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Merging Money
Now that you are married should you just merge your money into his
or her
existing account? Before you merge all your money into an
account and add both names,
you will need to figure out which of you will
“control” the check book and manage the bills. It is possible to share
the checkbook but you will probably discover that one of the two of you
is more detailed and one likes to write checks where the other likes to
use credit or cash. It is best to have one person manage the books and
be accountable for the household bills.
This works best so that there is accuracy. Managing the books is not an
easy task for it also includes planning, accounting, and budgeting.
This decision has to be a mutual decision so that the person managing
the accounts doesn’t feel overwhelmed by the new responsibility and so
that the other person doesn’t feel left out or out of control.
My
theory on managing a check book is to simultaneously manage a working
budget. A working budget will give you a picture of what you spend each
month and then an overall for each bill. I do this to track electric,
water, phone, cable, etc. The purpose is to know what you’re spending
today and what you spend monthly. You might discover that you’re paying
too much for internet service or that maybe changing phone plans would
save you on your long distance calling.
A good budget will help guide
you into forecasting the minimum income that you must make if you are
considering changing jobs or going back to school.
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Budget
A budget is also a useful tool to plan for a large purchase
like a new car. So if your budget allows an extra $300 a month then you
can begin to put that money into an account today as if you were paying
for a new car. This will give you the feeling of what the new payment
will be like and it will give you the money to put down on the new
car. Once the bills are paid and there is remaining money what should
you do with it? I am going to tell you two fantastic money making tips
that will help you gain down payment money for your first home and get
you started for your retirement.
Save
First, if you have a 401k program at your job take full advantage
of the plan by putting in at least the amount that is matched by your
employer. Money in a 401k is tax deferred, sometimes can be used for a
loan if needed, and is usually matched by
an employer to earn you even
more money. Second tip is to open a Certificate of Deposit at a local
bank. A Certificate of Deposit is often referred to as a CD. It usually
requires a stated amount of time and it normally pays a fixed rate.
For example, if you have
$3000 you should open a 6-month CD with $2,000.00 deposit and a 5.38
APY (Annual Percentage Yield) which will produce a final value of
$2,054.00 at the same time you open a 1-year CD with a $1,000.00 deposit
and a 4.25 APY which will produce a final value of $1,043.00. Each of
these at end of the term you roll the entire new amount back and do the
same terms. If you keep up this process you will begin to earn a nice
savings which could be used for purchase your first home. These are
just a few tips that will help a couple begin their financial future.
It is best to
have one person manage the books and be accountable for the
household bills.
This works best so that there is accuracy.
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