Marriage comes with a lot of promises and responsibilities. As you begin your new life with your spouse, a lot of financial obligations come into the picture. Financial management is not just for your present, but for your future as well. While you decide to share your love and care, you also share commitments and responsibilities of each other. Learning to manage and share finances from day one can not only make a smooth start but also makes the journey ahead easier.
Let’s have a look at the financial management tips for the couples-to-be or the newly married ones.
After your marriage, the first step in money management is to talk about each other’s finances and financial obligations. Discuss each other’s monthly income, regular expenses, and any debts and loans they have to repay. Be open to each other about your present financial status. Letting your partner know these details will save a lot of possible misunderstanding and miscalculations. Also, being honest with your spouse about your financial condition can save a lot of unwanted shocks in the future.
Now that you have evaluated each other’s financial situation, you should find a way to handle the funds without causing a money crunch in the future. You can consult each other before making purchases that involves a lot of money. Also, consider talking about expenses and other money-related matters, every one or two weeks. Continuing such discussions is integral for having a better understanding of each other’s financial situation . Also, evaluate if having a joint bank account will help manage the expenses better.
With marriage comes bigger responsibilities like expanding your family. Set goals for each year, which includes preparing yourself for a child, buying a car, owning a house, having an international trip, etc. Once the goals have been set, stick to the goals. While doing so, ensure you have enough money for your essential monthly expenses and personal requirements. Making such big plans and long-term goals together can strengthen your relationship and build more trust towards each other. Additionally, taking out a marriage loan can help manage the financial burden of wedding expenses, allowing you to start your married life without the stress of wedding-related debts. Also ensure, the eagerness to plan and fulfil financial goals are practices that stay with you despite the passing years.
If both of you are a working couple, paying your bills and managing expenses may be easy. Maybe both of you have loans to repay. Whatever the case, plan so that the income of the highest earning spouse goes for the monthly house expenses. The other spouse’s income can go for investment options, insurance premiums and/or savings schemes. It is always a good idea if each spouse gets their part to play in the family finance management.
Once you have set your financial goals and have divided your responsibilities, make certain that you plan a budget with your monthly income. While making monthly budget plans, decide how much should be reserved for the little luxuries such as going for a movie, eating out, and shopping. Do not make exceptions to this by increasing the allowance. Ensure you stay determined in sticking to the budget plan. Once the budget plan has been designed, write it down in an excel sheet and keep tracking your expenses every month. This can help you find out how you have been performing and where you went wrong. Only make big commitments depending on what your current income is and how much you can afford to spend, besides saving enough for the future.
When most couples set goals and create monthly budget plans, the need for an emergency fund is mostly ignored. In the event of an unexpected emergency such as job loss or hospitalisation of someone, you will have to depend on your investments or savings to cover the huge bills. Or, you may end up borrowing money from someone that could further push you into a huge financial debt. Prioritize building an emergency fund so that you have enough financial security in the event of an unforeseen disaster.
As mentioned earlier, it is important to discuss finances with your spouse in a regular manner. Do not shy away from talking about your desires and financial obligations. If you want to make it more interesting, plan a date so you can discuss expenses, budget allocations, future financial goals, and the progress you both have made so far.
Financial management can be tricky after marriage. Having honest and open discussions with your spouse can help inculcate better money management habits among both of you. Working as a team can help you in your budget plans, expenses, and investments, and handle the surprises life might throw at you in the coming years.
