Marriage can be the ultimate expression of love between two people. However, financial problems are serious obstacles that can test the bonds of marriage. From losing a job to overspending, money conflicts are one of the leading causes of divorce. Check out the following advice to avoid these financial woes to keep the marriage running smoothly.
Be Honest About Your Money
Be completely honest about your money to build trust in a marriage. Hiding receipts, checking accounts, savings accounts, credit cards, or other debts from your significant other may create worse problems as your spouse begins to wonder what else you are hiding.
Plan a Budget Together
Budget planning is tedious, yet it can solve many uncertainties when it comes to tracking cash flow in a marriage. A budget will allow the couple to know exactly how much to set aside for reoccurring bills, one-time expenses, food and transportation costs, long-term debts, and savings. You and your spouse should develop a new budget and review it each month to see if there are any places where you can save more money.
Create Mutual Financial Goals
There are several money goals that each person will have. You may have a goal to save $50 per week to pay for a vacation, while your spouse may want to place $100 a month into an account to purchase a new car. Both of you should sit down and write out a list of financial goals. Decide on the goals you both can agree to, and then develop realistic strategies on how to reach these goals. Don't be afraid to revisit your plans and adjust them based on changes in income and lifestyle.
Establish a Savings for Emergencies & Retirement
Whether the problem is your car breaking down or it is your dream to purchase a cottage by the lake after retirement, you should have a savings established for emergencies as well as a plan for retirement. Starting early with these two tasks will give you and your spouse time to build up wealth when having larger, steady incomes.
When creating an emergency fund, plan to have at least 6 months’ worth of savings that can be tapped into to pay rent/mortgage and daily expenses. For retirement planning, you should try to save from 10% up to 15% of your income, starting as early as possible.
Set Rules that Reflect Spending/Saving Styles
Every person has their own saving and spending style. Some people will dig for change between the cushions to place in a mason jar while others can't pass by their morning cup of coffee on the way to work. Understanding your spouse's financial preferences prevents money arguments. It also gives your spouse breathing room to spend their hard-earned money on the smaller items that don't need to be discussed each month. Instead, set rules that fairly reflect each person's money management preferences and goals.
Have Separate Accounts & One Joint Account
If money arguments erupt on a daily basis, it may be best to simply have separate accounts. A couple can then place a set amount of funds into a joint account that is strictly to pay for bills. Each person can do what they want with their own money while keeping the household in great shape.
Your finances shouldn't break up your marriage. Use the above topics to develop sound money management tactics with your spouse.
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