The American population is apparently made up of only two kinds of people...savers and spenders. They marry each other. Disagreements over money and debt management are one of the leading causes of divorce in this country.
A family can't exist as a dictatorship, but financial management by committee won't work, either. There needs to be a consensus about how money is spent, but there needs to be one person in charge of seeing to it that the bills are paid and that debts are under control.
In earlier times, that person was always the head of the household...in most cases, a man. Times have changed, and women now contribute financially to a household -- sometimes they contribute less money, and sometimes they contribute more. Both parties need to understand
and agree to the debt management policy (think budget) that both will live by.
The traditional family (father, mother, and two and one-third children) is almost obsolete. Families come in many varieties today, but they all still have common finances. Financial decisions, financial goals, and debt management all need to be discussed by all who contribute to the household finances, and each needs to have an equal opportunity for input. But a plan does need to be made! And once the plan is made, there needs to be one person in charge of seeing that it is carried out.
Here are the guidelines that should be used:
1. Each contributor to the household should have a portion of their salary deducted for savings for the common good.
2. The budget should set limits even for the necessities of food, shelter, utilities, transportation and clothing. The limits should be reasonable - not too little, but not extravagant, either.
3. Secured debt payments need to be made first.....mortgage, car payment, household appliance payment, etc.
4. Credit card debt should be paid off at the beginning or the end of each payment cycle to avoid interest.
5. "Impulse buying and instant gratification" should be eliminated as options for spending disposable income.
Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:
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