Relationship Rules

Married? In a relationship? You know the sticky feeling of trying to manage finances with another cook in the kitchen. Making money decisions can be more complicated than coq au vin, but it's a necessity in everyday life.

For tips on how to succeed, check out these rules from a couple who have been married for 29 years. This list is hanging on their refrigerator, and although it's not for everyone, it can definitely be freeing for some couples if you make it your own. 

Disclaimer (for a second time): These rules aren't the gold standard by any means, though there are some gems in here. Use it as a starting point for your own rules!

Rule No. 1: Agree that neither of you can make a purchase above $75 without first consulting the other. (Sage & Mint note: our limit is $50)

Rule No. 2: Agree that there will be no secret bank accounts, no earnings that are not disclosed, no undisclosed loans and no secret credit cards. 

Rule No. 3: Join all your finances together. (Sage & Mint note: you're a team now, act like one!)

Rule No. 4: It should take two “Yeses” for any major financial decision. That means if one of you disagrees with a purchase or an investment, it won’t happen. 

Rule No. 5: Budget will be strictly adhered to, except in cases of emergency. (Sage & Mint note: #strugglebus)

Rule No. 6: Budget will be reviewed at the end of each month. (Sage & Mint note: #strugglebuspart2)

Rule No. 7: If fun money ($100 each per month) has been spent, it is spent. There will be no arguing, pouting, name-calling or fighting. (Sage & Mint note: this was a GAME CHANGER for us. Highly recommended.)

Rule No. 8: Personal money does not have to be spent in that month and may be carried over. There is no borrowing against future months.

Rule No. 9: A car fund will be established and money — no less than $50 — placed into it every pay period, to be reviewed after three months. (Sage & Mint note: or a house fund, or a vacation fund, you get the idea)

Rule No. 10: $400 ($200 each) in “magic money” will be allotted out of bonuses, with the rest going to either long-term needs or savings. (Sage & Mint note: love this idea. Brilliant.)

That's it, folks. These rules worked wonders for this couple; you can have your own set, however loose or rigid. The idea is to have a code of reference when those inevitable money disputes break out. Set yourself up for success, and don't forget date night.

This list is created by Judi and Christopher Chesley, put into an article by the amazing Michelle Singletary, and came to me by carrier pigeon from my dad. The world is so connected.

How to Build Great Credit

Think of your credit score as a game—slightly silly and somewhat illogical. You see, credit is not a measure of your Richie Richness, it’s a measure of your financial reliability (snore). Banks and lenders use this number (somewhere between 300 and 850 on the standard scale) to determine how much money they should lend you (if any at all). The higher your credit score, the better.

A quick breakdown:

Right then, so how do you move from bad news bears to rockstar status?

Listen close, grasshopper:

1. Make your payments on time.

C’mon, this one is easy: AUTO-PAYMENTS. Technology does the remembering for you.

2. Show some commitment.

It might not be your favorite word, but credit card companies like to see a history of on-time payments. This also leaves room for a catch-22 of credit—if you don’t have credit, it’s hard to get! A tip for those in this boat, get a store credit card like Macy’s or Walmart to start out—these have laxer approval requirements. Another workaround is to get a bank credit card. If you have a good chunk of change in your bank, some will give credit based on income and current savings.

3. Don’t collect cards.

This isn’t Pokémon, friends, you don’t have to catch ‘em all. Two to three cards are probably enough.

4. Spend 30 percent or less than your limit.

This might just be magic juju hullabaloo, but I’ve heard this wisdom passed around a few times. Something about debt-to-credit ratio? We’re just playing the game.

5. Charge only what you can afford.

It’s not an extension of your income. Try REALLY hard not to use it as a crutch when you don’t have enough in your bank account. Interest sucks.

6. Lines of credit are good.

These come in the form of student loan debt, mortgages, and car payments. By making consistent payments on these additional lines of credit, you’re showing history and trustworthiness.

Now you know how to play the game, go forth and achieve rockstar status, and maybe you can even win the whole game.

Don’t know your credit score? You’re entitled to one free check a year.

#9 Pay Off Your Debt

College is great -- but gosh, education is expensive these days! The class of 2013 held an average debt load of over $30,000 per student. Yikes!

So let's talk student loans: Ideally we'd love to pay off our loans sooner rather than later, because that means you end up saving more in the long run (and golly, isn't it a long run?). But life is expensive! I know, I know!

Although this tip is way down at #9, think of it far higher in terms of priority. The sooner you pay off your debt, the more money you can save for a house, a baby, a dog, and retirement. All those grown-up life steps.

So let's look at smart moves to paying off student loans: 1. First and foremost, set up auto-deduction. Easy-peasy. You pay loans on time and it won't be quiiiite as painful as writing a check every month.

2. With federal loans, choose your repayment schedule wisely. There are five repayment options ranging from a 10-year, $50/month minimum plan to an income-based plan. Use this handy student aid guide to figure out what plan best fits your budget.

3. Prioritize based on interest rates. Pay off higher-interest rate loans first. If you have an extra chunk of change this month, chip it in to the loan that's feeding off of a double-digit interest rate. One interesting thing to note: the exception to this rule is private variable-rate loans. This means your interest rate can change. Translation: it can go up! And currently, this interest rate is relatively low, which probably means it will shoot up in the coming years, so pay off that bad boy ASAP.

4. When student loan payments end, CELEBRATE. You have moved a mountain, my friend, so please do your happy dance accordingly. Maybe you can take the money you would've spent on next month's loan repayment and take a little mini vacation. Or buy a fabulous pair of shoes. Or all the chocolate milk you could possibly drink. Go crazy, because paying off loans is a BIG DEAL.

Side note: I didn't touch on credit card debt, but you can take gems #1-#4 and apply it to your plastic as well. But girl, if you have to give up living a fabulous lifestyle to pay off your credit card debt, don't do it. Just kidding. Do it, definitely do it. And fast. Forget the faux-leopard coat and lululemon-everything workout apparel. Heres another great calculator to help you plan.

The sooner you pay off your debt, the less you end up owing! More money in the bank for you!