Getting married can be a thing of joy but also comes with challenges. Financial management and planning is an important topic to discuss before walking down the aisle. Even after marriage, it should be discussed because issues concerning finance are sensitive. Couples need to be on the same page regarding how their money will be spent and managed to achieve the most out of their long-term goals. If you’re a newly married couple, it is not too late to start that discussion, but here are simple ways you can manage and get the most out of your finance as a young couple:
Change your mindset.
You need to see the ownership of your money and your partner’s money as a collective one. It might not be easy, but it is pertinent to adjust to sharing finances with your partner. Couples should be in agreement as regards finance management to be able to achieve their financial goal. Couples should also be open to each other about their income to make planning easier. They should also be ready to embrace the possessive pronoun ‘ours’, which represents them as a team.
Decide on allocating your income and the percentage of spending.
After you and your partner have agreed to merge finances, the next step is to decide what percentage of income should be spent or kept aside. For example, you could decide to set aside 30% of your income for savings and emergencies and then use the remaining 70% for expenses and bill payments. There are different methods of sharing expenses. Just pick one that works for you both. Another thing is to pay yourself first and pay your bills last. It simply means saving first, then spending later.
Live the present and enjoy the process of achieving the future.
Some couples have a lot to achieve and want to achieve them all at once. However, they don’t know that there’s a process for everything, and if it takes time, it’s okay. Trust and enjoy the process of achieving the future while learning from it and helping each other grow.
Don’t make a major purchase without consulting your partner.
When we talk about transparency, it also includes the ability to communicate with your partner before making any big purchase. You and your partner can deliberate and decide whether the purchase is worth it or not. Nobody wants to be left in the dark, especially in things concerning their finances.
Decide on who keeps financial records.
Anybody can keep financial records (husband or wife). Keeping financial records is to ensure accountability and be sure that both parties are meeting their financial needs (bill payments and savings). Through financial records, you can measure your progress also determine where you can improve spending habits.
Key points to take home…
- Couples should be open about finances to each other and be ready to compromise.
- Plan your joint income and allocate income to appropriate bills- don’t forget savings and emergency funds
- Be patient with your goals and watch things fall in place
- Don’t make big purchases without the knowledge of your partner- transparency is key
- Keep financial records to track financial goals.