The following is a guest post from James Paul at BasicFinanceCare.com. Enjoy:
Ever heard of financial infidelity? If you haven’t, then you must know that financial infidelity is one of the main reasons why most marriages turn unsuccessful. And especially for newly-married couples, it becomes a daunting task to understanding each other’s financial habits and behaviors and you definitely don’t require a heated up argument with your spouse right at the beginning of your marriage.
This concludes that just like students and teenagers, even grownups like newly-married couples really need to understand financial management. You cannot have a ‘This is mine’ and ‘That’s yours’ attitude with your spouse. Instead, what is required is an understandable and intellectual relationship that can help you both manage your dailyfinances and expenses in a better way.
Without much ado, the following are some essential finance tips for newlyweds that have proven more than effective (even resulted in extremely successful marriages, perhaps!). If you have recently got married and are lost with the financial aspects of not one but two people now, then you really need to go through the following guidelines and understand the dire need to manage your finance on a regular basis.
#1.Understand the other person
Because you have very recently been hitched with your partner, you need to understand the mentality and attitude of the other toward financial aspects. This is the true beginning to joining hands and agreeing to help each other in managing finances for a better future for your family. Talk about your financial goals, habits or memories that you may have, and how strongly do you both actually feel about securing your financial positions. This will help you with a run-through on the type of financial setup that you both need.
#2.Eye on the numbers
Get your financial documents into play and discuss every number openly with each other. Whatever it may be – your assets, savings, real estate, collectibles, retirement accounts, mortgages, credit card debts, good or bad debts, practically anything that can clearly open your financial status to the other person. Again, do not hide and avoid financial infidelity. Reveal your incomes and financial documents to really understand what is required and redundant on an immediate basis.
#3.Set financial goals
After both financial sides have been more or less revealed for the betterment, start lining up your future plans and set financial goals with your partner accordingly. These goals could revolve around anything – right from down payments for a personal vehicle to securing your children’s education. Discuss with your spouse and create year-plans that can help you both make wiser financial decisions. You could also consult an expert in case you find yourself too downtrodden with planning anything at all. Space out your time and divide your money amongst debts, savings, retirements plans, etc.
#4.Stick to a budget
If your spouse and you are both earners and bringing income back home, it is better that both of you set a budget for your monthly expenses with your partner. This would primarily be to help you manage essential or day-to-day costs such as housing, transportation, utilities, groceries, gym, shopping, entertainment, dine-outs, and more. Planning more on these essential costs will definitely help you create a stable financial position in the future, which is more like save today for a better tomorrow!
#5.Setup your accounts
To head off any fights over useless or excessive spending, decide on the type of accounts that you can open. This is actually considered to be a very important finance tips for newlyweds and to which you must pay high attention to. You can either opt for joint accounts, a combination of joint and separate accounts, or totally different/separateaccounts for your spouse and you. While most couples choose any one of the first two options, you can go with the third choice in case of a bad marriage, spate financial or spending habits, and bad debts and credit.
#6.Set a threshold for big expenses
To avoid further serious arguments on money, set a threshold or a limit to how much you can spend on bigger assets and other valuable investments, for example – a house or a car. It is best to have a conversation with your better half before you go ahead with making either a very profitable or risky personal investment.
#7.Set the extent of lending a hand
In very personal situations, such as lending money to a friend or family member must always be discussed and limited with your partner. Keep these types of situations clearly discussed and non-conflicted. Have a conversation, discuss your financial position, and decide the amount of financial help you can extend to someone close to you, depending on the frequency and severity of situations.
It goes without mentioning that financial management is also the key to a happy and satisfied marriage. These finance tips for newlyweds like you will keep things crystal clear between your partner and you, therefore, create a better level of understanding, partnership, and relationship needed to sustain a good financial position in the coming years.
James Paul is a full time finance blogger and creative writer. He started his own personal finance blog in back 2009 and then has been a regular contributor for many online publications.Follow me on the social medias: