Managing Finances in a Marriage Successfully
Finances are an important consideration before and after marriage. Managing finances is essential for success in both your personal life as well as your professional life. You’ll want to be as open and transparent as you can with your spouse when managing finances in a marriage. This helps reduce the number of arguments you will have down the line. After all, money is the most common point of contention for couples, whether that’s before or after a marriage.
How to handle finances in a marriage
When you get married, it’s important to sit down and have a frank discussion about finances. This includes everything from discussing future goals, like starting a family or buying a home, to setting expectations about how income and expenses will be handled.
There are a few key strategies you can use to successfully manage your finances before and after marriage.
1. Creating a budget
You need to come up with a budget that will be strictly followed in your household. To make a budget, you’ll need to keep track of how much you spend in a month as well as how much you collectively make in a month. Then, you’ll want to assign certain amounts to be spent for categories like utilities, food, transportation, and wants. Make sure you add a buffer of around 5%. Follow this budget for one quarter then come back to it and reevaluate. Are there categories that need more or less money? Adjust accordingly until you come up with a budget that works for you!
2. Build an emergency fund
The pandemic has made it very clear to many people how important an emergency fund is. You could easily lose your job or your place of living without much warning. You could also go into debt and lose all of your savings because of one medical emergency. Give yourselves peace of mind knowing that you have a financial cushion for unexpected scenarios by building an emergency fund. Each month, try to contribute 10-15% of your salaries to your emergency fund until you build an amount worth 3-6 months of your salaries.
3. Invest wisely
It’s not enough to save money. If you want it to last, you’ll need to invest it in the proper vehicles. Look into putting your money into funds like money market funds or take out a family insurance policy. With these, you can grow your existing money or have financial assistance should anything happen to you or your spouse.
Benefits of Managing Finances Together
It’s important for married couples to know how to handle finances in a marriage. As mentioned earlier, it can help you avoid arguments about money. Additionally, it can help you reach your financial goals more easily, whether they are long-term goals like saving for retirement or short-term goals like buying a car. Working together can also help you feel more connected and build trust in your relationship.
Whether you are just starting out on your own or have been married for years, it’s important to take steps to manage your finances successfully. With the right strategies in place, you can build a solid financial foundation and work toward your goals as a couple.
If you need more help managing your finances, talk to a professional Financial Advisor or browse through more of our articles on InLife!
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