|
|
|
One lucky TDS "tipster" will win a $100 check each month just for sending us their favorite time or money saving idea. It could be you! Click here to submit your suggestion.
Last month's winning tipster: Rita from MN!
|
Money problems? Struggling with credit card debt? What you need to know about bankruptcy? Trouble repaying student loans?
|
Home
Family
Marriage
Sharing Your Lives
How Financial Planning Can Help a Marriage
Days before our wedding a few years ago, my husband and I were asked if we had discussed things like finances and children to make sure we were both on the same page. Although this was a great idea, our responses wouldn't have made any difference to us. We were both excited about our pending nuptials and nothing was going to stop that wedding!
As it turns out, my husband and I are complete opposites when it comes to spending. He is extremely conservative with his money, while I like to splurge on luxury items like clothes, gadgets, and new cars. Over the years, we have found creative ways to work around our differences in order to avoid unnecessary friction. I still get to spend, while he still gets to save.
Establishing our financial goals upfront has been one of the keys to our success. Aside from our mortgage, we strive to avoid any type of debt. Our student loans, cars, and other big-ticket items have been paid off. We created a strict budget that ensures we are saving enough for retirement while still being able to afford the occasional dinner out.
For the splurges along the way, credit cards have proven to be a great way to add some extra funding to our budget. It's not at all what you might be thinking though. I applied for a rewards credit card that allows me to accumulate gift cards to the stores I frequently shop at. I charge everything from groceries to gas on this credit card. Every few months I cash in my rewards points in order to receive a gift card of my choosing.
If the budget is particularly tight during any given month, I can also cash in my rewards points for gift cards to our grocery store. If we want to undertake a home improvement project, I stock up on gift cards to the hardware store. If I'm aching for some new clothes, I pick a gift card to accommodate a shopping spree at my favorite retailer. I can also use my points to pay off a portion of my credit card balance that month in order to save some extra money.
Using a credit card to this extent requires a bit of discipline. According to the rules agreed upon by my frugal husband and me, nothing can be charged to the credit card if we can't afford to pay it off at the end of the month. If credit card balances carry over from month-to-month, interest quickly accumulates and it becomes counterproductive to our goals. The rewards credit card is also the only credit card that we have.
Credit card rewards can only go so far. When it comes to expensive items like televisions or exercise equipment, careful planning is necessary. As part of our budget, we deposit a fixed amount of cash into a money market account each month. Money market accounts typically offer higher rates compared to a standard savings account and they do not have the restrictions of a certificate of deposit (CD).
As time passes, the balance of our money market account slowly grows. When enough money has been saved, we can head to the store and pick out that new TV, or whatever prize we were saving for. While waiting to make the purchase can be painful, it does have its benefits. I tend to get really excited about new things when I first see them. After saving for a few months, that excitement tends to wear off and I can no longer justify spending our hard-earned money on the item. On the other hand, if we both still want the new item, the price has probably dropped while we were busy saving!
With a number of wedded years tucked under our belts, my husband and I have learned marriage does have its challenges. Careful planning and a whole lot of patience have helped us overcome these challenges and our marriage is now stronger as a result.
Share your thoughts about this article with the editor: Click Here
Looking for an answer to a frugal living question? Click here to ask a Dollar Stretcher Stretchpert!
If you liked this article, sign up for our free eNewsletter Dollar Stretcher for Parents. Just enter your email address in the box below and click Subscribe.
Follow The Dollar Stretcher on Twitter.
Do you have a time or money saving idea that wasn't included in this article? Please click here to submit your idea. We get the best ideas from our readers!
Dollar Stretcher Community
Forums
Blogs
Also In This Week's Issue
2 steps to finding credit after bankruptcy
Upcoming state sales tax holidays
7 reasons why you should refinance
No government bailout on credit card debt
Shop and save on auto insurance
Checking account do's and don'ts
Copyright 1996 - 2010 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.
Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
Voice 941-761-7805
Fax 941-761-8301
"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
| About Us | Privacy Policy | Writer's Guidelines | Sponsorship | Media | Contact Us |
