On Couponing 4 a Difference we've focused on using coupons to help us save money on things we need to buy and on freebies to help us get things we want or need without spending a dime! But there plenty of other things for us to explore to help us improve our financial situations in general.
Finances: Are We On the Right Path?
Stacy Francis, founder of Savvy Ladies, a non-profit
organization dedicated to empowering women to take control of their finances and achieve a richer life, said something
interesting happened in her latest Savvy Ladies telephone
conference. When one woman told the group that her husband’s sloppy
attitude toward money was so frustrating to her and that she
wanted to divorce him for this reason alone, every woman in the
group expressed their support. ‘Several of the married women
even told her they could relate because they were having similar
issues in their marriages,’ Francis said.
Indeed, one of the most common reasons couples split is financial disagreement. Here’s how you can overcome
financial hurdles and set a plan for the future with your spouse
or partner:
• Create a
budget. ‘Sit down together, and put your
expenses and financial goals on paper. Be realistic, and make
sure that sticking to the budget won’t require too much
effort,’ said Francis. ‘Remember that budgets are like diets –
they never work if they’re unrealistic.’
New York City-based Jeanne Brutman, a fee-based financial planner for business owners and individuals, agrees. ‘Consider the usual: housing, electricity,
garbage, water, landline phone, cable, internet, cellular phone, childcare or support, food (grocery, eating at work, ordering in), transportation (car payments, gas, tolls, parking or bus, subway, transit, cab), insurance
outside of deductions from paycheck (renters, home, umbrella, car, health, dental/vision, life, disability, Medicare,
long-term care, and so forth), debt (car, student loans, credit
cards, personal), drug store, prescriptions, pet supplies,
home or car maintenance, clothing, dry cleaning, laundry, and
lastly charity, entertainment, and so forth,’ she said.
‘Please account for 5 or 10 percent if possible to go towards savings. Do not spend more than 20 percent of what you make on debt. If you only focus on paying off debt, you
get what you focus on!’
• Hire a
professional. The financial experts I spoke to
agreed on this. ‘Find a certified financial planner in your
area, interview them and pick one that understands where you are in your financial journey,’ said Arnett. ‘Seek out a financial planner who will sit down and prioritize your goals, put money figures next to them, and then show
you how to reach those objectives.’
‘A person only has 168 hours a week. 60 to 80 (say 70) are for work, 14 are for eating, 49 are for sleeping, 7
are for personal hygiene, 17 are for housekeeping and food shopping… that leaves 11 hours for other stuff,’ said Brutman. ‘I spend 70 hours a week on my profession and have done that for 10 years. That’s 36,400 hours on financial planning. Get help – we just have more time
to get you to the information you need faster.’
• Communicate
and work together. ‘It seems so basic, but you have to agree that there is a hurdle, what that hurdle
is, and then commit to a strategy to get past it. It takes
a conscious effort to get past a hurdle, whether it’s
financial, emotional, or something else,’ said Arnett. ‘When you agree up front on the hurdle itself and the tactic for overcoming it, then you get strength in numbers. You’re not facing it alone, and that means something.’
Many couples fail to discuss their financial
differences. ‘Approach them in a calm, non-threatening way, and
focus on finding constructive solutions that both of you
agree will work,’ said Francis. ‘Whether you intend it or
not, the way you manage your money will affect your spouse as well. Make sure he or she is comfortable with your
spending and investment habits.’
• Keep a
credit card for emergencies only. ‘As
you may have noticed, when you don’t use a card, the issuing bank
tends to up your limit to tempt you to use it. You can, but
only when you have no other choice,’ advised Francis.
‘Remove from your wallet: all credit cards but one for
emergency (defined as life-threatening need such as needing to
get towed because of a car accident); and all cash except
for $40 that you only use when you cannot use a debit card,’ Brutman advised. ‘For all spending, use a debit card
linked to your monthly account.’
• Determine
what is of most importance. Separate
the ‘wants’ from the ‘needs.’ For example, Foss said a need may be funding tuition for your child’s future, while
buying the latest trendy clothes from Abercrombie is a ‘want.’ Teach your children by example, she said – by
sacrificing a ‘want’ today for a ‘need’ of a college education years
down
the road.
Determining what is truly of importance is tough because what may seem important to one person can sound like a discretionary item to another. Take for
instance, private school. ‘For many families, it is a priority
for their children to attend private school. However, there are public schools children can be sent to for free, not to mention, your tax money already goes there,’ Arnett
said. ‘The reality is that during hard times, sometimes
gratification has to be delayed.’
Foss advocates you and your spouse create a ‘top ten’ money goal list on your own and then compare the lists with one another. ‘Create a common goal list from the
two separate ones. Typically, financial goals are much
different from each spouse’s perspective,’ she said. ‘Create a common list – create a sense of financial partnership
to work towards your combined list.’
For example, on Foss’ top ten list, she chose to
accelerate their mortgage payment to pay off the house in five
years rather than 15. Her husband’s goal was to fund his children’s (her stepchildren’s) college education
funds. They ended up choosing to downsize their home to reduce the mortgage and create more cash flow, thereby
accomplishing
both goals.
About
the Author:
Erin
Flynn Jay is a writer and publicity expert. Since 2001, Erin has been
promoting authors of new books and small businesses in all industries. Erin has
expertise in successfully obtaining print, online and broadcast media
placements for experts and authors.
Erin's articles have appeared in diverse publications including careerbuilder.com, MSN Careers, Brandweek, Costco Connection, Opportunity World, Sales and Marketing Excellence, The New York Enterprise Report and Wealth Manager.
Erin received a B.A. in Communication from the University of Scranton in PA and lives in Philadelphia with her family. www.flynnmedia.com; http://erinflynnjay.com
Erin's articles have appeared in diverse publications including careerbuilder.com, MSN Careers, Brandweek, Costco Connection, Opportunity World, Sales and Marketing Excellence, The New York Enterprise Report and Wealth Manager.
Erin received a B.A. in Communication from the University of Scranton in PA and lives in Philadelphia with her family. www.flynnmedia.com; http://erinflynnjay.com
You
can order Erin's book at Amazon.com: http://amzn.to/PWThUb.
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These great tips. Thank you so much for sharing them. My tip is to use the 30 day rule whenyou are considering purchasing something that costs more than a few dollars. This rule means that you must wait 30 days and then ask yourself if you still want this item.
ReplyDeleteThis will give you time to figure about if you really need this item. Is it really necessary? Do you have to get a new item or can you simply repair what you already have?
During this 30 days, take the time to research what specific item you want to purchase. Read online reviews. Think about what specific features you want the item to have. What features are unnecessary? Also shop around to determine who has the best price for the item.
Many times after the 30 days is up, you will find that the urge to buy it has passed. Instead of making an impulse buy, you will have saved yourself money simply by waiting.
I have more tips like this on my blog www.helpforsmartmoms.com.
Good one Nicole! I find this to be absolutely true. Sometimes we buy things based on our emotions. I am totally guilty. Thankfully it's not always a big ticket item. I'll give your tip a try the next time I am at the mall. I mean after all, how MANY pocketbooks do I need?! LOL. Haven't been to your blog in a while. Going there now!
ReplyDeleteDenise