4 Tips to Combining Your Finances Without a Fight

4 Tips to Combining Your Finances Without a Fight

4 Tips to Combining Your Finances Without a Fight

Nick and I gave a lot of thought to how we would combine our finances after marriage.  For a long time we thought we were going to combine them a certain way.  But, when it came time to do it, that way seemed very complicated so we decided to go a different direction.  At the end of the day, we are both happy with what we chose and we managed to get through it without a big fight!

Be open about your finances from the beginning

Being open about your finances can really help avoid a lot of fights.  If you each know what financial situation the other is in, you can create a plan for financial success together.  This definitely beats the alternative of waiting until the last minute to talk about finance and having that ‘what did I get myself into?’ moment.

accept that things may not always be equal

One person may have a higher salary than the other.  Or one person may like to spend their money more than the other.  There are so many variables and it is important to accept that things will not always turn out to be 50/50.  Be grateful for what you have and work together to be as successful as possible as one financial unit.  Know that the tables may turn too.  Just because the situation is one way now doesn’t mean it will always be like that.

have a clear financial strategy/plan

Be sure to talk about who will manage the finances and what that means for you.  Does that mean one person reconciles the accounts, or makes sure the bills are paid, or both?  How do you want to go about saving?  You could save money up front, or roll anything extra at the end of the month into savings.

talk about spending

It’s bound to happen.  One person will spend too much one month and get the other angry.  Try to talk about spending and spending habits up front and often to try to minimize the changes of an argument.  Is there a certain point when you want to talk about purchases before making the purchases?   Or is it just everything goes?  Whatever will keep both people the happiest is the way to go!

Our first steps of combining our finances has gone really smoothly.  Here’s to hoping that the road doesn’t get too bumpy!

 

7 Ways to NOT Become Rich

7 Ways to Not Become Rich

Now we all know money can’t buy everything. In fact, sometimes money can be more of a hindrance than a help.  So, for those who say they never want to be rich because of the headaches and hassles that come with the territory, here is how you make sure to succeed.

Don’t sign up for 401k – Employers who offer 401k will match your contributions up to a certain percentage. This is a sure way to at least double, possibly even triple or more because of stock and bond increases.

Don’t create financial goals – Financial goals can cause stress and confusion.  Might as well live for the day and not worry about tomorrow.

Don’t track your spending – Tracking your spending shows you where each dollar goes.  It can bring on buyer’s remorse and can cause you to decrease your spending habits.

Don’t clip coupons – Coupon clipping can save a ton of money but can also take some time. Is all that time really worth it?

Don’t live like you are poor – Spend all of the money you earned and enjoy your spoils. You earned it. Now go relax with a drink.

Max out your credit cards – What a concept, using tomorrow’s money to pay for today’s fun.  And since tomorrow never comes, the credit card bill won’t either right?

Eat fast food or at restaurants – Let’s face it, food that somebody else prepares tastes so much better than the standard home cooked mean.

Now you may be wondering if I’m crazy for suggesting all of this. Well yes, I am crazy but if you remember the basic fundamentals of how we were all raised, you will understand. It has been engrained in many people since childhood to go on their own path and not follow the norm. Or, simply, do the exact opposite of what people tell you to do. Especially if those people are your parents. So all we need to do is mix the signals of what is the norm and what is being unique and we create success.

 

Say Goodbye to Living Paycheck to Paycheck: Creating the Roots

Say Goodbye to Living Paycheck to Paycheck Creating the Roots

This post is part of a series.  To start the series from the beginning, click here.  To browse through the series, click here.

The value of money is something so exciting to your young child.  The smallest amount of money seems so large and can be extremely motivating to them.  Around first grade or six years old, schools begin to teach students all about the value of money.  Children learn about pennies and nickels and dimes and quarters and all kinds of bills.  They also lean about dollar bills, face values, and how to add and subtract with all of their types of money. This new skill comes at a great time to begin teaching children how money is used in real life situations.

In order to create a life of financial stability, the school aged years are prime for teaching, modeling, and interacting with money. In the school ages years, children are very capable of understanding chores and allowances which can be used to show that we work to make money and then we have different options for what we do with the money. Each family should determine their own method for kids to earn money based on what fits best into their daily routines.

Once your family has put a system into effect for how their children will make money, the children need to be taught how to handle their money.  As adults, we all handle our money differently. Some people spend tomorrows money today by using credit, some spend only what they have but spend every penny each paycheck, and some save as much money as they can.  In order to create a lifestyle where living paycheck to paycheck isn’t the way, it is important to teach children how to save their money from the beginning.

To begin teaching saving to a child, you will need something to put the saved money into like a piggy bank or even a savings account, or both depending on the age of the child and how well they understand the value of money.

When the child gets money, let’s say from chores or an allowance, teach them to save by having them put a percentage of money each time into their savings. For example, you could give them $4 per week allowance and have them put $2 in savings and the other two they can spend or use to save up and spend at a later time.

Not only will this teach your child how to save up for something that they want, it will teach them how to save for a later date.   This concept is very important to learn at a young age because as an adult, we should each have a savings account for a rainy day.  For your children, I bet they will be very happy after saving a percentage of their money for years when they decide to buy a car or move out on their own.  Having taught your child to save their money from a very young age will give them a great head start in their young adult years.