Handling finance is not at all easy, especially when you are married. There will be numerous money related challenges that a person has to face when he/she is in a relationship. From merging all the joint account to splitting the bills, various decisions have to be made mutually which often leads to strife among the couple. Well, it is important to realise that the financial decision of one will affect another automatically, so an open discussion over money is really important between the couple.
As a couple, you two have to work together in order to attain financial stability in life and take strategic footsteps in securing your future. If you are newly married, then the first step that you need to take is to know each other financial conditions. After that, as the relationship grows, both of you will have to take further steps. To help you with that, we have prepared a list of useful tips and suggestions that could help you in managing your finance as a couple. So, let us get started.
Now you are married, you will have to take financial decision by discussing with your partner and know his/her opinion as well. Be open and honest during the discussion and decide what goals you have in your mind individual and as a family both. After marriage, buying a home, car or going on a trip is something very common that most couple decides. So, prepare a plan to reach whatever goals you have in your mind and figure out the right strategy to save the needed money. Decide mutually whether you should be going for long-term loans to fulfil your dream or wait to buy it from your savings. Prepare a list of goals that you both want to achieve together and then start prioritising which one to target first. Well, it is also obvious that your partner might have his/her own personal financial goal. So in that case, you have to appreciate your partner and show your full support.
Another important step that you need to take after marriage is to prepare a budget that will guide both of you to handle their expenses in a better way. If both the partners are earning, then it becomes very important to have a budget and for that, you have to know all about each other income and expenses. Yes, the income might be double but you have to understand the fact that there will be also a great increase in the expenditures which can drain all your money if you spend mindless spending. Other than that, a budget will also help you stay safe from any financial constraints and even if any emergency situations arise, you will be ready to handle it.
You should know that after marriage, if you have merged your account with your partners, then one financial activity will have an impact on another as well. If you or your partner owes a lot of debt even before the marriage, then it can affect your credit score as well. The majority of the lenders consider the credit score of the borrower before approving the loan. Therefore, before creating a joint account ensure that whether your partner owes a debt or not. Even, if you are going with it despite knowing the fact that your partner is under the huge burden of debt, then it’s time to fulfil the vows that you took on the church during your marriage day. Try to help your partner to get rid of his/her debt as much as possible.
No matter how careful you are with your financial steps, emergency or crisis will hit you at least once in your lifetime. However, you can prepare yourself in advance so that you will easily be able to tackle any situation that comes out of the blue. Decide how much amount you need to invest for the emergency fund and what will be the ratio of the contribution from both the parties (means you and your partner).
It is true that marriage brings a lot of financial complications along with it, especially when partners are earning. However, things can get better if you take effective measures from the very start.