The impacts of how inflation affects a common man are as discussed below-

Damages the common man disproportionately

Common man with lower salaries typically spends a higher percentage of their total income on needs than those with higher incomes, leaving them with less safety net against the erosion of purchasing power brought on by inflation. It is what economists mean when they say that a higher marginal propensity to consume is with lower incomes.

Policymakers and players in the financial markets frequently concentrate on “core” inflation, which excludes food and energy costs because they are more volatile and hence less representative of the longer-term inflation trend. However, lower-income wage earners in industrialized economies and people in emerging economies spend a disproportionately high amount of their weekly or monthly household budgets on food and energy, which are difficult to substitute or forgo as prices rise. Additionally, the common man is less likely to hold assets like real estate, as it is a hedge against inflation.

Instead, recipients of Social Security benefits and other government transfer payments get cost-of-living adjustments based on an index of consumer prices for hourly wage earners and clerical workers, which protects them from inflation.

Effects of inflation on a common man? Prevents deflation:

To fulfill its goals for stable prices and maximum employment, the Federal Reserve aspires for inflation of 2% over the long term. Instead of aiming for constant prices, it aims for modest inflation since this helps the economy function, gives room for error if inflation is overestimated, and prevents deflation, which can be far more destabilizing than equivalent inflation.

Lenders can charge interest during times of inflation to counteract the likelihood of a devaluation. By enabling borrowers, primarily regular people, to make future repayments using inflated money, inflation also aids in the repayment of debt. In contrast, deflation increases the cost of debt repayment because borrowers’ income would presumably decrease along with prices. Deflation deviates from the usual, so it’s also more likely to inspire predictions of deflation, leading to further losses in spending and income and a widespread loan default that might spark a banking crisis.

Because wages are sticky to the downside, mild inflation rather than deflation is more common. Layoffs are the most likely option for businesses facing a decline in demand because workers typically oppose attempts to reduce their pay during an economic slump.

A wage freeze will result in a decrease in actual labor costs if inflation is positive. Since inflation can also spiral out of control if it is high enough, it loses some of its benefits as a defense against deflation if it exceeds the usual and anticipated rate. It will have an increasing impact on the life of the average person.

When high, inflation consumes itself affecting the common man

A small amount of inflation is a strong economy and is unlikely to raise inflation expectations. Even 2% inflation is virtually unnoticeable if it was 2% last year and is 2% this year. In that scenario, businesses, employees, and consumers would probably anticipate that inflation will stay at 2% in 2019.

However, expectations of future inflation will eventually rise in line with the inflation rate when it suddenly accelerates and remains high. A wage-price spiral for the average person is triggered as expectations rise and workers start demanding higher wage increases, which companies then pass on by boosting production prices.

How inflation affects the common man? Interest rates are raised:

Governments and central banks have a strong motive to control inflation, as the examples indicate. The strategy has been to use monetary policy to control inflation. Policymakers can increase the minimum interest rate when inflation threatens to surpass a central bank’s target (usually 2% in industrialized economies and 3% to 4% in emerging ones), which raises borrowing costs throughout the economy by limiting the availability of money.

As a result, inflation and interest rates frequently follow one another. Central banks can tame the economy’s animal spirits or risk appetite as well as the price pressures experienced by the average person by increasing interest rates when inflation increases.

Lowers the cost of debt service for the common man

While those with fixed-rate mortgages and other loans benefit from repaying these with inflated money, which lowers their debt service costs after adjusting for inflation, while new borrowers, who are typically members of the public, are likely to face higher interest rates when inflation rises.

Consider borrowing $1,000 at a 5% yearly interest rate. The annual decrease in your inflation-adjusted loan balance will outweigh your interest charges if annual inflation rises to 10% in the future. This does not apply to adjustable-rate mortgages, credit card debt, or home equity lines of credit, all of which normally permit lenders to raise interest rates in response to inflation and increases in the Federal Reserve’s benchmark rate.

Increases employment and growth in the short term

Short-term economic growth can be accelerated by rising inflation. High inflation makes saving less appealing since it gradually reduces the purchase value of money. Consumer spending and company investment may increase because of that possibility.

As a result, unemployment frequently initially drops as inflation increases. Higher inflation can, at least temporarily, increase demand while bringing down inflation-adjusted labor costs, resulting in job growth. But eventually, a hard recession that resets expectations will be required to pay the price for chronically high inflation, or else the economy will continue to perform poorly.

Possibly lead to painful recessions affecting the common man

The issue with the trade-off between inflation and unemployment is that if higher inflation is accepted for an extended period to protect jobs, inflation expectations may escalate to the point where they trigger a vicious cycle of price and pay increases.

The Federal Reserve will therefore be obliged to hike interest rates far higher and maintain them high for a longer time to restore its damaged credibility and persuade everyone once more that it would control inflation. In turn, this will result in skyrocketing and persistently high unemployment.

How Inflation Affects Common Man: 7 Common Effects To Know is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Financial Compatibility In Couples

Arguments over money and how to deal with finances are all too common and can cause real harm in a relationship. Sometimes couples who agree on everything can have different views on money. 

We learn how and when to compromise with our partner about where to put the toothbrush and how to make their favorite tea or coffee. Similarly, we should have an early understanding about how to manage finances. Couples who don’t talk about money before marriage put themselves at greater risk of finance-related divorces down the line.

If you want your marriage to have the best start possible, do yourself a favour. Sit down and have the difficult talk-the one about money-with your partner.

When You Marry Your Partner, You Marry Their Finances. 

You may be marrying the love of your life, but money will still be a part of the equation. That’s why it’s so important to know everything about each other’s finances well in advance. From the amount of debt you both have to the types of assets you hold and any inheritances you might expect, don’t leave anything to speculation. Laying all the financial cards on the table should be viewed as an essential part of starting a new life with someone. 

Finanial Trust In Couples

Trust is an essential component of any relationship, and once broken, it may be impossible to put right. Financial disloyalty takes many forms — from undisclosed debt to secret credit cards and overdrawn bank accounts. Any of these could threaten your financial future or that of your partner.

Even if your relationship can survive a financial indiscretion, it could still take years for your family’s finances to recover. And if the situation ends in divorce, it could leave both parties worse off than they would have been otherwise.

If you want to maintain a relationship built on trust, you have to be honest with each other about your financial challenges and learn how to tackle them together.

Take A Step

We need to talk a lot about money. But it’s such a taboo topic that it can be daunting to get started.  In a perfect world, conversations about money and finances wouldn’t be so uncomfortable. But in the real world, financial discussions can be a considerable source of conflict, especially in a new relationship. It’s perfectly fine if you don’t want to talk about money on a first date. But as a relationship gets more serious, discussions about money, debt and interest payments become more important.

If you and your partner learn how to talk about finances now, those discussions will be a lot easier by the time you’re planning a wedding. And it’ll put you both on the right track to have a more successful future together.

Why Couples Should Discuss Finances is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

As per www.oberlo.in an American spends about $5000 per month on an average. Considering that and the fact that we love spending in cash (About 30% on an average), it is safe to assume that we spend $1500 a month in cash.

That would account for almost $50 cash payments every day. So, no matter if you go to Starbucks for your morning coffee or pay the local newspaper vendor in cash, you end up having $5 in cash bills every day in your pocket.

So, every day, when you come back home just put that $5 Bill aside in a box.

Now with this simple illustration, I find that you can save up to $600 annually.

$600 saving is enough to buy an I-Phone, at least I would like to buy one.

Sounds Easy? Doesn’t it?

$5 Challenge and I-phones is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

When it comes to when to sell, most people would likely assume summer, spring, or early fall would fall into the category of “best seasons” because the weather during these months is generally nicer. However, there isn’t an all encompassing “right” answer. In fact, the best season to sell your home will depend on your selling goals as well as the area in which your house is. Here are some tips on deciding the best time of year to sell. 

What are your goals? 

When it comes to selling a home, people tend to have different goals. While some homeowners just want to sell their home and move on as quickly as possible, others are more focused on how much money they can earn when all is said and done. 

You want to sell quickly

If you’re in the group who wants to sell quickly, the best season to sell can vary depending on a few factors. First off, do you live in an area with harsh winters, like the midwest, or are you located in a more temperate environment? Those located in an area with winter might be able to reap the advantage of having lower competition since less people are likely to sell during this time. Note that it’s important to take a look at some of the statistics that depict winter sales in your city or town before making any assumptions. Talk to your real estate agent about their experience selling in the winter. 

You want to sell for more money

If you’re in the other boat of wanting to sell for the most money, then you have time on your side. Talk to your real estate agent, assess what time of year houses sell for the highest amount in, and make a plan. If this time is the spring, search some spring home selling tips to help your listing stand out. Selling in winter? Use the holidays to your advantage or try to find ways to help brighten your home during an otherwise gloomy few months. 

Where do you live?

Like we mentioned earlier, every region, state, city, and town has their own ideal times to sell. Take advantage of these months to either sell for more money or sell quickly. Take a look at how real estate in your area fared during previous years and apply that to your own sale. For example, if you want to sell quickly, look at the months with homes that sold in the lowest amount of time. If you’re already planning on selling during that time, great! If not, talk to your real estate agent about ways to safeguard against your home spending too much time on the market after you list it. 

At the end of the day, the best season to sell your house depends on your personal preferences, your goals, and where you live. All seasons have their own benefits, and taking advantage of what each month has to offer will guarantee you success when all is said and done. Preparing your house for sale based on what has worked for other sellers in your area is a smart move. 

The bottom line

If you found this post helpful and want to learn more about ways to save money and to grow your financial wellness? When Life Gives You Lemons, Add Vodka is your go to source for advice to get you through the day-to-day successfully.

Which Season Should You Sell Your Home? is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Money is at the heart of almost everything we do. It is essential to the way we live our lives and do transactions. Someone with money is more likely to have a better life than someone who has no money. That is why it is important to understand the way money works so you can have the best results for yourself and your family. Everything you want in life except time can be had with money. That is why it is important to understand the intrinsic value of money as well as how to earn it and keep it. Most people end up getting into a lot of debt which keeps them trapped in a vicious cycle where they don’t have enough money for basic necessities and end up depending on others to survive.

The stock market is a great way to understand money and how to earn it. Looking for stocks can help you build a great portfolio which brings in more money. Asking questions and knowing information like the best cannabis stocks will help you get the results you want with investing and money. One way in which money comes to you is by understanding how you can grow that money through wise decisions. The methodology for doing this can be complicated depending on who you ask.

Saving Money

There is a very big difference between saving and investing. Saving money usually involves putting it in the bank where it is easy to access and the returns are little to none. The major benefit of saving money is you can have it at a later date and you will be sure that it is there. Money that is saved in the bank is safe from almost everyone. It is very rare that a bank will fail, and even then your deposits are insured by the FDIC. This means that no matter how bad your bank does, you can be confident that you will have your money in the long term. This is something that hurts you, however. It hurts you because the money that is saved in the bank grows at a measly interest rate.

The interest rate you earn in the bank is often not even enough to grow with the rate of inflation. That means the more money you have sitting in the bank, the less it will be worth in the future. It is often better to put your money in more risky investments than it is to keep your money saved in the bank. However, saving money gives people the peace of mind they need to know that they have money in a rainy day. Understanding that your money is sitting there and doing nothing is essential when it comes to saving. There are other forms of savings, but they are not as liquid as the bank. You can get your money from the bank by simply going to a branch and using the ATM. You can even use your debit card to make purchases and the money comes from your account.

Building Wealth

Wealth building is different compared to saving money. The objective of saving money is to keep what you already have. When it comes to building wealth, you are using your money to make more money. This is risky, but the payoff is often greater than the downside. Making money consistently allows you to not have to work to make money. You can focus on putting your money in places where it will grow consistently to achieve a better outcome. This is one of the most important parts of wealth building.

Managing Your Finances Correctly

Both saving and investing are important. These two help you have a strategy for long-term success. When it comes to making money to investing, you can be confident that it will continue to grow for you. Saving means security and having money on hand in case you run into any trouble. Investing means growing your money so you can live free and independent. The dream for most people is to have money coming in when they are not working. Making wise investments make this possible and help guarantee freedom. In the end, both of these pieces have to come together to make the puzzle complete. Managing finances involves both of them working together well.

Building Wealth Versus Saving Money is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Instead, confirm that you need the item, and you have funds available. You have to consider the bills and expenses you will have to pay before your next paycheck. So, to assist you, here are tips that you can use to manage your money.

Create a Budget

Creating a budget is viewed by many people as one of the tiresome processes. This is because you have to list down all the income, expenses, add up numbers, and making sure that everything balances. The secret to budgeting is to make sure that you don’t focus on the process of creating it but focus on the value that it will bring in your life.

Use the Budget

It would help if you stuck to your budget; otherwise, it is useless to make it and not use it. Develop a habit of referring to it throughout the month to help and guide you on your spending decisions. Keep updating the budget once you pay the bill and spend on other expenses. Ensure that you have an idea of how much money you spend in a month, including any bills that you are left to pay.

Use Credit Card

 A credit card is an essential tool when it comes to money management. You can use it when you don’t have some cash with you and, in the process, build your credit history. Credit history can come in handy in the future when you want to make a huge purchase. You can visit sites such as novacredit.com to learn more. But you should not use your credit cards to purchase items that you cannot afford or items that you don’t need them. 

Track Your Spending

Having small purchases here and there add up quickly, and before you realize it, you will have overspent your budget. Tracking your expenses can help you to discover places where you may be spending unknowingly. It is essential to keep all your receipts and categorize them for you to identify the areas where you have a challenge in keeping your spending in check.

Search for Best Prices

For proper money management, you should make a comparison of the prices. This way, you will ensure that you pay the lowest prices for products and services. Check out for any discounts and cheaper alternatives that you can get when purchasing your items. In the process, you can save some cash and spend on other expenses.

Save Money

Contributing to a savings account every month can help you build a healthy financial habit. If it is difficult for you to deposit money in your savings account, you can set it some amount to be transferred directly from your checking account to a saving account.

The above are the best tips that you can do to manage your money. You can search for sites such as novacredit.com for more tips on money management.

Top 6 Essential Tips That You Can Use To Manage Your Money In 2020 is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Have You Ever Felt Like You Do Not Have Enough Money?

Although working is part of the answer, it’s vital to know how to keep the money earned. The more attention you put in your personal finance, the closer you will be to the amount you need.

There is no right answer when you are unaware of your economy. Without basic financial literacy, you’d be wasting the potential of your current tools for business. Better than saving money is making it work for you. But you should understand your condition before investing the first time.

Personal Finance: Can You Make Money By Tracking It?

The wealthiest people have developed a brilliant habit. They register all the profits and expenses without filters. Although it may sound too simple, that’s where personal finance starts. Do numbers make sense? As professionals, our perception can stop us from thinking clearly. Investors know how the masses are optimistic in general about the economy. We think we have more than we earned and spend less than we think.

Finance is not limited to profits and expenses. Other values that come into play include past performance, taxes, or unexpected events. You won’t ever create the perfect financial plan, but you will save more by doing so.

Recordkeeping

All financial strategies require you to use 100 percent accurate data. Track your expenses, calculate profits, let margins of error, expect unexpected losses, and prepare accordingly. Assuming you do it perfectly, unexpected losses will be the factor to watch. Luckily, many tactics help you prevent these seemingly random events.

Tax calculations will keep information factual. Keep into account everything, including the current mileage rate. Exact data helps us make projections. Once you do it enough times, you will do it automatically. Before making financial decisions, your mind already uses this data. It’s a powerful habit to condition people to make more money.

How to Design Your Financial Plan the Smart Way

As a habit, personal finance enables us to look at our economy objectively. The more you know, the more you can anticipate. However, people have difficulties setting timelines. Have you wondered why projects don’t meet their deadlines? We ignored uncertainty.

The next time you estimate, increase it by 50 percent. Set the real target 50 percent higher or lower than what you thought was reasonable. This buffer effect will give you enough margin to react when an event surprises you.

Billionaires do this all the time. They create an artificial safety net to be prepared. They’d be frightened if a small error could ruin the firm. That’s why emergency barriers exist.

Wrapping Up

Wealth is not an event. It’s the result of the decisions you make every minute. When you become aware of money, you enable yourself to earn more. Remember to look at personal finance as a solution. Most people don’t want to talk about it because it scares them. The worse your situation is, the more attention you should pay to it. Problems grow when we ignore them.

For others, finance is not important until your income grows enough. It couldn’t be further from the truth. If people cannot follow simple habits today, they will not have career success. Wealthy people don’t suddenly become disciplined with their money.

Another habit, budget setting, can help you organize better. When you categorize your earnings by function, you understand it better. Adapt it to your needs. You can save it for emergency funds, retirement, investments, education, living expenses, or business. By creating budgets, you train your brain to think long term and produce wealth.

Now, this habit reduces your current money to create a better future. Shouldn’t you use as much money as you wish? There are exceptions to everything. If you find an excellent deal, you should take it. In general, we want to keep our money untouchable.

We naturally want to spend the money we earned, and that’s fine. You can invest it somewhere so that you cannot get it out until it grows. You should spend your money when the return is high.

How To Be More Aware of Personal Finance is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Before moving to the desert for my first job as a reporter after graduating from college, I never lived with full-time air conditioning, such as from ActronAir. I didn’t need it. I lived in a temperate climate in the San Francisco Bay Area my entire life, and the homes I lived in didn’t have central air and didn’t need it. A quiet fan or wall air conditioner that was about as loud as a truck and only cooled one room was good enough in the summer.

Other than my stint in the desert, I’ve since lived in the Bay Area my entire life. While jobs and housing prices have forced me to move inland where it’s hotter in the summer than it is by the bay, I thought I could live with only a wall AC unit.

Those 11 months in the desert, however, changed my mind.

A swamp cooler blowing dust

Living in 100-degree days in the dry desert heat will change how you think about a lot of things. Among them are the need to stay hydrated and constantly drink water, the downsides of only being able to afford a rental that has a swamp cooler, and how one day when you can afford it, you vow that you’ll never live in such hot conditions again and will spend every penny you have to have a home completely cooled by central air conditioning.

As a poor newspaper reporter, I could barely afford to rent a small home where the yard was dirt and gravel and the only cooling the home had was a swamp cooler. If you don’t know what a swamp cooler is, consider yourself lucky.

It’s a big metal box on the roof that spins a cylinder inside to blow cool air into a home. Where does the cool air come from on a hot day? From water that runs over the fan. The water isn’t cooled, so it doesn’t blow in much cool air, as advertised.

What it does blow in is dust, which is usually hot and well, dust. It’s not fun.

Sweating my fingertips off

After living in high heat for about nine months, I discovered that I woke up so thirsty in the middle of the night that I had to keep getting up and going to the fridge to get a cold drink of water. Eventually I shortened the trip by putting a cooler of Gatorade next to my bed and drinking from that.

No matter how much I drank during the day, I was still getting dehydrated. How much? Enough that the skin on the tips of my fingers started peeling away from sweating and drying out so much.

I went to a doctor and his advice was simple — leave town. I could take a salt pill to help solve the missing fingertips, he suggested, but essentially the best solution was to move to a cooler climate.

Movin’ on up with air conditioning

So I found a new job and moved back to the Bay Area. While it was cooler, the summers in Tracy, Fairfield, Walnut Creek and Concord — where I moved on to new jobs as a journalist who still couldn’t afford more than an apartment with a wall air conditioning unit — were still plenty hot.

The wall AC units tended to cool the room they were in and not much more. They practically turned the room into a freezer, which is better than blazing hot, but the coolness didn’t get to the back bedroom.

My vow to get central air conditioning wasn’t fulfilled yet. That would require moving to a better apartment or buying a home with central air. I’d done enough renting for a lifetime, so it seemed like it was the right time to buy a house. And only a house with central air conditioning.

That was my main requirement when my wife and I started searching for homes to buy. We found a condo and since it had central air, I agreed that it was a great place and worth the cost.

A year later we outgrew the condo and looked for a house in an older neighborhood. The small homes were built in the 1950s and it was hard to find one with central air. But we did, and that was all I needed to convince me it was the perfect home.

How the Desert Quickly Changed My Thinking on Air Conditioning is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Having all of your family’s money in one bank account can make keeping track of your money easier, but it might not help your family meet its financial goals. While it might not sound right at first, having a few banks accounts can make your family’s financial life easier.

Instead of one big fund for everything — such as a checking account — you might be better equipped to meet several small financial goals with multiple bank accounts. If you’re smart about them, you might also save on fees and make more money off of your money.

Here are five bank accounts every family should have:

Start 5 bank accounts with regular savings

This is an account to hold money in and only use when needed. You can attach a goal to it, such as saving for a down payment on a house or a family vacation, or it can just sit around for life’s unexpected expenses.

Try to save up three months of living expenses in this fund in case of a short-term emergency.

Emergency savings

This account should be used as a last resort and is for big emergencies, such as losing a job and having enough money set aside for six to 12 months of living expenses.

Joint checking account

This is used to pay your regular bills and other family expenses, though not medical bills, which we’ll get to soon.

It’s an account you probably already have and is where most of your income should go first before it’s used to pay bills or move to other accounts. This account should at least cover your monthly expenses.

Spousal checking accounts

Each spouse should have their own checking account so they can buy something however they see fit. The amount shouldn’t be a secret from the other spouse, and it can be used as “fun money.”

If everything else in your budget has been paid for, then money in this account is each person’s spot to use as they’d like to.

Health Savings Account

Also called an HSA, this is a tax-free account to hold money for medical expenses, from prescriptions to hospital stays. There are some rules to understand before using an HSA, so ask your Human Resources department at work or search online for details.

If you’re spending a few thousand dollars a year on your family’s medical costs, then a tax-free HSA can make it less expensive.

How much money you put into these bank accounts is up to you, but do yourself a favor and make it easy by using direct deposit so that a specified amount of money is automatically deposited into each account each month.

5 Bank Accounts Every Family Should Have is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Marriage is a big deal. Even though movies and pop culture make it seem as if you can just get married and not worry about anything bad ever happening, the truth is that around

And did you know that one of the most common reasons for divorce is finances? So instead of getting married and divorced over your financial situation (or beliefs), here’s why you need to talk about your finances before getting married.

Shows Your Money Personalities

You’ve probably heard about the spenders and savers, but there are also other money personalities. There are people who are in between a spender and a saver, who like to save money but don’t mind splurging on the things that they love and care about. There are people that are on the extreme spectrum of being a saver, and they will hoard massive amounts of money in fear. There’s even the type of people that you would consider “minimalists” in which they spend what they need to survive, and donate the rest.

While none of these personalities are necessarily bad, they can clash if they are met with someone with a completely opposite personality. If you’re a saver but your future spouse is an extreme spender, you may run into a lot of financial fights later on down the road.

When you talk about your finances before getting married, you are able to see each other’s money personality and figure out if you mesh well together.

Helps You Realize Strengths & Weaknesses

Do you find yourself scared to spend money in fear that you’ll need it one day? Does your significant other budget really well? Talking about your finances before getting married is a helps you realize both of your strengths and weaknesses.

Everyone has their strengths and weaknesses. But it’s important for you and your partner to know about each other’s and be able to work through it all together.

Avoid Awkward Conversations Later

What would you do if you got married before you realized your partner had $100,000 in student loans? What would you do if they didn’t plan on paying them off? For some people, this may not be a problem, but for others, this could be a huge deal. You may feel left out, or feel like your partner lied. You’ll wonder if these loans will put a damper on your savings or retirement. You might just be plain mad about it.

When you talk about your finances before getting married, you’re saving yourself the time and awkwardness of finding out the “secrets” that your partner may be keeping from you.

Allows You To Get On The Same Page

If you talk about your finances before getting married, you’re getting everything out in the open. This allows you and your partner the opportunity to get on the same page. Some couples like to combine finances, some don’t, and neither are wrong. But when you and your significant other can come to an agreement and know what is expected of you both, you’re able to go into marriage a lot more confident in your finances.

Keeps You From Taking Things Too Far

You should never base the happiness of your relationship on money alone. However, If you’ve talked about your finances with your partner and realize that you two aren’t compatible with each other, you can take that chance to end your relationship before getting too serious. No one wants to be left in a house they can’t afford. No one wants their credit score to drop and have debt up to their eyeballs because of a divorce.

When you talk about your finances before getting married, you’re giving each other the opportunity to walk away NOW. Before things get too serious and finances become intertwined.

It’s important to talk about your finances before getting married. It can save a lot of hassle and keep you from fighting over menial finance problems in the future. Talking about money doesn’t have to be hard. In fact, it should be one of the most important things to talk about before tying the knot.

Why You Need To Talk About Your Finances Before Getting Married is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.