Newly married couples: How well they can manage their money

contributed by personal finance writer & blogger Amy Nickson

Money problems are one of the most popular reasons of divorces taking place in our society. According to the survey, money topics always cause a clash between couples. An increasing number of couples, whether unmarried, married or cohabiting, end up having an occasional tiff about their personal finances. Even when you’re going through the best phase of your relationship, money can suddenly become a conversational topic.

Most of the couples are not able to manage money due to their below-average money management skills. Some couples stick to their previous way of dealing with their money so that this doesn’t create a mesh with their spouse while others take the responsibility on their own shoulders or else shove them on their spouses. Some spouses lie, overspend and cheat and this leads separation as well.

If you’re a newly married couple, how can you prevent these tragedies from diminishing your relationship? Here are some money management tips for couples that they must follow to enjoy a stress-free married life.

8 Tips to manage money with a spouse

Though managing your own finances can be a challenging job, yet incorporating your spouse’s finances can be overwhelming. Don’t expect to be a specialist right away as you both need to sit together to make things work out and this may need a plenty of time. Read on to know some simple tips to manage money in a better way.

1. Allocate time to talk about finances

If you’re newly married or you’re cohabiting, then you must immediately start talking about your finances. Go through the accounts that each of you had and the amount of debt that you carry. You must also be clear about the way in which you want your finances to be handled.

2. Make a list of your collective goals

Soon after you’ve assessed your present financial status, you must craft your future financial goals. Do you plan to retire early in future or do you want to get out of debt and soon become rich? If you feel that your goals are achievable, then you must work towards achieving them.

3. Keep faith on your spouse

Keeping faith in each other is important to work as a team. Thus, you’ll be able to manage the money properly. Don’t ask any offensive question like, how much money you spend today or Are you, Shopaholic? Just trust and practice to manage money together.

4. Prioritize an emergency fund

If you both don’t have an emergency fund still now, consider making this your top priority. An emergency fund is that money that is kept aside for sudden financial disasters. Building an emergency fund should be your priority so that you don’t have to borrow money from financial institutions unnecessarily.

5. Sit together and craft a budget

Review your joint expenses throughout the previous month and craft a budget that can help you keep your finances under control. Establish monetary limits on each category where you spend money so that you can stay within your means. As it’s not just enough to make a budget, you must also keep track of it so that you don’t outstretch your budget.

6. Think about retirement days

Set a lump sum amount of money for the long haul so that debts don’t ruin your post-retired life. If you’re working and your workplace offers a retirement fund, then you must save money there so as to avail tax benefits in the long run.

7. Try to Pay off all financial obligations

Debt can be damaging to anyone and if you don’t want the debt to spoil the love between you both, then take solid steps to repay them. Start off your married life right away by eliminating debt and get help from a professional if needed.

8. Be honest always

Honesty plays a vital role when it comes to money and marriage. You should be honest with your spouse. If you make any money mistake, then confess it to your spouse and try to solve the problem together. Your partner may have a better solution. Hiding the mistake can create the big problem. Lying about money can ruin your personal life as well. So, don’t hide your debt story or any money mistake to your spouse.

Final thoughts

Both marriage and money can be tricky. The best thing you can do is to be honest and open while dealing with both money and marriage. Start off on the right foot by speaking about money management techniques, spending and investing so that you need not face problems in future.