Financial Advice for Married Couples

One of the more difficult transitions that a couple has to make once they get married is how deal with their financial situation. I’ve heard wives say, “what’s mine is mine and what’s his is mine”. Subsequently, the husband is usually secretive because he doesn’t want his wife to know what he has. The truth of the matter is in order for the couple to be financially successful, they have to make some tough decisions on how they deal with their finances together. Below are some suggestions that married couples can look to when working on their finances.

Create Separate Accounts and One Joint Account:

As a couple, the first important question you should ask yourselves is whether you should mingle or not mingle your money. Before you got married you operated your own account and didn’t have anyone to answer to. Now you have a significant other and you have to share your money with them and may at times have to justify your spending and this can be the start of a series of problems. It is good to create three accounts – two separate accounts and one joint account. Having your own money that you can spend however you want can lessen your arguments about money; at the same time the joint account can be used to achieve a common goal that you can work towards as a couple.

Discuss Finances Together on a Regular Basis:

Communication, communication, communication!!! It’s important for you to sit down with your spouse on a regular basis to discuss your finances and the goals each of you would like to achieve. Talking about money isn't easy because money can symbolize different things to each spouse. It is important that each of you knows where you are financially and tries to develop common financial goals. It doesn't make any difference if you have money or if you don't have money. If the two of you have different spending habits, different savings goals, different thoughts about investing, then financial problems will eventually surface. As a couple, you have to communicate with each other on a regular basis to air out any difference before it manifest itself into a major problem within the marriage.

Track How You Are Spending Money:

Everyone’s goal at some point is to be financially secure and one way to achieve this goal is to track your spending. Some married couples may look at tracking spending as a way to keep tabs on the other spouse and what they are spending their money on. This, however should not be the case. When you are able to track what you are spending your funds on it provides an outline as to where your funds are going. Without this type of map, it will be impossible to create a budget or to set financial goals that both of you are comfortable with.

Save 10% of Your Income:

Couples, like individuals, generally face the same kinds of obstacles when it comes to financial planning; the only difference is that where there was one individual, there are now two. . Like the individual, you as a couple may say that you are living from pay check to pay check and that you do not have enough income to make ends meet, let alone save 10%. But once you would have had an opportunity to discuss your goals with each other and to create a budget, you will be able to identify areas where you can save some money. You might not be able to save 10% outright but it’s a goal that you can work together to achieve. After saving enough cash you can set aside a portion for emergency purposes and the balance can be used to invest in a retirement account. The earlier you start saving money for your retirement years, the easier it will be to have a retirement lifestyle that both of you can enjoy.

Handle Debt as a Couple:

Most persons would have incurred some debt before getting married. The biggest mistake couples make once they are married is to separate their debt….especially because it was incurred before the marriage. Couples should try to avoid separating their debt and should instead work together to create a plan to pay off the existing debt. Separating your spouse's debt and saying it isn't your problem because the debt existed before you married will only negatively impact the bottom line of how much money each of you are paying in monthly interest charges.

Live Debt Free:

Credit card debt can be one of the biggest obstacles to trying to secure your financial future. Couples often don't want to wait to purchase a new high priced item; instead of saving for it they use a credit card to make the purchase. Because you may have the ability to purchase the item with a credit card that doesn’t mean that it is the best way to handle your finances. It’s is better to save for the item and purchase outright which would minimize your debt and put you in a position to live debt free.

For a couple it may be difficult at times to discuss your feelings and thoughts about money; however, it is imperative that you make time to discuss your finances and to make decisions together about budgets, short- and long-term goals, and investment strategies. Examine your expectations about money, respect each another's values and find ways to compromise on how you will deal with your financial differences.