Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement.
If one of you loves to shop and doesn't worry much about credit card debt while the other hates spending money like death, you have a problem. You can create budgets till Honolulu freezes over, but it won't work and chances, are, you and your significant other will end up fighting constantly.
Even before you start to create a budget, the two of you must sit down and discuss your life objectives. Get out a piece of paper. Make a list of long-term objectives the two of you can agree on. One might be to get out of debt. Another might be to make monthly contributions to a college fund for the kids. A third could be to begin a retirement fund. Or you might decide it's important that one of your get some specialized training that would lead to a higher salary.
Once you agree on your objectives, the two of you can start work on a budget. Step one will be to decide how much you will need to save (or spend) monthly to meet your objectives. You should subtract this first from your monthly income so you can see how much you have left over to work with.
Next, subtract your "secured" debt. Typically, this would be your mortgage payment, car payments, and any other loan payments where an asset such as a boat or RV secures the loan. Then, take a hard look at your other expenses and debt ? for example, your rent, food, membership dues, clothing or credit card debt -- as these are the only areas where you can hope to make cuts.
It is important that you both agree as to where those cuts can be made. No matter how strongly you feel about drastically cutting a budget category such as clothing, if your spouse doesn't agree, you're going to have problems. A better solution is to find a compromise ? a number that gets you closer to where you think the spending should be but one that your spouse agrees is at least fair. Then, look for another category where you can make cuts to get your final budget number down to where it needs to be.
You should then sit down with your spouse twice a month to review where you are vs. your budgetary goals. You will most likely find that you're under in some categories and over in others. Don't worry about making adjustments at this time. Just make notes as to where you've over and where you're under.
After the first two months, you should know where you've been spending more than you budgeted and where you've spent less. The two of you can then discuss what adjustments you need to make. There should not be a lot of arguing because you have goals you've agreed on and a budget you created by working together.
The important thing is to keep the discussion from becoming accusatory. If one of you has been the "budget breaker," it's better to ask "it looks like we've got a problem here, what to you think we can we do to fix it?" then to say, "you really screwed up this time."
What can you do if you or your spouse just can't control his or her spending and keeps busting the budget, month after month?
Unfortunately that's an issue that probably needs the work of a good marriage counselor.
For FREE help with debt and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com
Lincoln Stretch rentals Alsip ..If You Have an Existing Account and 5 Minutes, You... Read More
Well, dang! From what I've heard and read, it looks... Read More
Have you ever stopped to think about how your "mood"... Read More
Ever wonder where address labels come from? Avery? is perhaps... Read More
Of course, these don't have to be done in any... Read More
The Prudential has dubbed those who refuse to leave home... Read More
An avid cyclist and bike racing fan, I sit transfixed... Read More
Next to our physical health most of us are primarily... Read More
Have you seen the recent article on a new "green"... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
Everyone needs to maintain their lives. What I mean by... Read More
We live in a crazy world. Someone ought to sell... Read More
If you have a 401(k) account, it can be very... Read More
Most consumers are aware of the importance of their credit... Read More
Are your financial muscles well toned and healthy or flabby... Read More
With the advent of the internet and especially auction services... Read More
**If it's Spam, it's a Scam!- If it sounds too... Read More
Are you interested in saving money off your grocery bills?... Read More
Saving money is not easy and is made more difficult... Read More
Before buying personal or business checks you should inform yourself... Read More
Would you be interested in freeing up 10% to 15%... Read More
Frugal living is more than a lifestyle. It's a passion.... Read More
If you, like most people, have not seriously considered what... Read More
Ben Stein has a book called How to Ruin Your... Read More
Car donations and used car donations are the way many... Read More
Western Springs shuttle limo ..Saving may seem easier if you were saving for a... Read More
With the advent of the internet and especially auction services... Read More
Have you ever wondered what it would be like to... Read More
How many drawers did you have to look through to... Read More
With almost two thirds of university entrants from England and... Read More
Saving for a Down Payment is hard work, so it's... Read More
Now there are ways to save money in the grocery... Read More
Traditional checks probably won't disappear anytime soon, but processing checks... Read More
If you've been thinking about filing for bankruptcy, your best... Read More
The price of gas continues to climb, and with continued... Read More
Have you seen the recent article on a new "green"... Read More
I thought I was through with exams when I finished... Read More
Have you ever stopped to think about how your "mood"... Read More
My personal opinion is that in today's new economy, it... Read More
I have been a loyal user of Quicken(R) for more... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
Did you have a piggy bank when you were a... Read More
Do you struggle from week to week trying to make... Read More
Women have a love/hate relationship with money. Most of us... Read More
We all know that money doesn't grow on trees, but... Read More
It is crucial as an individual who is striving for... Read More
With interest rates being at an all-time low, I can... Read More
Gas prices have soared to unimaginable heights of late. Since... Read More
Before buying personal or business checks you should inform yourself... Read More
Does it feel like you have to be Sherlock Holmes... Read More
Personal Finance |