How to Manage Your Money as a Newly Married Couple.
How to Manage Your Money as a Newly Married Couple.
Getting married is an exciting first stride into a new era of adulthood. What was one ‘you’ and ‘I’ now becomes ‘we’ and there is just so much to plan for the rest of your lives. It’s essential to see your life together as a partnership where you and your spouse will work together to overcome obstacles and achieve happiness for the years to come.
Steps.
1. Realize why financial matters are going to change. First of all, congratulations on this big step! Getting married is an exciting first stride into a new era of adulthood. What was one ‘you’ and ‘I’ now becomes ‘we’ and there is just so much to plan for the rest of your lives.
It’s essential to see your life together as a partnership where you and your spouse will work together to overcome obstacles and achieve happiness for the years to come. One of the most important factors most of newlywed couples will have to deal with is how to go about handling the finances after getting married.
2. Talk about your finances. If you haven’t yet discussed on how to manage your finances before the wedding, now is the best time to do so.
Don’t forget to make a list of all your incomes, debts and assets including loans and credit cards. This will help you out in comparing your spending habits and decide where you and your spouse’s priorities lie.
3. Get insurance coverage. There can’t be enough stress on the fact as to how important an insurance plan can be. They not only cover you financially, but also prove a savior at critical emergency situations. You may want life insurance to help repay the mortgage and take care of your children, should one of you die unexpectedly. Choose an insurance plan with low premiums for high coverage benefits.
What could be worse than any one of you suffering from critical health problem? Be sure you and your spouse are covered at all times with an insurance plan that takes care of your health especially if any one of you is working for hours that involves travelling for long durations.
4. Set common objectives. Whether its buying a car, renovating your home or even saving for your to-be child’s future, set the goals both of you would like to achieve together. Now try figuring out what you can realistically afford and start making disciplined savings. Also consider looking into making deposits in your savings account to keep you on track.
5. Avoid overspending. Keep track of every penny you and your partner spends. It’s easy to believe that two people who live together can live on a low budget too. Combining all the household incomes and expenses can help you save lots of money for your necessary expenses.
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6. Avoid debts. Nothing can be more damaging than living on an overburdened debt. Taking mandatory debt like car loans, etc. is one thing but compiling credit card debt or personal loans can turn problematic for both of you. Ensure you will be able to pay for all your unsecured debts without jeopardising your savings.
7. Be smart about a shared bank account. Opening up a joint bank account would be ideal if you have common goals. But in a case where you would each one of you handle your own expenses, then it would be best to open up separate accounts. But be aware and honest as to where your money is being spent.
Question : What can I do if my wife thinks that I should be responsible for her, causing a financial stress leading to a dent in the relationship? As always, I am blamed for it.
Answer : If I think one thing and you think another, then just because your opinion is different than mine doesn't mean you're wrong. And neither is your wife. If her opinion is that you pay for everything, then that is a valid opinion. You don't have to agree with it, but she's not necessarily wrong. It's a negotiation. List your expenses and list your incomes, negotiate who pays what until you both agree. If you disagree with her point of view that "husband pays all", then you must negotiate - and she must compromise too - until you reach an agreement, any agreement, that you can both agree to.
