Marriage, money & the budget...

SCOTTSDALE, Ariz. - "Money problems are the biggest reason for divorce" in our society, said David Robinson, president of Robinson, Tigue, Sponcil and Associates, a registered investment advisory firm. To help newlyweds avoid becoming another divorce statistic, Robinson conducts financial workshops for more than 650 individuals each year at Marriage in the Lord (Pre-Cana) weekends at Casa Retreat Center here.

Robinson's workshops emphasize that newlyweds need to "understand why they have to be good stewards of their finances." That doesn't mean strict budgets are the answer, Robinson believes. Strict budgets cause a lot of arguments, and ultimately couples don't follow them anyway. However, many couples Robinson encounters are educated and have good jobs but are heavily in debt. The workshops tell them how to dig out from under student loans, credit-card debt or car loans and how to set future goals. He encourages newlyweds to adopt the good habits of his older clients who have been married a long time, purchased homes, raised and educated their families, given generously to their churches and communities, and saved for retirement. Here, then, are some principles he would propose: 1. Live below your means. "Couples have to learn to live with contentment," says Robinson. If they're trying to keep up with the neighbors, they're doomed. He adds, "Don't buy a luxury car if you can't afford one or don't pick a big home based on two incomes if your wife plans on staying home when you have a family." 2. Understand the magic of compounding. Newlyweds should begin investing early so their money can grow. Robinson tells couples they don't have to deny themselves little pleasures, but they need to choose perks wisely. For example, having five mocha lattes a week at $3 a pop costs $780 per year. Cutting back and investing that money instead could translate into $43,682 in a 401K in 20 years. 3. Plan a budget with a surplus. If couples have a vision of where they want to be in a year, three years or 20 years, they are more inclined to be self-disciplined. "If you know birthdays are coming up or that your tires are about to wear out, start setting something aside (even just $50 a month) in advance of when you'll need the money," says Robinson. In the first few years of marriage, couples should try to set aside three to six months of expenses in a liquid money-market account for emergencies. Robinson urges that a couple with monthly expenses of $2,000 try to have $12,000 in the bank as a cushion. He says, "Without the cushion, they can get so preoccupied with money that they stop listening to each other. 4. Get rid of debt. It is crucial that couples whittle away at debt as soon as possible. Start with the highest-interest credit card, then do the next and so on. Never send minimum credit-card payments; even an additional $10 a month helps. The goal ultimately is to put everything on one card and pay it off each month. 5. Cash flow is key. After student loans, credit-card bills and similar debts are paid off, there will be enough cash flow for other things, like buying a home. When paying the mortgage, try to send a little more than the minimum payment. Even small extra amounts paid monthly toward principal can substantially cut the years of a loan and the interest paid. According to Robinson, "Newlyweds need to reduce their mortgages earlier in order to have cash flow for other important things like educating their children and preparing for retirement." 6. Couples who give the most have the most. Robinson sees 300 balance sheets a year and notes the positive effect of giving. Priorities are a problem for most people. Some will drive a BMW and take fancy vacations but put only a few dollars in the collection basket, he observes. So he reminds newlyweds, "Seek first the kingdom of God, and the rest will be given to you." - - - Wargocki is a free-lance writer in Tucson, Ariz.

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