How Couples Can Improve Their Finances

Here are some tips on how couples can improve their finances. Small things really do add up.

Erase Debt and Improve Credit
1. Setup payment plans
2. Get current on late accounts
3. Pay more than the minimum monthly payment
4. Keep balances at 30% or below the credit limit
5. Don't use credit card for everyday purchases

Joint Accounts
1. Spending. Spread spending for large purchases over several months to ease the burden.
2. Reconcile. Reconcile bank accounts daily or weekly.
3. Comparison Shop. Shop around for the best price for the product or services you require to maintain your household. This increases your monthly household income and reduces expenses.
4. Shop Together. Go shopping together. This way both of you how much money is being spent and can encourage each other to improve spending habits.
5. Buy needs vs. wants. Prolong items that you want for special occasions or when you have extra money, don't include wants in your budget.

Planning for the Future
1. Create an Emergency Fund. Use an emergency fund to buy small purchases or pay for unexpected expenses and have enough to cover bills for 9-12 months.
2. Retirement. Sign up with your company's 401K especially if your company provides matching funds.
3. Diversify. Control your risks by investing in various mutual funds that are a combination or low, medium and high risk to limit your losses and focus on long-term growth.
4. Buy insurance. Buy health, life, disability. Many Americans go into debt due to medical bills and lack of insurance. Get at least basic health, life and disability coverage.

Check out my interview in the October issue of Essence Magazine

Check out my recent interview in the October issue of Essence Magazine.

I discuss tips on how couples can survive a financial crisis.

Finance and Money Tips for Couples

Unmarried Couples
1. You can help out your partner but don’t take on their financial burdens
2. Don’t cosign a loan for your partner even if you are engaged
3. Determine how expenses and bills will be handled
4. Don’t get joint accounts

Engaged Couples
1. Examine each other’s spending habits and work towards a compromise
2. Don’t assume your future spouse wants to pay your debt
3. Be honest about your financial situation
4. Don’t keep secrets regarding your finances or purchases made – develop a plan to resolve the issue

Buying a Home
1. Get preapproved for a home
2. Shop around for the best rates
3. Determine the type of loan, ARM, 15 year, 20 year, 30 year

Married Couples or Newlyweds
1. Pay Off Debt
2. Participate in your company’s retirement plan or open an IRA
3. Create a budget
4. Get health, life and disability insurance
5. Get overdraft protection

Laws That Benefit Married Couples
1. Social Security
2. Veteran’s Benefits
3. Tax Laws (IRS) – married couples filing jointly can exclude up to $500,000 on the sale of their home on their taxes
4. Estate and Gift Tax

Books for Couples
1. Smart Couples Finish Rich – David Bach
2. Your Man and Your Money – Michelle Singletary
3. The Motley Fools’ Guide to Couples and Cash – Dayana Yochiim
4. The Big Payoff – Sharon Epperson
5. First Comes Love, Then Comes Money – Robert Gibson