Starting a new life as newly married couples means combining your world with your partner and finance is also a part of it. Talking about finances may not sound most romantic but it is an important discussion to have. Even though you have spent time together before getting married, how you handle money will change once you become a legal partner. This article describes the importance of financial planning for newly married couples.
Financial Planning For Newly Married Couples
These money talks may seem awkward at first but doing so will enhance your communication skills and avert any misunderstanding related to money in the future. So, you shouldn’t let money matter put a bad effect on your big day. Here are a few advices to keep your finance in order after you get married.
Make a Budget
Once you get married and start living together, you will have to make a monthly household budget as a couple. First, check your monthly income. Next, make a list of compulsory expenses such as monthly bills, insurance, entertainment, loans like text loans from direct lenders, debts, etc. Once you finished making the list, remove unnecessary expenses if any.
A budget gives you a better understanding of how much you have to earn and helps in tackling debts and avoiding overspending.
Open a Separate or Joint Bank Account
Many couples find it difficult whether or not they will have a separate or joint account. It has both pro and cons.
In the case of a separate bank account, you have to give special attention to budgeting and dividing bills between both of you. Otherwise, everything will go on as usual.
But if you have a shared account which means both of you can access and contribute to one bank account. This makes things easier when it comes to paying bills or making any purchase. Furthermore, it is easy to keep track of expenses when you are working with a single account.
Make an Emergency Fund
An emergency fund is very important after marriage. This is a great way to keep aside some cash for the future’s emergency. For example, if you lose your job, sudden medical emergency, car repair, etc.
You can open a saving account in both of your names and can contribute some amount every month. It will slowly grow over time and can help you immensely if any emergency comes.
Honesty about Your Debt Situation
Honesty is the basis of any relationship. It can be in any form and financial honesty is one among them. You should not exaggerate your earnings or your debt situation.
Many people find it shameful to have some kind of debt but the fact is that everyone has debt at some or other point in their life. This can be anything like a student loan, car loan, home loan, etc. Whatever is the condition, you should let your partner know about it.
The possibility is that your partner can help you to come out of your debt. Hence, don’t feel embarrassed to share your debt details with your partner.
Don’t Conceal Your Spending Habits
A recently conducted survey has revealed that the major reason behind conflicts between married couples is overspending. It can increase your debt, cause distrust between couples, and shows disrespect within the marriage. So, it is better to avoid these relationship issues by communicating your spending habit with your partner.
It is important to review your financial situation from time to time. It makes it sure that you are staying true to your monthly budget. Hence, it becomes really necessary that you discuss your financial situation with your partner.
Retirement is crucial for all of us. And to plan it early in our life is very essential. This is the time where you can have a relaxed time free from all worries and get some quality time with your partner.
You can plan for retirement by keeping some money into a saving account or by investing in some retirement schemes.
Hence, we can conclude that some of the best advices for last longing marriages could be honest about your debt, earnings, and budgeting. Financial planning for newly married couples is a tricky topic but it is necessary to talk about it with your partner on a regular basis.