Newlyweds often have problems when dealing with finances. It is one of the main reasons why separation happens. With this in mind, make sure that you do not hide assets, debt or income. That is always something that would lead towards financial infidelity. Never have a mindset like “this is just mine”. It will only get you into huge problems in the future. Do not set blame and try to be as honest as possible. Also, consider the following:
Talk About Habits, Goals And Memories
It is important that you talk about all your visions about the future, dreams and goals. Discuss how you grow up and how was the policy around money. That will help you since you need to know everything about money habits. Some people are savers while others just live from one paycheck to the next. Others love to invest. When there are differences noticed, talk about them.
Set Good Financial Goals
You need to set up a fund for emergencies. It should include around 6 months worth of the essential bills. Then, set up 1 to 5 year goals like trips or down payments. Also, focus on long term goals like retirement or education expenses. Sometimes a professional may be necessary in order to discuss how to properly divided money.
Create budgets
Add all essential costs like utilities, groceries, transportation and housing. Then, add discretionary spending like entertainment, shopping and gym. In the event you do not know how much to spend, track what happens in 1 month. A financial advisor would recommend directing 10% towards potential emergencies, 10% towards retirement and 20% towards take-home pay. In the event you currently have debt, try to live with 70% of the take-home pay. The rest can be directed towards debt and savings. However, try to not accrue any more debt.
Set Up Accounts
A newlywed couple can have:
- Joint accounts
- Separate and joint accounts
- Entirely separate accounts
In most cases couples opt for one of the first 2 options. In the event you have different spending habits or personalities, you will want to go for both a joint account and a separate checking account with BB&T for each partner. That will help you to avoid many possible fights.
Talking About How To Deal With Family Or Friends When Money Is Needed
A lot of problems appear when family members or friends need money. One of the couple may want to offer something while the other one would not agree. Everything depends a lot on the income surplus that exists, how bad the situation is and frequency. Talk with your partner ahead of time so you know how you should both react if money is necessary.
Honesty Is Always The Best Policy
Whenever you want to make a larger purchase or you have some financial problems, make sure that you talk with your spouse. Now that you are newlyweds, you are in it together. This means that you need to be aware of what the other person does from a financial point of view. Money problems and discussions never appear when both parties talk and move towards the same goal.