Money Management Tips That Can
Strengthen Your Marriage
Just like what the old marriage vow says - For better or for worse... for richer or for poorer." This is what most couples promise on their wedding day, that whatever happens, even if they run out of funds or resources, they will always stick together.
In an ideal world, that happens. But in reality, some couples these days are having disagreements when it comes to managing their finances. Other couples combine their money, but some have separate bank accounts. Some spouses are not transparent on where they spend their money because they know they have overspent it. Some resort to keeping secrets with their spouses on what is actually happening with their finances.
You and your spouse are still on a wedding high and these problems may be far fetched from where you are right now. But how can you prevent these issues from happening in your marriage?
There are definitely ways to avoid your marriage from crumbling due to money issues. In fact, budgeting can be a fun activity to bond with your spouse. Here are some tips on how to manage your finances and make your married life stress-free:
1. Sit down and have the money talk
Having a talk with your spouse about your finances is a good way to clarify how you want or how you expect your money to be managed. It is a great practice to do before you get married and to go over both of your accounts to identify if there are debts that need to be settled.
2. Talk about your goals
Once your expectations about how to manage your finances are out of the way, it's time to talk about your long-term goals. Some topics that you can discuss with your spouse is if you plan to retire early? What age are you planning to retire? What investments would be best? There are many things that can be discussed when setting your financial goals. It is recommended that you should hire a financial advisor to guide you on the different types of investments that you can acquire and also to help you build your finances for retirement.
3. Opening a bank account
It is important to discuss with your spouse if you are open to have a joint account. Combining your accounts can make your financial transactions seamless and it builds trust in marriage. But some couples crave for independence and privacy and are not comfortable in having a joint account with their spouse. Especially in times of divorce, worst case scenario, your spouse can take the money and leave you dry. Discuss with your spouse if you are comfortable with this set up and make a decision that will make you both happy.
4. Track your budget
Create a spreadsheet that is designed to track all your income and expenses and come up with a total amount by the end of the month. You can also use some apps to do some simple accounting of your finances. By doing this, you will be more in control of your finances and you will be able to avoid overspending.
5. Build an emergency fund
If you haven't discussed emergency funds with your spouse, consider this as a top of your agenda in your money meetings. Set aside a certain amount of money each month for unexpected events such as sudden job loss, illness in the family, major home repair or natural disasters. Having an emergency fund can bring financial security in times of crisis and will keep your savings intact.
6. Stay out of debt
Debt can be a stressful thing to any person. And it is much worse when you and your spouse are in debt. Start paying off your loans from legal moneylenders such as cash mart gradually by setting aside some funds to pay it monthly. Work out a plan with your spouse on how to live within your means and stay out of debt.
7. Having equal responsibilities
Managing your money is not just a job of one person. In marriage, both parties should be involved in sharing responsibilities in growing and managing their money. If responsibilities are shared, you are able to practice teamwork and transparency about your current financial situation. You and your spouse should be involved in making decisions, budgeting and bills payment.
8. Having an open communication
Stay on track with your finances by having weekly money meetings. This is the time to discuss your budget, upcoming bills to settle, and how close are you to your financial goals. Being open in communicating with your spouse will both help you to stop worrying about where your money went because you are able to track it.
To sum it all up, honest and open communication are the key ingredient to thrive in your marriage and finances. The sooner you practice this, you will be able to avoid future problems and your marriage will be stronger by working as a team.