Getting married is one of the most eventful things many people will do in their lives. And along with all the excitement of being newlyweds comes the reality of having to share your finances. Money issues are among the top things that married couples fight about, which is why it’s important for newly married couples to work on financial planning. Here are some tips about what to focus on.
Set a budget
One of the most important things newly married couples can do is to sit down and formulate a monthly budget. Partners often have very different spending habits, so setting a budget sets guidelines and puts compromises down on paper. You should list all necessary expenses as well as discretionary spending and also look for places where it makes sense to consolidate. For example, if you have separate gym memberships, it might make sense for you to both join the same gym.
Decide on checking and savings accounts
Most married couples tend to pool their finances in joint accounts such as checking and savings, but some prefer to keep those accounts separate. One possible solution might be to have a joint account for things such as rent and other necessities and then keep separate accounts for discretionary spending.
Identify priorities
It’s often assumed that people get married with the aim of having children, but that’s not always the case. While children might be a priority for a newlywed couple, they may not want to start a family for a few years. It’s important to quickly identify what each partner’s main financial priorities are and find areas of agreement or compromise. For example, you might rank priorities such as saving for a home first, financially preparing for a family, second, and saving for retirement, third.
Layout tasks, expectations
Even if a couple decides to essentially consolidate all their finances and make joint decisions on everything, there still is the task of carrying out those decisions and who will do that. For example, will the couple split up the bill-paying duties or will they fall to one person for consistency’s sake? Will both spouses be responsible for balancing the books or will one take on the task with assistance from the other?
Solve points of conflict
Even two spouses who are very similar in their views on finances aren’t going to agree on everything, so it’s important to identify points of conflict and how to deal with them. For example, one spouse might be debt-averse while the other has no trouble borrowing for a car or some other large purchase. If one spouse earns significantly more than the other, that also could be a point of conflict when it comes to spending. A key to making newlywed finances run smoothly is to identify these conflicts early on and work out ways to deal with them.
There are a lot of serious issues that can sink a marriage, but finances shouldn’t be one of them. Communication and willingness to compromise are among the key factors that should be included for newlyweds to have success in financial planning. To approach your financial planning, give Eastex CU a call.
