Marriage and Money: Agreeing on Large Purchases

Marriage and Money: Agreeing on Large PurchasesAs you get your budget under control, get out of debt, and build an emergency reserve, you will have increased cash flow.

With more money coming in, you will have the opportunity to make large purchases.

Question is, how do you decide on what to purchase first?

Let’s assume of course that you will save the money for the expense and will not use debt.

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How then do we agree with our spouse on a priority order on the purchases?

Invariably, you will have different ideas on what to buy.

One of you may want to save the money for a nice vacation while the other person wants to beef up the emergency reserve a little more.

Or one of you wants to do a home remodeling project that has been put off for a while, and the other person wants to buy a full entertainment system.

Here is an approach my wife and I use to come to an agreement about large purchases.

As you look at shared goals for this year, this might help you as well:

  • Make a list of all the potential expenses. Some examples include: vacation, car replacement, kitchen remodel, new couch, big screen TV.
  • Assign an estimated cost to each item.
  • Each person then goes down the list and assigns a priority (1 to 10) to each item.
  • Compare your priorities. Share with each other why each item is important.
  • Come up with a combined priority list.
    • Here is where the art of compromise comes in.
    • You are building a life together, so surely you can build a priority list together.
  • Total the amount required for all items. Based on your financial picture you might not get to all of them this coming year.
    • But you will get to the items that are important to both of you.
    • Now you know where to target your savings and you have a common set of goals.

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When you are married, the only way to win with your money is to work together with your spouse.

Healthy finances lead to healthy marriages.

If you are not working with each other you are working against each other.

Try this method and let me know how it goes!

7 Principles For Financial Success

How are you building your financial household? Is what you are doing working? Do you see positive results?

Our family has been on a financial transformation journey for a little over 9 years now and I have had some time to reflect on how far we have come.

We have experienced the rewards of applying God-given, time-tested principles for winning with your finances.

I wanted to share these 7 Principles for Financial Success with you today because I firmly believe you too can win with your money if you are diligent in applying them.

If you want to know more, you can check my e-book in which I share more about how these principles have changed our lives.

If you are winning with money, I would love to hear how have you applied these or other principles to succeed. Share those blessings with others!

“The law of the Lord is perfect, restoring the soul; The testimony of the Lord is sure, making wise the simple.”
Psalm 19:7

7 Principles for Financial Success

Financial Literacy Month: The Savings Series

FLM: Savings Series

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As you know, in honor of Financial Literacy Month (FLM), I am sharing some of our previous posts on what I consider the four key categories for financial management: budget, savings, debt elimination, and giving.

I believe if a household can learn how to deal with these 4 areas of money management, it will get on a path to financial wellness.

Last week we began with the budget series and this week we turn our attention to the topic of savings. The skill of saving money can bring a great deal of blessings to your financial situation but you have to make it a priority. You can have peace of mind knowing you are ready for emergencies and that you are preparing for the future.

The Savings Series

 

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The Blessings of Learning to Save Money

savings

“There is precious treasure and oil in the dwelling of the wise, But a foolish man swallows it up.”
Proverbs 21:20 (NASB)

A few months back I wrote on the blessings of budgeting. I wanted to share my belief that having a working budget is the key to turning your financial situation around.

When you learn to live on a budget you also receive the blessing of having the ability to learn how to save money.

The skill of saving money can bring its own set of blessings to your financial situation but you have to make it a priority. My wife and I took that step to become intentional about saving money and we can attest to the benefits.

If you choose to do the same, here are some of the blessings you can expect:

  • Peace. Emergencies have become simply inconveniences now that we have an emergency fund. If the car breaks down we fix it. If an appliance wears out we replace it. It took time and sacrifice, but we no longer worry about where the money is coming from or having to decide which credit card has the most available balance. The emergency fund will allow you to absorb the blows that will come from time to time.
  • Patience. Since my wife and I made the decision to no longer rely on credit cards for purchases (5 years and counting!), we had to learn to wait until we had money saved for what we wanted to buy. We have gone from the “microwave” approach to buying to the “slow cooker” approach. We take our time and we make better choices when we buy something. It takes time to save and we want to make sure we get the best for our money on large expenses.
  • Possibilities: Learning to save money is a required skill to plan for the future. When you save for college expenses you can give your kids the gift of starting their professional life without a mountain of debt. When you decide to save for retirement, you take control of what you will do in your senior years. You could keep working if you wanted to do so. But you are not forced into it when perhaps you want to do something else with your time.

The Bible says it is foolish to spend all that you receive but that the wise person saves. What’s keeping you from being intentional about saving money?

What do you need to start? Would love to hear what you think!

“If you do the things you need to do when you need to do them,
then someday you can do the things you want to do when you want to do them.”

Zig Ziglar

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