Laura and I have both blogged before about finances, but
given that it is one of the most common causes of strife in marriages, I want
to come back to this topic. Money, and the lack of it, is a tough topic in
almost every relationship. It certainly has been one for us at different times
in our marriage. I always say communication is key, and it really is. This is
the first post in a four-part series on financial freedom for families: Planning, Income, Debt, and You. If you haven’t read
this post about getting on the same page re: finances, it’s a good foundational
piece to start with. In this series, I want to take an in-depth look at how to approach
finances, as a couple. I want to convey basic principles to build an
understanding of how to work together to accomplish financial goals, instead of
letting money be what tears you apart.
Today, let’s talk about planning.
You can talk about money until you’re blue in the face, but
without consensus on a plan with actual, measurable, and attainable steps, you
are just talking in circles. So what does a realistic plan look like? Well,
that varies depending on your situation.
So why do you, as a couple need a financial plan? You may be
saying, we’re okay. We aren’t rich, but we are making it. We put food on the
table and have a roof over our heads. Maybe you have significant debt, maybe
you don’t. Maybe you have more than you need, maybe you don’t. Maybe you fight
about money, maybe you don’t. Your
situation does dictate what the plan is, but it doesn’t dictate the need for a
plan. Whether you need to get out of debt or retire, or you want to give more
to missions, you need a financial plan.
Step one is sitting down and talking about your immediate
need. I’ll give some suggestions later in this series for setting long-term
goals, but I think you probably know what your immediate needs with your
finances are. This is a difficult step because you may be on different pages
about what your needs are. The most critical part of this step is agreement.
You must agree to move on and that means that both of you will probably have to
compromise somewhere. You don’t have to set massive, life-long goals at this
point. Let’s just have a plan for the next six months right now. What do you
want to do in the next six months, even if that is survive? If you can plan six
months, you can plan a lifetime.
The next step is forming a plan. Figure out how much your
immediate need will cost and go from there. I recommend looking at your
expenses for the last three months to get a basic, monthly cost of living,
subtracting that from your current income, and then looking at what is left.
That is what you have for accomplishing your immediate need. If there isn’t
anything left, you have two choices: more income or fewer expenses. If neither
of those are options, don’t lose heart; we’ll talk about ways to find places to
cut and gain in later weeks.
Now that you know where you are, it’s time to
agree on a plan to move forward. Find areas that both of you can cut expenses
and decide an amount to save toward your plan. You’ll need a budget to follow.
Maybe you are more disciplined than us, but without a real budget, we rarely
achieve our goals. You can see a basic outline below. I think it can
apply to anyone’s household finances.
So now you have a plan! It takes time, discipline, and lots
of communication, but you can execute it. Over the next few times I blog here,
I’ll be going over different aspects of household finances to help you modify
and execute this plan. I’m praying that you’ll find this helpful. I’m no
expert, but I believe that with good communication, you can achieve your goals.
Read Part Two
Read Part Three
~Howell
@G2WHubs