MONEY DOES MATTER - RACHEL FERNANDES

Financial problems can rock the boat, when it comes to relationships. Experts gives you some important rules to quash the problem.

What’s yours is mine and what’s mine is yours may have been the mantra couples swore by in the good old days, but in today’s times, where both partners are the keepers of well-paying jobs, money matters, if not sorted out right at the start itself, can become the bone of contention between couples. Here’s a list of important do’s and don’ts that should constitute your financial bible as a couple:

Don’t live beyond your means:

Okay, so the easy availability of credit cards and personal loans has put money at your disposal at all times. But before you head out on that merry shopping extravaganza or a weekend out or even decide to holiday at some exotic destination, both of you must take time out to check the current position of your finances and see whether you are really in a position to spend or you need to save for the future — home, children’s education fund, car, etc. Of course, we are not implying that you don’t indulge in any fun activities, but it would help if you set yourselves a budget for each outing and moreover, stick to it or spend less so that you actually end up saving something.

Tally your income and your expenses:

The tragedy of the situation is that while the income remains fixed, expenses can fluctuate more wildly than even the stock market. While you may hardly spend anything one month, during another, you may end up spending way more than you had intended to. Yes there are expenses, and many of them unavoidable, but don’t allow that to derail your relationship. For starters, both partners need to sit down and create an income and expenses statement. All you need to do is monitor where your money goes every month. Make a note of each and everything you spend on, even something as inconsequential as a taxi ride. Take a good, hard look at this and we’re sure you’ll find a couple of items you may have bought on a whim. Make a conscious effort to amend the situation and take the test again after a couple of months to see whether you’re on track or not.

Limit credit cards:

Unfortunately for many, credit cards are like debt devils in disguise. Yes, they are absolutely handy when you need to make that sudden big expense and don’t have cash in hand or in your account, but if not used judiciously, they can take you down a debt vortex faster than a whirlwind before you even sense that something is amiss. Your best solution is to restrict yourselves to just one credit card and make sure you restrict its use to household expenses and emergencies.

Make a budget:

You both know how much of money comes in at the end of each month and keeping a tab on your expenses tells you how much gets used. Hence, one very important thing you need to do is set yourselves a budget. Now, this is a very crucial step because while budgeting expenses, you can also budget in your savings. Say for example you have set an x amount for monthly expenses and during this particular month, you’ve ended up spending Rs 2000 less than the budgeted amount; don’t splurge this money. Instead put it in a contingency account which you can later use to pay off unexpected debts.

Pay attention to the little expenses:

It’s the little (read daily) expenditures which if tallied at the end of each month, will leave you gaping in surprise. Unfortunately, we tend to buy these items in small amounts and hence, often don’t realize how much we are actually spending on them. One of the best options is to look out for offers where you can get one item free or get a discount on bulk purchases or combo offers. It will go a long way in helping you restrict these necessary expenses.

Explore ways to cut/limit costs:

Yes, there are ways in which you can cut down on your expenses. And though they may seem wasteful to many, you as a couple know how important that one off outing or holiday really is. So while you do indulge, look for ways and means to stay within the confines of your budget. No, we aren’t implying that you need to go for the cheapest option, but instead of a five-star hotel accommodation, opt for three-star hotel and you are sure to save some dough.