I thoroughly enjoyed going to the bank as a kid. I loved the free Dum Dums, but I loved seeing my account balance increase after every deposit even more. There it would be in black and white freshly printed in my bank book. I would flip through that pocket sized book the whole car ride home, analyzing such fascinating data! Interest? I get paid for keeping my money here instead of my snail “piggy” bank? Booyah! The same excitement runs through me today when I view OUR account balances online. Luckily, my husband shares this excitement with me, if not a tad more.
Sure, it’s nice that we both have a common interest in finance. But let’s be serious, everyone should have an interest in finance when it comes to your future financial security. Ensuring this security isn’t rocket science. In fact all it really takes is knowledge and honesty about your current spending habits and self discipline in your day to day activities.
Ok, let’s throw some numbers out there to fuel some self discipline! Assuming an interest rate of 12% (well within reason if investing in equity securities), you will have saved one million dollars by the age of 65 if you save the following amounts each month:
Age Monthly Savings
20 $61
25 $109
30 $193
35 $345
Easy peasy you say? If you save more than the above amounts per month, you’ll find yourself swimming in money just like Uncle Scrooge McDuck! Every child of the late eighties secret fantasy!
Well, let’s get started! First things first: You and your spouse need to figure out how much you can actually save each month. The only way you can figure out how much you’re able to save each month is to know how much you spend each month. Early into our marriage, my husband and I went to the extreme and tracked ALL of our expenses for a whole year….I’m talking down to the penny! Every night was finance night in our household and honestly it should be in yours too. Maybe not for a whole year (we’re suckers for statistics) but a good three months of tracking should suffice.
Now that you know how much you spend you can figure out how much you are able to save. Simply add your monthly after tax incomes together and subtract your monthly expenses to figure out the amount you will typically save. Of course, take the average of the three months or however long you decide to collect your data. This will provide you with a more accurate number to use as your basis.
Now that you know how much you save each month it’s time to make some decisions. This is the fun part! Set goals with your spouse and make a plan on how you WILL achieve those goals. Think of what will be on your time horizon 1 year out, 5 years out, 10 years out, etc. Once you’re on a savings schedule you must monitor your progress and analyze what’s working and what’s not. Ask yourself what are we doing well and what can we do better? Adjust any issues and get back on track or a better track for that matter 
We know that money conversations aren’t the sexiest. However, if you want to achieve financial stability and achieve certain goals as a couple they are a definite must! Start your relationship out on the right foot and get talking serious money today.
