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By Jessie Danninger
Everyday I work with couples going through a divorce and I know finances in general, but especially over the holidays, can be a real strain on the marriage. Here are a few financial tips for married couples to prevent finances from putting a strain on the marriage during the holiday season.
1. Sit down with you spouse and evaluate the money you have to spend this holiday season. Couples need to know the family income and cash reserves to avoid overspending or unnecessary penny pinching. Evaluate your expenses and set aside a reasonable amount of funds based on real numbers that compliment the money available. Dont set aside an unrealistic amount that requires you to charge living expenses.
2. Agree on a budget and stick to it. Plan ahead with your spouse about who will be responsible for buying which presents and how much should be spent. Don't forget to budget for holiday decorations, travel, food and drinks. This will help avoid disagreements, as well as surprises, when the bill comes due. Make a pledge that for any purchase over a certain amount of money youll consult with each other about the purchase beforehand.
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3. Choose appropriate times and places to discuss finances with your spouse. A busy shopping mall or an inlaws home are not appropriate places to discuss family finances. Worse, if the discussion turns into an argument you'll have an audience. When you need to discuss finances with your spouse, select a time and place where youre not in a public setting and are able to talk openly.
4. Donate to a charity. Even if its a small amount, holiday charitable giving is always a good way for spouses to pause in the whole spending malaise and be grateful for what they have. And before the New Year is a great time to donate to a charity since you can deduct it from your taxes in April rather than waiting until the following year.
5. Don't feel obligated to buy everyone you know a gift. There are less expensive ways to show people such as acquaintances, coworkers, or your mailman, that you appreciate them. Keep in mind that if these individuals weren't expecting a gift from you, they may now feel obligated to buy you something. And don't let surprise gifts guilt you into buying a reciprocal gift that you hadn't budgeted for. A gift can be accepted graciously without obligating you to another purchase.
6. Don't wait until the last minute. When under time pressure, often people aren't able to shop for the best deal. They're so pleased to have found the right gift in time that they'll pay whatever necessary just to check it off their list. If you wait until the last minute, but want the gift to arrive in time, you may also have to pay higher shipping costs.
7. If youre making charges this year on your credit card, sit down with your spouse and pick out the credit card with the lowest annual percentage rate. You don't want to make purchases on a credit card with a 14 percent annual percentage rate if you have a credit card that offers a lower rate. If you are purchasing large gifts that come with purchase incentives such as six months same as cash, make sure you are financially able to pay off the purchase within the six months as often these offers come with very high interest rates after the promotional period.
8. Try to disassociate shopping with your emotional state. Holidays inspire lots of emotions, not all of them good. You may find that you're depressed during this time of year, you may feel guilty about the effect of marital issues on your children, you may be stressed from spending lots of time with family you don't see often, or you may even feel competitive about gifts you're giving. Don't use spending to address these issues because the relief will be temporary and you'll probably feel worse once the impact of the excess spending hits. Instead find alternative ways to deal with these feelingsget together with a good friend to talk, exercise, meditate or schedule an appointment with a counselor.
9. Establish an inexpensive holiday routine. If money is tight, as it often is during the holiday season, find new ways to celebrate the season (and there are lots of ways) without racking up the credit card. Be creative and innovative and remember the holidays arent about how much money you can spend.
10. If you're from a large family, consider drawing names from a grabbag. If you have a lot of family members, a grabbag can be a great tradition for the holidays, so that everyone doesn't feel obligated to buy a present for everyone elserather you can buy one nice gift for one person.
***********************
Jessie Danninger is a financial analyst with <a href="http://www.rosen.com">Rosen Law Firm</a>. She assist clients in all financial matters relating to divorce, including property distribution, child custody, alimony, and tax related issues. She is a certified divorce financial analyst and CPA.
Everyday I work with couples going through a divorce and I know finances in general, but especially over the holidays, can be a real strain on the marriage. Here are a few financial tips for married couples to prevent finances from putting a strain on the marriage during the holiday season.
1. Sit down with you spouse and evaluate the money you have to spend this holiday season. Couples need to know the family income and cash reserves to avoid overspending or unnecessary penny pinching. Evaluate your expenses and set aside a reasonable amount of funds based on real numbers that compliment the money available. Dont set aside an unrealistic amount that requires you to charge living expenses.
2. Agree on a budget and stick to it. Plan ahead with your spouse about who will be responsible for buying which presents and how much should be spent. Don't forget to budget for holiday decorations, travel, food and drinks. This will help avoid disagreements, as well as surprises, when the bill comes due. Make a pledge that for any purchase over a certain amount of money youll consult with each other about the purchase beforehand.
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3. Choose appropriate times and places to discuss finances with your spouse. A busy shopping mall or an inlaws home are not appropriate places to discuss family finances. Worse, if the discussion turns into an argument you'll have an audience. When you need to discuss finances with your spouse, select a time and place where youre not in a public setting and are able to talk openly.
4. Donate to a charity. Even if its a small amount, holiday charitable giving is always a good way for spouses to pause in the whole spending malaise and be grateful for what they have. And before the New Year is a great time to donate to a charity since you can deduct it from your taxes in April rather than waiting until the following year.
5. Don't feel obligated to buy everyone you know a gift. There are less expensive ways to show people such as acquaintances, coworkers, or your mailman, that you appreciate them. Keep in mind that if these individuals weren't expecting a gift from you, they may now feel obligated to buy you something. And don't let surprise gifts guilt you into buying a reciprocal gift that you hadn't budgeted for. A gift can be accepted graciously without obligating you to another purchase.
6. Don't wait until the last minute. When under time pressure, often people aren't able to shop for the best deal. They're so pleased to have found the right gift in time that they'll pay whatever necessary just to check it off their list. If you wait until the last minute, but want the gift to arrive in time, you may also have to pay higher shipping costs.
7. If youre making charges this year on your credit card, sit down with your spouse and pick out the credit card with the lowest annual percentage rate. You don't want to make purchases on a credit card with a 14 percent annual percentage rate if you have a credit card that offers a lower rate. If you are purchasing large gifts that come with purchase incentives such as six months same as cash, make sure you are financially able to pay off the purchase within the six months as often these offers come with very high interest rates after the promotional period.
8. Try to disassociate shopping with your emotional state. Holidays inspire lots of emotions, not all of them good. You may find that you're depressed during this time of year, you may feel guilty about the effect of marital issues on your children, you may be stressed from spending lots of time with family you don't see often, or you may even feel competitive about gifts you're giving. Don't use spending to address these issues because the relief will be temporary and you'll probably feel worse once the impact of the excess spending hits. Instead find alternative ways to deal with these feelingsget together with a good friend to talk, exercise, meditate or schedule an appointment with a counselor.
9. Establish an inexpensive holiday routine. If money is tight, as it often is during the holiday season, find new ways to celebrate the season (and there are lots of ways) without racking up the credit card. Be creative and innovative and remember the holidays arent about how much money you can spend.
10. If you're from a large family, consider drawing names from a grabbag. If you have a lot of family members, a grabbag can be a great tradition for the holidays, so that everyone doesn't feel obligated to buy a present for everyone elserather you can buy one nice gift for one person.
***********************
Jessie Danninger is a financial analyst with <a href="http://www.rosen.com">Rosen Law Firm</a>. She assist clients in all financial matters relating to divorce, including property distribution, child custody, alimony, and tax related issues. She is a certified divorce financial analyst and CPA.