It's been a while

Sorry it's been so long folks...just like the Nationwide commercial "Life comes at you fast" and it's not always easy to keep all the balls in the air!

So what has been happening? Well, I recently got engaged and my family situation has changed dramatically. My fiance has three children and there have been a lot of expenses as we have merged our two households. Once again, planning for the future has made this change in my "status" fairly easy to handle financially.

There are a lot of things to consider when you merge your finances with a spouse. What assets do you each have? How much debt? How will you manage your COMBINED finances? Who will pay which bills? The list is endless but there are a few simple things to get you started:

1. Discuss financial plans, expectations, preferences and goals with your spouse BEFORE you get married. If you two are unable to find common ground about your finances, there will be tension in your relationship that will be very difficult to overcome.
2. Make a plan and stick to it. Sit down together and list all your monthly bills and expenses and decide together who will pay for what and how you will handle money (joint account, separate accounts, etc.).
3. Develop a budget. Once you understand your expenses, create a budget to make sure that you will save money for the future and have a way to track your spending easily in the future. We use the Discover Card for all our purchases. It makes it easy to track our spending and we get 1% back in a rebate. They have GREAT fraud protection and will monitor your credit daily if you choose that service. We also use MS Money for all our financial information and can generate reports easily to help us mange our money and stay on budget.
   
4. Be prepared for the unexpected. Even when you make great plans, things arise that you never considered. That's ok; that's life. Be willing to sit down with your spouse and discuss how you will handle it as a team and focus on solving the problem together.
5. Know your limits. The current economic crisis was created in part because folks did not realize their limits. You KNOW you can't afford a Ferrari but when you get such a great monthly payment on that new car, seems like such a good deal, right? But, have you over extended yourself financially? You must be sure that you both are spending within your means and not getting over extended...no matter how much you want that new "thing".
   

What I've been discussing here really boils down to how to make good decisions both individually and as a "couple." There was a great article in The Bottom Line that describe how to make good decisions considering what is best for the next 10 minutes, 10 months and 10 years. Is what you are about to buy worth sacrificing you financial security for the next 10 months? If you look back on this decision 10 years from now, would you still make the same choice?

So think carefully before you decide and make sure you consider all the consequences of your decision. Every choice has consequences; sometimes good, sometimes bad...but they always depend upon the choice you make!