by Matt B on November 12, 2009
Couples fight about any and everything. Money should not be one of them. In my house, I know that I am the one who is better with money. Therefore, I realize that the burden is mine to take care of our savings, retirement and all of the more complicated money-related issues. And I’m happy to do it. I know that the Mrs. will come to me for “help” every now and again, and I’m happy to do it for many reasons. Most importantly, her money is my money and vice-versa. I know that she would help me, and it is all relative. More on our personal situation later.
Separate Accounts or Separate Finances Entirely-
Many couples flourish by maintaining their money separately. Others use a hybrid approach by splitting responsibilities. I once knew a couple who had quite an interesting dichotomy-The man was an attorney, the woman, a Human Resources associate at a retail location. Needless to say, the attorney’s salary dwarfed the HR woman. They had been married for a few years when I met them. What is unusual to me is that despite her small salary (in comparison to his), the only bills they shared were the mortgage, utilities, cable and food. Everything else they took responsibility for on their own. While he was out writing checks to Ameritrade for tens of thousands of dollars, she was irritated that she only had $5 for lunch.
Even though she struggled and he thrived, both were fine with the arrangement. If one was in trouble, I’m sure the other would gladly step in and take care of things. But they found what worked for them and carried it out how they saw fit.
Keep a Dialogue-
If you are (or have been) fighting about money, I’m willing to bet that you haven’t been talking about money. There have been times in my own home that if I felt “out of the loop”, I have gotten angry. If we are short somewhere and will need money for something, I would rather know far in advance so I can prepare for it.
Talking about money (while keeping it civil) is the best way for couples to avoid a brawl. Even if it is “bad” news, deliver it calmly. Then discuss how you can overcome the problem. A solution is the goal, not bachelorhood.
Know (and prepare for) Your Partner’s Financial Shortcomings-
As I stated in the intro, I know my partner’s habits. I also realize where her financial weaknesses are and do my best to be able to counter them with good habits on my part. For a couple with both members who have financial issues, it will be even harder. But not impossible. Prepare for and expect financial speed-bumps, because they will happen. If you know that your partner may stumble through certain financial issues, be there to help them out. It will make you look like superman (or woman) and could even strengthen your relationship.
Help Each Other Out-
In addition to knowing your partner’s potential weaknesses, willingness to help will go a loooooong way. There will be times in life when your partner will not be making as much as you. There could be times when they are without a job at all. Everyone needs money to survive. So be willing and able to help your partner when they have fallen on tough times. Ideally, this should work both ways.
Have (and Stick to) a Budget-
By far the easiest (and most important) way to make a couple’s finances work without killing each other is to follow a budget. And it doesn’t even have to be a strict one. Not all budgets are stringent and confining. Even if you relegate certain responsibilities to each other as opposed to a written-out budget it can work wonders for avoiding a big battle.
Aren’t you much more efficient at work if you know what is expected of you? The same works for money matters at home. If you know what you are responsible for and cab properly prepare, problems are much easier to see coming and avoid.
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by Matt B on November 10, 2009
A few weeks ago, I got my consumer action handbook free of charge courtesy of our friendly neighborhood U.S. Government. After it sat on my desk for a few days, I decided to see what it had to offer. I did not read it completely in depth, but I can tell you that it is a great resource for any consumers and I highly recommend that you order your copy before it’s too late.
While I did not really learn much from the book, there is a wealth of information contained within. Some of which I did not know. A bit of which actually surprised me. Here are the highlights:
Dealing With Debt:
-Within five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you do not owe the money.
I’m sure there are plenty of companies who do not follow this.
Home Improvement and Repairs:
-Get the names of suppliers and ask if your perspective contractor makes timely payments.
To tell you the truth, I would have never though of doing this, but their answer can tell you volumes about their reputation.
-Some state laws allow unpaid subcontractors and suppliers to put a lien on your home for bills the contractor failed to pay.
-With most home improvements, federal law gives you three business days to cancel without penalty.
This is actually true of many transaction types, not just home improvement related purchases. You can consult the handbook to find out more information about the “3-day, cooling off rule”.
Homeowner/Renter’s Insurance:
-Insure your house, NOT the land under it. After a disaster, the land is still there. If you don’t subcontract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.
Travel:
-Ask about cancellation policies. You may want to look into trip insurance for added protection. www.insuremytrip.com offers pricing and policy information on plans from different companies and describes the different forms of policies available.
-Selling more tickets than there are available seats on a flight is not illegal. Most airlines overbook their flights to compensate for “no-shows”. If there are more passengers than seats just before a plane is scheduled to depart, you can be “bumped” or left behind against your will.
While there are rules that protect you and assure you will get where you are going, the inconvenience is (unfortunately) perfectly legal.
Wills & Funerals:
-It is not necessary to notarize or record your will, but these can safeguard any claims that your will is invalid. To be valid, you must sign a will in the presence of at least two witnesses.
-The funeral provider may not refuse, or charge a fee, to handle a casket that you bought elsewhere.
-A funeral provider who offers cremations must make alternative containers available.
As I said, this book is a great resource for all consumers. You can get one by following this link. All you have to provide is your name and address and the book will arrive (free of charge) in about 2 weeks. The above information is just the tip of the iceberg. There is plenty of information and resources that you may need, whether you realize it or not. So just go get one already.
by Matt B on November 9, 2009
This is a guest post by Kris Bickell. Kris owns debt-tips.com, a site that offers many methods of debt elimination and simple tips for getting out of debt faster.
Nobody plans to grow up and live a life ruled by credit card bills. Most of us dream about living a life of luxury with all the money we’ll ever need.
Unfortunately for many of us, those dreams sometimes turn into nightmares. And then the only dream worth thinking about becomes winning the lottery.
If that sounds like you, then you need to come to grips with reality and start changing your financial habits. As with many goals that are hard to achieve, the first step is the most difficult – and that first step is to simply acknowledge that there is a problem!
So, if you no longer answer the phone because you’re afraid it might be a bill collector, and it’s hard to sleep at night because it’s difficult to pay the bills, it’s time to consider these “5 Warning Signs That You’ve Got Way Too Much Debt” and get help managing your debt:
1) You buy everyday items (like groceries) with a credit card.
This is one of the most telling signs of a big problem. Yes, you need to do what you have to do to feed your family. But if you use credit cards as your savings account, then you are heading for big trouble.
2) You have to keep opening up new credit card accounts so you have money to spend.
There is nothing wrong with having more than one credit card, especially if you have a rewards card, or a store card that offers you special discounts. But when things get tight, it’s hard to resist the temptation to keep using the cards if you have them.
3) You pay as much as you can but your balances still keep rising.
Paying the minimum balance will only mean one thing – you’ll be stuck in debt seemingly forever. But if you are able to pay more, and your balances still keep going up, then things are bound to get even worse, fast!
4) You have no idea how much debt or how many cards you have.
No, you don’t need to know your balances down to the last penny. But if you don’t know how much you owe because it’s too painful to look, then that’s not good.
5) You have no plan for getting out of debt and no hope that you’ll ever be debt free.
Sure, it’s only money. But those who have never struggled have no idea how painful it is to live with debt. No matter how bad things seem, you need to come up with a plan – and realize that there is a way out of credit card debt!
If one or 2 of these signs are true for you, then you’re on your way towards financial trouble. If 3 or more of these are true, then you must get professional help dealing with your credit card debt!
For tips on getting out of debt and turning around your financial situation, visit www.debt-tips.com. You’ll learn how to get the help you need to pay off your credit card bills, including how to settle your own debts.
by Matt B on November 7, 2009
First off, if anyone ever has any problems viewing the site, please let me know. I have been having issues for months now, and have struggled and struggled for a solution, and have hopefully solved the issue. But I still need to know for sure.
I have been enjoying my “staycation” this week, and it has been relatively productive and greatly relaxing. I’m sure as the holidays approach, my stress and annoyance levels will be tested as they are every year…so this was a much needed “rest”.
Posts of the Week:
Random Knowledge:
- Drinking beer and liquor while working was considered a right and a privilege by the working men of the 1700’s.
- On Sesame Street in France, Bert and Ernie are known as Bart and Ernest.
- In 1999, Popular Science recognized the Sega Dreamcast system as one of the most important and innovative products of the year. (I do miss that system)!
- Mount Everest grows about 4 millimeters every year.
- Epistemophobia is the fear of knowledge. If you have this, do not read random knowledge.
