Personal Finance Tips for Newlyweds
Uncommon among newlyweds is failing to create a budget. Although this can be intimidating, creating one will help both of you understand your expenses and how much savings should be set aside each month.
Discuss your differing viewpoints on money management, whether or not to merge bank accounts, and set short and long-term financial goals together.
1. Make a Budget
Early in your marriage, it is wise to create a financial plan and budget. Include both individual expenses such as utilities and groceries as well as shared ones like household maintenance in this plan, plus your joint ones like debt repayment and savings goals in it.
Some couples may decide to exclude personal expenses or debt from their joint budget, but this decision must be made independently by both partners. By keeping track of incomes and expenditures, having an accurate understanding can help prevent financial conflicts down the line.
Open discussions regarding your money management habits and goals will enable you to better assess whether combining bank accounts or budgets may be necessary. Furthermore, setting a monthly meeting date to review budget plans together should also be scheduled.
2. Set Goals
No matter whether or not your finances were already separate before marriage, setting goals together for your finances can help both of you keep on track financially. These may include long-term plans such as saving for retirement or paying down debt; or shorter-term ones like setting aside money each month for emergencies or vacations.
Goals you set with your partner should always be agreed upon and measurable; in this instance, honesty pays dividends.
3. Save Money
As newlyweds, you should establish a savings plan together – from short-term goals like buying a house or retirement. A joint account can help make this easier each month.
Integrity and honesty should also be applied when discussing each person’s financial status and habits, including current debt loads and spending habits. A course like Financial Peace University (now part of Ramsey+ exclusive programs) might help you learn how best to discuss money matters with your spouse.
Some couples opt to merge their finances while others find it more beneficial to manage individual accounts separately. No matter your choice, clear communication about budgeting and goals is vital for a fulfilling marriage relationship.
4. Pay Off Debt
Kiplinger recently conducted a study that indicates newlyweds who pay down their debts experience greater marital happiness. This may require making temporary lifestyle adjustments like cutting cable TV or forgoing the morning latte.
Discuss and set financial goals together and devise a plan to reduce debt. Debt snowball or avalanche techniques may prove helpful as you strive to reduce wedding-related debt.
An agreement on your approaches to money management and setting goals together will help prevent long-term conflicts over finances, as well as meeting individual and shared life goals. Begin these discussions now by reviewing separate or joint accounts, spending habits, and investing strategies.
5. Invest
Although love may be enough, new couples often struggle to find common ground when discussing budgeting, debt repayment strategies, and who ordered what quantity of DoorDash last month. Devoting time and energy toward solving financial matters early can help newlyweds avoid future stress while reaching their goals with peace of mind.
Tip – Discuss Money Quirks
As both partners bring engrained money habits into a marriage, it is vital that both partners engage in open and nonjudgmental discussions regarding these habits. Learn each other’s spending tendencies and work together on creating good financial habits that suit individual strengths; for instance if one partner prefers investing in real estate while the other prefers living a more flexible lifestyle you could divide responsibilities accordingly.
