FPU #1 Notes

Notes on FPU #1 to shape what I might want in the the intro video to my course.  Video is 1 hour 2 minutes.  We want to aim for 1 hour.

1.  Where did this course come from and why does it exist?

Example imagery around life leading up to financial trouble.  Imagery around that trouble, signing bankruptcy papers.  In Ramsey’s case, the come to Jesus moment with Bible quotes / appeal to authority.  In my case, the 29th birthday, the “How to Unfuck Your Life” note.  Discovery of personal finance programs, behavioral research, early retirement community.  Promise that the material will change your life.  Ramsey gets preachy – “What would happen to the kingdom of god if people managed money gods ways???”  Ramsey has an advantage talking to an audience who is already on the Jesus train.

Ramsey uses the unattributed quote:

1) Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.

2) We buy things we don’t need with money we don’t have to impress people we don’t like.

Statements like this have been credited to the famous comedian Will Rogers, the powerful columnist Walter Winchell, and the Hollywood star Will Smith. What do you think?

Quote Investigator: The earliest strong match located by QI appeared in a June 1928 column by the syndicated humorist Robert Quillen in which he labelled the expression “Americanism”: 1

Americanism: Using money you haven’t earned to buy things you don’t need to impress people you don’t like.

http://quoteinvestigator.com/2016/04/21/impress/

WSJ quote…

Funny overloaded donkey picture.

2.  Summary of what the class is –

“how to handle money god’s ways in specific detail.”  Need a 1 sentence description of my class and what need it addresses.  Financial management for people who sat at the miscellaneous table in high school.  The kids who sat together b/c they didn’t fit in anywhere else.

Ramsey summarizes the baby steps very quickly, maybe 10 seconds each.

3.  He then goes into detail about savings. [13 min. in].

Combination of ranting and explanation.  Lots of emphasis and emotion in his voice.  Ramsey is entertaining b/c of the range of emotion he expresses.

“Pay yourself first” [17 min]

Talks about preempting his own behavior by only doing the budget after savings and giving.

Talks about American savings in general.  “We aren’t reaping b/c we harvested stupidity.”

Saving money is about emotion.  Introduction of importance of emotion [19 min].

4.  Transitions to reconciling money management w/  religion

Discusses attitudes toward money – “money is the root of all evil” that damage a person’s ability to succeed w/ money.  “toxic belief.”  Interesting parallel w/ “toxic  masculinity*.”  Appeal to tribe – If Christians don’t have the money, who will have it?  Appeal to scripture – “In the house of the wise there are choice stores of food and oil., but a foolish man devours all he has.”  Proverbs 21:20

5.  Why save?

  • emergency fund
    • unexpected events are not unexpected
    • emergencies happen on a regular basis (~10 years).  death, layoff, pregnancy, etc.
    • beginner e fund is $1000 (repetition from #2).  if income less than $20k, $500 (income is your problem, not savings)
    • full fund is 3-6 months of expenses.  max $30k ish.  Money market account.
    • e-fund is not investment, it’s insurance
    • emergency fund is not for purchases
    • imagery of emergency fund as shield against emergency villain “murphy”
    • story of how emergency fund protected against van failure
  • purchases
    • sinking fund.  appeal to real estate jargon.
    • it’s what your grandma said, don’t buy if you cant’ afford
    • explanation of consumer financing ripoff 90 days same as cash converts to 20% interest 90% of the time.
    • better negotiating position / deals when paying cash
  • wealth building
    • long term investing.  we’ll go in detail later. “let’s look at it as a concept”
    • discipline causes people to build wealth
    • bible quote “no discipline is pleasant at the time but painful… harvest of righteousness”
    • we don’t like discipline, we like the results of it
    • building wealth is a marathon
    • emphasis this is not “get rich quick”
    • compound interest is an explosion, is the 8th wonder of the world
    • but it only works if you start right now.  need that long time period.
    • audience participation
    • story of colonel sanders at 67 b/c he couldn’t live on social security.
    • grandma moses

6.  Credit cards used for emergencies

How people build up CC debt by not planning their expenses (car repair, kids clothing, christmas, etc.).  Cut up the credit cards and stop making the banks wealthy.

Take away: “It is your duty as a Christian to learn to handle money.  You have control over this, and you’ll only succeed if you take action.  There is some homework – “quick start budget.”

Don’t make big financial decisions while you’re in the class.  Hold back until you have the full picture.

–> 1 minute takeaway [lol he actually already told you what this is supposed to be]

* Just read an article on this saying “men don’t find message of hope in toxic masculinity.”  Well duh!  Whatever the academic definition, it’s sold as a criticism of masculinity, not as an opportunity.  Criticism is one of John Gottman’s 4 horsemen.

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