Struggling to Managing Money As a Couple? Do Not Fret As We Have Got the Right Guide for You

When you get married, one of the challenges you will need to face is managing your finances. Managing money as a couple is vital to keep your union happy, satisfying, and long-lasting.

If you are one of the newlyweds and are discussing how to manage your finances as a couple, you may find these five tips below a useful guide.

Why Money Matters In Love?

Money seems like a sore topic among lovers. People tend to believe that bringing money into a love equation generally leads to problems and fights. However, that is not the truth. 

Money is a very important subject and needs to be studied in detail. In fact, couples should have a serious conversation regarding finances to avoid any sort of confusion. 

Yes, the conversation would not be an easy one. However, it will help you establish some rules and regulations that can help you manage your finances as a couple.

Not only that, but it will also help you understand the areas of concern that need special work and the regime that you need to follow. 

Brief Account on Managing Your Finances as a Couple

We have already discussed why managing your finances as a couple is an important and necessary practice. However, young couples seem to have a dearth of ideas regarding managing their finances.

Therefore, we have taken some time to create a small list that highlights the points that one needs to understand managing money as a couple effectively. 

Then again, you must remember that every couple has their own priorities. Therefore, do not follow this section blindly. Instead, use this article as a framework and proceed with your own version. 

1. Open a Joint Account

If you’ve decided to combine your finances, the best way to do it right is to open a joint account in your trusted bank. This way, you can put your savings in one account and stick to your agreed budget.

You should also ensure that your money goes into one account and comes out of one. You and your spouse should discuss your joint savings to do this successfully. It’s also where you should bring up a reasonable budget for both of you.

Both of you should fulfill the budget you set. This budget should already cover your expenses, including utility bills, housing expenses, and groceries. By doing so, you can have a transparent finance flow that both of you can easily grasp. If you still don’t know where to start, you can search online and look at the best budget for couples.

2. Each Spouse Should Have Fun Money

Combining your finances can be an excellent way to save for your future or for something you want to purchase as a couple quickly. However, it’d be best never to deprive yourself of having fun. It’s vital that you also allocate a specific amount for recreational activities.

You can opt to open a separate checking account where you can put your fun money. Having your respective fun money will ensure you’re not deprived of the fun you can have. It’ll also be best to set a fun money budget according to your means.

Once you’ve exhausted your fun money for the month, it means that you’ll need to wait for the next month for your fund to be replenished. Therefore, you must spend wisely by only buying what you truly want.

3. Split Expenses 50/50

Since you already live together and many expenses are already shared, you should always split the expenses 50/50. You should talk together and agree on the amount you will contribute to expenses like housing, groceries, bills, vacation, date nights, etc.

Equally splitting the expenses will make it easier to pay and not create any issue between you and your spouse. Money is one of the most common reasons why couples fight. So, both of you should have equal responsibility for finances.

Managing money as a couple or dividing your financial responsibility this way will help you become fair to one another. However, if one spouse earns more than the other, it can strain the other partner. Also, equally splitting the expenses will also affect huge purchases in the future, like buying properties.

Always update your agreement, especially if you have new expenses, especially big ones, because you need to consider if the other person can afford it.

4. Have a Separate Account

Just because you decide to combine your finances doesn’t mean that you’ll lose the right to have a bank account of your own.

It’d be best to remember that even though you’re married, you’re still two separate human beings. So, when managing your finances as a couple, you should always remember to let the other partner have their account.

You should only have one joint savings account. Other accounts should be under your separate name.

It’ll give you a sense of freedom and responsibility for your own money. You’ll never have to rely on your partner even though you’re married.

If you want to manage your finances as a couple effectively, you should still have separate bank accounts.

5. Save for Unexpected Events

There are things that we can’t control. Sometimes unforeseen events happen, such as a health emergency, house damage, or car repair.

The only thing you can do about it saves money that you can use for such occurrences. You and your partner should discuss how many portions of your salaries should go into this account.

You can consider allocating 10% of your income and 10% of your partner’s income for unforeseen events.

This way, you can feel secure that whatever happens, you’re covered. In addition to saving money for such an event, you might also want to acquire insurance. It can help you with unexpected expenses that come your way.

To Sum It Up

These tips will help you manage your finances as a couple without losing the right to your own money. If you’re discussing your finances, following these tips provided is the best way to go.

Finances are a very important part of a serious relationship. Therefore, if you are bad at managing money as a couple, you will face serious relationship problems. Therefore, ask uncomfortable questions and make joint financial decisions.

Additional Reading:

• Multi Asset Investing: How It Saves Your Future?
• 5 Tips for Managing Your Finances as a Small Business
• How Payday Loans Impact Your Finances: Managing And Repaying Responsibly