Congratulations on your engagement or your new marriage! Each of you has brought into your relationship your own unique way of
handling your money--
now is the time to formulate a money plan together as a couple. Formulating a financial plan early in your marriage can mean reducing hardship
in your life: relationship problems, poor credit rating, stress, and feeling like your money controls you instead of the other way around.
Maybe you're planning your wedding and wonder where the money is going to come from to pay for the the wedding and reception. Or, maybe the
wedding is over, but the wedding debt is still around. You may want to use some of the methods below to decrease your spending in order to free up money for your wedding and/or wedding
debt. (You might want to get
some money saving ideas at our Frugal Wedding page.)
This guide contains things that I've learned about finances, financial planning, and taking control of your money. Here is the secret to
achieving wealth:
Live BELOW your means.
The first step to managing your money is figuring out what is important to you as a couple. Everyone has
different needs and goals. Perhaps having a savings account, saving for your children's education, owning your own home or establishing a retirement account is your
goal. Whatever you decide is right for you, it can be obtained through goal setting and planning ahead. Don't be intimidated by financial terms--it's all about common sense and
planning.
Once you decide what your priorities and goals are, write them down. It can help to refer back to them periodically in order to keep your
focus.
Following are some of the most important steps you can take to get control of your money.
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To see how financially fit you are, ask yourself these questions:
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Do you have enough in your savings account to live on for 3 months if you were to lose your job?
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Do you participate in a retirement plan?
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Do you have life insurance?
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Do you have health insurance?
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Do you save something from each paycheck?
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Do you pay any credit card debt in full each month?
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Have you looked at your credit report lately?
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Do you have a will?
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Do you write down everything in your checkbook and balance it each month?
Did you answer yes to most of these questions? Great! If not, it’s never too late to learn more and gain
control.
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WARNING SIGNS OF LOSING CONTROL OF YOUR MONEY
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Juggling Bills
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Receiving collection calls or letters
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Liabilities exceed assets
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Relationship problems due to money issues
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Maxed-out credit cards
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No savings
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Frequent use of credit cards, including food purchases
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Making minimum payments on credit cards
If you answered yes to any of these, it might be a sign that money trouble is ahead or has arrived. There are many resources
available for learning more about personal finances such as books, seminars and professional financial planners. There are also organizations for those with overspending
issues--you can do an online search to find many of them.
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DAILY STEPS TO GAIN CONTROL OVER YOUR FINANCES
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Pay bills on time. Late fees add up!
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Pay more than the minimum payment on your credit card.
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Don't shop as a recreational sport. You'll end up buying things you don't really need.
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When making purchases, ask yourself-"Is this a need, or a want?" Even if you are spending
small amounts, impulse buying can cost you.
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Use cash to buy items and when food shopping, and keep a running total. Use coupons only for items you would normally
buy. Shop at stores that double or triple coupons.
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When considering a big purchase, wait 24 hours to think about it and shop around. Also, some stores will beat competitor
prices if you show them the competitor’s ad.
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Many stores have a price guarantee policy. If the price of something you've bought goes down within a certain amount of time,
they will refund the difference.
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Write all of your transactions in your checkbook register and balance your checkbook every month. This can reveal errors and
prevent bounced checks—along with the resulting high fees.
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Contribute to a savings account consistently. If your employer offers it, have a set amount deducted right
from your paycheck into a savings account that distance-wise, is a little out of the way. Paying yourself first is easier this way and makes the money harder to get at. This can
serve as your emergency fund so you won't have to charge to a credit card when needs arise.
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MONEY SAVING STRATEGIES
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Shop around for: insurance, phone services, garbage services, credit card rates, bank accounts and banking services.
Buy your checks from a mail order firm. It’s usually much less expensive than getting them from your bank.
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Buy used cars instead of new. New cars depreciate very rapidly and that's lost money for you.
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Buy clothing at thrift shops, yard sales and consignment shops. This is a great money saving strategy for kids (who outgrow
clothes so quickly!)
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Borrow videos from your local library-free entertainment!
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Plan ahead with menus. Buying food is one area of your budget where planning can save you a lot of money. Planning ahead will
also prevent rushing out for expensive meals.
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Don't shop when hungry. Hunger can lead to impulse buying.
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Shop at several stores for their weekly "Loss Leader" items. These are the advertised, deeply discounted items intended to
lure you into the store.
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Take your lunch to work or school.
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Grow a vegetable garden.
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Live a healthy, preventative lifestyle. This may help you avoid high medical expenses in the future.
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Birthdays and anniversaries occur the same time every year, so plan ahead! Buy greeting cards in bulk. This will save you
money and stress rushing to the store every time a birthday or anniversary rolls around.
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LONG TERM FINANCIAL PLANNING
It is to your advantage to contribute to a retirement account or Individual Retirement Account (IRA) the earliest in your life that you can. The earlier you start contributing to an
IRA, the more time it has to grow! Starting it while you are younger can means
THOUSANDS of extra retirement dollars for you.
Adjust your W-4 if you’re getting a refund from the IRS every year. You are in effect loaning the government YOUR money, INTEREST
FREE! If you adjust your W-4, you will have access to that money to pay off credit debt, contribute to a retirement account, or put into a savings account.
Check your credit report yearly for accuracy.
A WORD ABOUT CREDIT CARDS...
Using a credit card may seem like a good idea if you don’t have the money at the moment. BUT.....keep in mind that buying on credit means spending your future—spending money you
haven’t earned yet. If you charge something on sale thinking you're getting a good price, beware. The item might cost you more in the end because of interest...especially if you are
paying only the minimum every month.
"BUDGET" IS NOT A FOUR LETTER WORD!!
Budgeting isn't as bad as it sounds. A budget is simply a way of living within your means, and to prevent over-spending.
First, track your spending for a month or two. With that information, you can decide whether or not you’re spending your money in
line with your priorities and goals.
Next, decide how much you want to spend on each category. When the money is used up for that category, end of spending!
Emergencies can be covered from an emergency savings account.
I hope these tips help you in your financial plan in your new life as a married couple!
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