How a couple manages their finances is a relationship mine. When both husband and wife are earning there are major financial decisions to make about their money management and financial union. It affects not only what they save, spend and invest but also what their financial anxieties are, what they argue about and even how happy they are in their relationships. Money and marriage tips about handling finances is what we are going to discuss in this article.
How you deal with finances in a marriage goes a long way in how you ensure future happiness. According to a survey money matters are the number one reason couples quarrel and one of the primary reasons of divorce. This may seem like a grim prognosis for married couples, but money fights in a marriage are inevitable however no matter what there should be a complete financial disclosure. Married couples should try different ways of money management to see which suits them.
A majority of the couples have a joint account and operate like “ours”. A small percentage of couples have separate accounts and operate as yours and mine. A third percentage has both a joint account and separate accounts and operate are yours, mine and ours.
What is the best way for married couples to handle finances? Approach family finances as if you were running a business. If you put a business metaphor into the picture, you’d be surprised how much more methodical people are. Try our money and marriage tips and you will not regret it.
12 Ways To Sort Out Finances In A Marriage
Money shouldn’t plague your relationship all the time. You just need to take some sensible steps and work out the finances in a marriage.Sharing expenses in a marriage should be the most normal thing and shouldn’t become the bone of contention. We list 12 things that you can do to sort out your money, invest it and be happy together. To bring in financial harmony follow or simple money and marriage tips.
1. Understand your partner’s money mind-set
Instead of fighting over money issues be verbal about it. One partner will always be interested in money matters so let that person take charge of spending and saving but the decision has to be joint. It is also essential that both partners have knowledge of family finances.
The woman shouldn’t be in the dark with finances as typically women outlive men.
2.Have a definite budget for spending and saving
It is easy to handle money issues in a marriage if there is a definite budget for spending and saving. This budget should be agreed upon by both. It may be tedious initially but in the long run, it has a lot of benefits.
3. Play to your combined strength
What is the best way for married couples to handle finances? If you are banking on money and marriage tips then when it comes to money management joint effort and decisions are better than playing single.
Couples can start with a proportionate financial contribution to their co-mingling financial plans.
This means that each partner will contribute proportionately to their earning. This is a fair way of keeping respect intact and allowing financial space with a financial middle ground.
4. Follow an equal contribution method
Equally, contribute to home finances. In this method, both the partners contribute the same amount irrespective of their earnings. In this case, the lesser earning partner might feel overly burdened in that case you could put the responsibility of saving on the lesser earning member. This is a great way to manage your finances better in your marriage.
Related Reading: 12 Tips For Married Couples To Split Finances
5. It’s better to emphasize on the team
Emphasize on the team and don’t keep individual scores on who did better planning. The couple can also follow a complete co-mingling plan where everything is merged irrespective of the amount earned by each. This calls for a joint account, joint debit/credit cards and both listed on investment plans. This helps to avoid fights over money matters.
6. It’s a way to show you care
Women who are financially contributing also have a bigger responsibility towards that contribution. It is also a way of caring you have a financial responsibility towards one another. That’s being mindful that all that is earned is not one’s own.
7. Bigger spending should be a joint decision
Many couples have money fights over bigger spending issues. Keep your bigger spending on a check as a joint decision but each can have freedom on the smaller spending. There should not be constant bickering over smaller spending.
Related Reading: Does It Help To Talk About Mutual Finances Before Marriage?
8. Discuss your demons
Talk openly about debts and decide what is bad debt and how you want to tackle it. Sometimes people get into a marriage with a debt. This debt could stem from an extravagant wedding, a student loan or a senseless credit card spend. You should sit down together and decide how you want to tackle the debt.
Debts are things that affect a marriage adversely. If you don’t put an end to it then it will keep plaguing your marriage constantly.
It could be the interest in a personal loan you had taken or overspending on a car loan. You need to tackle the debt as quickly as possible so that it does not build up any further. For that if you have to function in a strict budget for some time then so be it.
9. Investment risks should be discussed
Men are bigger risk-takers when it comes to investment but this risky decision has to be made on your investment goals and the time frame attached to each. You need to discuss this before you take a decision. Women are also sensible about money and they are more careful at times so bringing their views to the table could help. This is one of the most important aspect of our money and marriage tips.
10. Don’t keep financial secrets
How to manage finances in a marriage? Don’t keep secrets around money. Quite often one spouse would think that what the other partner doesn’t know won’t hurt, but remember big financial secrets could break the marriage. A financial secret leads to marital mayhem and sets your divorce on the fast track. Nobody should be micromanaged and expected to disclose every minute purchase but financial secrets are toxic in a relationship.
If you are paying heed to our money and marriage tips then this is one tip you should absolutely keep in mind.
Have an emergency fund in place no matter how financially sound you are, to avoid unexpected panicking. Try not to touch it.
There is no question of borrowing from that fund and filling it up again. If you do that it becomes a habit and in the long run you will be only borrowing from it.
12. Have true financial independence
Make sure to have financial space because having to disclose a purchase to the spouse and then defend the purchase can seem emotionally taxing and restrictive. There should be freedom to spend on trivia.
You can’t always play by the rule. If there are financial hijacks then come to the table together and talk about it again. Keep control in check and treat your partner like you want him/her to treat you.