Join
Connect With Us
Blog
Twitter
Facebook
TM
Loading
Advertisement
BUSINESS/FINANCE/MONEY
Facebook
 | ||||
Advertisement
...coming...
Dr. Taffy Wagner
Contributor
Money and Marriage Exposed
Four Signs your Finances Need Re-adjusting
by Taffy Wagner, posted July 2010
Archives: Money in Marriage
Sign #1: Paying a credit card bill by getting an advance from another credit card. First and foremost, this is a sign that you need to put the credit cards down because you are living above your means.
Solution: This will take discipline and commitment on your part. Do the research and find out about consolidating all the credit card debt and only having one payment per month. For example, if you consolidate your credit cards, what interest rate will you receive, or what type of loan should you get? Beware of debt consolidation scams. According to Gerri Detweiler, author of The Ultimate Credit Handbook, “With finance companies, you'll pay as much as 26% in interest and probably hurt your credit rating. Therefore a better option could be if your debt is tied up only in credit cards, roll it over to a card with lower interest. Please read the fine print on the card application and see if the lower interest rate is only temporary. I recommend going to this website which includes a consolidation calculator:
http://www.smartmoney.com/personal-finance/debt/should-you-consolidate-your-loans-9659/.” The discipline comes in when you do not charge up these cards again and create additional debt. Furthermore, you need to take the time and establish a new budget that is accurate based on all the income and expenses.
Sign #2: If missing one paycheck would impair you from paying your bills. This means your finances are over budget.
Solution: Re-evaluate your finances and see what expenditures can be reduced and/or removed. There are too many expenses and not enough income if missing one paycheck can make you become delinquent a bill or bills.
Sign #3: Checks are consistently being returned for being non-sufficient funds. This says either you are playing it too close to the vest or you are a bad money manager.
Solution: You should know when your bills are due, what your income is and what your expenses are. When thinking about your bills also include any automatic withdrawals whether monthly or quarterly which are often forgotten about. If you are not sure what your automatic withdrawals are, I suggest that you get your bank statement for the last two months and compare them. I also recommend that you write down everything you spend money on for the next two weeks – gas, lunch, vending machines, etc. This will show you how frivolous you may be with money and could aid you in reducing waste.
Note: Remember when checks are returned, you also get hit with a fee from your bank which leads to a vicious cycle. That’s another expense that you did not count on and is very costly.
Sign #4: Not paying all of your monthly bills which lead to creditor calls which are being ignored.
Solution: If you are not able to pay all of your monthly bills, then a couple of things should happen. You and your spouse should re-evaluate the household budget, looking at income and all expenses. Assess how much money it takes to ensure that your basic needs are met – food, clothing and shelter. Example: Rent (includes utilities) + Automobile + Groceries equals the basic amount needed in income. Let’s say rent is $1,250, Automobile is $475 and Groceries are $350 per month which totals: $2,075. Then look at how much you are spending on your wants. Take your monthly income and subtract your expenses, which will leave you with either a surplus or a shortage. Let’s say if your monthly income is $3,000 and your expenses totals $2,075 leaves you a balance of (surplus) $925. If you have a surplus (which should be your goal), then you can establish that emergency fund, savings account or put it towards another bill. If it is a shortage – what expenses can be cut or reduced. Paying your bills on time and establishing mutual financial goals, impacts marriages long-term. Not talking with your creditors can cause additional problems-we will address that at another time. They will often work with you if you talk with them instead of ignoring them.
Money should be seen as a tool and a resource that enhances your life and marriage, instead of something that you are always in need of due to mismanagement. Focusing on money management and re-evaluating your finances helps you plan for the future. When your money is in order, it can impact you personally, then your marriage and even your job performance. Re-evaluate your money today for the benefit of your marriage and future.
Dr. Taffy is a Certified Educator in Personal Finances. She holds a Doctorate of Ministry in Biblical Counseling, Master’s degree in Human Resource Management, Bachelor’s degree in Business Admin/Management, Associates in Paralegal Studies and an Associates in Administration. She currently resides in Colorado with her husband, Eric and their twins, Erica and Cody.
Managing money can be tough enough when you are single. When you have to manage money for two people can sometimes cause a lot of stress as well as affect your health. Think about the last time you wanted to go on vacation and you had to reassess the marital finances before taking the trip. Enough said. As summer approaches and many couples will be taking vacations, I wanted to give you four signs that your finances should be re-adjusted.
These signs will include steps you can take now to ensure that your marital finances accommodate your household budget and lifestyle; thereby giving you the opportunity to take a vacation and truly relax. Believe me, it is no fun going on vacation and having to think about every dime that is being spent and how it will affect the bills when you return.
