Stop Fighting About Money

Stop Fighting About Money
by Takara Alexis

I guess the saying 'opposites attract' is true, and I guess that it's a big reason a lot of spenders end up with savers, or vice versa.

Breaking old habits is a hard thing to do. Sit down together and agree to a few limits. What percentage of your money will be put toward entertainment? What percent be spent on extras, like new clothes, and what percent do you need to set aside for housing, transportation, and savings? As soon as you have agreed on a budget, stick to it.

You might want to buy a house while there are low interest rates, or perhaps you own one already and all you really is a vacation. Maybe you wish to be debt-free in a year, or pay for your kids to go to college or go back to school yourself. Discuss a financial plan together so you understand what lies in store, and how you will swing the bill.

Remember, also, that there are some unpredictable things in life such as layoffs, serious car maintenance, and medical bills. Having an emergency fun can help you out if anything like this occurs suddenly. Put at least three to six months worth of living expenses together in a savings or money market account so you can have it just in case.

You don't want to have to micromanage each others finances. But making each other aware of any major expenditures can easily eliminate expensive issues such as bounced checks or over-the-limit credit card fees.

It mainly depends on how much disposable income you have, but most couples use $100, $300 or $500 as their threshold. Basically, if you want to buy a slice of pizza, go ahead. If you want to buy a new surround sound system, it might be a good idea to give your spouse a call first.