Most of us have budgets of some kind, and have an idea of where our money
goes every month. However, sometimes budgets just don't work. Why? Because there
is usually more than just one person involved in the family budget and personal
priorities and outlooks on spending money can vary greatly.
Toss in the odd personal lifechange such as job loss, unexpected pregnancy,
illness, or injury, and you can have instant financial chaos. Planning ahead and
looking strategically at spending can reduce the stress around your family
budget.
You probably know couples who have comparable salaries but have
substantially different assets and spending patterns. The difference? If you
want to have financial security, you need to have a plan of action. It should be
updated every time your circumstances change and every time you look at
purchasing a large ticket item.
Knowing where you are going financially and choosing your course of action
will make a big difference in how you can plan for your future and your
retirement. Would you take a trip to a new destination without a map? Would you
just hop in the car and hope that you get there eventually? Think of your
financial plan as a financial road map, with the ups and downs of life's
financial challenges as detours or freeways, depending on what's ahead.
Some planning basics require that you find out what your financial goals
are. Where do you want to be financially next year, five years from now, etc.
List your priorities. What is really important to you? For some, it might be a
nice home, and their priority would be to allocate top dollar to buying an
attractive home in a nice area. For others, cars, recreational property, or
entertainment might be most important There is no right answer, just the right
choice for you.
This is the time to sit down with your partner, and discover your financial
direction and priorities together. You can't do it alone. Unless couples work
together to establish financial priorities, relationships can suffer badly. How
many people have argued about joint chequing accounts, or purchases where both
weren't involved in the spending decision. How about budget sabotage? Sound
familiar?
List your priorities and how much money you will need. Understand your
income, not what you'd like to make or your gross, but your after-tax paycheque.
Look at your assets and debts, how can you work with these creatively? Need
advice? There are many reputable financial planners, debt counselling agencies,
bank officers, who will help you develop your personal lifetime financial plan.
 Article by Marg Spina
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