Marital Finances
- Admin
- 2018-10-02
A study and poll was conducted on marriages to understand the primary reason for divorces and separations. Finances ranked number one in the poll as against the expected cases of infidelity.
So why is finance the issue? The lack and the abundance of finances is the challenge.
When it is too small it is trouble and when is too much conflict in choices still come up. So if a balance must be achieved then it will be by management. As much as we all love spending money, majority of us never take adequate steps nor give serious attention to financial education.
There is a need to understand finances beyond spending in other to put to it to effective use for the benefit of the family.
What is finance? Finance is the science and act of money management. A science because this need to be studied and an art because of the need of mastery which can only be done personally. Let us take a bicycle for instance you can read about all the different types and operations of the bicycle but you can only ride it when you practice.
Money management is the process of expense tracking, investing, budgeting, banking and evaluating taxes of one’s money. You can only grow your finances according to your financial knowledge so study and practice is key.
Poor financial decisions are the key reasons for the strain and frustration in marriages today. Spouses are trying to outwit each other to the detriment of the family.There is no common financial goal or expectation. Also traditional beliefs are fuelling these poor decisions as it is expected that the man will provide everything but this is fast changing today. Women are pulling their weight financially and most men are feeling threatened. If there is a financial goal the income is seen as the family income and treated as such with no one feeling threatened but contributing to its proper management.
Guides for financial direction
1. Have a financial goal as a family. What do both of you want to achieve as a couple and family? It is a difficult one for a lot of people but this is how to go about it. Where do you want to live, how do you want to live, where will you children school and what standard are you looking at.? When all these are clear you can start gathering facts to know the amount required. You can cost all of them and start working towards them. Ensure that your goals are SMART: Specific, Measurable, Achievable, Relevant and Time bound.
2. Do not panic if the goal is a huge one. There is a fundamental aspect to management which must be learnt. It is consistency. Discipline yourself to work towards the goal. The goal may show that your current job will not meet up and there is need for career change or position oneself for higher career goals. Or even a need for a business investment. Make adjustment accordingly. As for investment learn to start gradually. At times the businesses with good profit margin do not require a lot of capital.
3. Know your income and ensure you do not spend above your means. Living above ones means puts pressure not only on today and also on the future. You need to know what comes in and goes out. Regardless of what happens learn to set something aside (savings). Take stock of your outflows first and understand what you can change. Look at the major expense items and find creative ways to avoid their shocks such as rent and school fees - you can be setting aside an amount monthly such that when such bills are due you can pay without looking for where to borrow from.
4. Be accountable to your spouse. Taking major financial decision without consulting your spouse will eventually put the person under pressure when it does not go as planned. Not being able to afford certain things today does not mean you will never be able to afford it. Do not try to keep up with Jones as it is only keeping up you are doing. The Jones will also keep moving and you will never catch up. Set a standard for yourself and work towards it. Learn to leave other peoples standard alone and face yours.
5. Be responsible with your debts. Get out of debt as quick as you can and avoid it if possible. Leverage on delayed gratification. You miss something now does mean you have missed it for a life time. Learn to save to get it and wait for opportunities that can help you get it.
I will stop here for now as so much needs to be adsorbed and practiced. Remember you get better when you keep riding the bicycle.
By Mr. Joseph Ozaveshe