An important marriage vow married people solemnly promise is that they will cling to each other for richer or for poorer. However, this is much simpler said than done! Particularly, when financial problems arise. Undoubtedly, one of the most essential issues that need to be discussed when getting married is money management. However, it is also one major source of stress for newlyweds. The good news is that you can prevent issues on money stand in the way of your relationship. It is critical to be truthful with your spouse when talking about how to manage finances as a married couple. Multiple research studies have linked financial management differences to marital separation. Nevertheless, openness and honesty can solve these issues. The key is to engage in a discussion and set up guiding rules and principles for your financial affairs. This will establish the progression as well as provide money arrangements. Continue reading this article and find out about the different ways how to manage finances as a married couple.
Read also: 3 Reasons Why June is a Popular Month for Weddings
Check this comprehensive list of the different ways how to manage finances to ensure a harmonious financial life when married:
- Examine your current financial situation
The very first step toward a secure financial life is to assess your present financial state. It is essential to communicate openly and honestly with your spouse about these things. These conversations foster trust, and telling lies or refusing to release financial details can result in more severe issues down the line. Review every one of your personal financial means and commitments that will fall under asset, debt, investment, and account balance and align these with your spouse.
- Discuss financial planning and budgeting
Now that you have a transparent picture of your current financial condition, the next thing that you should discuss with your spouse is establishing a budget. Financial planning can be intimidating for a lot of newlywed couples. It really does not have to be that way since it is as simple as making comparisons of your personal and house expenses to your financial objectives and goals. You could even keep each other updated as well as provide each other assistance as you proceed through this technique together with your spouse. A financial plan can assist you in transforming your purchasing behavior, identifying any areas where you could cut costs, and developing a fund for savings.
There are various ways where you can experiment with making a spending plan spreadsheet such as using Microsoft Excel or Google Sheets. For those that opt for a traditional pen and paper technique, you may also utilize packets to classify each expenditure classification and budget for the entire week or month.
- Make a choice to either separate or merge finances
One of the most critical decisions a newlywed husband and wife must make is deciding whether to handle finances as a joint asset or as a separate asset. Married couples should know how to manage finances by choosing the best financial strategy that will work for both of them.
- Separate accounts
Separate bank accounts may be an excellent place to begin for many newlywed couples, particularly if they are used to controlling their own budget and have few shared expenditures. When newlywed couples start moving in together, there will almost certainly be a wage disparity, not to mention any liabilities that could be brought into the marriage. A separate accounting system can assist in the clarification of wealth gaps, loans, and possible future money management conflicts. But besides the benefit of individual freedom, separate accounts require more conversation with your spouse on who is fully accountable for what expenses. A few married people choose to divide expenses evenly, whereas other couples may be more inclined to pay relative to their income. A shared worksheet may be the most convenient method for monitoring spending, or a joint bank card may be favorable.
- Joint accounts
This option is probably the simplest in aspects of standardizing your financial management style as a married couple. Although, there are a few delicate factors to take into account. There is no need to modify a budget spreadsheet each month, no need to calculate income and wealth payment levels, and all family expenses are covered from the joint account. Finances can be regularly monitored using a worksheet or budget management technology application online or through mobile applications. Its convenience makes monitoring expenditure simple.
- A combination of separate and joint accounts
Opting for a separate and joint account can be complex, however for some newlyweds, it may be the best approach to managing finances. The principle behind this approach is that all earnings are deposited together into a joint account. Moreover, all investments, loans, and pension plans are managed jointly. Furthermore, each person has a personal current account in which a specific amount is moved per month.
Read also: Conjugal Properties: How do They work?
- Review different insurance plans
Regardless of whether you opt to maintain your finances separate or merge them, there are actions you must take to ensure your financial success. Another way how you can manage finances is to look for opportunities to start saving money, invest for the long term, and even safeguard yourself when married.
- If you have been seeking to make financial commitments that require two incomes, such as purchasing a home or starting a family, a life insurance policy can make a significant contribution to your share of the financial plan if you pass away.
- Purchasing insurance is an important part of being an adult, particularly when you get married. For instance, healthcare insurance may be more cost-effective through your spouse’s workplace plan, and you may be able to cut costs by consolidating your automobile insurance into one plan.
- Look into other investment options to keep your income growing. Choose life insurance, stocks, or mutual funds, which include an investment element.
- Investing in an estate plan is also a wise thought! This needs to have a testament that specifies asset inheritance and the care and protection of your children. A trust fund will provide you with more authority over inherited wealth monitoring and can lower or even abolish estate taxes if you have a larger estate.
Read also: Few Things to Know About Estate Tax
There is not a single or absolute greatest strategy on how to manage finances as a married couple. You and your spouse may not conform to a single approach to financial management. That is totally normal! Customize a strategy, integrate multiple procedures, or abandon them all to create your own approach to financial management. Once you have decided on a financial management strategy, do not be hesitant to play around with it. As partners, you must try a variety of techniques to find the ideal stability between your personal and shared funds. Measure the benefits and drawbacks of each strategy and choose the procedure that feels the most appropriate for both of your needs. If you and your husband or wife can agree on financial matters, you are gearing yourselves up for a prosperous relationship and a stable financial life!
BRIA Homes is the best place to look into if you want to purchase your own affordable house and lot to start your own family. BRIA Homes primes itself on developing affordable house and lot packages and easy-on-the-pocket condominium units that cater to ordinary Filipino families who aspire to acquire their own homes. It had become the perfect choice for average Filipino workers who wanted to invest in a high-quality and affordable home. Visit www.bria.com.ph to reserve your very own BRIA property today!
Written by MC Sanchez
