Steve Repak's Blog - Posts Tagged "marriage"
The Honeymoon is Over… What To Do With All of the Money?
Through my many years of working with them I have learned that couples will resist taking advice from their better half but they will take advice from a total stranger. It is not an insult to you or your better half, it is just the truth. With that said I don’t come bearing gifts of money but instead I want to share with you four things to do with the wedding money your friends and family have given you.
Proverbs 11:24 (NIV)
“One person gives freely, yet gains even more; another withholds unduly, but comes to poverty.”
(1.) Give God His due
If you really want to start your marriage on the right track, learn to give at the beginning. If you have your priorities in order now it will make life so much easier later. How can it help you financially? When you give, you have no choice but to live on less which is not just biblical but also the cornerstone of personal finance. Show God what your true priorities are by giving to Him a part of your financial treasures.
1 Corinthians 16:2 (NIV)
“On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.
(2.) Fund your “life happens” account
Nobody plans on bad things happening such as your car’s transmission going out or needing to replace your refrigerator, but you need to have some cash in safe, short term savings to cover these types of emergencies, because it isn’t a matter of if they will happen, it is only a matter of when.
If you don’t have anything in savings and an unplanned expense does come up, you won’t have any choice but to use a credit card. Your ultimate goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you are not starting out with this, consider setting aside a portion of your wedding money to start or add to your “life happens” account.
Proverbs 15:22 (NIV)
“Plans fail for lack of counsel, but with many advisors they succeed.”
(3.) Talk to a counselor
You are probably thinking to yourself that you just got married so why would you need to talk to a counselor. You may not need a marriage counselor, but you would be wise to talk to a financial counselor. A Certified Financial Planner ™ (CFP®) can help both of you plan a road map to your golden years and help you decide where to put some of your wedding cash for your longer term financial goals. You can find a local CFP® by going to www.cfp.net.
1 Timothy 5:8 (NIV)
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.”
(4.) Blow some of your cash
I know I will get some negative comments and 1 Timothy 5:8 is speaking more towards the area of balance at work, family, etc. but I believe there should be balance also when it comes to money. Give God His due, but find balance with the rest of your money. Extremes seldom work and I have found that couples who have balance in their lives are happier. Spend, spend, spend will lead to poverty while save, save, save can lead to resentment. Be responsible with most of your wedding cash, but do set aside a small portion to spend on things you both like or things you both like to do!
http://www.bethanyjett.com/2014/03/05...
Bethany Jett
Proverbs 11:24 (NIV)
“One person gives freely, yet gains even more; another withholds unduly, but comes to poverty.”
(1.) Give God His due
If you really want to start your marriage on the right track, learn to give at the beginning. If you have your priorities in order now it will make life so much easier later. How can it help you financially? When you give, you have no choice but to live on less which is not just biblical but also the cornerstone of personal finance. Show God what your true priorities are by giving to Him a part of your financial treasures.
1 Corinthians 16:2 (NIV)
“On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.
(2.) Fund your “life happens” account
Nobody plans on bad things happening such as your car’s transmission going out or needing to replace your refrigerator, but you need to have some cash in safe, short term savings to cover these types of emergencies, because it isn’t a matter of if they will happen, it is only a matter of when.
If you don’t have anything in savings and an unplanned expense does come up, you won’t have any choice but to use a credit card. Your ultimate goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you are not starting out with this, consider setting aside a portion of your wedding money to start or add to your “life happens” account.
Proverbs 15:22 (NIV)
“Plans fail for lack of counsel, but with many advisors they succeed.”
(3.) Talk to a counselor
You are probably thinking to yourself that you just got married so why would you need to talk to a counselor. You may not need a marriage counselor, but you would be wise to talk to a financial counselor. A Certified Financial Planner ™ (CFP®) can help both of you plan a road map to your golden years and help you decide where to put some of your wedding cash for your longer term financial goals. You can find a local CFP® by going to www.cfp.net.
1 Timothy 5:8 (NIV)
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.”
(4.) Blow some of your cash
I know I will get some negative comments and 1 Timothy 5:8 is speaking more towards the area of balance at work, family, etc. but I believe there should be balance also when it comes to money. Give God His due, but find balance with the rest of your money. Extremes seldom work and I have found that couples who have balance in their lives are happier. Spend, spend, spend will lead to poverty while save, save, save can lead to resentment. Be responsible with most of your wedding cash, but do set aside a small portion to spend on things you both like or things you both like to do!
http://www.bethanyjett.com/2014/03/05...
Bethany Jett
Will My Future Spouse’s Bad Credit Affect Me?
In any relationship, each person brings his or her own baggage. I’m not just talking about emotional baggage—there is also financial baggage of which you should be aware. Before you say, “I do,” keep in mind that you’ll be making a promise to stand by your spouse for richer and for poorer because money is one of the top reasons many couples fight.
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
