Best Ways to Handle Finances in Marriage

Best Ways to Handle Finances in Marriage

The merging of two lives also includes the merging of finances. This is often a sensitive topic and one that can divide a marriage before it has a chance to begin.  How can two people, possibly with separate incomes, navigate through financial matters so that they are working together?

1. Open and honest communication: Have open and honest discussions about your financial goals, values, and concerns. Regularly talk about your income, expenses, and savings to ensure you are on the same page. Clear communication is the foundation for building your marriage and your financial future together.

2. Create a budget together: Develop a joint budget that includes all income, expenses, debts, and savings goals. Allocate funds for different categories and track your spending to stay within your budget. An agreed-upon budget will be the determining factor in spending. This relieves the pressure and burden of who will be the one to say “no” to an expenditure. The budget says “yes” or “no, not you or your spouse.

3. Joint bank accounts: Consider opening joint bank accounts for shared expenses and savings goals. This promotes transparency and allows both partners to have equal access to funds. There should be no secret accounts or credit card spending. Full disclosure of finances creates trust and a sense of real partnership.

4. Individual discretionary funds: Allocate a portion of the budget for each partner to have their own discretionary funds. This provides personal financial autonomy and allows for individual spending choices without affecting shared finances.

5. Set financial goals together: Identify short-term and long-term financial goals as a couple. This could include saving for a house, paying off debts, or planning for retirement. Work together to create a plan to achieve these goals.

6. Regularly review and update your finances: Schedule regular check-ins to review your financial situation, track progress towards goals, and make any necessary adjustments. This ensures you stay on track and can adapt to changing circumstances.

7. Equal contribution or proportional contribution: Decide whether you will contribute to shared expenses equally or proportionally based on your incomes. This should be a mutual decision that considers each partner’s financial situation and capabilities.

8. Seek professional advice if needed: If you are facing complex financial situations or struggling to manage your finances, consider seeking advice from a financial planner or counselor. They can provide guidance tailored to your specific circumstances.

9. Set financial priorities: Discuss and prioritize your financial goals together. Determine what is most important to you as a couple, whether it’s paying off debt, saving for a down payment on a house, or starting a family. By aligning your priorities, you can work together towards achieving these goals.

10. Maintain emergency savings: It’s important to have an emergency fund to cover unexpected expenses. Agree on an amount that you both feel comfortable with, such as three to six months’ worth of living expenses. Regularly contribute to this fund to ensure you have a safety net in case of financial emergencies.

11. Be transparent about debts and credit scores: Share information about any outstanding debts or loans you have, including student loans, credit card debt, or car loans. It’s crucial to be aware of each other’s financial obligations and work together to pay them off efficiently. Additionally, regularly check your credit scores to monitor your financial health as a couple.

12. Plan for retirement together: Discuss your retirement goals and develop a plan to save for retirement as a couple. Consider contributing to retirement accounts like 401(k)s or IRAs and explore options like employer matching programs. Regularly review your retirement savings to ensure you are on track to meet your goals.

13. Discuss financial decisions before making them: It’s important to consult each other before making significant financial decisions. This includes major purchases, investments, or taking on new debts. By involving each other in financial decision-making, you can avoid surprises and ensure you’re making choices that align with your shared goals.

14. Review insurance coverage: Evaluate your insurance needs as a couple, including health insurance, life insurance, and property insurance. Review your policies regularly to ensure they provide adequate coverage for your changing circumstances.

15. Consider seeking professional help if needed: If you find it challenging to manage your finances as a couple or have different financial perspectives, consider seeking the help of a financial advisor or marriage counselor or coach. They can provide guidance and mediation to help you navigate any financial conflicts and find common ground.

Remember, the key to successful financial management in a marriage is open communication, mutual understanding, and a shared commitment to your financial goals.

If you want to know more about how we can help you build a strong marriage, please get in touch with me at Cliff@LoveRecon.org or call 866-218-1716. You may also visit our website, www.LoveRecon.org, for testimonials and information.