Marriage is a partnership. This partnership becomes successful when you made through joint responsibility, especially when it comes to finances.
Most importantly, marriage not only changes the married couple financial situation, but it also affects their financial outlook.
I know, in our traditional society most of us always try to avoid discussing the financial situation within family especially with the spouse. Again, if the couples are newly married, then it’s a big no.
If you think differently, money management can be a rewarding way to bond with your loved one.
I am sure this topic always comes to our mind, but it’s quite hard to act on it. Hope, this financial checklist will help you get started.
1. Start Talking About your Current Financial Situation
You must be agreeing with me that no two people have identical values when it comes to money. Therefore, clear communication always helps to identify what is essential to each of you. You can make the best decisions about your money as a couple.
So, sit down together and discuss your individual and collective spending habits, personal debt, your future goals, what things you want to enjoy or purchase and many more.
Automatically you will know how to manage your money being a married couple.
2. Decide Financial Goals as a Married Couple
Take your time and be patient with each other. Discuss your desires, dreams, and needs. Sometimes, all the things don’t seem to be heading in the same direction. But, the key to managing money successfully in marriage is good communication.
Discuss your long-term financial goals in-depth. For example, saving for a house, planning about a new member to the family, how to get out of debt, retirement planning, etc. Create your checklist. Decide your important aspect of financial planning, and it will automatically convert in a plan.
Most importantly, write all of your goals down and review them periodically. Assuredly, it will give you a better opportunity for success.
3. Track Spending Habits & Prepare a Budget
Next step tracks both of your spending habits. In most cases, we think that we will lose our freedom and compromise financially after marriage. Marriage is a big step in life. But when we think positively, the compromising will become a co-operation.
Personally, every month we create a monthly budget and assure that we will spend within that limit. As we know how much we are allowed to spend, always saves us from debt.
Most importantly, write down your family budget. Start by reviewing your joint expenses over the last few months to determine how much you’ve been spending and where you need to cut your expenditures.
Don’t forget the unexpected expenses, like routine car maintenance and medical expenditure. Your budget may be a work in progress for the first few months, so don’t worry if you have to make adjustments somewhere.
4. Must have an Emergency Fund
In an emergency fund, you can set aside money for an unexpected situation. We must sincerely consider the positive side of having an emergency fund that you can access at short notice without disturbing other long-term investments.
Consequently, savings for an emergency fund will make a habit of saving regularly. Is not good enough? So, if you don’t already have an emergency fund with a top priority.
Read also: Planning for New Financial Year 2019-20
If you have surplus capital after a planned budget, set it aside and put in the emergency fund. The amount of savings is up to you. But it will build a good habit.
Certainly, it will bring financial security and protect you whenever any financial disaster strikes.
5. Discuss Bank Accounts
This is an interesting point. Millions of thoughts come to our mind especially when both of the spouses are working.
Actually, the pros and cons both are there to opening a joint bank account or having an individual account for a married couple. According to me, you can have both.
However, a joint account can simplify your household responsibilities and may help breed trust in among the married couple. In this scenario, it will always make more sense to have a joint bank account and also a joint demat account for holding your investments.
But, some level of independence you may continue your previous single account as before.
Above all, discuss everything with total transparency with your spouse to make sure you’re both comfortable with whatever you decide.
6. Save for Retirement as Early as Possible
Whether you’re a married couple or not, start your retirement planning. Retirement plan at an early stage ensures that you are on the right path to make your retirement in stronger monetary terms.
Because of compounding interest, time is equally important as money. Certainly, your investment moves higher as long as you stay invested.
Nowadays, so many tax-deductible retirement schemes are available. These investments will help you reduce your tax load as well as save the large corpus for your future.
Additionally, according to the financial experts, if you start retirement planning and investing early, you can go for an aggressive scheme. Whereas, as time passes it is advised to stay defensive where the returns may be low but are safer in comparison. So don’t delay.
7. Get Out of Debt
If you are stuck in debt, then it affects far more than just financial. Meanwhile, it becomes a constant pressure that can also damage your work, health, and relationships.
So, if both or one of the married couple has pre or post-marriage debt, and then do not make it a matter of argument. Stay together, and try to find the way that how you can reduce the debt as early as possible.
Gradually, you will realize that it is simpler if you stay transparent with your partner and work together according to the strategy.
8. Stay out of Debt
On the other hand, staying out of debt is equally important. Now the interesting part, it is more associated with your ability to avoid spending whenever earning power increases.
So, when you get an increment, bonus, tax refund and spend them all. Surely, you are in the wrong way. Put it directly into an account that pays good interest. It will help to grow your hard earned money.
This strategy will help you to stay out of debt and drive toward financial goals. Also by limiting your expenses and maintain your monthly budget, you will remain debt-free for life.
9. Have Monthly Money Meetings
These regular money meetings with your partner are a great idea. It not only strengthens your communication in marriage but also increases both of your level of trust.
You can discuss how the budget looks for the month or have any upcoming bills to pay, about the next financial goals and anything else that is related to money.
Therefore, both of you will always know where you stand financially and what are the money matters need to look after.
10. Learn from Each Other and Give your 100%
One of the most satisfying elements of a relationship is to inspire and encourage greatness in each other’s lives. – Sevin Phillips
It’s a good idea to learn from each other. Financial management is not only about knowledge. Discipline and experience are equally important. Everybody has different expertise and different point of interest.
Sometimes, one of you is more disciplined about daily expenditure, tracking budget and other one have more knowledge about investment. So, work as a team and give both of your 100%.
Someone says – couples are like a pair of chopsticks, work as a team and then experience the flavor of life together.
In conclusion, money is an integral and crucial part of life, and you cannot ignore. So, if you are newly married then ensure that you speak about it with your partner.
Most importantly, please do not forget to admit when you’re going wrong with any financial terms. Nobody is perfect. Mistakes teach us lessons and help to be a better person. Additionally, you can always hire a financial advisor if you feel needed. Best of luck!
Well, this is from my side. Do you have any other worthy idea for a married couple that how they manage their financial life? Please share with us.