When it comes to money, it is always a heartbreaker in between true love, and it might leave you wondering, espically in a world dominated by a broken marriages, and divorce rates.
We are penning down a few notes about managing money before your bash, and this post will give you a perspective on gaining a financial compatability and finding a common ground.
So, your relationship is going great, and is quickly movin towards a long commitment? There’s one thing that bothers you perhaps? Careless spending. His/her affinity towards daily latte, with an extra shot and lot of whip twice will sometimes make you cringe.
It is not all those dangerously tasty calories that you glanced sideways, but the thought of multiples that computes for a year’s coffee expense paves the head to ponder, how do I tell you?
Will you and your significant match be made in heaven, or are you destined to find yourselves in financial distress with some practices your spouse is unknowingly indulging?
There are ways to tell whether you and your partner are going to stress over money. Or find a common ground that works for you both ways. Spenders or savers, the idea is to avoid bad debt and divorces.
When money is going out faster than income, it is a defence to quickly go up and manage what is fundamentally making up the losses. But when the other half doesn’t agree with the spening habits, you can battle and eventually lead to a divorce.
Spending isn’t the only issue
Saving money can also be a point of contention. If one of you is adamant about accumulating a six-month contigency fund, while the other is interested in impulse purchases, there is always a bound for contraversy. May be neither of you spends recklessly, or perhaps you both do. Great! But, it should be wedded bliss, right?
May be you could get bored with a huge saving account, or broke ith a lot of experiences and memories. There has to be a way to meet in the middle. How do you figure out if you financially are compatabilible as a couple, before you spend your lives together?
Home Budget — ArthaMoney’s 4 Tips
While managing personal finances is not a subject that has been commonly taught in schools, it is something everyone needs to know about. The most important part of managing your personal finances is creating a personal budget. Without a good budget, and self-discipline to sticke to it, nothing else you do will matter anymore.
There are a couple of different ways to go about making a budget. Some people like to set aside specific amounts for food, housing, medical, insurance, and entertainment expenses. Others, believe that setting an overly strict budget does not work well. But, real life does not stay always on schedule, and can cause a ot of disruptive changes. It is better to divide your spending into 4 categories. In this post, we are proposing ways to give your budget a little play, and making it repsonsive to changing needs.
Regular fixed costs — 60%
These costs should include everything that you pay for on a regular basis such as rent, utilities, groceries, insurance, bills, maintainence and electricity bills. If these costs take up more than 60% of the money you earn, then you need to earn more money, or simply your living style and cut costs.
Savings — 10%.
This includes both short term and long term savings funds. Some of this should set be set aside for emergency funds, and used for car repairs, and medical emergencies, costly and unexpected events. The rest should be used for expenditures such as vacations, holidays, and purchase of new appliances.
Investments — 10%
Besides building your savings, you also need to invest some moeny into small or medium investments that you deem worthy, and with time everything would grow to something that will work for you. A simple plan such as saving for a real estate investment will suffice. It is a rather wise decision not to invest in gold, except if you are 99.9% certain the global economy will tank in the next one year.
Frivolous Costs — 20%
We can’t entirely cut spending out of the budget. That would eventually lead to too much stress. What we might need is a budget that can be realistic to live with. Perhaps, this is something we need to think about spending on our health. Yes, health is an abstraction of both mental and physical parts. In an event of emergency we need to source our funds and manage without blowing out important items.
The kind of broad budgeting with categories will allow you to adjust spending levels with ease. All we have to do is keep the overall percentages for each category and stick to for a long run.
Money between Love
Taking the time to talk about finance can be difficuly, especially between work, together for a time, and with constant addictions, and habits that become bad to break. Sitting down a solid few hours to talk about financial expectations is tough.
If you want a lasting relationship, you need to take time for the more mudane tasks that will prove a positive step towards the long term happiness. Get the conversation headed down to the path to financial preparedness by asking some tough questions.
Consider the case of India & Africa. Both countries are largely feminist nations, and treat both women and money with equal respect. Most of the decisions related to money is taken jointly. And, the least % of divorces prove the same point. One woman in three households (In BRICS Nations) have proven to be sole breadwinners as well as farmers.
In the hands of a woman in countries acrosss India and Africa, it is she that ensures her family needs are fed and the food is not wasted. Empowering women in financial matters is necessary towards a long and lasting relation. And, how we manage relations is an important part. Money is a necessary evil, but don’t let bad debts and financial depression rob the relation between your loved.
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