Memory verse 1: **Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. 1 Chronicles 29:11**

Memory verse 2: **“Just as the rich rule the poor, so the borrower is serva****nt to the lender” Proverbs 22:7**

Memory verse 3: **“the way of the fool is right in his own eyes, but a wise man is he who listens to counsel” Proverbs 12:15**

**Memory verse 4: ****“you shall not steal, nor deal falsely, nor lie to one another” Leviticus 19:11**

Memory verse 5: **“whatever you do, do your work heartily, as for the Lord rather than for men” Colossians 3:23**

Memory verse 6: **“****for where your treasure is, there will your heart be also” Matthew 6:21**

Memory verse 7: “**“steady plodding brings prosperity, hasty speculation brings poverty” Proverbs 21:5**

Yesterday we looked at why we should save, today, we will look at basic saving and investing principles

**Be a steady plodder**

**“steady plodding brings prosperity; hasty speculation brings poverty” Proverbs 21:5**

This is again our memory verse and the last verse we looked at yesterday. Too often we get caught up with all kinds of get rich quick ideas. The bible says slow and steady wins the race. The fundamental principle to be a successful saver/investor is to spend less than you earn. Isn’t that radical thinking? Then save and invest the difference over a long period of time. Slow and steady. Fast and hasty often leads to a loss or disappointment.

2. **Let compounding work for you**

What gives you a bigger balance in your account; if you put $100 per month in the bank, or if you put $1200 in the account in December? The answer, putting $100 in the bank each month. If you are unfamiliar with compound interest, let me try and explain.

First, I hope you know that you earn interest on your money when you leave it in your account. So, in other words, each month the bank gives you a percentage of your balance as interest, like a reward, for having it in there. Let’s say, for easy math, the banks are paying 12% interest. That means you are getting 1% per month, (if only it were that good 🙂 ) So if you put in $100 dollars, at the end of the month you will have $101. Now here is how compounding interest works. At the end of the second month, you will get interest not only on the $200 (100 from first month, 100 from second month) but on the interest you received in the first month. Do the math and the end of the second month you have $203.01

beginning of first month $100

end of first month $101 earn 1% interest on total amount

Second month 201 invest another $100

end of second month 203.01 earn 1% interest on total amount

third month 303.01 invest another $100

end of third month 306.04 earn 1% interest on total amount

fourth month 406.04 invest another $100

end of fourth month 410.10 earn 1% interest on total amount

fifth 510.10 invest another $100

end of fifth 515.20 earn 1% interest on total amount

sixth 615.20 invest another $100

end of sixth 621.35 earn 1% interest on total amount

seventh 721.35 invest another $100

end of seventh 728.57 earn 1% interest on total amount

eighth 828.57 invest another $100

end of eighth 836.85 earn 1% interest on total amount

ninth 936.85 invest another $100

end of ninth 946.22 earn 1% interest on total amount

tenth 1046.22 invest another $100

end of tenth 1056.68 earn 1% interest on total amount

eleventh 1156.88 invest another $100

end of eleventh 1168.25 earn 1% interest on total amount

twelfth 1268.25 invest another $100

end of twelfth 1280.93 earn 1% interest on total amount

If we would have just put in $1200 at the end of the year, that is all we’d have. By letting the compounding work, you gained almost another months investment. Now imagine this over your entire working career. If you didn’t invest one more dollar after this year, and just let it accumulate interest over the next 40 years, that 1280.93 would turn into $7275.68. assuming it would always earn 12% interest. The point? you need to start early. Start saving money as soon as you start working. You could be very wealthy by the time you retire. Time is the key. Slow and steady plodding. Let compounding work for you.

**“four things on Earth are small, yet they are extremely wise:ants are creatures of little strength, yet they store up their food in the summer” Proverbs 30:24**

Let’s be like the ants!! Ants do not wait until the week before winter to gather food, they do it from the first day of spring. This is the principle of how God suggests we save money. Dont’ wait until we are nearing retirement. You will have a hard time saving very much and you don’t get the benefit of compounding over time. But even if you are older and well into your working career , it’s never too late to start!

Lord, your so faithful. Thank you for you Word and your lessons in it. God help us all to have a desire to save. Help us to be steady plodders, and not to chase the get rich quick schemes out there. Give us the patience to do so also. Thank you Jesus, amen

That’s enough for today, tomorrow let’s look at more basic principles of investing and continue with the 7 financial steps we started yesterday.