Our Decision To Join Our Finances

When Lauren and I got engaged last year, we had an important decision to make: did we want to combine finances or keep them separate?

We are on the same page financially, we have similar goals, and are equally frugal. We buy what we want but also have things we want to save for in the future.

There are couples who keep their finances separate and there are others that combine their finances. It can work either way, so every couple needs to find out what works for them.

Advantages of Keeping Our Finances Separate

Since we have the same goals, why combine finances? Lauren doesn’t need me looking at each of her purchases and questioning the little things. We’re focused on the big picture, so why worry about individual transactions? She should be able to spend money guilt-free without me looking over her shoulder.

As we began to talk through it, we realized one thing: we didn’t want to have an allowance.

Since I am working full time and Lauren is in school full time, keeping our finances separate meant that I would be transferring money from my account to hers. We thought that would have the potential to create a rift where I would want to reduce the amount she gets each month. This was definitely something that wouldn’t work for us.

So, we thought about joining our finances and what that would mean for us.

Advantages of Combining Our Finances

We’re about to get married, and we love thinking about how everything will be shared. “Ours” is our new favorite word. We’ll be able to consolidate accounts, which I like. Lauren won’t feel like I control how much she spends.

Lauren has some student loan debt, and by combining finances, we can pay down the debt together. With separate finances, Lauren would be responsible for her student loan debt. It would cost us a lot of money if we had to wait until she finished school to stay paying off her loans.

However, when we combine our money, she’ll have my help paying down “our” loans. This is especially true since she has some loans at a high interest rate that I would love to pay off in the near future. Now, we’ll be able to tackle them together.

Both emotionally and financially, it makes sense for us to combine our finances.

Readers, do you have separate or joint finances with your spouse? What do you think of our decision?

Secure Your Future by Developing Multiple Streams of Income

If you are like most people, you work hard at your day job. Maybe you used to make what you considered a good salary, but now, with the economy, your income seems to be dwindling. Perhaps you haven’t gotten a raise in several years, or if you have gotten a raise, you simultaneously face an increase in health insurance premiums, negating your raise. Then, there are the increased gas and groceries prices which are costing more of your paycheck. To make matters worse, your employer may ask you to work more hours than ever before and also assume other work that wasn’t previously part of your job.

Sound familiar?

In this kind of environment, you may think it is wise to develop alternative streams of income, and I couldn’t agree more. The more income streams you create, the more money you are able to generate and the more secure your finances become. If you lose one source of income, there are several other streams of income from which you can draw.

The Internet has made it much easier for people to develop additional income streams. There are so many ideas you could choose from. You could choose to blog, become a freelance writer, be a virtual assistant, or create an online store.

Of those choices, the one that is the most passive is an online store. Decide what you want to sell, find your product, set up the website, chose a secure method to offer for payment (there are many merchant account processing businesses to choose from), and launch your store.

Of course, it is not as easy as that. You will need to market your business and advertise, and you will also need to handle customer orders and complaints as well as keep inventory. However, you can make your online store more passive by selling your own ebooks, for example. Then, you don’t have to worry about keeping up with inventory. Sure, you invest your time in the beginning when you write and produce the ebooks, but once you have marketed them, you can find that you sell copies and make money while you sleep!

The current economy has made it difficult for many people to get ahead. Now is the time to take steps to change that. Decide what is the best way for you to create multiple streams of income. You will feel much more secure knowing that you are not solely relying on your employer and his decision to give you a raise or not; you have also created your own income sources.

Wedding Gift Etiquette – Buy A Gift or Write A Check?

“So what do you want for a wedding gift?”

With just weeks to go before my wedding, I’ve been asked that simple question more times than I can count. When people pose it, they’re looking for a simple answer. “Please buy me four Egyptian cotton towels in mushroom from Bed, Bath, and Beyond,” they’d like me to tell them. Or, “We really like the copper pots from Williams-Sonoma,” they want me to say.

But I don’t say that.

First of all, if they really wanted to know, they shouldn’t be asking me in the first place. They should ask my fiancée instead. She would have the perfect answer. She’d be able to tell them exactly what we (read: she) wants, exactly where to find it, and exactly how much it costs. I usually reply with a generic, “Oh, I’m sure we’ll love whatever you get! We’re just thrilled you’ll be there to celebrate with us.” Why? Because wedding gift etiquette makes me cringe. The gifts aren’t the reason we’re getting married, so asking what I want makes me uncomfortable.

How Much Should I Spend On A Wedding Gift?

This is my main apprehension to doling out any truly useful wedding gift advice. I don’t know how much my fiancée’s friends from college can afford to spend, and it’s downright tacky to ask. In many cases, our friends are young(ish) professionals, just finding their professional footing. I’d hate to tell them that a $60 waffle iron was what we were eyeing, only to find out later that the money spent on the gift severely stretched their budget. In other cases, I have a general idea of what someone can afford – say, family members like aunts, uncles, or cousins. I know my cousin, a lawyer, is doing well in his career, but that doesn’t mean I should take advantage of it.

The answer to the question, “How much should I spend on a wedding gift?” is inherently personal – and, inherently intangible. A 2009 article from CBS News broke down suggested wedding gift expenses this way:

Co-worker and/or distant family friend or relative: $50-$75 Relative or friend: $75-100 Close relative or close friend: $100-$150

That’s the average, though. According to proper wedding gift etiquette, the scale of the affair is not supposed to factor into the gift-giving decision. That is to say, if one of your co-workers has a five-course, sit-down dinner at a country club while another has a buffet reception at the local VFW hall, but you’re equally close with each, it shouldn’t affect what you buy (ie, you don’t have to “pay for your plate”). However, the cost of living is far higher in Washington, DC, than it is in Roanoke, Virginia – meaning the same $75 gift may look thrifty in the Capitol and simultaneously luxurious three hours to the south.

Buy A Gift

Another question I’m getting a lot these days has to do with exactly what type of gift my fiancée and I want to receive. Namely, do we want a physical gift or just money?

The easiest answer is to simply point guests to the wedding registry. After all, that’s what it’s there for. Months ago, we spent a painful (don’t tell my fiancée I said that) afternoon using one of those barcode-scanner-things to load up our registry. Now, while I can’t say I paid all that much attention to what my fiancée actually scanned, I can tell you – with certainty – that there’s a lot on that registry. Some of the items were cheap; things like placemats and hand towels and napkin rings were less than $5 each. Other items, like our bedding set and cutlery, were far pricier. Some of my friends who have gotten married have even registered for furniture or their honeymoon, allowing guests to donate an amount they’re comfortable with to the newlyweds.

That’s what makes registries so ideal. They’re kind of like a matchmaker, a gift middle-man, ensuring that the bride and groom get exactly what they want while giving the guest the opportunity to select the ultimate price tag without broaching wedding gift etiquette.

Write A Check

The fact is, the decision to buy a gift isn’t for everyone. For one, guests traveling from out of town may be encumbered by a bulky gift. For others, like a cousin with a new baby, it’s just another thing to add to an already busy to-do list. And – don’t tell this to my fiancée – but I realize that other than to me and her, this isn’t the biggest day in world.

That’s where giving money as a gift comes in to play. A friend of mine let it be known through word of mouth that she and her husband-to-be wanted cash for a wedding present. When it was all said and done, their extensive guest list of more than 200 had given them a whopping $15,000 in cold, hard cash (and slightly less-cold, less-hard personal checks). A college buddy and his wife intentionally created a small bridal registry, so their wedding guests would have no alternative but to hand over a check.

Some wedding guests don’t like giving money as a gift because it feels impersonal, sterile, antiseptic. Likewise, many engaged couples don’t like asking for money because it’s perceived as tacky, uncouth, and greedy. The bottom line, however, is that for many couples, cash is king. For a couple starting their lives together heavily in debt, it can be far more freeing than a food processor ever could be. For a couple looking to buy a house, the windfall of several thousand dollars in wedding gifts can mean the difference between a loan approval or denial – unless, of course, banks are now accepting bone china as part of an acceptable down payment.

Readers, what are your rules for giving wedding gifts? Do you follow a specific formula?

The Real Cost of Alcohol

There’s nothing inherently wrong with a having a drink or two. In fact, studies have shown that a glass of wine every night can actually be good for your heart, because of the Resveratrol it contains. Dark beer, similarly, has been shown to have good health effects. Beyond just physical benefits, small amounts of alcohol can soothe anxiety and stress.

But let’s get real here: most people do not drink in moderation and it causes far more problems than it does positives. Alcohol, in fact, is responsible for about 4 percent of worldwide deaths, which is more than AIDs, tuberculosis or violence. In the US, alcohol causes 75,000 deaths every year.

It also costs us considerably in the wallet. Many people who simply can’t afford to blow their money on discretionary spending rack up incredible debts because of the lure of alcohol. It becomes a crutch for many people. They get home from work and in order to release the stress of the day they make themselves a drink or two. If it stopped there, it would probably be okay. Unfortunately, many people don’t stop there. Before you know it, some people are spending hundreds of dollars a month on alcohol, stocking their liquor cabinets, refrigerators, and freezers.

These temporary, bill-like expenses are only the start of the cost of alcohol unfortunately. For many drinkers, the cycle of drinking spirals out of control and they end up in out of control debt because of long-term medical costs and, in some cases, affording the cost of a DUI lawyer, which is all too common. In fact, there are well over a million DUI arrests a year in the US. Injuries, court fees, car damage, and license suspensions that result from a DUI can force people into bankruptcy, foreclosure, and untold financial ruin. And it started with just a couple drinks.

Later in life, the damage can return in the form of liver damage, kidney damage, and overall poor health from years of imbibing. More debt can be accrued from medical treatments, prescription drugs, and even therapy.

Does this mean you have to stop drinking? Well, if you have a problem, yes. Alcoholism can ruin your life and your family’s life and leave you in a terrible financial condition. A drink or two each day will not break the bank and will likely not cause medical problems (provided it does not interact with any prescription medication you take), but it’s always important to remember that alcohol is a depressant and is extremely addictive.