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Vaidah Mashangwa
ONE aspect of marriage is that it is also an economic partnership whereby couples or spouses get and spend money together. If this aspect is not well managed then there is bound to be problems. It is therefore important to avoid spending more money than what you and your partner are getting. It is also paramount to invest money for future use.
There are couples who also just spend money haphazardly without budgeting. Holidays are not planned, food and clothing is not budgeted for. In certain instances this results in the accumulation of unnecessary debts. Whether couples have too much money or not every couple or individual has to do budgeting of some sort.
It must be remembered that budgeting is not just mere numbers but that a budget requires value choices about which bills should be paid, which items should be bought for who and what expenditures should be delayed. Budgeting is about prioritising individual items because the money spent on a particular item is always different. Budgeting is even more necessary for couples who are always out of money long before their next pay day or those that keep on incurring new debts or if they cannot save money.
As a matter of fact the advantages of developing and following a budget is that money will be available when a couple needs it. In order to make a budget the couple should add up its monthly income from all sources and then there is a need to list and add up all fixed monthly expenses such as rent, utilities, telephone, electricity bills and car insurance.
Other fixed monthly expenses include health or life insurances, furniture installments, school fees and so on. The day-to-day expenses need consideration as well and of course these are discretionary. These include food, clothes, personal hygiene, recreation and so on.
Besides, it is important to set aside something for savings. According to the book, Choices in Relationships, a minimum of five percent or more of your monthly earnings should be set aside for savings. It is not wise to spend all monthly earnings without budgeting something for future use. Actually the savings should be part of the fixed expenses.
By putting aside a fixed amount in a savings amount each month, a couple will have money available for larger purchases such as a car, home appliances, house and so on. It can also cover emergencies from the extended families, in-laws or emergency travel.
At times it might be difficult like in most cases to do the savings, the bank can transfer a certain sum each month for your checking account to your savings account for emergencies.
If by the end of the month you happen to spend within the budget then you are living within your means. If you have a lot of money left over, you are living below your means. If a couple borrows money or uses part of the savings then the couple is living beyond their means. There is therefore a need to keep accurate records and to follow the budget. It is also important to pay taxes you are entitled to.
Other alternatives of investing money include among others money markets, real estate, stocks and annuity and life insurance.
In addition to risk and return on an investment, the liquidity or the case with which your investment can be converted into cash is important. Stocks can be sold quickly to provide cash in hand.
If you have invested in a building or land then you need to find a buyer before you can convert it to cash. A real estate investment can have a considerable return but may demand a lot of your time.
For couples who are not in business or banking, it might be wise to seek the assistance of a broker. These are usually found in some investment companies and banks.
Apart from savings and investing it is important for couples to be knowledgeable about life insurance. The primary aim of life insurance is to provide an income for dependents when the breadwinner dies. Life insurance policies can be term insurances or insurance plus investment.
Term insurance covers a specific period say five to 20 years and at the end of the time period, the protection stops and the individual gets the cash. The insurance plus investment allows the insured to pay the stated premium as long as the individual lives. When he/she dies, the beneficiary is paid the face value of the policy.
With about 70 percent of women employed now it means that most families are dual earners and hence means more earnings and more savings.
Vaidah Mashangwa is the provincial development officer in the Ministry of Women Affairs, Gender and Community Development, Bulawayo Province. She can be contacted on 0772111592 or email: [email protected].
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