Just Married? Money Managing Tips for Newlyweds
Money talks are stressful and quite unromantic to discuss, but it is something newlyweds should find time to do. It will also help couples to develop a deeper level of trust when they both know the status of their finances.
Here are some tips to get started:
1. Talk about your finances
Go over what accounts you have and how much debt you carry. And, be clear on how you expect money to be handled. Having a joint account can simplify your finances, and may be especially valuable when income is not equal. But maintaining individual accounts may also be preferable to both as well.
2. Write down goals
Map out your long-term and short-term financial goals like which appliances to purchase first, and which ones can wait, or talk about when you plan to retire. Write down all of your goals and review them periodically. By doing this, you’ll have a much better chance at success
3. Set aside for emergencies
Consider making this a top priority. Set aside in case something expensive happens unexpectedly, such as a lost job, family illness, natural disaster, or a major home repair. Aim to save about 6 months’ worth of your expenses for that fund.
4. Design a budget and track it
Work within a budget and discuss how much should be spent on different categories like food, dining out, and entertainment. Start by reviewing your joint and individual expenses, and allocate for unexpected or irregular expenses. Your budget may be a work in progress, so don’t worry if you have to make adjustments, especially over the first few months.
5. Set aside for retirement
Make sure to be financially independent all the way to retirement.
While couples can discuss this on their own, it also helps to seek advice from financial experts.