directly into your Quicken or Microsoft Money. Then you can always see, at a glance, exactly where most of your money is going.
For me personally using Dave Ramsey's Spending Plan and Budget forms every month helps me get this information. This gives me the opportunity to compare budgeted vs actual and if I need to adjust something I can do that when I prepare the next month's budget/spending plan.
Affirmation: I don't work for money; money works for me.
Practical:
Create an overview of your current assets and liabilities. Put your completed overview in the financial sections of your Personal Notebook/Journal.