Managing money as an individual is one thing, and managing it as a couple is another. After marriage, you and your partner have the right over each other and each other’s belongings, but money is handled differently. One of the leading causes of arguments among couples is money.
When you are living in bachelorhood or spinsterhood, you can spend your money how you want. Still, when you are married, you are responsible for accounting for the money you have spent, especially that was in your joint account. Communication is the key to solving these problems, but you need to look at many things to handle your money efficiently.
Open a joint bank account
It is vital to open a joint account as soon as you get married, as you will have an idea of what is going on financially. There are many expenses like TV subscriptions, utility bills, building maintenance, rent, and mortgage payments that you both are responsible for covering.
You can transfer a particular chunk of your income to a joint account, so neither of you feels that your partner does not share ordinary expenses. However, it is likely that one of you earns little money that you cannot contribute the same amount as your partner to the joint account. You will have to figure out how much your budget allows for it.
Have a separate account
Because you have a joint account, it does not point out that you should not have an individual account. You will need money for many expenses like travelling from and to the office, personal shopping, hanging out with friends, etc. You should have some money in your individual account for these expenses. There is no need to account to your partner for such expenses, provided you do not overspend and end up seeking help from your spouse.
Though you are entirely responsible for your money, you still cannot altogether avoid it by accounting for it to your partner. The decision you take will affect your spouse’s finances as well. For instance, if you decide to take out small payday loans in Ireland, you should be sure about your repaying capacity.
However, you should also figure out that you will bounce back after paying back the loan. Most of the time, your budget gets hurt, and then you turn to your significant other to take help. Complications arise when this help hurts their finances too. In order to prevent your household budget from collapsing, you should not fight shy of asking for help.
For instance, you should discuss with your partner why you are taking out a loan at least once. Do not hesitate to admit if it is the result of your mistake. It is imperative to be transparent and honest with your partner to handle your finances in a more organized way. If you are finding problems with managing your money, you should sit back and talk to your partner. Try to come up with a common strategy so you overcome your financial problems.
Set goals together
You will have to set financial goals to ensure that you are going in a specific direction. Most couples struggle with money management as they are not on the same page, and you both should agree on a particular decision. Sit together and work on your financial goals.
For instance, if you are looking to buy a car or a house, you will need to set aside money to arrange the down payment. You should decide how much contribution you both would be able to make. If your spouse does not agree with your decision, try to understand their suspicions instead of just arguing with them. It is very tough to take financial decisions, and it is tougher to accomplish them. You both need to do financial planning with due diligence.
Be willing to make adjustments.
In order to successfully manage money as a couple, you will have to be willing to make adjustments. You both may have a different perception of money, and you need to understand and respect each other’s spending behaviour. If you are prodigal and your partner is frugal, you should try to work on your habits.
Try to control your spending so you manage to set aside as much money as possible. Similarly, if your partner is a spendthrift, you should try to help them manage money in better and smarter ways.
Your spouse may be working on cutting back on their expenses but yet may not be able to be as frugal as you are. In this case, you need to understand that they cannot be you. Your partner should sit down and discuss priorities and what you both can do to achieve financial goals.
Create a joint budget
You do not need to be afraid of budgeting as it is just a spending plan. This will tell you about your monthly spending, including both essential and discretionary expenses.
Once you have an idea of your spending, you can find ways to strengthen your budget. If your partner does not like manual budgeting, ask them to download a budgeting app. All expenses will be in one place, so you know each other’s monthly spending.
The bottom line
Handling money after marriage seems to be daunting. As a couple, your both have a different attitude toward money, and it is paramount to understand this fact at the time of financial planning. Money management can be more difficult when you are married, but with due diligence and the right strategy, you both can be on the same page.
Try to have a joint bank account so all common expenses can be met from that account. Use your individual account to meet your personal expenses. Create a joint budget, so you know that each other’s spending is not going to affect your financial footing. Make adjustments so you do not struggle with money.