As we enter a new phase of our life after marriage, an altogether new life begins. The commitments and expectations grow all of a sudden. Earlier you had to think about only you but now you have to take care of your family. The requirements increase and you need to spend your money intelligently to meet all of them. Both the partners have to share this responsibility of money management after marriage. Openly discuss money matters at the starting of your married life. Discuss and write down your life goals and make a budget of your expenses and savings. Here in this article we have mentioned 5 money management tips for newlywed couples. Take a look!
Clay Advisors Financial Tips for Married Couples:
- Clearly figure out your life goals
Think over your life goals, both bigger and smaller ones. The bigger goals are retirement plans, when do you want to have children and how many? Other goals include buying a new car or bike, buying a house, planning family trips and so on. Discuss these with your spouse. You can make financial plans for 1 year, 5 years and 10 years. Write down the goals and don’t forget to review them from time to time. It is always better to make a thoughtful budget for your expenses and savings and stick to it. You can also take the help of a financial advisor.
- Talking about finances
As life partners, we share everything like family history, childhood, likes, dislikes, etc. Talk about finances also, as this is really very important. Know each other’s earnings and spending habits. Make a list of your obligations like loans, insurance premium, mobile bills, personal expenses, shopping expenses, etc. You are a family now and all your earnings will go towards fulfilling its duties. So you need to discuss with each other how you would do that. You need to reach a comfort level on day to day expenses. Remember to always leave 10% of each one’s income for personal uses.
- Designing and tracking the budget
If you decide on the budget, you can escape yourself from going in debt. Review your last few months’ expenses. Understand your spending habits as this will help you to know where you have to cut them down. Decide on a limit and try not to cross it. Keep some amount aside for irregular expenses like vehicle maintenance and doctor’s appointments.
Keeping track of the budget is as important as making it. You can track your expenses by designing a spreadsheet. It will total up the expenses at the end of each month for your convenience.
- Maintaining bank accounts
Newlywed couples can have either a joint account or individual accounts. However, there are both pros and cons of maintaining these. You can in fact have both joint and individual accounts. You have already made the budget so just decide on what each one of you will be paying. The money can be easily shared and transferred as per the need. Now-a-days most of the things are done through online payments so there’s equal opportunity for both.
- Keep emergency fund and use it in emergencies only
If you both already maintain an emergency fund then well and good. You can pool your emergency funds together or keep them separately. Use it only in case of an emergency. But if you haven’t built it yet, give it a priority and start building it immediately. Contingencies can occur anytime and you need to be prepared for them. After estimating the monthly expenses, keep a good amount for emergency aside. You can save in proportion to your income (usually 15-20% of your income). It is advisable that you take a figure anywhere between 6 and 24 times of your monthly expenses and start saving it. You can save the way that best suits you.
ConclusionMoney needs to be handled tactfully in order to avoid any problem in future. But at the same time, don’t work too much in order to earn more. You will miss enjoying life. You need to understand the importance of work life balance and follow all the above mentioned things. Trust each other fully and make sincere effort to stick to your budget. Form good financial habits as a newlywed couple and take the help of a financial advisor. If you smartly handle your budget, expenses and investments, it would be quite easy to manage your money.