Never Let Money Be an Issue - Financial Crisis and Your Marriage

No matter how financially ready or thrifty you are, it's impossible not to be affected by the on going financial crisis. Nobody is spared from the tremendous outcome of the financial crisis. You never thought that even the most stable businesses could go bankrupt and lay out some employees. If a member of your family is one of the unfortunate employees who got laid off from their job; then you and your family are heading for a monetary crunch. The domino effect of the financial crisis can be quite devastating. It can totally change your life or even break your marriage apart.

On the other hand, financial crisis can be a stepping stone for you and your marriage's growth and maturity. To be able to survive economic struggle your family should work as a team. Being a team means working together in one direction towards a goal. That goal should be specific and attainable. An example of a specific and attainable goal is to save three hundred dollars in a month for emergency money. In order to attain that goal, you should have realistic plans. A realistic plan is cutting back on gas expenses by car pooling or buying groceries twice a month.

One important matter in order to survive financial crisis is to prioritize. Prioritizing will aid you from over spending your money in unnecessary stuff. To be able to do this, all members of your family should discus and make a "needs and wants list". It is a two column list made up of your needs and wants. The "needs" column should be the things you can't do without like food and toiletries. The "wants" column should be the stuff you can do without like perfume or Louise Vuitton bags. Making this list is all about compromising. Compromising is an essential factor in surviving a financial crisis.

Other vital concerns in surviving financial crisis is to ask for manageable payments of your monetary obligations in the banks or credit card companies. Requesting for a moratorium of your loans will protect you from adverse consequences of loan foreclosures. Another way to survive financial crisis is rising above the problem. Avoid blaming each other or yourself. It's difficult to work together if both of you blame each other for a situation you never wanted to be in. Keep in mind that this is nobody's fault. Believe me, pointing a finger at each other will get you nowhere and will only aggravate your situation.

It is imperative that you not only conserve in monetary funds but also your energy. Brainstorming for the right solution can be exhausting therefore focus your mental and physical energy on practical matters. Deal with the current problem constructively. Losing money doesn't mean you're a lesser person. Learn from your mistakes and focus on self improvement can make you decide better for solutions. Your economic struggle is already a major problem to tackle. The least you need is another health or emotional issue to take care of. For that reason taking care of yourself and each other is of the essence.

Your survival- in all aspect depends on how you view and interpret your predicament. If you always view your adversities as an opportunity for growth; then most likely you and your partner will be able to survive the problem and save your marriage all at the same time.

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5 errors to avoid in a financial crisis

But sometimes what you don't do can be just as critical, says Harvard Law School professor Elizabeth Warren, co-author of "All Your Worth: The Ultimate Lifetime Money Plan."

Here are some of her "don'ts" to keep the situation from getting worse as you right yourself financially:

1. Don't borrow more money. Sounds like a no-brainer, right? But in a money crisis, people tend to do the opposite.
"Some people engage in a shell game with themselves," says Warren.

"They pay more down to creditors than they really can afford, leaving themselves with no cash.

" Then they charge current expenses. "They're caught on a treadmill," she says. If you've hit a financial crisis, stop borrowing.

2. Don't cash out your retirement. "There's a reason that money is protected from your creditors," says Warren.

"It's there to protect you when you will not be able to provide for yourself."
No matter what you've signed, you shouldn't feel any obligation to use it for debts.

"When the creditors made their bargains with you, they never expected to be able to reach your retirement," says Warren. "Don't give it up voluntarily."
3. Don't take out a home equity loan or second mortgage. "It is so tempting," she says.

Here's why it's a bad idea: If you're having trouble meeting the bills, unsecured creditors (such as credit card companies) can't take your home.

But if you borrow against it, the new lender can. And if you later decide to file for bankruptcy, the home is usually protected. Unless you've used it as collateral.
4. Don't file for bankruptcy until the crisis is over. "Filing too soon, that is before the crisis is over and the debt hemorrhage has stopped, can leave the person in worse shape," says Warren.

"Because the problem continues, the debts mount up and now bankruptcy is not available."
For instance, if you got into the situation because you lost your job, wait until you are securely in a new job and have some assurances of stability before you file.

If medical bills are the problem, see if you can wait until the crisis is over and you know you won't be adding new bills to the pile. And if it's a divorce, wait until the papers are signed and you have all your legal bills and know more about your new circumstances.

"Bankruptcy shouldn't be based on the debts you've built up," says Warren. "Bankruptcy should be a strategy to emerge. It isn't about dealing with an immediate problem. It's about making a better future."
5. Don't panic. "You have options," says Warren. But it's really difficult to plan when all you can see are the creditors you have and the dollars you don't.
"People feel very alone when something goes wrong, and they often feel they are the only ones facing a financial crisis," she says. "And they aren't.
"If you tried your best and ended up in a hole, then don't beat yourself up," says Warren.

"And don't assume you're the only one who couldn't figure out how to win 100 per cent of the time in the great financial game. This is temporary. You'll come back."