|
|
|
His And Her Finances
|
It’s difficult to learn how to manage finances together when you’ve
been managing your finances on you own, for better or worse, up until
now. But when you become part of a couple, many things change, and your
finances are no exception! Some couples take the traditional path of
blending all their finances together, however more and more couples
are deciding to keep their finances separate. .
What are the benefits of each option? The benefits of consolidating
funds into one checking account includes easier record keeping, simplified
money management (ideally), and less paperwork when applying for a loan.
In addition, the blending of finances can create a “unified front” in
that aspect of a relationship that simply can’t be argued with. Obviously,
the drawbacks are that both people are actively using the account and
that will make it harder to track transactions and monitor your balance
when you don’t know what the other is doing.
On the other hand, maintaining separate accounts will allow each person
in the relationship more freedom, because they won’t have to run purchases
by the other person. In addition, doing so may create fewer complications
in the relationship, allow each person to build their own good credit,
and quite simply allow them to maintain a sense of independence. The
most obvious downfall to a his and her finance arrangement is that it
can be disproportionately unfair. If one person makes $60,000 per year,
and the other $30,000, the person making the lower salary may not like
the arrangement!
If you do decide to keep “his and her” checking or savings accounts,
then you’ll need to find a system for paying house bills and handling
other joint finances together. One option that has worked great for
many couples is to create a third joint checking account and designate
it as the “house” fund. You can set up your separate, individual checking
accounts to have money automatically withdrawn from them each month
at most financial institutions. You will have to sit down together and
decide what amount needs to be in the joint account every month in order
to cover the “combined” expenses. In a situation like the above—where
one person makes significantly more than the other—it is usual for the
higher wage earner to pay a larger portion of the expenses.
Another aspect to consider with his and her finances is credit. This
can be considerably beneficial or problematic, depending on your individual
credit ratings. However, at some point you may want to apply for joint
credit with your spouse. You will most likely want to make big purchases
together throughout the marriage such as a car, a house, or appliances,
and it’s much easier to do that if you have joint credit. With joint
credit, you will both be 100% responsible for the debt, even if you
co-sign a loan with your spouse or add your name to your spouse’s credit
card account. On the other hand, if you decide to maintain separate
credit, the general rule is that you are not responsible for each other’s
debt. (The exception to this is if the debt is considered a family expense.)
If one person had bad credit prior to getting married, then the person
with good credit may want to keep their credit separate. Why? Because
if you apply for credit together, the lower credit score will bring
down the higher one.
The best advice? Be upfront about your financial weaknesses, and discuss
a plan—before the big day—to handle them. Once you have identified the
potential pitfalls, it will only take a little planning to overcome
them.
About The Author:
Peter Dobler is a veteran in the IT business. His passion for experimenting
with new internet marketing strategies leads him to explore new niche
markets.
Read more about his experience with credit and mortgages; visit
Credit
Score Information Directory
Other Credit And Real Estate Related Information
American Grant
Provider Directory
The
Federal Government and Private Grant Foundations issue billions
of dollars in grant money to a variety of groups each year.
Grants are awarded to individuals each and every day from all
walks of life, with large and very small bank accounts, for
an ever-increasing array of purposes.
Grant programs are not Loans.
You decide how much you need. As long as the amount is lawful
and you meet the Foundations and Government Agencies Requirements,
the money is yours to keep and never needs to be repaid. This
grant money is non-taxable and interest-free!
Get more information
|
Do You Have
Bad Credit?
Don't give up!!
Our list of lenders and credit card
companies are willing to give you another shot. They realize
that good people can have bad credit.
Whether you have
had minor problems in the past or even bankruptcy, our lenders
are there to help you not only receive a loan, but also to re-establish
your credit.
Are you ready to
get your second chance?
Get more information
|
Mortgage Loan Tips
"Excellent
for first time buyers, move-up buyers or refinancing. I cannot
recommend it highly enough - this should be required reading
for anyone who wants to get a loan."
M. Klinger, Real Estate Broker
Aventura, FL
Get more information
|
Credit Repair
- Erase Bad Credit Now!
Are
you tired of Bad Credit? - High Interest Rates? Disapproved
Credit?
Use my experience today, and I will show you
how to get every negative item Removed from your Credit Reports
within 1-3 Months. Guaranteed!
Get more information
|
Credit Secrets
"How
to Clean Up your Credit Report and Wipe All Your Credit Card
Debts in Record Time!"
Take a moment to imagine this...
On any given day you could be receiving new pre-approved credit
card offers in the mail, you could able to purchase a new home
without worrying about qualifying for a mortgage, financing
for automobiles and boats could be readily available to you,
and...you could have piece of mind knowing that should an emergency
arrive you would have the resources to take care of you and
your family.
Get more information
|
|