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Chapter 2: Improving Your Relationship with Money
Book I
Taking
Charge
of Your
Finances
together toward a savings goal. After you've seen that you can work together
toward small goals, start working on long-term goals like retirement and the
kids' education.
One way to set up a savings plan is to set aside a small amount of money in
a special account from each paycheck until you've reached your short-term
goal. Keep a big jar on the dresser, where you can empty your pockets and
purse of loose change. It's entirely possible to finance a long weekend at the
ocean with just the change you throw into a jar every day. Seeing a success-
ful example of how easy it can be to reach a savings goal can be just the thing
that many spendthrifts need to give second thought to their impulsive spend-
ing habits.
Finding peaceful solutions to differences
Above all else, it's important to discover the art of diplomacy when you iden-
tify significant financial differences between you and your partner. Money
problems are the root of all sorts of marital discord and strife.
Even when you're in the middle of a major disagreement about finances or
your savings goals, the relationship doesn't have to break down if you con-
tinue to treat each other with kindness and respect. You will never convince
people to change their minds by yelling at them, calling them names, manipu-
lating their emotions, or giving them the silent treatment.
The three checking account system
One way for partners who each have their own
income to deal with differing money habits
is to open three checking accounts: one joint
account (for paying bills) and an individual
account for each person. Note: It's important
to first establish a workable budget before
implementing the three-account system so
each partner knows how much to deposit each
pay period to cover the basics. See later in this
chapter for more on budgeting basics.
When you receive your paychecks, you each
deposit a predetermined amount into the joint
account. The joint account is then used for
paying bills and for short-term savings for
future expenses. The individual accounts are
for the money left after you both pay for the
basic essentials. If one partner wants to fritter
his money away on designer coffees and video
rentals, fine. The other person can be happily
saving for that nice vacation she's been dream-
ing of for years -- whether she chooses to take
the spendthrift spouse with her on vacation
may be another story, though.
