Becoming a Wise and Faithful Steward
Self-Reliance Is a Principle of Salvation
Become a Wise and Faithful Steward
Counsel with the Lord about Your Finances
Track Your Income and Expenses
Investing for the Future (Part 1)
Seek Learning: Resolve Where You Are Going and How to Get There
Save Money
Consider Home Ownership
Seek Education
Investing for the Future (Part 2)
Become One, Serve Together
Set a Retirement Goal
Understand Compound Interest
Understand the Relationship between Risk and Return
Consider Potential Investments
Research Potential Retirement Accounts
Begin Saving for Retirement as Soon as Possible
Continuing to Give and to Bless Others
Receive Temple Ordinances
Share the Principle of Self-Reliance with Your Family and Friends
Press Forward with Faith
Becoming Unified in Our Approach to Finances
Exercise Faith in Jesus Christ
Work and Take Responsibility
Work Together to Manage Money
Hold Regular Family Councils
Paying Tithes and Offerings
Repent and Be Obedient
Change Your Approach to Managing Money
Pay Tithes and Offerings
Creating a Budget
Live a Balanced Life
Build a Budget
Balance a Budget
Sticking to a Budget
Solve Problems
Set Realistic, Motivating Financial Goals
Find and Use a Budgeting System
Hold Yourself Accountable
Seek the Lord’s Help, and Keep Trying
Protecting Your Family from Hardship
Use Time Wisely
Protect Your Family from Hardship
Build a One-Month Emergency Fund
Acquire Adequate Insurance
Understanding Debt
Show Integrity
Understand Debt
Understand Your Debt Realities
Desire to Get Out of Debt
Overcome the “Natural Man”
Getting out of Debt
Work: Take Responsibility and Persevere
Stop Incurring Debt
Pay Off Your Debts
Managing Financial Crises
Communicate: Petition and Listen
Learn to Manage Financial Crises
Increase Your Emergency Preparations
With the help of others, you can accomplish great things. For example, missionaries have companions for support. In our groups, we have action partners. Each week we will choose and work with a different action partner. Action partners help each other keep commitments by:
Calling, texting, or visiting each other during the week.
Talking about what we learned in the group.
Encouraging each other to keep commitments.
Counseling together about challenges.
Praying for each other.
How has another person helped you accomplish something difficult?
Being an action partner is not hard or time consuming. To start the conversation, you could ask:
What did you like about our last group meeting?
What good things have happened to you this week?
How have you used the My Foundation principle this week?
The most important part of the discussion will be helping each other keep commitments. You could ask:
How are you doing with your commitments?
If you haven’t kept some of them, do you need help?
How can I best support your efforts?
Read each commitment aloud to your action partner. Promise to keep your commitments and then sign below.
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Each week we make commitments. When we meet next week, we will begin by reporting on our commitments. Read each commitment aloud to your action partner. Promise to keep your commitments and then sign below.
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Congratulations! During the past 12 weeks you have established new habits and become more self-reliant. The Lord wants you to continue building on these abilities and developing new ones. As we pray and listen, the Holy Ghost can help us know what things in our life we need to improve.
What can we do to continue along our path to self-reliance? How can we continue to help one another?
Commit to do the following actions during the next 12 weeks. Check the box when you complete each action:
Review and continue to live all 12 My Foundation principles and habits of self-reliance.
Share what you have learned about self-reliance with others. Continue helping members of your group, or offer to facilitate a new self-reliance group.
Build on your abilities by participating in another self-reliance group.
Study the doctrinal principles of self-reliance below.
Doctrinal Principles of Self-Reliance
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Self-Reliance Is a Commandment |
The Lord’s Purpose Is to Provide for His Saints, and He Has All Power to Do So |
The Temporal and the Spiritual Are One |
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Doctrine and Covenants 104:15; John 10:10; Matthew 28:18; Colossians 2:6–10 |
Published by The Church of Jesus Christ of Latter-day Saints
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© 2017 by Intellectual Reserve, Inc.
All rights reserved.
Printed in the United States of America
English approval: 3/17
Translation approval: 3/17
Personal Finances for Self-Reliance
English
14863 000
Thank you for facilitating a self-reliance group. The group should function as a council with the Holy Ghost as the teacher. Your role is to help each person feel comfortable sharing ideas, successes, and failures.
Complete the Group Registration Form at your first meeting and the End of Group Report and Certificate Request Form at your last meeting. Visit srs.lds.org/report.
Review the booklet Facilitating Groups at srs.lds.org/facilitator.
After each group meeting, review the statements below. How well are you doing?
for Self-Reliance
Have an opening prayer.
Introduce yourselves. Each of you take one minute to share your name and something about you.
This group will help you learn about, create, and use a budget. You will begin to build an emergency fund, create a debt elimination plan, learn to save for future expenses, and plan for retirement. Most important, you will learn more about your relationship with Heavenly Father and be invited to manage your money in ways that are pleasing to Him. Each group meeting lasts about two hours.
Self-reliance groups function like a council. There is no teacher or expert. Instead, you follow the materials as they are written. With the guidance of the Spirit, you will help each other as follows:
Contribute equally to discussions and activities. No one, especially the facilitator, should dominate the conversation.
Love and support each other. Show interest, ask questions, and learn about each other.
Share positive and relevant comments.
Make and keep commitments.
Elder M. Russell Ballard taught, “There is no problem in the family, ward or stake that cannot be solved if we look for solutions in the Lord’s way by counseling—really counseling—with one another” (Counseling with Our Councils, rev. ed. [2012], 4).
“My Self-Reliance Group,” available at srs.lds.org/videos. (No video? Skip to “Without a Teacher, How Will We Know What to Do?” on page 3.)
What made the group in the video so successful? What will we do as a group to have a life-changing experience?
It’s easy. Simply follow the materials. Each chapter in the workbook has six parts:
Report: Discuss the progress you made during the week on your commitments.
Foundation: Review a gospel principle that will lead to greater spiritual self-reliance.
Learn: Learn practical skills that will lead to greater temporal self-reliance.
Ponder: Listen for the Holy Ghost to offer inspiration.
Commit: Promise to act on commitments during the week that will help you progress.
Act: During the week, practice what you learned.
When You See These Prompts, Follow These Directions
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One person reads aloud for the whole group. |
The whole group watches the video. |
Group members share thoughts for two to four minutes. |
Individuals quietly consider, meditate, and write for two to three minutes. |
Group members work individually or with others for the specified time. |
Group members who attend meetings and keep their commitments may receive a self-reliance certificate from LDS Business College. See page 208.
Today’s Discussion:
Budget
Congratulations on building a budget! A budget can be a powerful tool for controlling your financial situation and reducing stress in your life. In the scriptures, we learn that “truth is knowledge of things as they are, and as they were, and as they are to come” (D&C 93:24).
How might this verse from the Doctrine and Covenants apply to your finances and the use of a budget?
Knowing where your family finances really stand is essential for successful financial stewardship. Elder Joseph B. Wirthlin taught, “Those who live safely within their means know how much money comes in each month, and even though it is difficult, they discipline themselves to spend less than that amount” (“Earthly Debts, Heavenly Debts,” Ensign or Liahona, May 2004, 42).
Sticking to a budget can be difficult. It requires commitment, discipline, and perseverance—it may take several tries to get it right! As you strive to change your spending behaviors, remember to counsel with the Lord and your spouse or an accountability partner. With sustained effort and loving support, you can become more like the children who waited in the marshmallow experiment (discussed in the previous chapter).
How can the Lord help us develop Christlike attributes, including self-discipline and diligence?
Today we will discuss four principles for sticking with a budget:
Set realistic, motivating financial goals.
Find and use a budgeting system.
Hold yourself accountable.
Seek the Lord’s help, and keep trying!
Goal setting is a powerful tool that helps us develop and maintain a long-term perspective.
Elder M. Russell Ballard taught, “Let me tell you something about goal setting. I am so thoroughly convinced that if we don’t set goals in our life and learn how to master the technique of living to reach our goals, we can reach a ripe old age and look back on our life only to see that we reached but a small part of our full potential. When one learns to master the principle of setting a goal, he will then be able to make a great difference in the results he attains in this life” (“Do Things That Make a Difference,” Ensign, June 1983, 69–70).
How have goals helped you progress in the past?
How is goal setting an act of faith?
It is important to set financial goals that are both realistic and motivating. Throughout the next few chapters, we will learn about many financial goals and priorities, including building a one-month emergency fund, getting out of debt, building a longer-term emergency fund, investing for retirement, and saving for other worthy expenses. The following activity will help you identify which of these should be your current financial priority.
You can choose to work toward other long-term goals in addition to your current financial priority, which may include saving for education, a mission, a car, a home, or a family vacation or other recreational expenses. There will be many temptations to choose the short-term perspective over the long-term perspective. Goals can give you a reason to say no now by giving you something to look forward to in the future.
What motivates you personally to want to stick with your budget?
There are many tools and systems available to help you manage your budget and track your expenses. Effective budgeting systems range from simple pen-and-paper systems to mobile and computer applications.
There are two primary ways to pay for goods and services: cash or electronic payments. Each of these general methods has positives and negatives and will affect the way you manage your budget and track your expenses. In the next few sections, we will go over two common budgeting systems. One of your commitments this week will be to find the right system for you.
“The Envelope System,” available at srs.lds.org/videos. (No video? Read page 83.)
“Digital Systems,” available at srs.lds.org/videos. (No video? Read page 84.)
With any method, be sure that you:
Don’t cheat by changing your established amount or borrow from other categories. Counsel with your spouse or accountability partner if adjustment is needed.
Track all expenses closely, and adjust your budget categories next month as necessary.
You can only succeed in sticking to a budget by holding yourself accountable. Your weekly family council can serve as a way to review your goals and budget and to make adjustments if necessary. If you have a difficult time holding yourself accountable, it may be wise to report your progress to someone else—a friend, action partner, mentor, or financial adviser. The important thing is that you make time to consistently evaluate your progress and that you make changes as needed.
Why is it important to hold yourself accountable? How will you hold yourself accountable to your budget?
Remember that faithful financial stewardship may require you to change your perspective, habits, and behaviors. Faith in Jesus Christ and His Atonement will help you to undergo this transformation. Because these changes may uproot deep habits, and because budgeting is a learning process, you may fail at times to stick to your budget.
Additionally, you may slip up and make impulsive purchases or encounter financial crises like job loss, medical emergencies, or unforeseen maintenance costs. You will learn about building an emergency fund and handling financial crises in later chapters, but for now it is important to remember that a budget is adaptable and that sticking to a budget requires perseverance.
When you encounter setbacks to your budget, discuss them in your family council, and review areas of your budget that may need adjusting. While you may feel discouraged and inclined to give up on sticking to a budget, remember that you can keep trying, and by counseling with the Lord and seeking His help, you will gain the power and ability to persist in your efforts.
What will you do when you face setbacks to your budget?
Sticking to a budget requires unity with your spouse and with your family. This week, discuss possible budgeting systems you can use and ways in which you can adjust your budget should you encounter challenges. Additionally, discuss your current financial priority and other long-term goals and your plans for achieving them. You may want to use the “Sample Family Council Discussion” outline below. Remember, if you are not married, your family council might include a roommate, friend, family member, or mentor.
Today’s Discussion:
2 Protect Your Family from Hardship
Preparation is a powerful gospel principle. The Lord promises that “if ye are prepared ye shall not fear” (D&C 38:30).
After our obligation to pay the Lord first through tithing and other offerings, our second obligation is to work to protect our families from hardship. We can do this only if we develop a long-term perspective. In this chapter we will learn two steps to protect our families from financial hardship:
Develop a one-month emergency fund
Acquire adequate insurance
Take a few moments to look at the Financial Stewardship Success Map. Why do you think that protecting your family from hardship is the second priority after paying tithes and offerings?
By tracking your expenses for at least four weeks, you should have now identified the amount of money required for one month’s worth of living expenses. Your one-month emergency fund should equal this amount.
For your one-month emergency fund, you should save cash in a safe and accessible place such as a bank account. Do not use this money for anything other than emergencies. If you have an emergency and must use money from your one-month emergency fund, immediately begin putting money back into the fund until it is full. Later, after you have paid down all of your consumer debt, you will begin to save enough money to cover your expenses for three to six months (we will cover this step in chapter 9).
You should work to build a one-month emergency fund as fast as possible. Put any extra money you have toward your emergency fund until it is complete. Even if you have debt, make only the minimum required debt payment until you have built a one-month emergency fund. To help speed up this process, you may want to find extra or better work, sell some things you can live without, or eliminate some unnecessary expenses.
What blessings can come to your family from having a one-month emergency fund? Why should you build an emergency fund before paying down debt?
How would it impact you or your family financially if one of you became very ill or disabled, or perhaps even passed away? What would be the financial impact of something like a house fire or a serious car accident? These types of hardships happen, and if we are not prepared, they can cause major financial problems. A good source of protection against possible hardship is insurance. Insurance is an arrangement in which an organization (typically an insurance agency) guarantees to compensate an individual for specific hardships in exchange for a fixed payment.
President N. Eldon Tanner taught, “Nothing seems so certain as the unexpected in our lives. With rising medical costs, health insurance is the only way most families can meet serious accident, illness, or maternity costs. … Life insurance provides income continuation when the provider prematurely dies. Every family should make provision for proper health and life insurance” (“Constancy amid Change,” Ensign, Nov. 1979, 82).
Why is insurance so critical? What blessings can come from having adequate insurance?
Insurance can help protect you from the financial devastation that accidents and other hardships can bring.
You do not need to insure all things—that is why you are building an emergency fund and other savings. However, it is critical that you protect yourself from hardship that could be financially devastating. President Marion G. Romney taught that “we have … been counseled [to] have a reserve of cash to meet emergencies and to carry adequate health, home, and life insurance” (“Principles of Temporal Salvation,” Ensign, Apr. 1981, 6).
There are many types of insurance, but the four most common are these:
Property insurance: Property insurance, such as homeowners, renters, and automobile insurance, can help cover the cost to replace or repair property in the event of serious damage, theft, or destruction.
Health insurance: Health insurance can help cover the cost of health care, from covering well-care visits and treating illness to paying for major medical events. Depending on your location, health care may be a government service and your need for health insurance may vary.
Life insurance: Life insurance provides a family with a sum of money if an insured family member dies.
Disability insurance: Disability insurance guarantees that a portion of the insured person’s income will be paid if he or she becomes disabled and is unable to work for an extended period of time.
Now that we have a basic understanding of insurance and some of its potential benefits, let’s discuss some of the costs. The two primary types of costs or expenses associated with insurance are the premium and the deductible.
A premium represents the price of the insurance—or the money you pay directly (often monthly or annually) to the insurance company in exchange for the coverage.
A deductible represents the amount of money that you pay toward your expenses (such as medical expenses or automobile repair costs) before the insurance company will cover the remaining costs.
When comparing insurance plans, you are essentially trying to compare what the plan could potentially cost you versus what it could potentially provide in coverage. It may be helpful to compare best-case to worst-case scenarios.
To calculate the annual minimum cost, simply multiply your monthly premium by 12 months (12 x the monthly premium), or look at the annual premium if you are billed just once a year. This scenario assumes that you do not have an insurable event in the year.
To calculate your annual maximum cost, add your annual minimum cost to the annual deductible ([12 x the monthly premium] + deductible). This scenario assumes that the expenses of the insurable event exceed your annual deductible.
With this information you can now compare the expense ranges of different plans. The following example demonstrates a way that you can compare plans.
In the activity we just completed, we were evaluating one type of property insurance plan (renters insurance). We can use the same kind of process when comparing other types of insurance. However, there are often other factors to consider, beyond just the potential minimum and maximum costs. Here are some additional questions to ask when analyzing different insurance plans:
What services or events are covered?
What are the types and limits of the coverage?
What is the reputation of the insurance provider?
Are there discounts you might qualify for?
How likely is it that you would pay close to only the minimum out-of-pocket expenses?
How likely is it that you would have to pay the maximum out-of-pocket expenses?
In your family council this week, discuss ways to build your one-month emergency fund. Also determine which insurance plans are important for your family, and investigate insurance policies. You may want to use the “Sample Family Council Discussion” outline below.
Today’s Discussion:
2 Protect Your Family from Hardship
Review and update your budget. What is working well? What categories do you need to adjust, if any? Can you spend less in some categories to more quickly save up for your emergency fund, become debt free, or save for the future? One of your commitments this week will be to discuss the following activity during family council.
What will you do if you encounter a financial crisis? What financial crises have you experienced in the past?
In the Old Testament, Joseph forewarned Pharaoh of seven years of plenty, followed by seven years of famine. Immediately, Pharaoh appointed officers to set aside extra from the good years to prepare for the bad (see Genesis 41:1–37). While we may not always have a clear prophecy of when the good and bad times will come, prophets today have encouraged us to prepare for crises, especially when things are going well.
In this chapter, we will learn what to do when we face a financial crisis and how to prepare for crises before they occur.
What types of financial crises might you encounter? Write down the group’s ideas below.
Like an emergency or fire escape plan, in the event of a financial crisis you should have a course of action that is simple to follow. About managing trials, Elder Marvin J. Ashton asked, “Can you quietly sit down, review the facts, and list all the possible courses of action? Can you identify causes and determine remedies? Quiet contemplation can solve problems more quickly than frantic force” (“Give with Wisdom That They May Receive with Dignity,” Ensign, Nov. 1981, 88). Determining how to handle financial crises beforehand will allow you to be emotionally and financially prepared when hardship strikes and can help you prevent some crises in the future. Managing a financial crisis requires two steps: assess the situation, and take appropriate action.
Why is it important to decide now how to manage a financial crisis? How has the Spirit helped you handle crises in the past?
To assess a potential financial crisis, you may want to ask the following questions:
Are you faithful in paying your tithing and offerings? Are you living your life in such a way that you are worthy of God’s blessings?
What emergency precautions have you already put in place that will help you face the current challenge? Do you have food and water storage? an emergency fund? proper insurance?
Where do your emergency preparations fall short?
What insurance policies do you have that may cover some or all of this challenge?
How long will you be able to stretch out your emergency fund?
Is there room in your budget and debt elimination plan for temporary adjustments, if needed?
Why is it important to thoroughly assess a situation before you take action?
Depending on the type and severity of your financial crisis, there are different actions you might be able to take to help you overcome your financial challenges. While these actions may not make sense for all situations, the following steps should give you an idea of what can be done in the event of a financial crisis.
Some financial crises may involve a health emergency, an automobile accident, home repairs, or job loss. For such situations, before you panic or take other actions, call your insurance provider to check coverage. Asking them about coverage doesn’t mean you are filing a claim. But if your situation is covered, you should be able to get a sense of what your personal expenses are going to be.
What financial crises merit a call to your insurance company?
The purpose of your emergency fund is to help you get through financial crises. Do not feel guilty for using it for these situations. You can use your emergency fund for whatever you need—from living expenses to insurance deductibles. Be wise about using it for the right things at the right times. Replenish your emergency fund as fast as possible if you have to use money from it.
Closely examine all of your expenses and bills and determine which must be taken care of immediately and which could be delayed for a short period without great penalty. It may be necessary to call your billers to see if they have temporary hardship grace periods, interest-free payment plan options, or due-date extensions. Be wise about which expenses you take care of first, and research the adverse effects of deferring the payment of other bills before doing so. You may need to cut unnecessary expenses for a time, if possible. Focus on food, shelter, utilities, and necessary transportation before paying other expenses.
Why would it be most important to pay the expenses just listed first?
In extreme circumstances, it may be wise to call your creditors and explain your current situation. Depending on the crisis, you may want to ask them to:
Temporarily delay or reduce payments.
Extend or permanently modify the terms of the loan.
While this may be the only viable option in extreme cases, beware that delaying payments or modifying the terms of your loan can trigger additional fees and make the loan more expensive in the long run.
Our responsibility is to provide for ourselves and our families. However, there may be times when we must temporarily rely on others. As you seek other resources, be cautious of becoming dependent on assistance long-term—such dependence will stunt your spiritual and temporal progress. As we read in chapter 2, President Spencer W. Kimball taught that there are four tiers of temporal help we can turn to:
Self: You should first do all that you can yourself to provide for your family and alleviate immediate threat.
Family: If you are unable to meet basic financial needs yourself after doing all that you personally can, you should reach out to close or extended family if needed for temporary financial assistance, whether for housing, food, or other needs.
Church: After doing all you can yourself and then seeking assistance from family, you may need to meet with your Church leaders (bishop, branch president, or Relief Society president) to explore additional options. Remember that your Church leaders are wisely instructed to help people sustain life when necessary, not lifestyle.
Community: Various community or government support programs may be available to you that may offer aid in the form of financial or employment counseling, housing assistance, nutritional support for newborn and maternal health, and so forth. Remember that these programs are designed to provide short-term assistance. Do not rely on them long term.
Why should we seek help from our family before seeking help from the Church and community? What resources that your group has identified are available in your area to help cope with crises?
You should have or should be working on building a one-month emergency fund. Your preparations should not end there! Work to become free from consumer debt and to then build a three- to six-month emergency fund and acquire insurance to protect your income.
After you have paid off all of your consumer debt, the next step is to grow your one-month emergency fund into a three- to six-month emergency fund. Remember to keep the money for your emergency fund in a safe place that you can access without penalty. Grow this fund as quickly as you can so that you are better prepared for financial crises. One of your commitments this week will be to evaluate your emergency fund and to continue to pay off your consumer debts.
Note: This information may not apply to your region or area.
One of your most important assets is your income. Research reputable disability and life insurance policies in your area, and obtain adequate coverage as quickly as possible.
One of your commitments this week will be to discuss your responses to “Budget and Spending Checkpoint” (see page 147) and your preparations for financial crises. Discuss emergencies that may occur in your family, how you can prepare for them, what insurance you may need to obtain to help protect yourself, and plans to call billers and creditors should the need arise. You may want to use the “Sample Family Council Discussion” outline below. Remember, if you are not married, your family council might include a roommate, friend, family member, or mentor.
Today’s Discussion:
Budget
Why do you think “budget” is a wall on the Financial Stewardship Success Map instead of a layer?
Today we will discuss one of the most vital tools for building financial security and becoming self-reliant: creating and effectively using a budget. A budget is a plan. Using a budget, you plan how you will use your money for a certain period of time.
Following a budget will help you and your family take control of your temporal life, put off the natural man (see Mosiah 3:19), and invite the Spirit into your home. Budgeting can also help you to protect your family from hardship as you use it to allocate money for building an emergency fund, paying down debt, and saving for future expenses.
Creating and following a budget is an act of faith. We cannot predict the future, and costs often arise unexpectedly. It is important to remember that a budget must be flexible—continually adjusted and improved. When you create a budget this week, remember that it will need to be consistently reviewed and revised during your regular family councils. If you go over budget, don’t give up! It may take several months of adjustments before you have an effective budget.
In the following activities, we will practice creating a budget.
For today, you will estimate the asked-for amounts based on what you know and what you have learned from tracking your income and expenses. One of your commitments this week will be to repeat this exercise with real numbers using the table at the end of this chapter.
To build a budget, start with your income.
The next step to creating a budget is to classify and estimate your expenses. You have been tracking your expenses and placing them in the categories you created in chapter 1. Now we will split our expenses into two types: “Fixed” and “Variable.” Below are some examples.
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Mortgage/rent |
Utility bills |
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Car payment |
Groceries |
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Insurance payment |
Eating out |
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Tithing |
Fuel and transportation |
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Emergency fund |
Home supplies |
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Other bills |
Entertainment |
Fixed expenses are for a definite amount and do not change. Most of these expenses will be monthly, but there may be some that occur more or less frequently. Fixed expenses cannot directly be controlled by spending habits; instead, fixed expenses are controlled by assessing your situation and making changes. A good way to identify fixed expenses is to ask, “Does this expense occur regularly, and is this expense the same amount each time?” Common examples include a mortgage, rent, a car payment, and certain expenses like internet, cable, or cell phone bills.
There are also fixed expenses that aren’t necessarily monthly; sometimes expenses occur annually, semiannually, or quarterly. For example, if you pay car insurance every 6 months or life insurance every 12 months, this is a fixed expense. To convert this fixed expense to fit your budget, divide the amount you pay by the number of months between payments. While you may not pay this bill monthly, you will set aside the necessary portion each month so you can pay the bill when it is due.
Variable expenses are not the same amount each month. There are some variable expenses that are not directly controlled by your spending habits. For example, expenses like your utility bills (water, gas, electric, and so on) fluctuate based on usage. However, even though the monthly amount may vary, you can still budget for these.
When it comes to budgeting, the most important variable expenses are the ones you have the most control over. These are directly controlled by your spending habits. A good way to identify many of these expenses is to ask yourself, “Do I buy this from a store (or online)?” For many variable expenses, you can make the choice to spend more or less in these areas. Examples include groceries, fuel, eating out, cell phones, and entertainment.
As you put together your budget, you may find that you have more in expenses than income. If this is your situation, you are not alone. And this is a problem you can solve. There are two ways to fix this challenge: Earn more income, or spend less money. For now, let’s discuss how we can use a budget to help us spend less by learning how to control how much we spend on our wants.
“Continue in Patience” available at srs.lds.org/videos. (No video? Read page 66.)
How are you like these children at times? Which child are you?
Elder Robert D. Hales taught, “[One] important way we help our children learn to be provident providers is by establishing a family budget. We should regularly review our family income, savings, and spending plan in family council meetings. This will teach our children to recognize the difference between wants and needs and to plan ahead for meaningful use of family resources” (“Becoming Provident Providers Spiritually and Temporally,” Ensign or Liahona, May 2009, 9).
During your family council this week, work together with your spouse to create your family budget. If you are single, or if you would like additional help, counsel with a friend, parent, family member, mentor, or group member. You may want to use the “Sample Family Council Discussion” outline below.
Today’s Discussion:
3 Eliminate Debt
Last week we discussed three principles we identified for getting out of debt:
Understand your debt realities.
Desire to get out of debt.
Overcome the “natural man” tendencies that lead you into debt.
Today we will discuss two more principles:
Stop incurring debt.
Pay off your debts.
What were some of the most meaningful things you learned last week?
You can’t expect to get out of debt until you stop incurring more debt. There are two simple steps to stop incurring debt:
Build an emergency fund.
Quit using credit cards and consumer loans.
First, continue to build an emergency fund until you have three- to six-months’ worth of expenses saved. Use this money when needed rather than credit. But remember to use it only for actual emergencies and to budget for everything else.
Second, stop relying on consumer debt and credit cards. Elder Jeffrey R. Holland suggested financial “plastic surgery.” He said, “This is a very painless operation: Just cut up your credit cards. … No convenience known to modern man has so jeopardized the financial stability of families, especially young struggling families, like the credit card” (Jeffrey R. and Patricia T. Holland, “Things We Have Learned—Together,” Ensign, June 1986, 30). Cutting up your credit cards will help you stop getting into more debt.
What are you willing to do to stop incurring debt?
We have been counseled to pay down our debts as quickly as we can: “If you do incur debt, … work to repay it as quickly as possible and free yourself from bondage” (True to the Faith [2004], 49).
Here are four steps that will help you make and follow a plan to get out of debt.
Decide to pay extra toward your debts.
Decide where to pay extra.
Use the rollover method.
Take additional steps as needed.
One of the most expensive ways to get out of debt is making minimum payments. Often the minimum payment is a percentage of the balance. As the balance goes down, so does the minimum payment. This extends the time it takes to pay off the balance and costs you more in interest. To get out of debt much more quickly, you will need to pay more than the minimum payment.
|
Description |
Balance |
Interest Rate |
Monthly Payment |
|---|---|---|---|
|
Credit card #1 |
4,000 |
17% |
97 |
|
Credit card #2 |
6,500 |
19% |
168 |
|
Car |
5,000 |
3.00% |
145 |
|
Student loan |
18,000 |
5.50% |
300 |
|
Mortgage |
170,000 |
4.50% |
1,050 |
For example, if we used our debt inventory (above) from the last chapter and made just the minimum payment on credit card #1, how long do you think it would take to get out of debt? How much interest do you think it would cost? By making only minimum payments:
It would take 20 years and 9 months to pay it off!
It would cost 5,107.62 in interest.
But what if you paid the current minimum payment of 97, plus an extra 100 a month?
You would pay it off in 2½ years—that’s 18 years sooner!
You would save 4,357.49 in interest!.
Why do creditors want you to make only minimum payments?
Paying more than the minimum payments will shorten the time it takes to get out of debt and will save you a lot of money in interest. You have been tracking your expenses and have developed a budget. How can you free up some money in your spending to make extra payments on your debts? One of your commitments this week will be to determine how much extra money you can set aside to put toward paying down your debt. When considering your first debt to pay off, pick a fixed amount that includes extra above the minimum payment, and pay at least that until the debt is paid off.
Here are a couple of options for deciding which debts should be paid first. You can:
Pay extra toward the debt with the highest interest first.
Pay extra toward the debt with the lowest balance first.
Both options have advantages and disadvantages, but they will both lead you to be debt free. One of your commitments this week will be to determine which debt you will pay down first.
The rollover method is a great way to pay off your debts. Let’s say you can now pay an extra 100 a month toward your debts. When you pay off a debt, what should you do with the money that had been going to that loan? Roll it over to pay down other loans! This is where you really start to get out of debt more quickly.
For example, with the example debt inventory, if you paid an extra 100 a month to credit card #1, your monthly payment would be 197. After it was paid off, you would have an extra 197 you could use to pay off another debt. If you used that 197 extra and put it toward the 6,500 balance for credit card #2, you would:
Pay off that credit card more than 23 years sooner than if you paid minimum payments!
Save over 8,500 in interest!
Once you paid that credit card off, you would have an extra 365 to pay toward other debts, and so on. The rollover method works well to eliminate debt quickly.
How will the rollover method help you get out of debt faster?
If you are having a difficult time making minimum debt payments, then you may need to take additional measures (see below).
In your family council this week, discuss how much money you can set aside each month to make extra payments toward your debts. Additionally, discuss which loan you would like to begin paying down first (highest interest or lowest balance). You may want to use the “Sample Family Council Discussion” outline below.
Today’s Discussion:
5 Continue to Give and to Bless Others
When we become spiritually self-reliant, it is our duty to help others also become spiritually self-reliant. In the Doctrine and Covenants, we read, “And if any man among you be strong in the Spirit, let him take with him him that is weak, that he may be edified in all meekness, that he may become strong also” (D&C 84:106). Similarly, in the New Testament, Peter writes, “As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God” (1 Peter 4:10).
How do these scriptures apply to you? How have the principles of self-reliance in My Foundation blessed your life? What does it mean to be spiritually self-reliant?
When we become temporally self-reliant, it is our duty to help others also become temporally self-reliant. One of the best ways to help others become self-reliant is serving and giving to others. President Marion G. Romney taught: “There is an interdependence between those who have and those who have not. The process of giving exalts the poor and humbles the rich. In the process, both are sanctified. The poor, released from the bondage and limitations of poverty, are enabled as free men to rise to their full potential, both temporally and spiritually. [Those who have more], by imparting of their surplus, participate in the eternal principle of giving. Once a person has been made whole, or self-reliant, he reaches out to aid others, and the cycle repeats itself” (“The Celestial Nature of Self-Reliance,” Ensign, Nov. 1982, 93).
How does this quote apply to you? Who are the poor? How can you help the poor or those in need in your life?
Take a minute to ponder the following question: Who do I know who needs Personal Finances for Self-Reliance? How will I share it with them? Write down names and plans to share below.
Congratulations! You have completed the Personal Finances for Self-Reliance group meetings. To assess your progress, write down where you are and how you plan to continue to progress in the table below.
How have you improved over the last 12 weeks to become a wise and faithful steward of your finances?
Many of the things we have discussed cannot be accomplished in 12 weeks. However, you should have developed the habits necessary to continue your progress toward successful financial stewardship. Continue to hold regular family councils. Continue to review the chapters in this workbook. And continue to work toward your financial priorities. Commit to follow the “Next Steps” you wrote down in the last column of the assessment on the previous pages.
Take five minutes to think about the following question and write down your thoughts below: What are the most meaningful things I have learned over the last 12 weeks?
Today’s Discussion:
3 Eliminate Debt
Debt is borrowing money that is not yours. It typically comes with a cost, known as interest. Interest is a percentage of the amount owed. You end up paying more for what you borrowed, sometimes a lot more. Debts come with expected payments, and an overall expectation to repay all that you borrowed plus interest.
Why do people borrow money?
Prophets have always counseled us to avoid debt. President Heber J. Grant taught, “If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet” (Gospel Standards: Sermons and Writings of Heber J. Grant, comp. G. Homer Durham [1941], 111).
Throughout the next two chapters you will learn to follow the prophets’ counsel to get out of debt.
Take two minutes to consider financial decisions you have made that went poorly. What were the consequences? How long did you feel the effects? How did it affect you, your marriage or family, and your ability to serve others?
Prophets have counseled that there are very few justifiable reasons to go into debt and that when you do incur debt you should pay it off as quickly as possible. President Gordon B. Hinckley taught that “reasonable debt for the purchase of an affordable home and perhaps for a few other necessary things is acceptable. But from where I sit, I see in a very vivid way the terrible tragedies of many who have unwisely borrowed for things they really do not need” (“I Believe,” Ensign, Aug. 1992, 6).
Depending on the circumstances, debt may be acceptable for the following expenses:
A modest, affordable home
Reasonable educational expenses that will lead to better work
Modest, basic transportation (only if necessary)
You should likely avoid going into debt for items other than these. Instead, save up for expenses.
Take two minutes to think about the following question and write your thoughts: How will it feel to be debt free?
You can get out of debt! Aggressively paying down debt will require significant sacrifice, but you can do it. Below are five important principles for getting out of debt. We will cover the first three in this chapter.
Understand your debt realities
Desire to get out of debt
Overcome natural-man tendencies that lead to debt
Stop incurring debt
Pay off your debts
What thoughts or impressions do you have from reading these five principles?
How much debt do you have? What are the interest rates? What are the payments? How long will it take to pay off your debt, and how much interest will it cost you? It is important to know these things as you work to get out of debt. To do so, you will create a debt inventory. Below is a sample debt inventory table.
|
Description |
Balance |
Interest Rate |
Monthly Payment |
|---|---|---|---|
|
Credit card #1 |
4,000 |
17% |
97 |
|
Credit card #2 |
6,500 |
19% |
168 |
|
Car |
5,000 |
3.00% |
145 |
|
Student loan |
18,000 |
5.50% |
300 |
|
Mortgage |
170,000 |
4.50% |
1,050 |
In your family council this week, you will create a similar table. Be sure to fill in all of the information for each debt.
In order to do anything difficult, including getting out of debt, your desire must be stronger than the obstacles. Elder Dallin H. Oaks taught, “When we have a vision of what we can become, our desire and our power to act increase enormously” (“Desire,” Ensign or Liahona, May 2011, 44). To find success, focus on your goal to get out of debt and visualize what life will be like when you are free from the burden of debt. Elder Neal A. Maxwell taught, “What we insistently desire, over time, is what we will eventually become” (“According to the Desire of [Our] Hearts,” Ensign, Nov. 1996, 21).
Why do you desire to be debt free? What will you be able to do that you aren’t able to do now?
In the Book of Mormon, King Benjamin taught, “For the natural man is an enemy to God, and has been from the fall of Adam, and will be, forever and ever, unless he yields to the enticings of the Holy Spirit, and putteth off the natural man and becometh a saint through the atonement of Christ the Lord, and becometh as a child, submissive, meek, humble, patient, full of love“ (Mosiah 3:19). To put off the natural man, we must remember the principles we learned from chapter 4 about maintaining a long-term perspective. Like the children in the marshmallow experiment, we need to learn to delay short-term pleasures in order to reach long-term goals.
“Natural man” tendencies include:
Impulsive and emotional spending.
Ignorance or carelessness about our financial reality.
Coveting and comparing ourselves with others.
Yielding to the natural man will likely lead us to debt and financial stress. On the other hand, as we seek to follow the “enticings of the Holy Spirit,” we will be enabled by the power of the Atonement to become strong in the face of adversity.
What does it mean to put off the natural man?
Let’s look more closely at some of these tendencies of the natural man in the context of self-reliance.
Take a minute to think about the following questions and write your answers below: When was the last time you made an expensive, impulsive purchase? What was it? How could you have used that money more effectively for something else?
We have all likely made an impulsive or emotional purchase. Sometimes we spend money when we feel discouraged or angry. Sometimes we spend money because we feel that we are entitled to reward ourselves. Sometimes a sale or promotion tempts us into believing we need something when we really don’t. There are many reasons why we spend money on things we don’t really need at the expense of paying for the things that matter most. The following activity will help us understand why we make impulsive purchases.
How can we overcome tendencies to make impulsive purchases? What have you done in the past to overcome such impulses?
In the Book of Mormon, Nephi chastises Laman and Lemuel for being “past feeling” and unable to feel the Spirit work within them (see 1 Nephi 17:45). Our choices can often harden our hearts, making it difficult to feel the promptings of the Spirit when we must change. Sometimes being “past feeling” may cause us to choose to ignore the reality of our situation. We may want to avoid tracking expenses or looking at our bank accounts. If we use credit cards or other consumer credit, this carelessness can quickly lead us into debt.
Sometimes one or both partners in a marriage will spend carelessly, assuming that the other partner is responsible for the family’s financial situation. Remember, both spouses are equally responsible for their family’s finances, and ignoring or transferring our responsibility will only push us further into financial trouble.
Why are some inclined to ignore the reality of their situation? How can you overcome being “past feeling” about your financial situation, if you need to?
It is natural for people to compare themselves with others, and we are bombarded with messages and advertisements encouraging us to purchase things we do not need. Sometimes we feel entitled to have things that we can’t afford or don’t really need. Giving in to coveting can quickly lead us to make unwise purchases.
How can we overcome the tendency to compare ourselves with others?
During your family council this week, you will discuss ways in which you can overcome and protect yourselves from “natural man” tendencies. Together, discuss your current debts and create a “debt inventory” (see the blank debt inventory sheet on page 123). You may consider using the “Sample Family Council Discussion” outline below to guide your council. As you identify your debts together, and as you develop ways to overcome “natural man” tendencies, you will receive the Lord’s help to eliminate your debts.
Today’s Discussion:
4 Save and Invest for the Future
In the previous chapter, we learned that investing is putting time, effort, or money into something and expecting some type of return. One of the reasons we may invest money is to have enough when we retire.
President Ezra Taft Benson taught, “As you move through life toward retirement and the decades which follow, we invite all … to plan frugally for the years following full-time employment” (Teachings of Presidents of the Church: Ezra Taft Benson [2014], 208). There may be government or social programs available to help you during retirement, but you will likely need to supplement the money available from these programs with your own savings or investments. If you fail to plan now, you may not have enough income or savings to be self-reliant after you retire.
What will happen if you don’t have enough money to live comfortably during retirement?
Before you begin saving for retirement, it is helpful to estimate how much you will need. This simple formula can get you started:
You cannot predict exactly how long you will live, but you can predict when you would like to retire, and you can project how long you will likely live beyond that time. Around the world, most people retire between the ages of 60 and 70. You may live an additional 20 to 30 years after retiring.
Note: You may not need this full amount when you retire, as your investments can continue to grow through retirement, but considering this number is a good place to start.
Compound interest can be one of the keys to having enough money for retirement. Compound interest is earning additional interest on interest, and it is typically represented as a percentage or rate of return. Once you earn your first interest payment, it is added to the principal balance. Then that larger balance continues to grow.
Investing in ways that provide a good rate of return often helps people have enough money saved for retirement. Most people find it easier to invest smaller amounts of money consistently over time, such as a certain amount each month or from each paycheck, rather than large periodic sums. The example below demonstrates the total value of investing 100 per month for 30 years, with different rates of return. This is the power of compound interest.
How can time and the rate of return affect the total value of an investment?
As we have seen, the rate of return can be very powerful. It might seem pretty straightforward that all we would need to do, then, is to invest our money in something with the highest rate of return. But it isn’t that simple. As the following graphic shows, all investments carry a risk-and-return relationship. Typically, the lower the rate of return, the less risk that you will lose money on that investment. Conversely, the higher the potential return, the higher the potential risk that you will lose money.
When considering potential investments, it is helpful to know some fundamentals. Almost all investments can be divided into two categories: those with a fixed rate of return and those with a variable rate of return.
A fixed rate means your rate won’t go up or down but remains constant or fixed. Examples of savings or investments with fixed rates include savings accounts, certificates of deposit (CDs), and bonds. Fixed-rate investments often have a lower rate of return and could be considered less risky than variable-rate investments.
A variable rate means that your return could go up or down, meaning you could make or lose money. Examples of variable-rate investments include stocks, many mutual funds, businesses, and real estate. Typically, variable-rate investments are considered riskier than fixed-rate investments, but they can also carry the potential for higher returns.
Diversification means spreading your money across multiple investments. Investing in multiple investments or multiple types of investments can help reduce your risk.
For more information on different types of investments, read the “Resources” section at the end of this chapter on your own this week.
As a group, review the following concepts until everyone feels comfortable that they understand them.
Compound interest
Risk versus return
Fixed rate of return
Variable rate of return
Diversification
You will typically have to pay some type of taxes on your investments. In fact, taxes can be one of the largest expenses to consider when investing. Fortunately, many governments allow retirement accounts that have special tax benefits you will want to understand. These investment accounts may be employer sponsored or individual, and within these accounts you can invest in stocks, bonds, mutual funds, and more. The accounts go by different names depending on where you live, but the basic tax advantages are similar and generally fall into two categories: tax deferred and tax free.
Tax deferred: Contributions to tax-deferred accounts are typically tax-deductible in the year of the contribution, while withdrawals during retirement are taxed at whatever tax rate your income puts you at at that time. If your investment is not likely to grow substantially, either due to a lower rate of return or because it has less time to grow, you may save more in taxes by deferring paying income taxes on that money until retirement, when the money may be taxed at a lower rate.
Tax free: Contributions to tax-free accounts provide no initial tax advantages. For these accounts, the money you contribute is taxed in the year it was earned. However, all future earnings and withdrawals are tax free. If your investment is likely to grow substantially, either due to a higher rate of return or because it has more time to grow, you would probably pay less in taxes using a tax-free account.
As you can see, based on the type of account you choose, you will either pay taxes up front or at withdrawal. Depending on your circumstances, one type may be more beneficial to you than the other.
Once you have established an emergency fund and paid off your consumer debt, you should begin saving for retirement as soon as possible. The sooner you begin saving for retirement, the longer your money has to grow and the more money you are likely to have available for retirement.
One great way to begin saving for retirement is through an employer-sponsored retirement plan. If your employer offers some type of retirement account where they match some of what you contribute, take advantage of it! Their match is like a bonus or raise for you, just for contributing to your own savings.
The following activity helps to illustrate the power of investing regularly for a longer period of time.
During your family council this week, discuss your plans for retirement. Estimate how much you will need, when you would like to retire, and what your financial situation might be at that time. Write down the amount you would like to save, and determine an amount you can afford to set aside each month for retirement. Remember, while it is important to start saving for retirement as soon as possible, it is more urgent to build your emergency fund and to eliminate consumer debt first. During your discussion, you may want to use the “Sample Family Council Discussion” outline that follows.
Today’s Discussion:
4 Save and Invest for the Future
When people hear the term investing, they may think of a loud and chaotic trading floor with people selling stocks and bonds. While that may be part of investing, investing is also the act of putting time, effort, or money into something and expecting some type of a return. In this sense, investing is an element of self-reliance.
In this chapter, you will explore three ways to invest:
Save money
Consider home ownership
Seek education
Take two minutes to think about the following question and write down your thoughts: What would I most like to save up for?
One of the easiest ways to invest is to save money. You have been working to build an emergency fund, starting with one month’s worth of expenses and then building up to having three to six months’ worth of expenses. Imagine the possibilities if you continue to save even after establishing a strong emergency fund.
Elder L. Tom Perry taught, “Pay yourself a predetermined amount directly into savings. … It is amazing to me that so many people work all of their lives for the grocer, the landlord, the power company, the automobile salesman, and the bank, and yet think so little of their own efforts that they pay themselves nothing” (“Becoming Self-Reliant,” Ensign, Nov. 1991, 66).
As illustrated earlier with the jar example, it is critical to “pay yourself” first by putting money into savings. This will help you build financial security.
Take a minute to review the jar example again. What is most meaningful to you about this example? How are you demonstrating faith by taking the self-reliant approach?
Buying a home could be another way to invest. Home ownership is not for everyone, however, and often renting may be a better option.
For those considering home ownership, remember these two principles:
Buy a home only when and where it makes sense for you.
Buy only what you can comfortably afford.
Now let’s discuss some factors that can influence these principles.
Why are these questions important to ask yourself before purchasing a home?
Most people buy a home using a loan called a mortgage. This mortgage is debt, and it will cost you interest. You are expected to make the monthly payments and pay back the loan.
For long-term financial stability, your monthly mortgage payment should not exceed 25 percent of your monthly income. Use this as a guide for what you can afford to pay, rather than what a lender is willing to let you borrow.
What does it mean to you to purchase a home that you can comfortably afford?
Keep in mind that there are other expenses of home ownership beyond the mortgage. When you own a home, you are responsible for the maintenance. Things break, wear out, and sometimes need updating. Financial advisors generally recommend saving at least 1 percent of the value of your home each year for maintenance.
As explained previously, a mortgage is a loan—it is debt—and it costs you interest. Reiterating President J. Reuben Clark’s teachings, President Ezra Taft Benson said, “Let every head of household aim to own his [or her] home, free from mortgage” (“Prepare for the Days of Tribulation,” Ensign, Nov. 1980, 33). Paying off a mortgage earlier might require some sacrifice, but the faster you pay it off, the more money paid out in interest you save. There are two ways to pay down your mortgage:
Pay extra
Structure a shorter-term loan with a lower interest rate
Paying extra toward the principal can save you many years of payments and tens of thousands in interest. For example, if you had a 150,000, 30-year mortgage with a 4.5 percent interest rate, you would pay 123,610 in interest over the life of the loan. Look at the chart below to see how much time and money you can save by paying 100 or 200 extra per month.
|
100 extra per month |
200 extra per month |
|
|---|---|---|
|
Time saved |
Almost 7 years |
Almost 11 years |
|
Money saved |
29,715 |
47,462 |
Another option to pay off a mortgage more quickly is to get a mortgage with a shorter term. Shorter-term mortgages typically come with lower interest rates. Your monthly payment is higher, but you will save years of payments and thousands in interest.
Let’s compare the same mortgage as before, but this time with a 15-year loan. The original example was a 150,000, 30-year mortgage with a 4.5 percent interest rate. Let’s compare that with a 15-year mortgage with a 3.5 percent rate.
|
30-Year Mortgage |
15-Year Mortgage |
|
|---|---|---|
|
Interest rate |
4.5% |
3.5% |
|
Monthly payment |
760 |
1,072 |
|
Total interest paid |
123,610 |
43,018 |
|
Time to pay off |
30 years |
15 years |
In this case, a 15-year mortgage means a monthly payment of about 312 more, but it would save you:
15 years of mortgage payments.
Over 80,000 in interest.
What would you be willing to give up in order to pay extra on your mortgage or get a shorter-term mortgage to be free from debt sooner?
Education is another form of investing. Typically, additional training or education will have a cost. If you are going to invest in education, ensure that it will lead to better work so there is a good return on your investment. President Gordon B. Hinckley counseled that the “world will in large measure pay you what it thinks you are worth, and your worth will increase as you gain education and proficiency in your chosen field” (“A Prophet’s Counsel and Prayer for Youth,” Ensign, Jan. 2001, 4).
Sometimes it may be appropriate to incur debt to gain education, but there are also many other ways to pay for school. Explore all other options before turning to debt. If you do go into debt for education, strive to pay it off as quickly as possible.
The Education for Better Work self-reliance group may be a great option for you when considering investing in education.
How is education an investment in yourself?
One of your commitments this week will be to discuss saving, home ownership, and investing in your education during family council. Discuss things you would like to save up for, whether you should rent or buy a home (or how you can begin paying down your mortgage), and what educational goals, if any, you should work toward. You may want to use the “Sample Family Council Discussion” outline below.
Today’s Discussion:
Faith in Jesus Christ
Unity with Spouse
Commitment to Self-Reliance
When Adam and Eve were asked to leave the Garden of Eden, God said, “In the sweat of thy face shalt thou eat bread, till thou return unto the ground” (Genesis 3:19). While the Lord desires to provide us with everything we need temporally, He expects us to work hard and take responsibility for our own needs. Notice that one of the supporting walls on the Financial Stewardship Success Map (see page 8) is “work.” Becoming temporally self-reliant requires continual hard work and diligence.
President Dieter F. Uchtdorf taught, “The Lord doesn’t expect us to work harder than we are able. He doesn’t (nor should we) compare our efforts to those of others. Our Heavenly Father only asks that we do the best we can. … Work is an antidote for anxiety, an ointment for sorrow, and a doorway to possibility. … When our wagon gets stuck in the mud, God is much more likely to assist the man who gets out to push than the man who merely raises his voice in prayer—no matter how eloquent the oration” (“Two Principles for Any Economy,” Ensign or Liahona, Nov. 2009, 56–57).
Think of examples of hard workers in your life. What attributes do these people have in common?
President Spencer W. Kimball taught, “The responsibility for each person’s social, emotional, spiritual, physical, or economic well-being rests first upon himself, second upon his family, and third upon the Church if he is a faithful member thereof. No true Latter-day Saint, while physically or emotionally able, will voluntarily shift the burden of his own or his family’s well-being to someone else. So long as he can, under the inspiration of the Lord and with his own labors, he will supply himself and his family with the spiritual and temporal necessities of life” (Teachings of President Spencer W. Kimball [2006], 116).
Elder Dale G. Renlund, quoting Elder Wilford W. Andersen, taught: “The greater the distance between the giver and the receiver, the more the receiver develops a sense of entitlement” (“That I Might Draw All Men unto Me,” Ensign or Liahona, May 2016, 39). Entitlement is feeling that you deserve something without taking the proper and complete action needed to obtain it. It is the opposite of responsibility. When you feel entitled to temporal blessings, the Spirit withdraws from your life. As you draw closer to Christ, feelings of responsibility for your own welfare will fill your heart, and feelings of entitlement will dissipate.
How can depending on others limit our personal growth?
Why is it important to avoid dependencies on government or social programs?
What other risks are associated with relying on others, including family, for our personal needs?
How have your finances affected you spiritually and emotionally?
One of Satan’s most prevalent and powerful tools for destroying families is financial carelessness and its accompanying stress. Because families are central to Heavenly Father’s plan (see The Family: A Proclamation to the World), it is important that we avoid blame, distrust, and anger in our homes. Whether you are married or single, wise financial stewardship can bring loved ones closer to each other and to God, and can be a safeguard from evil; a unified approach to financial stewardship can ultimately bring gratitude, harmony, and peace.
Why is it important for spouses to be one in financial matters?
Spouses often come from different cultural, economic, and religious backgrounds. They may have different traditions, child-rearing techniques, and spending habits. One spouse may be naturally interested in tracking expenses and following a budget, and the other may find it tedious and burdensome. This may spark disagreements. However, embracing each other’s differences and truly listening with love and humility will foster an environment of unity. If you are single, it is important to be honest with yourself and to involve the Lord in your financial stewardship decisions.
Many couples believe that the solution to their financial problems is increasing their income. However, a divided approach to managing money can be far more damaging to a relationship than low income or lack of financial resources.
How can financial discord be more damaging than low income or lack of resources?
Elder Marvin J. Ashton taught, “Management of family finances should be mutual between husband and wife in an attitude of openness and trust. Control of the money by one spouse as a source of power and authority causes inequality in the marriage and is inappropriate. Conversely, if a marriage partner voluntarily removes himself or herself entirely from family financial management, that is an abdication of necessary responsibility” (One for the Money: Guide to Family Finance [booklet], 2006, 3).
How will being unified with your spouse change your life?
Whether you are preparing for marriage or are single, divorced, or widowed, wise financial stewardship can help you be ready for future relationships. Many new couples are burdened by debt and poor spending habits brought into the relationship, which can cause a difficult beginning to their marriage. Striving to develop good spending habits, build up savings, and reduce or eliminate debt will invite the Spirit into your relationship and create a bedrock for a successful marriage.
How can being a wise financial steward now help you prepare to be a better spouse in the future?
Last week we discussed the importance of counseling with the Lord. He wants to help you succeed. In addition to counseling with the Lord, prophets have taught the importance of having regular family councils.
“Family Councils,” available at srs.lds.org/videos. (No video? Read page 31.)
How could holding family councils benefit you and your family?
A regular executive family council between husband and wife is the perfect setting to discuss financial stewardship. If you are single, choose a parent or other family member, roommate, mentor, or friend and hold a regular and honest council with the person about your finances. If you are married, you will probably need to have important discussions with your spouse throughout this course. After this course, holding regular family councils will help you continue to become more unified and more self-reliant.
One of your commitments this week will be to designate a time to hold a regular family council. As part of your family council, you should discuss finances. You may want to use the “Sample Family Council Discussion” outline on the next page to guide this part of your family council.
Take a minute to quietly ponder the following question and write down your thoughts.
How confident am I about my financial future?
In the parable of the talents, Christ teaches us that we must take care of what we have been given. The Lord allows us to be caretakers—or stewards—over His gifts to us. To those who are faithful with His gifts, Christ promises, “Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord” (Matthew 25:21).
What does it mean to you that all things belong to the Lord?
As part of our stewardship, we are encouraged to be wise with our finances. President Gordon B. Hinckley taught:
“I urge you … to look to the condition of your finances. I urge you to be modest in your expenditures; discipline yourselves in your purchases to avoid debt to the extent possible. Pay off debt as quickly as you can, and free yourselves from bondage.
“This is a part of the temporal gospel in which we believe. May the Lord bless you to set your houses in order. If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your [families] and peace in your hearts” (“To the Boys and to the Men,” Ensign, Nov. 1998, 54).
As you strive to use your money wisely, your faith in Christ can increase, paving the way for future blessings.
How does managing your finances make you a better steward?
The diagram on page 8—the Financial Stewardship Success Map—illustrates principles for wise and faithful financial management. You will study and apply these principles over the next 12 weeks. Throughout this course, you will work on increasing your faith in Jesus Christ, building unity with your spouse, and strengthening your commitment to self-reliance. Each lesson will focus on a specific part of the Financial Stewardship Success Map.
Take turns reading the items on the Financial Stewardship Success Map (page 8). How can each of these help you on your path to successful financial stewardship?
Challenges will undoubtedly arise as you apply these principles of successful financial stewardship. As you seek the help of fellow group members, and continually seek the Lord’s help, you will be strengthened to overcome those difficulties. Remember, the Lord always provides a way to fulfill His commandments (see 1 Nephi 3:7).
Amulek taught the poor among the Zoramites to “cry unto [the Lord] over the crops of your fields, that ye may prosper in them. Cry over the flocks of your fields, that they may increase” (Alma 34:24–25). As you counsel with the Lord about your temporal needs and challenges and work toward financial self-reliance, He will bless and strengthen you.
Counseling with the Lord about your finances means praying to Heavenly Father and asking for guidance about financial matters. One of your commitments this week will be to counsel with the Lord about your finances.
Financial Stewardship Success Map
The first step to successful financial stewardship is understanding your current financial situation. When you gain a better understanding of where your money is being spent, you can better plan where you want it to go. You will begin by tracking your income and expenses for the first four weeks of this course.
Take a few minutes and quietly think about the following questions:
Do I know where I spend my money each month?
Do I feel in control of where my money goes?
What challenges might you have tracking your expenses?
Write some ways you will overcome these challenges.
Today’s Discussion:
1 Pay Tithes and Offerings
Why do you think that “pay tithes and offerings” is the first layer in the Financial Stewardship Success Map?
Church members have been counseled to pay their tithes and offerings before paying other expenses, even necessities. Elder Dallin H. Oaks taught, “The payment of tithing is a test of priorities” (“Tithing,” Ensign, May 1994, 35). As you show God your priorities, you will unlock greater opportunities for Him to bless you. The scriptures often emphasize that things must be done in order. (For examples, see 1 Corinthians 14:40, Mosiah 4:27, and Doctrine and Covenants 93:43.)
President Heber J. Grant taught, “The men and the women who have been absolutely honest with God, who have paid their tithing, … God has given them wisdom whereby they have been able to utilize the remaining nine-tenths, and it has been of greater value to them, and they have accomplished more with it than they would if they had not been honest with the Lord” (in Conference Report, Apr. 1912, 30).
How do you think paying tithing first helps you make better use of the remaining nine-tenths of the money you have?
In order to pay tithes and offerings first, it may be necessary to change your general approach to managing money. Taking care of current living expenses can often overwhelm our ability to save for the future and build financial security. Many people follow this approach to financial stewardship: they pay for immediate needs like food, shelter, transportation, and health care first, while intending to save money and pay tithing with what is left. This method is illustrated in the following diagram.
While this practice may be very common, there is a better approach to financial stewardship: When you receive income, first pay your tithing and then set aside money for your future self—even if it’s just a little bit. Then, use what is left (the majority of your income) to pay for your living expenses. This method is illustrated in the diagram below.
What are some of the differences between these two approaches? Why do so many people end up taking the more common approach to financial stewardship?
We will use the illustrations below of a jar, some rocks, and sand to show the wisdom of setting money aside first for the Lord and for our future self (see Stephen R. Covey, A. Roger Merrill, and Rebecca R. Merrill, First Things First: To Live, to Love, to Learn, to Leave a Legacy [1994], 88–89).
The jar represents our income: a resource of limited size. We each have jars of different sizes, but the principle discussed here is the same for everyone. The rocks and the sand, when placed in the jar, represent the ways we can use our money. In this example, the big and small rocks represent our long-term priorities—setting aside money for the Lord and our future self—and the sand represents our current needs and wants.
Let’s place the items into the jar using the more common approach to financial stewardship.
Notice that when you pour the sand in first, there is not enough room for the rocks to all fit.
Now let’s place the items in the jar using the more self-reliant approach to financial stewardship.
Notice that if you place the rocks in first, there is still room for all of the sand.
How does this jar example relate to paying tithing and saving money? Why did everything fit in the jar the second time? How is putting rocks in the jar first an example of showing faith?
Throughout this course you will continually learn how to take the more self-reliant approach to financial stewardship. Though following this self-reliant approach may be uncomfortable at first, it will help you better prepare for the future. It is natural to worry that you may not have enough money for your current needs if you pay tithing and set aside money for savings first. It is a test of faith. A wise bishop once told a nervous new convert, “If paying tithing means that you can’t pay for water or electricity, pay tithing. If paying tithing means you can’t pay your rent, pay tithing. If paying tithing means that you don’t have enough money to feed your family, pay tithing. The Lord will not abandon you” (in Aaron L. West, “Sacred Transformations,” Ensign, Dec. 2012, 38).
As you have been tracking your expenses, you have likely also received income. Consider how you currently manage your money and how you can improve to pay tithing and your future self first. One of your commitments this week will be to apply these principles and to continue to track your income and expenses this week.
While taking the self-reliant approach to financial stewardship requires exercising faith in Jesus Christ, it also requires applying proper financial skills. Next week, you will begin mastering the skill of properly using a budget, which will help you take control of your spending and stretch your money to pay for all of your expenses.
How can paying tithing and saving money first change your life?
“The law of tithing is simple,” taught President James E. Faust of the First Presidency. “We pay one-tenth of our individual increase annually. Increase has been interpreted by the First Presidency to mean income. What amounts to 10 percent of our individual income is between each of us and our Maker. … As a convert in Korea once said: ‘With tithing, it doesn’t matter whether you are rich or poor. … If you make lots of money, you pay 10 percent. If you make very little, you still pay 10 percent’” (“Opening the Windows of Heaven,” Ensign, Nov. 1998, 59).
“Widow of Zarephath,” available at srs.lds.org/videos. (No video? Read page 49.)
Why did the widow of Zarephath give her last meal to the prophet Elijah? Could you have done that? Why or why not?
The law of tithing has been around since Old Testament times. In Malachi, we read that if we pay our tithing, the Lord will open the “windows of heaven” unto us (see Malachi 3:10).
Elder David A. Bednar taught, “The imagery of the ‘windows’ of heaven used by Malachi is most instructive. Windows allow natural light to enter into a building. In like manner, spiritual illumination and perspective are poured out through the windows of heaven and into our lives as we honor the law of tithing. … We may need and pray for help to find suitable employment. … The spiritual gift of enhanced discernment [can] empower us to identify job opportunities that many other people might overlook. … We may appropriately desire and work to receive a pay raise in our employment to better provide the necessities of life. … [Or in some cases] we might want and expect a larger paycheck, but the blessing that comes to us through heavenly windows may be greater capacity to act and change our own circumstances rather than expecting our circumstances to be changed by someone or something else” (“The Windows of Heaven,” Ensign or Liahona, Nov. 2013, 18).
In what ways has spiritual illumination (or personal inspiration) guided you to change your own circumstances?
“A proper fast day observance typically includes abstaining from food and drink for two consecutive meals in a 24-hour period, attending fast and testimony meeting, and giving a generous fast offering to help care for those in need” (Handbook 2: Administering the Church [2010] 21.1.17).
Fast offerings are used to help the poor and those in need. Giving a generous fast offering will also increase our own capacity to be self-reliant.
Elder Jeffrey R. Holland taught, “I bear witness of the miracles, both spiritual and temporal, that come to those who live the law of the fast. … Cherish that sacred privilege at least monthly, and be as generous as circumstances permit in your fast offering and other humanitarian, educational, and missionary contributions. I promise that God will be generous to you, and those who find relief at your hand will call your name blessed forever” (“Are We Not All Beggars?” Ensign or Liahona, Nov. 2014, 42).
What can you do to improve your fasting?
During your family council this week, discuss the benefit of paying tithing and setting some money aside for savings immediately after receiving your income. Determine with your spouse how to improve your fasting.
You may want to use the “Sample Family Council Discussion” outline below.
What can we do to improve our group experience?
I, , have participated in a self-reliance group provided by The Church of Jesus Christ of Latter-day Saints and have fulfilled the requirements necessary for completion as follows:
I attended at least 10 of the 12 meetings.
I completed all 12 principles and taught them to my family.
I completed a service activity.
I have practiced and built a foundation of skills, principles, and habits for self-reliance. I will continue to use these throughout my life.
Participant’s name
Participant’s signature
Date
I certify that this participant has completed the requirements listed above.
Facilitator’s name
Facilitator’s signature
Date
Note: A certificate from LDS Business College may be issued at a later date by the stake or district self-reliance committee.
Will You Continue Your Path to Self-Reliance?
“Therefore, what manner of men ought ye to be? Verily I say unto you, even as I am.”
Dear Brothers and Sisters:
The Lord has declared, “It is my purpose to provide for my saints” (D&C 104:15). This revelation is a promise from the Lord that He will provide temporal blessings and open the door of self-reliance, which is the ability for us to provide the necessities of life for ourselves and our family members.
This workbook has been prepared to help members of the Church learn and put into practice principles of faith, education, hard work, and trust in the Lord. Accepting and living these principles will better enable you to receive the temporal blessings promised by the Lord.
We invite you to diligently study and apply these principles and teach them to your family members. As you do so, your life will be blessed. You will learn how to act on your path toward greater self-reliance. You will be blessed with greater hope, peace, and progress.
Please be assured that you are a child of our Father in Heaven. He loves you and will never forsake you. He knows you and is ready to extend to you the spiritual and temporal blessings of self-reliance.
Sincerely,
The First Presidency
How does losing myself in the service of others actually save me?
“In the Lord’s Way,” available at srs.lds.org/videos. (No video? Read page 183.)
In the Lord’s Way
If you are unable to watch the video, read this script.
President Henry B. Eyring: The principles at the foundation of the Church welfare program are not for only one time or one place. They are for all times and all places. …
… The way it is to be done is clear. Those who have accumulated more are to humble themselves to help those in need. Those in abundance are to voluntarily sacrifice some of their comfort, time, skills, and resources to relieve the suffering of those in need. And the help is to be given in a way that increases the power of the recipients to care for themselves and then care for others. Done in this, the Lord’s way, something remarkable can happen. Both the giver and the receiver are blessed.
(Adapted from an address given by President Eyring at the dedication of the Sugarhouse Utah Welfare Services Center, June 2011, LDS.org)
President Dieter F. Uchtdorf: Brothers and sisters, we each have a covenant responsibility to be sensitive to the needs of others and serve as the Savior did—to reach out, bless, and uplift those around us.
Often, the answer to our prayer does not come while we’re on our knees but while we’re on our feet serving the Lord and serving those around us. Selfless acts of service and consecration refine our spirits, remove the scales from our spiritual eyes, and open the windows of heaven. By becoming the answer to someone’s prayer, we often find the answer to our own.
(“Waiting on the Road to Damascus,” Ensign or Liahona, May 2011, 76)
Back to page 182.
How can serving others open the windows of heaven in your life?
Some feel that they deserve what others already have, which can cause resentment. Others feel entitled to things they have not earned. These two traps blind people from seeing an essential truth: all things belong to God. Resentment and entitlement can be overcome by focusing on the needs of others. Read Mosiah 2:17, Mosiah 4:26, and the quote by President Gordon B. Hinckley (on the right).
Quotes by Elder Robert D. Hales and President Thomas S. Monson (on the right)
Commit to do the following actions during the week. Check the box when you complete each action.
Act on the plan you made to serve someone.
Share what you’ve learned today about service with your family or friends.
When has Heavenly Father answered my prayers?
“Creating Lift,” available at srs.lds.org/videos. (No video? Read page 145.)
Creating Lift
If you are unable to watch the video, read this script.
President Dieter F. Uchtdorf: In order to get an airplane off the ground, you must create lift. In aerodynamics, lift happens when air passes over the wings of an airplane in such a way that the pressure underneath the wing is greater than the pressure above the wing. When the upward lift exceeds the downward pull of gravity, the plane rises from the ground and achieves flight.
In a similar way, we can create lift in our spiritual life. When the force that is pushing us heavenward is greater than the temptations and distress that drag us downward, we can ascend and soar into the realm of the Spirit.
Though there are many gospel principles that help us to achieve lift, I would like to focus on one in particular.
Prayer!
Prayer is one of the principles of the gospel that provides lift. Prayer has the power to elevate us from our worldly cares. Prayer can lift us up through clouds of despair or darkness into a bright and clear horizon.
One of the greatest blessings and privileges and opportunities we have as children of our Heavenly Father is that we can communicate with Him through prayer. We can speak to Him of our life experiences, trials, and blessings. We can listen for and receive celestial guidance from the Holy Spirit at any time and at any place.
(See Dieter F. Uchtdorf, “Prayer and the Blue Horizon,” Ensign or Liahona, June 2009, 5–6)
Back to page 144.
How can we recognize answers to our prayers? Why is listening an essential part of prayer?
Doctrine and Covenants 8:2 and the quote by President Russell M. Nelson (on the right)
Why is listening an essential skill? How can careful listening help us in our work?
Quotes by President Henry B. Eyring and Elder Robert D. Hales (on the right)
Commit to do the following actions during the week. Check the box when you complete each action.
Pray individually and as a family each morning and night. Spend time after each prayer reverently listening for guidance.
Share what you’ve learned today about communication with your family or friends.
How does my faith in Jesus Christ affect my self-reliance?
“Exercise Faith in Jesus Christ,” available at srs.lds.org/videos. (No video? Read page 21.)
Exercise Faith in Jesus Christ
If you are unable to watch the video, read this script.
Elder David A. Bednar: Taking action is the exercise of faith. The children of Israel are carrying the ark of the covenant. They come to the River Jordan. The promise is they will cross over on dry land. When does the water part? When their feet are wet. They walk into the river—act. Power follows—the water parts.
We oftentimes believe, “I’m going to have this perfect understanding, and then I’m going to transform that into what I do.” I would suggest that we have enough to get started. We have a sense of the right direction. Faith is a principle—the principle—of action and of power. True faith is focused in and on the Lord Jesus Christ and always leads to action.
(See “Seek Learning by Faith” [address to Church Educational System religious educators, Feb. 3, 2006], lds.org/media-library)
Back to page 20.
Why does true faith always lead to action? Why is faith necessary for God to help us temporally and spiritually?
Matthew 6:30 and the quote from the Lectures on Faith (on the right)
Commit to do the following actions during the week. Check the box when you complete each action.
Show your faith this Sunday by keeping the Sabbath day holy and reverently partaking of the sacrament.
Read from the Book of Mormon every day.
Read the scriptures on page 21. Choose one and share it with your family or friends.
Because Daniel would not stop praying, he was thrown into a den of lions, but “God … sent his angel, and … shut the lions’ mouths, … and no manner of hurt was found upon him, because he believed in his God” (Daniel 6:22–23; see also verses 16–21).
The Lord gave Lehi the Liahona to guide his family, and “it did work for them according to their faith in God. … [When] they were slothful, and forgot to exercise their faith and diligence … they did not progress in their journey” (Alma 37:40–41).
“Bring ye all the tithes into the storehouse … and prove me now herewith … 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” (Malachi 3:10).
During a famine, Elijah asked a widow to give him her last meal. Elijah promised that because of her faith the Lord would provide food to her, and her food never ran out. (See 1 Kings 17.)
“When the poor and needy seek water, and there is none, and their tongue faileth for thirst, I the Lord will hear them, I the God of Israel will not forsake them” (Isaiah 41:17; see also verse 18).
How do I keep the daily demands of life in balance?
“Of Regrets and Resolutions,” available at srs.lds.org/videos. (No video? Read page 55.)
Of Regrets and Resolutions
If you are unable to watch the video, read this script.
President Dieter F. Uchtdorf: Isn’t it true that we often get so busy? And, sad to say, we even wear our busyness as a badge of honor, as though being busy, by itself, was an accomplishment or sign of a superior life.
Is it?
I think of our Lord and Exemplar, Jesus Christ, and His short life among the people of Galilee and Jerusalem. I have tried to imagine Him bustling between meetings or multitasking to get a list of urgent things accomplished.
I can’t see it.
Instead I see the compassionate and caring Son of God purposefully living each day. When He interacted with those around Him, they felt important and loved. He knew the infinite value of the people He met. He blessed them, ministered to them. He lifted them up, healed them. He gave them the precious gift of His time.
(Dieter F. Uchtdorf, “Of Regrets and Resolutions,” Ensign or Liahona, Nov. 2012, 22)
Back to page 54.
What did the Savior do to achieve a balanced life?
Mosiah 4:27, 2 Nephi 9:51, and the quotes by Elder M. Russell Ballard (on the right) and President James E. Faust (on page 55)
What things can be simplified or eliminated from our lives so we can experience more joy?
Commit to do the following actions during the week. Check the boxes when you complete each action:
Act on your idea to bring more balance to your life.
Share with your family or friends what you have learned about finding balance.
What are some of the things that matter most to you?
“Doing What Matters Most,” available at srs.lds.org/videos. (No video? Read page 201.)
Doing What Matters Most
If you are unable to watch the video, read this script.
Narrator: A plane crashed in Florida one dark night in December. Over 100 people were killed. It was just 20 miles from safety.
President Dieter F. Uchtdorf: After the accident, investigators tried to determine the cause. The landing gear had indeed lowered properly. The plane was in perfect mechanical condition. Everything was working properly—all except one thing: a single burned-out lightbulb. That tiny bulb—worth about 20 cents—started the chain of events that ultimately led to the tragic death of over 100 people.
Of course, the malfunctioning lightbulb didn’t cause the accident; it happened because the crew placed its focus on something that seemed to matter at the moment while losing sight of what mattered most.
The tendency to focus on the insignificant at the expense of the profound happens not only to pilots but to everyone. We are all at risk. … Are your thoughts and heart focused on those short-lived fleeting things that matter only in the moment or on things that matter most?
(“We Are Doing a Great Work and Cannot Come Down,” Ensign or Liahona, May 2009, 59, 60)
Back to page 200.
What insignificant things distract us from progressing? How can gospel ordinances help us?
Doctrine and Covenants 84:20 and the quote by President Boyd K. Packer (on the right)
As we seek self-reliance, why is it important to be temple worthy?
Commit to do the following actions during the week. Check the box when you complete each action:
If you have a temple recommend, set a date to attend the temple.
If you don’t have a temple recommend, meet with your bishop or branch president to discuss how you can prepare to receive your temple ordinances.
Share what you’ve learned about temple ordinances with your family or friends.
How are repentance and obedience connected to self-reliance?
“Obedience Brings Blessings,” available at srs.lds.org/videos. (No video? Read page 37.)
Obedience Brings Blessings
If you are unable to watch the video, read this script.
President Thomas S. Monson: What a glorious promise! “He that keepeth [God’s] commandments receiveth truth and light, until he is glorified in truth and knoweth all things” [D&C 93:28]. …
My brothers and sisters, the great test of this life is obedience. “We will prove them herewith,” said the Lord, “to see if they will do all things whatsoever the Lord their God shall command them” [Abraham 3:25].
Declared the Savior, “For all who will have a blessing at my hands shall abide the law which was appointed for that blessing, and the conditions thereof, as were instituted from before the foundation of the world” [D&C 132:5].
No greater example of obedience exists than that of our Savior. Of Him, Paul observed:
“Though he were a Son, yet learned he obedience by the things which he suffered;
“And being made perfect, he became the author of eternal salvation unto all them that obey him” [Hebrews 5:8–9].
The Savior demonstrated genuine love of God by living the perfect life, by honoring the sacred mission that was His. Never was He haughty. Never was He puffed up with pride. Never was He disloyal. Ever was He humble. Ever was He sincere. Ever was He obedient. …
When faced with the agony of Gethsemane, where He endured such pain that “his sweat was as it were great drops of blood falling down to the ground” [Luke 22:44], He exemplified the obedient Son by saying, “Father, if thou be willing, remove this cup from me: nevertheless not my will, but thine, be done” [Luke 22:42].
As the Savior instructed His early Apostles, so He instructs you and me, “Follow thou me” [John 21:22]. Are we willing to obey?
The knowledge which we seek, the answers for which we yearn, and the strength which we desire today to meet the challenges of a complex and changing world can be ours when we willingly obey the Lord’s commandments. I quote once again the words of the Lord: “He that keepeth [God’s] commandments receiveth truth and light, until he is glorified in truth and knoweth all things” [D&C 93:28].
It is my humble prayer that we may be blessed with the rich rewards promised to the obedient. In the name of Jesus Christ, our Lord and Savior, amen.
(“Obedience Brings Blessings,” Ensign or Liahona, May 2013, 89, 92)
Back to page 36.
What blessings have you received by obeying God’s laws? How does repentance help us progress?
Doctrine and Covenants 130:20–21 and the quote by the Prophet Joseph Smith (on the right)
Read Joshua 3:5 and the quotes by Elder Jeffrey R. Holland and President Spencer W. Kimball (on page 37). Why do we need to repent, sanctify ourselves, and try to do good as we seek to become self-reliant?
Commit to do the following actions during the week. Check the box when you complete each action.
Obey the law you chose in the activity above.
Share what you’ve learned today about obedience with your family or friends.
How does learning create opportunity?
“Education for a Better Life,” available at srs.lds.org/videos. (No video? Read page 165.)
Education for a Better Life
If you are unable to watch the video, read this script.
Elder Joseph W. Sitati: At 13 I lived in a very rural part of Kenya. People had very little. But those who seemed to afford the things that others admired were those who had a good education. I came to see that education was a key to a better life.
The thought kept coming to me to go and speak to the principal of one of the schools that I really desired to attend. I needed my father’s bicycle to make this journey that took half a day. I had never been out of my village. I did not know how to speak English very well, and this principal was a white man. I had never before met or spoken directly to a white man, so this was an intimidating thought.
Something inside me kept pushing me along and telling me that I should do this, so I set off to visit the principal. As I looked at him I could see that he was quite surprised to see this young boy standing like a soldier in front of him. He had kind eyes, so that gave me courage. I told him that I really wanted to join his school and I would be very happy if he could take me. Then he said, “Well, we’ll see when the test results are out.” I said, “Thank you, sir.” In less than four minutes I was out of the office.
Those four minutes I spent in that office really were the defining moments in my life. I was the only student from my primary school who was selected to one of the best schools in our area. The fact that this good man had given me this opportunity made me grateful, and it inspired me to strive to be the best student in my class.
That opened new opportunities for me to go to another good school and then to prepare for university. My education enabled me to find my wife at university. It enabled me to find a job in the city. While living in Nairobi, we came across a missionary couple that invited us to their home, where they were having meetings with those who are members of the Church. If I had not been in Nairobi at that time, I would never have found the gospel. The fact that I was in a secure job enabled me to serve in the Church.
I testify that education is a key to self-reliance. It will open many avenues for you to be able to provide for yourself temporally and to become spiritually self-reliant as well.
Back to page 162.
What did Elder Joseph W. Sitati want when he was 13? What did he do about it?
Doctrine and Covenants 88:118–19 and the quote by President Gordon B. Hinckley (on the right)
What thoughts and impressions have you had from the Holy Ghost about improving your life?
Commit to do the following actions during this week. Check the box when you complete each action.
Complete the following goals and mentor activities.
Finish writing your “life’s mission” plan and discuss it with your family.
Ask someone to be your mentor and set a time to meet.
John 10:10 (on the right)
What is an abundant life?
“He Polished My Toe,” available at srs.lds.org/videos. (No video? Read page 5.)
He Polished My Toe
If you are unable to watch the video, read this script.
Elder Enrique R. Falabella: When I was growing up, we didn’t have much. I remember one day when I approached my father and said to him, “Papa, I need a new pair of shoes. These ones are already worn out.” He stopped and looked at my shoes and saw they were really worn out. He said, “I think this is something we can fix.” He took a bit of black polish and polished my shoes, leaving them shiny and nice. He said to me, “Now they’re fixed, son.” I replied, “No, not yet. You can still see my toe sticking out of my shoe.” He said, “Well, we can fix that too!” He took a little more polish and he polished my toe!
That day I learned that there is a solution to every problem. I am convinced that this principle of self-reliance and this initiative is a way to hasten the Lord’s work. It’s part of the work of salvation. All of us can become better than what we are now. You have to let go of apathy. Many times we become complacent, and this destroys our progress. Every day is a day I can make progress if I decide to do something different to improve what I’ve done poorly in the past. If you do it with faith, exercising faith and hope in Christ that He will be there helping you, you will find the way to make progress in temporal and spiritual things. This is because God lives and you are His son or daughter.
Back to page 4.
Do you believe there are solutions to your problems? How can we qualify for the Lord’s power to assist us?
The Handbook 2 reference and the quote by Elder Dallin H. Oaks (on the right). Being self-reliant does not mean that we can do or obtain anything we set our mind to. Rather, it is believing that through the grace, or enabling power, of Jesus Christ and our own effort, we are able to obtain all the spiritual and temporal necessities of life we require for ourselves and our families. Self-reliance is evidence of our trust or faith in God’s power to move mountains in our lives and to give us strength to triumph over trials and afflictions.
How has Christ’s grace helped you obtain the spiritual and temporal necessities of life?
Read President Marion G. Romney’s quote (on the right). How do you know if you are becoming more self-reliant?
Commit to do the following actions during the week. Check the box when you complete each commitment.
Read the First Presidency letter inside the front cover, and underline the promised blessings. What must you do to obtain them? Write your thoughts below.
Share what you’ve learned today about self-reliance with your family or friends.
Why does the Lord love those with “integrity of heart”?
“What Shall a Man Give in Exchange for His Soul?” available at srs.lds.org/videos. (No video? Read page 111.)
What Shall a Man Give in Exchange for His Soul?
If you are unable to watch the video, read this script.
Elder Robert C. Gay: The Savior once asked His disciples the following question: “What shall a man give in exchange for his soul?”
This is a question that my father taught me to carefully consider years ago. As I was growing up, my parents assigned me chores around the house and paid me an allowance for that work. I often used that money, a little over 50 cents a week, to go to the movies. Back then a movie ticket cost 25 cents for an 11-year-old. This left me with 25 cents to spend on candy bars, which cost 5 cents apiece. A movie with five candy bars! It couldn’t get much better than that.
All was well until I turned 12. Standing in line one afternoon, I realized that the ticket price for a 12-year-old was 35 cents, and that meant two less candy bars. Not quite prepared to make that sacrifice, I reasoned to myself, “You look the same as you did a week ago.” I then stepped up and asked for the 25-cent ticket. The cashier did not blink, and I bought my regular five candy bars instead of three.
Elated by my accomplishment, I later rushed home to tell my dad about my big coup. As I poured out the details, he said nothing. When I finished, he simply looked at me and said, “Son, would you sell your soul for a nickel?” His words pierced my 12-year-old heart. It is a lesson I have never forgotten.
(“What Shall a Man Give in Exchange for His Soul?” Ensign or Liahona, Nov. 2012, 34)
Back to page 110.
What does it mean to have integrity? What are some small ways people give away their souls to get things in this life?
Articles of Faith 1:13 and Job 27:5 (on the right)
Read Mosiah 4:28 (on the right) and the quote by Elder Joseph B. Wirthlin (on page 111). Why is repaying a debt or business or student loan (like a PEF loan) a matter of personal integrity?
Commit to do the following actions during the week. Check the box when you complete each action:
Improve one of the eight areas you rated above.
Share what you’ve learned today about integrity with your family or friends.
Why does Heavenly Father allow us to face problems and challenges?
“A Bigger Truck?” available at srs.lds.org/videos. (No video? Read page 73.)
A Bigger Truck?
If you are unable to watch the video, read this script.
Elder Dallin H. Oaks: Two men formed a partnership. They built a small shed beside a busy road. They obtained a truck and drove it to a farmer’s field, where they purchased a truckload of melons for a dollar a melon. They drove the loaded truck to their shed by the road, where they sold their melons for a dollar a melon. They drove back to the farmer’s field and bought another truckload of melons for a dollar a melon. Transporting them to the roadside, they again sold them for a dollar a melon. As they drove back toward the farmer’s field to get another load, one partner said to the other, “We’re not making much money on this business, are we?” “No, we’re not,” his partner replied. “Do you think we need a bigger truck?”
(“Focus and Priorities,“ Ensign, May 2001, 82)
Back to page 72.
What is the real problem in this story? What are some options for the two men?
Doctrine and Covenants 9:7–9 and the quote by Elder Robert D. Hales (on the right)
1 Nephi 17:51 and 1 Nephi 18:2–3 (on the right)
How was Nephi able to build a ship?
Commit to do the following actions during the week. Check the box when you complete each action.
Act on the steps you discussed in the activity to begin solving your problem. Remember, don’t give up. It takes time to solve problems and make changes.
Share what you’ve learned today about solving problems with your family or friends.
Why does Heavenly Father want me to take personal responsibility for my life?
“Sedrick’s Journey,” available at srs.lds.org/videos. (No video? Read page 129.)
Sedrick’s Journey
If you are unable to watch the video, read this script.
Sedrick: My name is Sedrick Kambesabwe. I live in the Democratic Republic of the Congo. I’m a member of the LDS Church.
I’m a branch missionary in the village of Kipusanga. I need to prepare to go on a foreign mission. In order to go on a mission, I need a passport, which now costs 250 U.S. dollars.
To earn money, my father and I buy bananas. Some villages produce a lot of bananas: Tishabobo, Lusuku, and Kamanda.
Tishabobo is about 9 miles from here. Lusuku is 18 miles. Kamanda is 18 as well. We go there and buy bananas, and we bring them back here to sell.
To go to the villages we use a bicycle. We can take four or six bunches of bananas.
When I go by bike, it can take an hour and a half each way, if the bike is working and I have the strength. When it is midday and the heat is oppressive, I move slowly because of the heat and the sun.
I can do two trips per day if I wake up very early in the morning. It is a good way to help pay for my passport.
Now I’m earning money, little by little, so I’m saving for both school expenses and the mission. And now, after four years of work, I have enough money for my passport, plus 70 dollars saved.
Back to page 128.
How do we learn to keep going, even when the work is difficult?
Doctrine and Covenants 42:42 and the quote by President James E. Faust (on the right)
Read the quote by Elder D. Todd Christofferson (on page 129). Why does the Lord expect us to work for what we receive?
Read the quote by President Thomas S. Monson (on the right). How do I react when I experience failure?
Commit to do the following actions during the week. Check the box when you complete each action.
Choose something that is hard or uncomfortable and finish the task. Write it below.
Share what you’ve learned today about work and perseverance with your family and friends.
Why is time one of God’s greatest gifts?
“The Gift of Time,” available at srs.lds.org/videos. (No video? Read page 91.)
The Gift of Time
If you are unable to watch the video, choose roles and read this script.
Kofi: Hello, Sister Benkosi. How are you?
Sister Benkosi: Are you okay, Kofi?
Kofi: Oh, Sister Benkosi. I’m so busy. I have to work and serve and help my family … and then my football too. I have no time!
Sister B.: Kofi, you have all the time there is.
Kofi: What?
Sister B.: My boy, God has given us a great gift—our time. We must do with it what matters most.
Kofi: But how, Sister Benkosi? You have always done so much. You have succeeded with your family, with your business. You have served and blessed many, like me. I don’t know how you do it.
Sister B.: Do you really want to know? If you will sit still and listen, I will tell you my secret.
Every morning I rise before the sun. I dress and wash my face and hands.
I read the scriptures. Then I make a list of what I should do that day.
I think of who I might serve. I pray to know God’s will. And I listen.
Sometimes the names or faces of people come to mind. I add them to my list.
Kofi: Is that how you always know just who needs your service?
Sister B.: Yes, Kofi. And I pray for strength and wisdom. I pray that God will “consecrate [my] performance.” It says that in 2 Nephi 32.
I thank Him. I promise to do my best. I ask that He will do what I cannot.
Then I look at my list. I put a 1 by the most important thing, then a 2.
Kofi: How do you know the priorities?
Sister B.: I listen when I pray! Then I go to work. I look at number 1 and try to do it first, then number 2.
Sometimes things change. The Holy Ghost tells me to do something else. That is good.
I work very hard, but I have peace. I know God will help me.
So, with my list and the Spirit, I do what matters, Kofi.
Kofi: That sounds simple and hard at the same time.
Sister B.: You are right! When I finally prepare for bed, I pray. I report to Heavenly Father. I tell Him how the day went. I ask questions. I ask what I can do better. I listen. I often feel His love. I know He magnifies what I try to do. Then I have peace, Kofi, and I sleep.
Kofi: That is good, Mamma Benkosi. I want this peace. I want to use my time. I want to work and serve better.
Back to page 90.
What did you learn from Sister Benkosi?
Alma 34:32 and the quote by President Brigham Young (on the right)
Commit to do the following actions during the week. Check the box when you complete each action:
Practice these steps every day to use your time more wisely. Report each night to Heavenly Father in your prayers.
Share what you’ve learned today about using time wisely with your family or friends.
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?” (Luke 14:28).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Prepare thy work without, and make it fit for thyself in the field; and afterwards build thine house” (Proverbs 24:27).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Be thou prepared, and prepare for thyself, thou, and all thy company that are assembled unto thee, and be thou a guard unto them” (Ezekiel 38:7).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Organize yourselves; prepare every needful thing” (D&C 88:119).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Release thyself from bondage” (D&C 19:35).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“And again, verily I say unto you, concerning your debts—behold it is my will that ye shall pay all your debts” (D&C 104:78).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more” (Matthew 25:20).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Therefore whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock: And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell not: for it was founded upon a rock” (Matthew 7:24–25).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“I say unto you, be one; and if ye are not one ye are not mine” (D&C 38:27).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“I, the Lord, stretched out the heavens, and built the earth, my very handiwork; and all things therein are mine. And it is my purpose to provide for my saints, for all things are mine” (D&C 104:14–15).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Individually think about what you have learned today and consider what the Lord would have you do. Read the scripture or quote below and write responses to the questions.
“Bring ye all the tithes into the storehouse, … and prove me 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” (Malachi 3:10–12).
What are the most meaningful things I learned today?
What will I do as a result of what I learned today?
Practice and share last week’s My Foundation principle.
Create a budget.
Hold a family council and discuss our budget.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What did you learn while creating a budget?
How did your family council help as you created the budget?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Choose a budgeting system.
Discuss sticking to a budget during family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What budgeting system did you choose, and why? What features of the system are most important to you?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Create a plan to begin eliminating debt.
Discuss my debt elimination plan during family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What did you learn from creating a debt elimination plan?
What are you now doing differently to eliminate debt in your family?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Track my income and expenses.
Discuss tithes and offerings in my family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
How is counseling with the Lord helping you?
What did you learn from tracking your income and expenses?
How is working with an action partner helping you?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Create a debt inventory.
Discuss the debt inventory and ways to overcome “natural man” tendencies in my family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What did you learn from creating a debt inventory?
How does it feel to have a complete inventory of your debt?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Continue to put money toward my financial priority.
Discuss planning for retirement during family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What challenges have you had putting money toward your financial priority?
What did you learn from discussing your retirement plan?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Begin building my one-month emergency fund.
Discuss emergency fund and insurance plans in family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What have you done differently to save money for your one-month emergency fund?
How was your discussion about insurance plans and building your emergency fund in your family council?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Continue to put money toward my financial priority.
Discuss saving money, purchasing versus renting a home, and investing in education during family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
How is working toward your financial priority going?
How was your discussion during family council about home ownership and possibly pursuing additional education?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Continue to put money toward my financial priority.
Discuss my “Budget and Spending Checkpoint” responses and preparing for financial crises during family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
How was your discussion about your budget and spending?
What did you decide to do to better prepare for financial crises?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Track my income and expenses.
Counsel with the Lord about my finances.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
How is counseling with the Lord helping you?
What did you learn from tracking your expenses?
How is working with an action partner helping you?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
Practice and share last week’s My Foundation principle.
Track my income and expenses.
Discuss financial stewardship in my family council.
Contact and support my action partner.
Take a few minutes to evaluate your efforts to keep your commitments this week. Use the “Evaluating My Efforts” chart at the beginning of this workbook. Share your evaluation with your partner and discuss with him or her the question below. He or she will then initial where indicated.
What challenges did you have with keeping your commitments this week?
After evaluating your efforts, come back together and report your results. Go around the group and each state whether you rated yourself “red,” “yellow,” or “green” for each of last week’s commitments.
Now share as a group the things you learned from striving to keep your commitments during the week.
What experiences did you have practicing or sharing the My Foundation principle?
What patterns or habits have you discovered while tracking your expenses?
What did you learn from your family council? What did you learn from the financial assessment (see page 26)?
How is working with an action partner helping you?
Choose an action partner from the group for this coming week. Generally, action partners are the same gender and are not family members.
Take a couple of minutes now to meet with your action partner. Introduce yourselves and discuss how you will contact each other throughout the week.
Action partner’s name
Contact information
Write how and when you will contact each other this week.
The Envelope System
The cash envelope system is simple: immediately after being paid, you place the amount of money you have allotted to spend in each budget category into its own envelope.
For example, let’s say you have budgeted 400 for the “groceries” category this month. When you receive your pay for the month or for the next few weeks, deposit that amount (in cash) into an envelope labeled “Groceries.” No money—and this means no money—comes out of that envelope except to pay for food. If you go to the market and find you’ve left the envelope at home, go home and get the envelope! Keep a written record (in a simple notebook) of all expenses, so that you can later review it during your family council to remind you where your money is going.
In another envelope, place the budgeted amount for your transportation expenses. You will take from this second envelope when appropriate the portion needed for those costs, and track each expense in your notebook.
Divide each of your budget categories in this same way: rent or mortgage payment in one envelope; utilities in another; tithing and fast offerings in another; medical; insurance; and so on—each in its own envelope.
Each time you get paid, deposit the appropriate portion of your monthly budgeted amount into each envelope so that the total amount placed in each envelope each month is the amount predetermined in your written budget.
Do not spend more than you have budgeted. When the envelope is empty, you are done! If you must spend more in that category, you will have to take it out of another envelope. For the first few months this will require adjustments. Within that period you should gain a more accurate picture of whether your initial budgeted numbers are adequate—you’ll learn the real average over a couple of months.
Some use the envelope system for everything. Others use this cash-only system for those categories that tend to tempt them to overspend, or for which it is easy to lose track or lose control, like food, restaurants, entertainment, gasoline, and clothing. Any leftover should go toward your financial priority.
Back to page 77.
Digital Systems
If seeing extra cash tempts you to spend more than you otherwise would, then using a debit card may be your best option. As with the cash envelope method, a debit card draws from money already in your bank account.
When using a debit card, it is critical to track your expenses because, unlike the cash-envelope system, a debit card does not provide hard boundaries between budget categories. You can record your expenses with a pen and paper or with a mobile phone or computer application.
Numerous financial management apps are available for cell phones or other mobile devices. These apps can store and organize information for you, and you can then access it from your home computer or other devices, as well.
Spend some time this week researching the best apps available in your language and region, using “money management,” “personal finance tools,” or “budgeting apps” as search terms. Many very good ones are free or cost very little.
Remember, to keep your information secure, access your personal financial information only from your own devices, not from public computers.
Back to page 78.
Continue in Patience
President Dieter F. Uchtdorf shared the following counsel:
“In the 1960s, a professor at Stanford University began a modest experiment testing the willpower of four-year-old children. He placed before them a large marshmallow and then told them they could eat it right away or, if they waited for 15 minutes, they could have two marshmallows.
“He then left the children alone and watched what happened behind a two-way mirror. Some of the children ate the marshmallow immediately; some could wait only a few minutes before giving in to temptation. Only 30 percent were able to wait. …
“What started as a simple experiment with children and marshmallows became a landmark study suggesting that the ability to wait—to be patient—was a key character trait that might predict later success in life. …
“… God’s promises are not always fulfilled as quickly or in the way we might hope. …
“Patience means staying with something until the end. It means delaying immediate gratification for future blessings. …
“… The work of patience boils down to this: keep the commandments; trust in God, our Heavenly Father; serve Him with meekness and Christ-like love; exercise faith and hope in the Savior; and never give up.”
(“Continue in Patience,” Ensign or Liahona, May 2010, 56, 58, 59)
Back to page 61.
|
Type of Investment |
Definition |
Fixed or Variable |
|---|---|---|
|
Savings Account |
A deposit account, typically at a bank or other financial institution, with generally low rates of return. Account owners can make withdrawals and deposits without penalty. |
Fixed |
|
Certificate of Deposit (CD) |
An account where you deposit a specific amount of money for a set period of time; if you withdraw the money before the time is up, you may incur a penalty (lose some of the money invested). While the money is invested, it generates a modest fixed rate of return. When the allotted time has passed, you get your original investment back, plus the interest earned. |
Fixed |
|
Bond |
A debt investment where you essentially lend your money to an entity or organization for a set amount of time in order to receive an expected rate of return. When the allotted time has passed, you get your original investment back, plus the interest earned. Bonds can be issued by governments and corporations. Depending on the issuing organization, bonds can be considered low risk or high risk. |
Fixed |
|
Stock |
This represents a portion of ownership in a company, sold as shares. Each share represents a piece of ownership, so if a company has issued 100,000 shares and you own one share, you own 1/100,000th of that company. The rate of return depends on company performance. |
Variable |
|
Mutual Fund |
These are typically made up of a group of assorted stocks and bonds. The fund is managed by a professional. Mutual funds provide a simple way to diversify investments. If the mutual fund performs well, the value of your investment increases. If it performs poorly, the value of your investment decreases. |
Variable |
|
Real Estate |
An ownership investment in real property such as houses, apartments, or commercial buildings. Returns come in the form of income, an increase in the value of the property, or both. Losses may also occur for many reasons, including a decrease in the value of the property or tenants not paying the rent or damaging the property. |
Variable |
|
Business Ownership |
This investment represents having an ownership portion in a privately owned business. Returns depend on business performance. |
Variable |
Family Councils
Elder M. Russell Ballard shared the following about family councils:
“I believe councils are the most effective way to get real results. Additionally, I know councils are the Lord’s way and that He created all things in the universe through a heavenly council, as mentioned in the holy scripture.
“Until now, however, I have never talked in general conference about the most basic and fundamental—and perhaps the most important—of all councils: the family council.
“Family councils have always been needed. They are, in fact, eternal. We belonged to a family council in the premortal existence, when we lived with our heavenly parents as their spirit children.
“A family council, when conducted with love and with Christlike attributes, will counter the impact of modern technology that often distracts us from spending quality time with each other and also tends to bring evil right into our homes.
“Please remember that family councils are different from family home evening held on Mondays. Home evenings focus primarily on gospel instruction and family activities. Family councils, on the other hand, can be held on any day of the week, and they are primarily a meeting at which parents listen—to each other and to their children.
“I believe there are at least four types of family councils:
First, a general family council consisting of the entire family.
Second, an executive family council consisting of a mother and father.
Third, a limited family council consisting of parents and one child.
Fourth, a one-on-one family council consisting of one parent and one child.”
(“Family Councils,” Ensign or Liahona, May 2016, 63)
Back to page 27.
Widow of Zarephath
The widow of Zarephath, who was among the poorest of the poor, was actually a very self-reliant person in the middle of her starving, drought-stricken land. Now, you may recall, she was about to run out of food and was gathering sticks to build a fire to cook one last meal. That seems like the opposite of self-reliant. But so deep were her spiritual roots of self-reliance, that when a prophet of God asked for her last portions of food, “she went and did according to the saying of Elijah” (1 Kings 17:15). The scriptures tell us that after she used her last grain to feed the prophet, “the barrel of meal wasted not, neither did the cruse of oil fail” (verse 16), and “she, and he, and her house, did eat many days” (verse 15). She was about to run out of food, but she did not—not because she had enough money, but because she had enough faith. As we do our best to live the gospel and do all that we can to support ourselves, the Lord will reward our faith and hard work.
Back to page 43.