7 Resourceful Financial Tips for Newly Married Couples
Financial planning is as important as planning a honeymoon, i.e., the initial steps have to be right to keep everything steady. Not planning ahead can lead to stress and financial burden, especially during unexpected situations.
The right time to set your financial goals straight is when you are engaged. However, many couples, if not all, overlook the importance of financial planning.
Read through this guide for 7 resourceful financial tips for newly married couples.
1. Be Honest with Each Other
Most financial problems occur due to hiding matters from each other. The issue could be anything – from past debts to spending unnecessarily. It is fine to have different bank accounts or different credit cards, but it is not good to hide anything related to finances. After all, you both have vowed to stay true to each other, so why hide? In fact, both of you should be aware of your financial situation at all times.
So whether it is an impulsive purchase or a long-time financial support for one’s parents, it is necessary, to be honest with each other regarding your finances.
2. Create a Budget
Most couples do not even think of a budget during the initial weeks or months following their wedding. The budget comes into the picture only after few months or even after a year only when financial problems crop up. It is common for both spouses to not worry about spending during the first year of marriage.
However, it is vital to create a realistic budget within the first month of your marriage if you haven’t done it already. Sit down with your spouse and make a budget based on your income and expenses. Stick to that budget to avoid unnecessary financial burden later.
3. Have Similar Financial Goals
A common issue that could lead to financial ruin is either not having financial goals or having different ones. Different goals especially financial goals mean no mutual effort or achievement in a marriage. Sit down and note all your future goals. It could be climbing up the corporate ladder or investing in the stock market or buying a house. All you need to do is prepare and plan ahead for these goals.
Decide how much to save either for a future house or a child’s education. Analyse your incomes to identify who can contribute how much to achieve your financial goals. Sharing mutual goals and working on achieving them together will not only prevent financial problems in the future but also help strengthen your marriage.
4. Start an Emergency Fund
An emergency fund is necessary for everyone, especially for married couples. You never know what can happen later in your life. Any critical event will be really hard and stressful for you, and financial burden on top of it will make it worse.
Start an emergency fund right now. As you create a budget and discuss your financial goals, also discuss an emergency fund. If both of you are working, both can contribute to the fund. In other cases, the earning spouse can contribute whereas the other spouse can maintain it and use it for emergency situations.
5. Plan for Retirement
It may seem ironic to plan for retirement when you are newly married. But just as planning for emergencies or a budget is important so is your retirement fund. If you plan for it, you need not worry about it when you are no longer able to earn as much as you can now.
Planning for retirement will ensure financial stability without depending on anyone later. Since many employers offer plans that allow you to contribute to your retirement, choose that option. If both of you are working, you can take up similar plans with your respective employers. Discuss your contribution to your retirement with each other.
Sharing responsibilities will help you both contribute to a successful marriage. When you are honest about your financial issues with each other, it is easy to share responsibilities.
If one has debt, then both can work towards clearing that debt. If one wants to invest, the other spouse can manage expenses to maintain a balance in marriage. If you earn profits, both of you can enjoy, if it’s a loss, then it’s a lesson for both. You can discuss with your spouse beforehand to divide or share any financial responsibilities.
7. Work as a Team
Teamwork is quite essential in a marriage. Though it is easy to work as a team during the first few years of your marriage, what really counts is maintaining that teamwork for the rest of your lives.
If you are planning to start a family, you can decide on who would earn and who would take care of your children. If both of you are planning to work, then sit and discuss how to raise your children.
The idea is not to lead individual lives but to work together for a better future. This includes financial stuff as well as other aspects of your marriage. Being united and working together will make your relationship stronger as well as help you avoid any financial problems later in life.
Over To You
Be Financially Smart in Your Marriage
You may wonder why a newly married couple would need financial tips? Though the Eagles have said “love will keep us alive”, but the truth is quite different. The most common problem in a marriage is managing the finances. So, it is important to make your money work properly. Stand by each other, put your money to work in the best investment vehicles, earn returns, build your wealth, and enjoy a happy married life!
Author Bio: I am Aysha a freelance content writer. I have written on a variety of topics especially related to finance. I have contributed articles to many international financial websites. In my free time, I catch up on world events and enjoy the company of my cat.