Congratulations on your big day! While getting married certainly is an exciting milestone, with it comes a lot of responsibilities, in which managing finances is perhaps the biggest. When you tie the knot, you also tie a financial knot. What were once your own individual finances now belong to both of you. Therefore, it’s crucial that you and your spouse discuss and analyze your finances so that you are on the same page when it comes to money. These six tips by financial advisor Jeremy Marcus can help you and your spouse take the right steps to manage your finances together.
1. Always Talk About Finances Together
Money issues are probably one of the leading arguments couples get into. Therefore, you want to ensure that you’re both on the same page when it comes to finances and how to manage them. If there’s one phrase you should repeatedly say it’s, “Let’s talk about it.” Now that you’re married, you share finances with your spouse. When it comes to important financial matters or decisions, you should always discuss it together first to ensure you agree on it.
2. Set Financial Goals
There are three major types of goals you should discuss: emergency funds, short-term goals and long-term goals. Emergency funds are just that: funds saved for when an unexpected event occurs such as you or your spouse losing your job. Your short-term goals may include down payment for a vacation and your long-term goals may be saving for your child’s education.
3. Create a Budget
In order to meet your financial goals and avoid overspending, you will need to create a budget. Factor in the cost of housing, transportation, utilities, groceries, any debt such as student loans you owe, and discretionary spending such as a gym membership and entertainment. Use this to determine how much you can afford to save each month.
4. Set a Minimum Amount for Discussing Large Purchases
While you should open talk about finances, you probably don’t need to agree on a $5 purchase at the convenient store while on break at work. Instead, agree to discuss any purchases above a set amount.
5. Save, Save, Save
When couples first start out, the future can certainly look so new and as if nothing can go wrong. It’s important to realize and understand that unforeseen and unpredicted events can occur and you want to have that financial cushion should an incident strike. You should also be saving for large future purchases or investments such as a home or your child’s education.
6. Discuss How You’ll Deal with Friends or Family in Need of Money
You should set a policy regarding situations in which a family member of friend faces financial struggles. Keep in mind that it depends on your income, the seriousness of the situation and the frequency.
Author: Paul Grasmanis
A dedicated professional who writes with your interests in mind. My goal is to write pieces that help you form your own opinions, not force my ideals on to you.This author has published 126 articles so far.