Series: Recession Proof
Sermon: The Equity Equation
Scripture: 1 Timothy 6:9-10
ICE BREAKER: Would you rather scream every time you talked OR jump everywhere you walked?
This week we continued our Recession Proof series and introduced an important distinction between being "RICH" and being "WEALTHY." Most people desire to be RICH and inflate their desires, thinking that being "rich" is something they can attain if they just have "enough."
The problem is, "RICH" is a moving target! Just when you think you almost have enough, you realize someone is EVEN richer than that! Enough will never be enough! The Apostle Paul calls this a "Trap." The Treasure Trap causes us to see the world as Rich vs Poor. We measure our "Richness" based off how we feel, what we have, and comparison to others around us. This keeps us swept up in the rat race of the world and far from living the life we were called to live!
It's time for a new goal!
“RICH” is not the proper measure of your finances
A true measure of financial success is WEALTH
This leads us to the Equity Equation! The way the world sees things:
Being Rich = Having Stuff (Assets)
The problem is, that is an incomplete picture
WEALTH = Assets - Liabilities
Assets are What you HAVE and Liabilities are What you OWE! To Measure true wealth you have to subtract your Debt from the value of what you have! This changes everything!
We are a culture of Consumer Debt! We buy things that we can't afford, and that lose value over time, by taking out a line of credit. Those things are not Assets for us! They don't lead to our Wealth, they take away from it - they are LIABILITIES!
Wealth is not about what you HAVE, Wealth is about what you OWN! If you OWE on it, you don't OWN it!
That means people who make $250,000 a year, but have taken out enormous sums of debt, may not have any wealth according to the equity equation. At the same time, someone making $40,000 a year who has no debt could have 10k, 30k, or MUCH more actual wealth!
Being Rich is an IDEA based on DESIRE
Wealth is a REALITY based on MATH
Our debt load is holding us back from true wealth AND from investing in our future! Most people don't realize if you save 15 percent of a $50,000 a year income, and invest it in good growth stock mutual funds starting at age 30 you will retire a MILLIONAIRE!
The Desire to be Rich is spiraling us into debt today and bankrupting our future self down the road!
Do you feel like you have fallen for the Treasure Trap of Loving Money and/or Wanting to be RICH?
How often do you think about money or things you wish you could buy?
If you were to honestly walk through your own Equity Equation (Wealth = Assets - Liabilities [for this exercise, don't include your place of residence]) what would your wealth amount to?
For most Americans, they would have a negative Net Worth. To correct, we first MINIMIZE liabilities by getting on a budget and getting out of debt! Then we MAXIMIZE our assets by investing into retirement accounts and/or mutual funds! There is a ton of wisdom to be found online or through a trusted financial advisor!
To take a GIANT first step in Recession Proofing your life, sign up and show up to our One Day Financial Workshop on October 15th! www.metachurch.tv/assets
Pray that the Holy Spirit would begin reorienting your heart towards Wisdom with your resources. Ask for strength as you seek to form new habits and perspectives!