Paper Example on Financial Management in Couple

Introduction

Financial management and control in every marriage is a significant source of conflicts and has led to many divorces. Financial freedom in marriages is curtailed by shared accounts and bills that the couples have to meet. Due to conflicts on how to spend, save and who to pay which bills in a marriage makes financial counselling necessary for couples to promote harmony and wealth creation. Besides, financial secrets create unending conflicts which have turned marriages into chaos and hatred. Financial infidelity amongst couples leads to mistrust as well as high spending without a plan which increases debts that makes it difficult for couples to save. Ramsey (2018) provides a viable approach through which couples can achieve financial literacy to enable them to change their financial habits. This paper will create an action plan for Jack and Susan using Ramsey (2018) principles to enable them to manage their personal finances as a couple.

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Concepts for Jack and Susan to Achieve Financial Fitness

Understanding your Finances and Setting Goals

Ramsey, (2018) argues that the major problem that faces many people is denial and fitting into the society. As such, people lose their identity and direction by doing what other people are doing which results in frustration and debt. Financial freedom begins by realizing one's self and establishing boundaries in decision making. Understanding the current and the future needs as a family helps a young family to set goals and to pursue them vigorously. Most people according to Ramsey (2018) fail to start working towards financial planning because they do not want to start small. Therefore, it is important for a couple to take the initiative towards financial freedom by starting early to plan their future with the little they have. Ramsey (2018) remarks that one should assess their finances and live below their means which indicates the need for financial and pleasure sacrifices aspects that many couples are not willing to take.

Willingness to Make Sacrifices and Initiative

Financial decisions are not easy, and Jack and Susan should be ready to take the initiative and the pain of the ensuing decisions. Ramsey (2018) notes in the baby steps concept that financial peace begins by being able to take control of one's financial decision and destiny. Most couples who seek financial shortcuts through loans to finance their immediate gratification such as acquiring a home or financing a trip ends up in debts that accumulate interests and become difficult to pay. Therefore, it is important as a couple to make a decision together to sacrifice today for future happiness. Creating an Emergency Fund

Ramsey (2018) maintains that an emergency fund is a primary goal towards financial freedom because it provides security in case of unexpected occurrences. Therefore, couples should plan ahead and guide their finances which adds value to the entire money makeover journey. The emergency fund works towards increasing the confidence of being able to meet the future unexpected occurrences which ensure uninterrupted achievement of other financial goals such as paying off debt or savings. Although credit cards can provide a sense of security, they are highly unsustainable and results in more debt and slavery by financial institutions offering the credit cards. Therefore, instead of acquiring a credit card for security purposes it is advisable for the couples to create an emergency fund.

Paying Off Debt

Another important concept for financial fitness is the ability to prioritize paying off debt. Couples are encouraged to avoid debt and live below their means to be able to lead a better future with financial freedom. Paying off debt requires sacrifice and greater effort due to other competing goals. After creating an emergency fund, it makes it easy to be able to pay off debt which is an important step for a couple to achieve future financial fitness.

Important Concept for Jack and Susan in their Stage of Marriage

Creating a Written Budget

A written budget every month is an excellent approach to help couples to manage their spending and savings. A written budget promotes greater financial discipline that can help couples to change behaviors that led to poor financial decisions. A written budget fosters the creation of goals that make the journey towards financial freedom realizable. Budgeting can be a feasible approach to prevent acquiring debt through credit cards which occurs due to poor financial goals causing insatiable financial needs. Therefore, the budget should be written down and have clear goals also known as zero-based budgeting according to (Ramsey, 2018).

Conclusion

In conclusion, wealth creation and financial fitness is a journey that requires the couples to dedicate themselves towards lean spending, budgeting, creating goals and establishing an emergency fund. The priority of the couples should be to achieve financial freedom depends on the approach, but basically, it is important to do away with debts and to set up an emergency fund that can help the couple to avoid further debt. Besides, it is important for Jack and Susan to be aware of the need for patience and perseverance to be able to achieve financial freedom.

Reference

Ramsey, D. (2018). The Total Money Makeover Workbook: Classic Edition: The Essential Companion for Applying the Book's Principles. Thomas Nelson.