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.
Showing posts with label money management for couples. Show all posts
Showing posts with label money management for couples. Show all posts
Friday, April 16, 2010
Thursday, September 24, 2009
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.
Wednesday, July 22, 2009
Is Your Stubbornness Keeping You In Debt
Many people say that they don’t have any extra money to pay down debt and improve their financial situation because they are used to living a certain lifestyle and want to maintain that lifestyle. However, when they record all of their expenses or consult a financial advisor, financial coach or personal finance expert the picture changes.
Many people are in shock about how much money they actually spend and what they spend money on. The first step to overcoming a problem is admitting that you have a problem. The second step is developing a plan to overcome the problem. This is the step where many people have difficulty when it comes to finances because many people are stubborn and don’t want to make any changes.
Many people know they are in debt but don’t want to change their mindset or their lifestyle to do what it takes to improve their situation. Americans as so accustomed to instant gratification and buying on impulse it’s difficult to change that behavior especially when you were not taught about financial literacy in school or by your parents.
You can’t continue doing the same thing day after day expecting a different result. The only way to survive this recession is to make a change. It is a horrible feeling to be in debt, live paycheck to paycheck or be unemployed. I have experienced all of those and I vowed to myself not to be in those situations again or if I was, develop a plan to ease the burden during those difficult financial times.
Here are 5 tips to prevent your stubbornness from keeping you in debt:
Admit. Admit you have a financial crisis. Discuss with your spouse, partner and children about your situation, be honest. Once you admit you have a problem it is much easier to get or solve the problem.
Budget. Create a budget by recording all of your expenses and monthly income. List everything you spend money on during a month including variable expenses such as yearly or quarterly bills. Include monthly debt payments and loans in your budget. If you have 5% of your total income or less left each month you definitely need to adjust your spending.
Reduce. Reduce your expenses to free up extra money. Shop at discount or wholesale stores, get the cheapest cable, cell phone, satellite radio or internet services available or cancel them. Buy groceries in bulk. Shop for clothes at Target, Walmart, thrift stores or discount stores. Turn off lights and electronic devices if you are away from the room more than 20 minutes at a time.
Turn the tv off. If you or your family spends a lot of time watching tv, reduce the hours spent watching tv which will reduce your electricity bill. Go for a walk, play games with your family, read a book or find a new hobby.
Change your mindset. Many people have negative thoughts about money and this causes them to continue to be in debt and prevents them from being able to improve their financial situation. Eliminate the negative thoughts such as: “I will always be broke, I will always be in debt, I will die broke”, etc. These thoughts prevent you from being able to develop a plan to improve your financial situation.
Make one small change at a time and over a period of time your situation will improve. You will have less stress, less fights at home and you will be a role model to someone else by being able to give them advice on how to overcome a difficult financial situation.
Many people are in shock about how much money they actually spend and what they spend money on. The first step to overcoming a problem is admitting that you have a problem. The second step is developing a plan to overcome the problem. This is the step where many people have difficulty when it comes to finances because many people are stubborn and don’t want to make any changes.
Many people know they are in debt but don’t want to change their mindset or their lifestyle to do what it takes to improve their situation. Americans as so accustomed to instant gratification and buying on impulse it’s difficult to change that behavior especially when you were not taught about financial literacy in school or by your parents.
You can’t continue doing the same thing day after day expecting a different result. The only way to survive this recession is to make a change. It is a horrible feeling to be in debt, live paycheck to paycheck or be unemployed. I have experienced all of those and I vowed to myself not to be in those situations again or if I was, develop a plan to ease the burden during those difficult financial times.
Here are 5 tips to prevent your stubbornness from keeping you in debt:
Admit. Admit you have a financial crisis. Discuss with your spouse, partner and children about your situation, be honest. Once you admit you have a problem it is much easier to get or solve the problem.
Budget. Create a budget by recording all of your expenses and monthly income. List everything you spend money on during a month including variable expenses such as yearly or quarterly bills. Include monthly debt payments and loans in your budget. If you have 5% of your total income or less left each month you definitely need to adjust your spending.
Reduce. Reduce your expenses to free up extra money. Shop at discount or wholesale stores, get the cheapest cable, cell phone, satellite radio or internet services available or cancel them. Buy groceries in bulk. Shop for clothes at Target, Walmart, thrift stores or discount stores. Turn off lights and electronic devices if you are away from the room more than 20 minutes at a time.
Turn the tv off. If you or your family spends a lot of time watching tv, reduce the hours spent watching tv which will reduce your electricity bill. Go for a walk, play games with your family, read a book or find a new hobby.
Change your mindset. Many people have negative thoughts about money and this causes them to continue to be in debt and prevents them from being able to improve their financial situation. Eliminate the negative thoughts such as: “I will always be broke, I will always be in debt, I will die broke”, etc. These thoughts prevent you from being able to develop a plan to improve your financial situation.
Make one small change at a time and over a period of time your situation will improve. You will have less stress, less fights at home and you will be a role model to someone else by being able to give them advice on how to overcome a difficult financial situation.
Saturday, June 13, 2009
Your New Best Friend - A Budget
Many people don't know how to create a budget or spending plan and don’t know where to start. The first step to getting out of debt is by creating a budget. Creating a budget shows accountability for your spending and shows you how much you have coming in and how much you have going out. It identifies your SEO – what you spend, what you earn, and what you owe.
Make your budget flexible so you have "wiggle" room for unexpected expenses. If you don't have an emergency fund or savings to cover those unexpected expenses you can see right away what areas in your budget you need to reduce spending instead of using a credit card to pay for those unexpected expenses. Most people don't think about how much money they spend per week or per month but when you see all of your expenses written down it provides greater insight into your spending habits.
The first step is to determine if there are some areas where you are spending too much money, you want to have a balanced budget and make sure you don't spend too much money in any one area of your budget. Develop financial goals for yourself when creating your budget. Financial goals encourage you to work towards reaching that goal and provides a sense of accomplishment when the goal is met. Some examples of financial goals are: pay off a credit card, buy a home, take a vacation, etc.
Being debt free is hard work, requires discipline and reduces your anxiety and stress about your financial situation. Many things are possible when you are debt free and live on a budget. Determine if you want to live the rest of your life as a borrower or as a lender. It's up to you!
Make your budget flexible so you have "wiggle" room for unexpected expenses. If you don't have an emergency fund or savings to cover those unexpected expenses you can see right away what areas in your budget you need to reduce spending instead of using a credit card to pay for those unexpected expenses. Most people don't think about how much money they spend per week or per month but when you see all of your expenses written down it provides greater insight into your spending habits.
The first step is to determine if there are some areas where you are spending too much money, you want to have a balanced budget and make sure you don't spend too much money in any one area of your budget. Develop financial goals for yourself when creating your budget. Financial goals encourage you to work towards reaching that goal and provides a sense of accomplishment when the goal is met. Some examples of financial goals are: pay off a credit card, buy a home, take a vacation, etc.
Being debt free is hard work, requires discipline and reduces your anxiety and stress about your financial situation. Many things are possible when you are debt free and live on a budget. Determine if you want to live the rest of your life as a borrower or as a lender. It's up to you!
Monday, September 01, 2008
Check Out My Interview in the September Issue of Essence Magazine
Check Out My Interview in the September Issue of Essence Magazine page 108.
Harrine Freeman
Friday, February 22, 2008
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
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