Great Budget Management Tips
The transition from singlehood to marriage life often comes with myriad challenges, especially for young couples.
Money management is one such challenge that if not well handled, can be a source of conflict among newlyweds. Most couples take the ‘for better or for worse, for richer or poorer’ vow without giving it too much of thought.
In the current society where both the wife and husband are working professionals, many couples seem not able to survive the relationship due to poor financial management skills.
Here are some financial management tips for a newly married couple to get their financial house in order, before it becomes a problem.
Be Transparent About Finances
Financial issues should be a subject of discussion long before the post-wedding, but it is not too late if you have not.
One simple rule that you must adhere to is never ever to hide even a single dollar of spending from your spouse. It is logical for either of you to have some fairly limited amount of money that you can freely spend, however, the total amount of your finances should be clear to both of you.
Be open to your spouse about your bank accounts as well as the debts you both have. It is also a good idea to be very clear right from the beginning how you both expect to handle your finances.
Setting goals help the both of you to have a common agenda as far as your finances are concerned as well as working towards achieving them. Once you have assessed and determined your financial baseline, you can now discuss your long-term financial goals.
For instance, at what time do you plan to retire, how much money would you have accumulated by then and also discuss your investment plans.It is important to note that lack of goal setting may lead to both of you working literally against each other. This will pose a serious setback from what you intend to achieve.
Talk About Your Bank Accounts
Sharing a common bank account at times come with its advantages. Joining your financial accounts simplifies the way money matters are handled and can also build trust between the two of you. However, management of each separate individual account may bring about some level of flexibility as well as protection. Whichever the case, discuss it and arrive on a mutually agreeable option.
Take Control Of Your Purchases And Debts
Debts can be a source of stress in a marriage, especially during a post-wedding. Most of these debts are accrued early in the marriage when the newlyweds are merging their finances but still overspending.
Most newlyweds have the tendency to move in a rush and try to acquire everything they want all at once. This will get you deeper into debts long before you are ready to handle responsibility. It is wise to evaluate your financial capacity and spend within your limits.
Save For Retirement
You might seem young, energetic and carefree at the moment and retirement may not be in your top list of priorities. However, it is a reality that you will retire at a point in time.
Therefore, each one of you should get into a retirement scheme early enough. If your employer offers a retirement plan, then it is advisable to use that plan. If you do not enjoy such benefits, set aside some little cash for your income each month as this will help a lot in the long run.
Create And Stick To A Budget
Creating a budget plan as a couple and sticking to it is a perfect way of controlling your spending. Always amend any changes according to your income situations, expenses, and situations. To help you through this, make use of debit and credit card tools that are available to break down your expenses per category.
An envelope system can be very effective for couples with lower income earning couple. This is where you allocate expenses some cash and keeping them in envelopes. When the cash runs out, such an expense is suspended for the rest of the month.
Share Of Responsibilities
One of the best money management strategy you can adopt to help avoid financial conflicts is sharing of responsibilities. Don’t shove money matters on one person but instead work together as a team. Both of you should have a say when it comes to decision making on financial expenses.
Allocate each other responsibilities such as paying bills depending on each other’s earnings. It is important to be very truthful as much as possible with each other instead of lying or hiding anything on expenditure.
Have Weekly Financial Meetings
Getting together for a small financial meeting to discuss both the budget and expenditure can go a long way in curbing financial conflicts both during a post-wedding and into the future. Make it a weekly routine where you discuss the current expenditure and how to move on into the coming week.
It is also a good opportunity to do any financial alterations depending on prevailing situations accordingly. You can also look into how your financial goals are coming along, for example, you can review your investments and how you fair.
Start An Emergency Fund
An emergency fund refers to money set aside in an account for unforeseen emergencies. To start on this, open a joint account preferably with a bank that isn’t your usual bank to make it a little bit harder to access easily. Set up an automatic transfer to channel some cash into this account monthly.
With time the account will gradually grow but never be tempted to interfere with it. With such an account, an emergency will not turn into a crisis as you will be in a position to adequately handle it with ease.
As a final thought, marriage is a beautiful thing. Having someone to share and to love you without any reservation is great. However, marriage it is not always an automatic thing, it requires commitment from both the spouses.
This journey is not always easy as you will often face with situations that need proper handling and understanding. Financial issues are always the major problem most marriages face. Make use of the financial management ideas and you will always find you marriage life to become easier to handle.