So what happens if you marry a spender, but you have been
a saver your whole life?
A lot of couples run into this type of situation once
they get married and their expenses are combined.
However it is manageable, you just need to set up a compromised
budget.
Finances are noted as the number one conversations couples
argue about in marriage and are also cited for the most
divorces.
The last thing you want to do just after you get married
is fight so figuring financial situations out beforehand
will relieve any stress.
A budget is the best place to start.
This may prove to be difficult for the spender but it
may also for the saver because you are going to have to
meet somewhere in the middle.
Create your budget when you have time and both are at ease.
Things will flow more smoothly.
Miscallaneious-10%
Savings-10%
Clothing/Dry Cleaning-5%
Education/Misc-5%
Food-10%
Housing/Utilities/Taxes-30%
Insurance-5%
Medical/Dental-4%
Recreation/Vacation/Gifts-6%
Transportation-15%
This is just a guideline and you may find that you don’t
take vacations and you can put money into other areas of
your budget but this is just to get you started.
To look at your current spending now you’ll have to
keep track of your expenses and any income.
Create three lists: current spending, spending percentages
recommended, and actual budget. In the first column you’ll
want to include the average spent for the last six months.
Total your monthly income in the second list, which is
household income after state and federal income taxes and
social security.
It may include salary, rent collected, interest gained,
dividends received, income tax refunds, or other sources
of money collected on a regular basis. Leave the last list
empty for the time being.
To determine your overall spending pattern, take your net
income and subtract it from your current spending.
Keep in mind that you will need to account for bills that
don’t show up on a regular basis such as insurance
premiums, retail credit, doctor and dentist bills, property
and other state taxes, magazine subscriptions, etc.
Once you have your budget established, there may be a few
pitfalls you fear running into, but then can be resolved.
The possibility of facing credit card debt. There may be
times when you need to charge things, but set a goal for
how much you plan to pay off each month and when you plan
to pay it off completely.
Try beating that goal and pay it off before your estimated
time frame runs out. Only have necessary credit cards as
well, too many can get out of control too quickly.
Impulse buying. There will be times when you are shopping
and you see something that you must have. Just don’t
let it be a regular occurrence, and consider it a treat
to yourself.
Thirty-day rule. If you see something you want but it won’t
fit into this month’s budget, hold out. Give it thirty
days and shop around in the meantime. You may find something
less expensive or something better all together.
If you don’t happen to find something that compares
and the item is still available the following month, then
fit it into your budget accordingly.
"Comfort" spending. If you had a bad day at work
and end up at the mall sifting through clothes, turn around
and go home. Although it may make you feel better during
the time, it will hurt your budget.
Relieve stress, or feeling depressed by other stress relievers
you enjoy which may include, exercising or reading.
Gift giving. If you buy gifts for relatives and friends
or special occasions get creative and think of something
new to do. All gifts don’t have to be bought.
Make something or if you see something in a store that
you like but its highly overpriced, buy the products that
it consists of and make it yourself, such as gift baskets.
You can buy your own items to put into a basket and decorate
it yourself.
Vacations. Vacations don’t have to be in exclusive
resorts. Take day trips or try something new like camping.
Avoid souvenirs that you’ll never get any use out
of, and when planning a trip consider all costs so you will
know how much you have to save.
Your budget will be based on variable factors such as family
size, geographical location, debt load, and sources of income.
Once the basics are covered, you then can get into your
own interests and what you like to spend your discretionary
income on but its important to keep in mind that this budget
is based on both your incomes, and therefore you discretionary
income should be spent on compromised items.
This budget will become routine in no time, as your spending
habits may change but once you budget once, it will be easy
to make changes and stick to a new one!
