Newly Weds Money Management Tips Managing your money can be a real challenging when you get married because incorporating your spouse’s finances can be overwhelming. You and your spouse will have to learn how to manage your money together to achieve your financial goals. This is a process that should not be rush and or neglected but you should take plenty of time to work at it and review your progress over time. I strongly recommend following these nine steps so you and your spouse can easily get accustomed to healthy financial habits.
Newly Weds Money Management Tips 1.Talk About Finances You can start by talking about what accounts and how much debt they have. It is best to do this before you get married, but if you have not, discuss finances with your new spouse as soon as possible. You’ll also want to be clear on how you expect money to be handled.
Newly Weds Money Management Tips 2. Make A List of Goals Once you both know your financial status, discuss your long-term financial goals in- depth. For example, Do you want to get out of debt and become a millionaire? Do you plan to retire at a certain age? Do you plan to start a business?
Newly Weds Money Management Tips 3. Discuss Bank Accounts There are both pros and cons to opening a joint bank account or to maintaining your individual accounts after you’re married. You can even do both. Combining accounts can simplify your finances and may help breed trust in a marriage. Moreover, it may be especially valuable when one spouse chooses to take on more household or child-rearing duties than the other and as a result there is inequality in income.
Newly Weds Money Management Tips 4. Build An Emergency Funds An emergency fund is money that is set aside in case of an unexpected expense, such as a lost job, illness or natural disasters. If you don’t have an emergency fund already consider making it a priority. You could set a goal to save 6 months worth of your household expenses. Building an emergency fund brings some financial protection and security when disaster strikes.
Newly Weds Money Management Tips 5. Design a Budget Creating a budget will help you live with your means each month. A Budget will help you identify and categories where you spend your money each moth and set limits on how much you will spend in certain months.
Newly Weds Money Management Tips 6. Review Your Budget It is not enough to just make a budget. You need to make sure you stay within your spending allotments and adjust accordingly as your situation, or income changes.
Newly Weds Money Management Tips 7. Weekly Budget Review You could schedule a weekly money meeting to help you keep track of your progress. During the meeting you could discuss how your budget looks for the month, if you have any upcoming bills to pay, opportunities for income, how you are doing with your financial goals and anything else money related. This is also a great opportunity to strengthen communication in your marriage.
Newly Weds Money Management Tips 8. Develop a Retirement Savings Plan This forms part of your long-term financial goals. If you are married or not you should save for retirement. A retirement fund can provide financial security and protection when you are retired and need to maintain your standard of living whether you are married or not. As a couple you could consult a financial consultant to assist you in formulating a retirement savings plan.
Newly Weds Money Management Tips 9. Make a Debt Management Plan Work out a plan together to get out of debt. Incorporate a payment plan in your budget to reduce & eliminate all debts. Make a goal as a couple to be debt free at some point of time in your life. Learn more tips here.
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