Mutual Finance

Perhaps you are a newly married couple doing some family planning, or you may have just discovered that you have a little “surprise” coming your way. Whether you are barely trying to get the hang of marriage and money management, or if you’re simply looking ahead to a future with a baby in it, a little financial planning will go a long way once your bundle of jubilation comes along.

The US Department of Agriculture estimates that a middle income family will spend a bare minimum of $250,000 to raise a child. Yikes! Don’t worry! Time is on your side. College won’t be for another 18 years, at the very least. But that doesn’t mean that you can slack off on saving, either.

A financial advisor can help you to realistically assess your income and your debts. More importantly a professional can help you set a realistic budget. Doing this will help you set sensible goals each month. You will find that, rather than go with your impulse to buy that “gotta have it” item, you will hold off on it a little longer, only to find that something of a much higher priority will come along.

That’s the whole idea of saving saying “no” now so that you can say “yes” to the important things, later.

Nathan Dawson writes for http://www.marriedfinances.com and http://www.successfulmarriageresource.com, great online sources for marriage and finance information.

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Two heads are better than one, so sit down with your spouse and plan out your financial future together.
Prioritize your bills.

By determining which bills to pay in which order, you’ll get in the habit of making sure your essentials are always paid first.

Be careful using credit. Sometimes a financial crisis will come not because of a layoff, but because you’re overextended. Most people can afford to devote 10 percent of their net income (after taxes) to installment debt, not including mortgage or rent payments. If you pay out more than 15 percent, you need to cut back.

Establish an emergency fund. Open a savings account and start “paying yourself” 10 percent of each paycheck.

What happens if we run into an emergency and our emergency fund isn’t enough?

Don’t panic. When facing a financial crisis, stay calm. This will help you think logically and you’ll avoid unnecessary arguments with your spouse.

Quit spending money. When faced with a financial challenge, it’s easy to use your credit cards. But you may run up your balance to the credit limit and not be able to afford the payments, which will result in a poor credit ratingsomething you won’t want during a crisis time.

Prioritize your bills. Pay essential, or survival, bills first: food, mortgage or rent, utilities. Next, pay car insurance, medical needs, child support, and any loans such as automobiles and furniture that are secured as collateral.

Then pay the nonessential billsthose debts in which no immediate consequences occur if paid late: credit and charge cards, attorney, medical, and accounting bills, newspaper and magazine subscriptions, life insurance, childcare, gyms, or clothing.

Communicate with your creditors. If you can’t pay your bills or can only pay a partial amount, your creditors may be able to help you to establish a repayment plan.

Some lenders will allow you to defer one payment a year, meaning the payment for that particular month doesn’t have to be made. The deferred payment is added to the end of the contract.

Take notes of any conversations with creditors, listing the date and person with whom you spoke. Whatever arrangement you make, get it in writing from the creditor before you send in money.

Know your rights. Many collection agencies are in violation of the Fair Debt Collection Practices Act. To get a copy of this legislation, visit www.ftc.gov. If you feel you’ve been violated, file a complaint with the Federal Trade Commission at their website.

Find outside help. Many churches and Para church organizations run programs to help you navigate through financial troubles.

A debt management company may also be able to help you reduce your payments, lower your interest rates, and pay off your debt faster than trying to do it yourself.

Such companies can also negotiate with your creditors to bring your accounts current if they’re past due.
Avoid bankruptcy. Bankruptcies should be your last resort. A bankruptcy can remain on your credit report for up to 10 years.

Nathan Dawson writes for http://www.marriedfinances.com and http://www.successfulmarriageresource.com, great online sources for marriage and finance information.

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Are you a credit card junkie? Credit card debt can often be a big, deep, dark secret for someone preparing for marriage. It’s an uncomfortable subject to talk about. Do you bring it up before or after he slips the engagement ring on your finger (or before you slip it onto hers)? Or do you wait until after all the marriage preparations are in place?

If there are large differences in your assets and liabilities, it may not be such a hot idea to get a joint bank account. Furthermore, you may want to sign a prenuptial agreement just to be clear about what came before your marriage, and what came after.

How you plan your wedding budget will largely determine how you approach money management as a married couple, in the long term. Wedding costs, by themselves can run up quite a tab. If you are noticing conflicts in the early stages of your joint money management, then get some financial marriage advice or premarital counseling.

Couple counseling can be just as much a part of a healthy marriage as family or financial planning is. It’s a way of ensuring solid communication skills from the get go; and that’s important when debts and assets are about to be split right down the middle.

Nathan Dawson writes for http://www.marriedfinances.com and http://www.successfulmarriageresource.com, great online sources for marriage and finance information.

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