Getting Married: Planning Your Finances Together
Working On Your New Financial Life Together
One of the most important parts of a marriage is knowing how to manage your money together.
Differing attitudes towards money can pose challenges to a relationship. For example, what seems sensible and prudent to you may seem stingy to him or her. If you are used to lavishing each other with extravagant gifts, you might no longer find this desirable or sensible once you get married and have bills to pay.
Planning ahead together can help you build a strong foundation for your marriage.
What You Should Do
Here are some tips for you:
1. Learn Each Other's Spending Habits
Find out each other's style of managing money, and adapt to each other. If your partner is a spender, agree on some limits. Make your expectations clear and find some common ground.
2. Draw Up A Budget Together
Make extra effort to draw up a joint budget. This will help you track how your salaries are being spent, and find ways to improve your finances.
3. Share Expenses And Save For Common Goals
Find a way to share your household expenses and save for your emergency funds and retirement.
Agree on each person’s contribution, it may be in proportion to the income. For example, one person could be servicing the home loan while the other could be paying the bills.
4. Set Goals And Work Towards Them
After setting your financial goals, take responsibility to live within your means. You might be a young couple now starting out with promising careers, but one day you may stop working when kids come along, or to take care of elderly parents. Expenses will also go up as your family grows. So do plan and save up early.
5. Avoid Impulse Spending Or Borrowing
Do not make large financial commitments on your own or on impulse. Instead, discuss them with your spouse first.
6. Sort Out The Important Things First
As you move on to the next stage of life, it's also time to review your health and life insurance.
