Budget The Luxuries First!

Strictly speaking, his advice was preceded by another Heinlein maxim as well. "Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget ; awareness of debt eats up domestic felicity." Today, that advice gets abused eight ways to Sunday, as the average household is currently carrying credit card debt to the tune of over $10,000. Assuming an interest rate of 18%, this works out to about 150 bucks a month going to the credit card company. That`s money NOT available for things like fresh flowers on your desk.

.. new skis... upgrading to gourmet coffees and wines for daily consumption, or dinner out (including tips and babysitter).

Luxury item #1: Get out of consumer debt

Being debt-free is an incredible luxury! There are a ton of books and articles out there already on how to budget and avoid debt, so I won't hold forth on how to do it. The important issue is WHY to do it. And the answer is simple. Peace of mind is the ultimate luxury!

Luxury item #2: Make some time to make a wish list!

While putting the wheels in motion on reducing debt, there's a happier issue to think through as well: What is it you really want out of life? Peace of mind (and of household) starts with asking these Really Big Questions!

More importantly (assuming you actually care about your relationship), what is it your partner craves? If you don't know, well... it can be fun finding out. Too many financial planning exercises are painful, which is why not enough people do them. This exercise, finding out what really matters to you both, isn't.

What are the things in life that really feel like luxury to you? Now is the time to identify them, and separate out the smaller, less satisfying things you`re paying for that keep you from getting what you really want.

To keep to the spirit of fun, I`ve found it's useful to agree to some simple ground rules:

Make some unbroken wish list time for the two of you

There are no such things as 'silly ideas' or 'waste of money' items during the wish list time (that will come later on during a reality-check period)

No impulse spending during the wish list time! Window shop if you want, share a seat in front of the computer if you`re lookin