Money is an issue that can tear a family apart. It is a volatile subject that must be approached and dealt with. Ignoring or refusing to deal with the issues of money can deal a deathblow to a relationship. Before money issues become a driving wedge, determine a course of preventative action.
With so many families blending together bringing her money and his money or more likely her debt and his, it is even more important to determine a head of time how the finances will be taken care of. Often hurting people who have survived a divorce dive head long into a relationship that has the same pitfalls as the last. Discuss, plan, and determine how finances will be handled before the emotion takes precedence over wisdom. Tips for families who are also blending finances:
· Share all financial information before you get married including any debt, past history problems and pending problems
· Discuss your views on everything from allowances, savings and retirement
· Discuss if all finances will go into one account, separate accounts or a main account
· Discuss how present debt will be handled
· Determine what the budget will include - what is important to you verses the other person
· Make sure it is clear both parties must take responsibility and also have a say in the finances
Get Organized
Being organized will keep you from feeling overwhelmed by clutter and information. By not being organized it takes twice as much time to accurately get things done. There are some ways to simplify your finances:
1. Update
Organize yourself by setting up a good filing system or by using good money management software. A couple of good personal finance software buys are Microsoft Money or Intuit's Quicken.
In setting up a filing system create a "bills to be paid file" and a "bills paid "file. When you receive your bills in the mail highlight the due date. Check your file twice a month on the 1st and 15th to make sure all bills are being paid in a timely manner. This system keeps your personal records accurate and handy and is a great benefit in preparing taxes
2. Automate
Many companies will set up a payment system where money is automatically debited from your account on a prearranged date. This simplifies bill paying tremendously. This does away with losing bills in the mail, running out of stamps and forgetting about bills due. You can balance your checkbook knowing exact dates and amounts that debits will be made.
Online banking is offered by many banks and larger credit unions. Using your computer you can transfer funds from one account to another, check your balance and see when you checks have cleared. This is a convenient way to handle your finances at your convenience not during regular financial institution hours.
Direct deposit is commonly offered by employers and saves trips to the bank and waiting in lines. You can set up these deposits to automatically go to specific accounts or funneled directly into specific investments.
3. Consolidate
Consolidate credit cards to two or three. Choose those with the lowest interest and begin to save money and time immediately. Focusing in on reducing your balances!
Buy all your insurance policies from one company. Buying auto, mortgage, renters, homeowners life, disability, disaster policies from the same carrier may bring a best discount price and save even more.
Get rid of the roadblocks
Indulgence …..Indulge in the dictionary is to treat with extreme leniency
There is no purchase that makes you feel as good as the feeling of being financially free!
Indifference will always reap a poor reward. No long-term planning in the way of saving or investing may mean the loss of a child's continuing education or a retirement lived in poverty. To choose not to plan is to plan to lose in one-way or another. We reap what we sow!