#6 FINANCIAL HARMONY AND A BALANCED BUDGET REDUCE THE CONFLICT IN YOUR RELATIONSHIP:

The efficient, fair, and stable use of money is critical to a positive marital relationship.  This principle is true within families with higher incomes just as it is when the income levels are lower.  It's not the amount of money, it's how money is used.  Look at the number of athletes who have had multi-million plus dollar incomes,  yet file for bankruptcy.  The way a couple handles their money nearly always reflects the way they handle other problems in life!  Financial problems nearly "ALWAYS" lead to other problems in their life and marriage.  Failure in this area is critically important and when there are problems, they are often very hard to resolve!  

1.  The inability to stay within a budget (or having no budget to maintain boundaries)

2. The lack of discipline to not spend money needed for essential expenses

3. Hiding money from your spouse thus taking it out of the budget

4. Foolish spending for non essential things

5. Calling non essentials, essential thus using money inefficiently

6. The failure to save money during low cost months to be used during higher cost months

7. For many younger people, student loans are overly costly.  Student loans are a really bad investment!

The principle is very simple.  Your expenses must be less than your income!  Financial responsibility is just a matter living within your means.  Financial planning is essential to having a happy and successful life!

Most charge accounts have high rates of interest.  For example, if you purchase a Coke for $1.07 (which includes tax), and you were to put it on a high interest charge card and didn't pay it for 10 years, the dollar drink would then cost you around $55.25.  A $20,000 car loan will typically add over $3,500 to the final cost.  Either learn to control your charge accounts or get rid of them!  Far too many people have gotten into trouble when they began charging things.  Don't be one who fails to understand the cost of either borrowing money or charging things on credit!  Multiple cards lead to overspending!

First, record all expendable income.  If some figures vary, either average the amount out or use a figure that can be trusted.  Secondly, list your primary expenses, the ones which you can count on having to pay on a regular basis.  Then add those expenses which are not regular.  Most people add far too little in this area because they haven't tracked their money in the past.  It's really important to be honest and thorough otherwise your expenses will be innacurate.  Thirdly, add in money for savings, retirement, and for emergencies.  This is also critical.  If you have debt, determine an additional amount in this category to pay above the minimum amounts.  Subtract the expenses from your income.  If your expenses are more than your income, you must adjust those expenses which you can control.  If there is additional income, raise the amount of money listed to pay down debts or raise the savings or emergency funds.

To have a strong financial standing, you MUST live beneath your expenses.  Secondly, you MUST follow your financial plan.  The primary reason for financial failure is that people don't control their spending and they don't follow their budget plan. 

1. financial insecurity

2. mistrust

3. one or both partners secretly spending money

4. control issues arising

5. erupting anger and blame

6. hampers your ability to make good decisions in other areas

7. costs much more than practicing sound money management

Control your budget, don't let your budget run your life.  The primary issue is that of self control and wise spending habits.  A plan is easy to make, it's the follow through which is hard to accomplish!