The early warning signs of financial trouble can be as obvious as a lost job, a layoff, or a huge medical bill, or as secretive as an addiction. In either case, you and your partner (if you have a partner) should remain on the lookout for these warning signs and work together to build a strong financial foundation that can protect you from foreclosure:
Budget
Make sure you have at least as much money coming in as is flowing out each month. If you have a partner, you and your loved one should agree, upfront, on how much to spend and what to spend it on. When partners are off spending money on their own pet luxuries, problems often arise.
Pay Your Bills
When the bills arrive, prioritize them and pay them as soon as possible, so they don’t stack up. If you have a partner, pay your bills together. Blaming your spouse for overspending is easy when you don’t know how much it costs to heat your house or feed your family. You both need to be aware of where the money’s going, so you can hold yourselves, and one another, accountable.
Audit Your Books
Add up all the money you spend each week on nonessentials and try to trim the fat. If you’re teaming up with a partner, determine how much you’re responsible for and how much your partner is responsible for. This shouldn’t be a blame game, but it can open your eyes to any potential spending problems that could leave the checkbook short when it comes time to make the mortgage payment.
Watch for Addictive Behavior
Any addiction can be a problem, including alcohol, drugs, or the Internet. Anything that takes time, energy, and resources away from a paying job and your family (if you’re supporting a family) could cause financial problems. Identify addictions early and nip them in the bud.
If you and your partner can’t have an honest discussion about household finances and troublesome behaviors, then your entire relationship is in jeopardy. Communication is key to avoiding the problem in the first place and recovering from it if avoidance isn’t possible.
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