Family Money Management: The Importance of Agreement

Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement.

If one of you loves to shop and doesn't worry much about credit card debt while the other hates spending money like death, you have a problem. You can create budgets till Honolulu freezes over, but it won't work and chances, are, you and your significant other will end up fighting constantly.

Even before you start to create a budget, the two of you must sit down and discuss your life objectives. Get out a piece of paper. Make a list of long-term objectives the two of you can agree on. One might be to get out of debt. Another might be to make monthly contributions to a college fund for the kids. A third could be to begin a retirement fund. Or you might decide it's important that one of your get some specialized training that would lead to a higher salary.

Once you agree on your objectives, the two of you can start work on a budget. Step one will be to decide how much you will need to save (or spend) monthly to meet your objectives. You should subtract this first from your monthly income so you can see how much you have left over to work with.

Next, subtract your "secured" debt. Typically, this would be your mortgage payment, car payments, and any other loan payments where an asset such as a boat or RV secures the loan. Then, take a hard look at your other expenses and debt ? for example, your rent, food, membership dues, clothing or credit card debt -- as these are the only areas where you can hope to make cuts.

It is important that you both agree as to where those cuts can be made. No matter how strongly you feel about drastically cutting a budget category such as clothing, if your spouse doesn't agree, you're going to have problems. A better solution is to find a compromise ? a number that gets you closer to where you think the spending should be but one that your spouse agrees is at least fair. Then, look for another category where you can make cuts to get your final budget number down to where it needs to be.

You should then sit down with your spouse twice a month to review where you are vs. your budgetary goals. You will most likely find that you're under in some categories and over in others. Don't worry about making adjustments at this time. Just make notes as to where you've over and where you're under.

After the first two months, you should know where you've been spending more than you budgeted and where you've spent less. The two of you can then discuss what adjustments you need to make. There should not be a lot of arguing because you have goals you've agreed on and a budget you created by working together.

The important thing is to keep the discussion from becoming accusatory. If one of you has been the "budget breaker," it's better to ask "it looks like we've got a problem here, what to you think we can we do to fix it?" then to say, "you really screwed up this time."

What can you do if you or your spouse just can't control his or her spending and keeps busting the budget, month after month?

Unfortunately that's an issue that probably needs the work of a good marriage counselor.

For FREE help with debt and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com

---

Benefits of Personal Finance Software

In this age of information, keeping track of your finances... Read More

Honor Those Who Serve with Checking Account Supplies

Our global society has had a wake up call in... Read More

Save Money on Groceries: Part I

One universal of humanity, no matter who you are or... Read More

The World is Not Enough - Calling for a More Ethical Approach to Personal Finance

At a time when the entire world's attention is focused... Read More

Help With My Annuity

The cries are heard from the distance, "I need help... Read More

10 Money-Saving Tips

1. If you have your haircut every 3 weeks, try... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

Save Money Off Your Home Utility Bills

Many don't realize that our basic utility bills provide the... Read More

Personal Checks ? Extreme Benefits

Millions of people have a checking account and many people... Read More

Financing Collectibles for Fun and Profit

With the advent of the internet and especially auction services... Read More

How Check 21 Affects You

The Check 21 Law is the new federal law for... Read More

Budgeting the Key to being Financially Stable

Single Mother's in need of Financial GuidanceBudgeting is key to... Read More

Are You Ready To Be Fired?

Your boss has just informed you that your department is... Read More

The Joys of Address Labels

Address labels are many things to many different people. If... Read More

The Magic Of Compound Interest

Christians are called to be good stewards of God's resources.... Read More

Credit Card Debt ? Watch Your Credit Report and Your Bill

Most consumers are aware of the importance of their credit... Read More

How To Place an Online Order for Checks ? It is Easy as 1-2-3

If You Have an Existing Account and 5 Minutes, You... Read More

10 Tips To Save Money When Dining Out

Here are some tips that can help you save money... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

I Want to Buy a Home - Now What?

If you were to ask 100 women "What would you... Read More

Make or Break Your Retirement!

The Prudential has dubbed those who refuse to leave home... Read More

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

Understanding Your Finances Can Give You Power And Choice

What is finance and what do you need to know?... Read More

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

What?s New in Checking ? From Designs to Photos

Just about everyone has a checking account. Checks present easy... Read More

Adverse Debt Levels Blight UK Consumers Personal Finances

Debt levels are at an all time high in the... Read More

10 Tips to Make Sure Your Financial Budget Will Succeed

You've analyzed your past expenses, put them into spreadsheets, loaded... Read More

Affording a Home

Can you really afford a house? If so, how much... Read More

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

Budgeting. It's a word we're all familiar with. Everyone knows... Read More