Finances and Marriage: Budgeting

Over the next couple of weeks we will be covering the proper financial steps that soon to be married consumers need to take before saying their final “I dos”. Search the top reasons why marriages end in divorce, and you’ll find that finances will be one of the top ranking reasons. Taking the steps we'll be covering over the next couple of weeks will allow for a healthier and longer lasting marriage. Today we will be covering the first important step, budgeting.

Before you can even get started on tackling your financial life, you must first be sure that you have a budget set. Not having a budget can allow for overspending which leads to a downhill effect of mismanagement of your finances. You must allow for there to be a gap between your net income and your spending. A recent paper from Brookings Institution revealed that about 38 million American households are living paycheck to paycheck. This makes it difficult for a majority of households to tackle paying off debt, or work towards an emergency savings fund.

So how do you maximize this gap between your income and spending?

1. Shop your bills. Every six months make it a habit to shop your bills. This will include bills such as your cell phone, cable, car insurance, and utility bills. There is a good chance you may be able to get a better rate with a competitor, or you may be able to get a decrease from your current provider if you inform them you are shopping for better rates.
2. Minimize unnecessary spending. Do you grab a coffee every morning on your way to work? A cup of coffee from a coffee shop can cost you up to $3, bringing a “work week” cost to about $15. On the other hand, investing into brewing your own coffee, a can of ground coffee goes for about $10 and can brew you 270 cups of coffee! Other unnecessary spending varies from person to person, from weekly shopping sprees, to using unnecessary tolls. What can you cut out that is not necessary?
3. Track your spending. Enroll into account monitoring to track your spending. Many websites offer this service for free such as Credit Karma or Mint, or you can always go the old way and keep a checkbook or write down your spending. Tracking your spending will help you distinguish areas that need improvement. People will often find they may be overspending in areas such as restaurant and dining or entertainment. In today’s world it is very easy just to charge your debit or credit card and lose track of your finances.

Even if you are not engaged or if you are currently married, perfecting these areas of finances can still help make changes in your life. Could you improve in some of these areas for your budgeting? Be sure to follow back up with us in the coming weeks for more information. If you have any questions in regards to your credit contact MSI Credit Solutions. We can provide you with a free, no obligation credit consultation to determine your needs and guide you along the credit restoration process.

 

MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.