Financial Advice For Married Couples To Regulate Finances Mutually
Are you looking for ways to manage finances as a couple? Here are some Money management tips for married couples.
Managing finances after getting married can be tough and depressing if you are not eager to build a budget and maintain a proper financial understanding with your better half.
Personal finance is always a troubling scenario. No matter how hard we try, we seem to never reach the desired level of perfection.
It can be due to the overwhelming numbers of unexpected expenses, or a mismanaged income that goes unnoticed for several months and years!
It is hence, your duty to revise your lifestyle habits and monthly expenses, from time to time, to get proper feedback about where things are going wrong, and how you can improve your finances.
But, these steps are mostly in accordance with your own personal life and finances.
Now, what happens when you are married and have a greater lifestyle cost, broader financial issues, and a much wider combined-income spectrum?
It might not be that easy to manage your finances being a couple, I tell you that. There will be many other factors that will come into consideration. The first one of them is surely two streams of income!
More is the income, the harder it gets to track its usage. It’s just like the water you can say. More of it means, more chances of it getting spilled.
Next in line, is probably tackling day to day expenses, and debt-related payments, which increases by a good percentage, post marriage.
So, you’re slowly getting the picture how personal finance does not remain so personal, and gets a lot complicated, once you tie the wedding knot!
Financial Advice For Married Couples To Regulate Finances Mutually:
Couples should get united by merging finances:
This isn’t something vague or an over the counter financial tip for couples. This is pretty serious, and mandatory if couples want to stay together forever.
you and your spouse are both earning members of the family, then you
will have to amalgamate these two distinct incomes into one.
Merging finances is necessary for forming a budget and taking care of the monthly expense pattern.
You can start off by discussing with your spouse, or how to keep a record of both the incomes. Once the income stream becomes clear, a lot of other financial issues will start to get transparent as water.
Follow a budget that helps you to scrutinize your income and monthly expenses:
This part is most interesting of all.
Budgeting together with your partner will definitely strengthen your relationship. That’s one big perk.
The next advantage is, your family finances will start to get organized. Family budgeting is all about precision, as there are so many minutes to vast expenses, you got to cover.
One budget that does exclusively this thing, is the Backward Budget.
The budget is called so, as you will have to keep aside the desired savings amount each month from the total family income.
How much you want to save, should be pre-discussed with your partner, as soon as you get the paycheck in hand.
This activity is unlike any other form of budgeting. We usually spend from our paychecks and then with whatever’s left, we do savings!
But, as you have just read, this is different from a Backward Budget. The motto is, save first and then spend.
Another big characteristic of this budget is that you will have to jot down all the probable expenses you typically have each month.
Doing so will give you a better picture of your monthly financial obligations.
We all have credit card payments, other loan payments, grocery costs, transport costs, utility bills, and so on to take care of.
It’s not that difficult to trace the expenses, if you sit down with a calm mind, and reflect back on your past month’s expense sheet.
Finally, once you are done with listing all the usual monthly expenses, you will deduct the sum of the total expense amount from your monthly income (the amount left after excluding savings as the first step).
If you are left with any amount from your paycheck, then you can use it to increase the savings vault, or fight extra expenses for the month.
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Now coming to your debt problems:
In present times, debt makes up most of our major expenses. But, when you have two earning members, making the payments might not be that difficult.
Share the responsibilities with your partner, and determine who pays for what. One of you can take the expenses for secured debts, like mortgages, auto loans and all. The other can deal with consumer debts, like credit cards, personal loans (if any), and any insurance premiums!
You can even take out a consolidation loan along with your partner, to bring all your multiple debt bills into one place, or you can know more about debt consolidation options, available in your area!
That’s all I had to say as of now. I hope you got a rough idea, about what steps to take to straighten up your family finances.
Remember, both of you made a promise to stay beside each other, in all the times to come. Then why should you treat finances any different?
Have a happy, and blissful married life!
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I’m in the pursuit of an idyllic life. I’m a husband, father of three daughters, business coach, content creator and blogger. I interest myself in researching about financial topics and lifestyle subjects.