Congratulations on your marriage!! Now it’s time to get to work. The issue of money and finances as newlyweds is very important as it is one factor that has led to the breakup of many marriages. That’s why it is an important conversation to have even in the courting stage.
Here are some practical tips to help you manage your finances as a newlywed couple.
1. Set common financial goals
As newlyweds, you both need to discuss your financial goals and create a plan to accomplish them. When you set goals, be sure they are specific and measurable. Discuss your short- and long-term financial goals, and then create a budget that reflects those goals.
2. Track your spending
Keep track of your spending to ensure that you stay within your budget. To keep track of your costs, consider using a budgeting software or spreadsheet.
3. Create a joint account
Consider forming a joint account to handle home expenses including rent or mortgage payments, utility bills, food, and other bills. Your finances might be made simpler as a result, making it easier to keep track of your spending. However, this comes with its pros and cons.
4. Start an emergency plan
Create an emergency fund to handle unanticipated expenses like medical bills, car repairs, or house maintenance. Attempt to save three to six months’ worth of living expenses.
5. Manage your debt
Debts accumulated by one or both partners can cause a dent in the marriage therefore, if you have debt, devise a plan to pay it off as soon as possible. Consider merging high-interest debt into a lower-interest loan to save money on interest payments.
6. Communicate openly
In marriage, one advice that works is being open with your spouse, especially with the issue of finances. Open communication is essential for managing your finances as a marriage. Make sure you and your partner are on the same financial page and talk through any questions or problems that may emerge. If you are an impulse spender, let your partner know to reduce friction and fights.
7. Review your budget periodically
A good way to stay on track with your finances as a couple is to review your budget and expenses from time to time. This is to ensure you are not going out of line or spending money on things that are not necessary. To make sure you’re only paying for what you use, regularly review your bills.