The popular adage goes like this – marriages are made in heaven. But when it comes to managing your finances, many times, that heavenly aura dissipates. In fact, improper money management often sours even the sweetest of the relationships.
When you were single, the onus to manage your money was completely upon you. Now since you have tied the nuptial knots and have taken the sacred oath that you are committed to become one, you need to work together to manage your finances.
There is no right way to manage a couple’s money. It largely depends upon your personalities – sometimes very contrasting, the ways you grew up, your values and your expectations about money. There may be a variety of differences in the ways you and your partner handle finances. But, it is better if you and your spouse discuss about your money matters and come to some kind of agreement regarding how to manage your finances. This is very important as it helps build family wealth and strengthen your relationship.
Here are some tips targeted to couples on how to manage their finances. Following which your family wealth will surely grow and your relationship will strengthen too.
Talk about everything including money
It feels great to talk with a partner eternally. Make sure you talk about money matters also. Talk about your ATM withdrawals, online shopping and debit/credit card usage. Discuss with your partner about what is coming in and what is going out. These discussions with your beloved, are the stepping stone to manage your family finances in a better way.
Keep less number of bank accounts
Marriage means unending togetherness. This holds good for your bank account too. Having multiple accounts may result in additional monthly fees and overdraft charges. If you have many bank accounts, as a married person, consolidate them to less number of accounts. It is advisable to keep at least one joint account. Depending upon your requirements, you can also keep separate accounts. However, make sure that the total number of accounts do not become too many.
Plan a family budget
Sit together and plan a family budget, keeping in mind the overall future family goals. Make a list of items that your family would require in a particular month. Then, allocate spending amounts to each of the items that you have identified. This will help you trim down wasteful expenses and in turn help you save money. To prepare a monthly family budget, you can also take the help of a budgeting software. The aim is to categorize the items of expense in terms of necessary and wasteful items. You can also make a provision for emergency saving by adding some regular fixed income to that emergency fund. The emergency fund will help you meet unintended financial contingencies.
In order to ensure a prosperous future for your family, you need to take the vows of simple and frugal living. Luxurious lifestyle and lavish living have often been responsible for personal financial trauma. If you and your spouse can imbibe the virtue of frugal living, you will only help your kids to secure a better future. This also helps in eliminating past debts and in building wealth. In other words, you should live within your budget so that you can save money every month for your family.
Maintain income-expenses records
It is very important to maintain monthly income-expenses records. See who among you is better in maintaining this record. It will help you analyze your family finance in a better way. Through this exercise, you can come to know when you have actually spent more than your budget and which category(ies) you spent more than your budget. Once you are able to pinpoint the loophole, you can take necessary steps accordingly to steady your ship.
It is not a wise decision to incur debt to make your wedding a big occasion. This is because, after marriage your family expenses will surely rise. So it is not a smart move to begin your marital journey with a burden of debts upon your shoulder. However, if you have already committed that mistake, do not repeat it again by incurring another debt. Rather put in dedicated efforts to get out of this financial mess.
So as to make your marital life wealthy, hassle free and amorous, do not indulge in any type of financial indiscretion. Follow these tips to manage your finances in a better way and live in peace, prosperity and romance.
Jason Holmes is a regular financial writer associated not only with Debt Consolidation Care but also with other financial websites. He is an expert with immense knowledge on the various aspects of the debt and credit industry. He has written numerous financial articles based on debt and credit problems and solving those and there are some e-books in his name with the likes of “My Story- From Depression To a Smile”, “Credit Score The Quintessential Therapy for a Happy Pocket” and so on.