Marriage can be exciting until reality hits and money enters the picture. Don’t be surprised when you and your spouse immediately rack up unfamiliar expenses that you didn’t need to spend before you got married.
Although it may seem overwhelming to think about now, it won’t be once you take the time to actually prepare for everything. Save yourself from heartache by keeping these money management tips in mind once you’ve walked down the aisle.
Money management tips for couples
Draft a household budget
Work together with your spouse to create a budget that works for both of you. You can use a budgeting app or software to do this, or you could use a good old-fashioned pen and paper.
Regardless of what system you decide to go with, the most important thing is that you and your partner come up with a budget and stick to it.
Take into account your salaries and set aside money that will go towards your basic needs, an emergency fund, a retirement fund, and a fund for your big purchases. The latter purchases include anything from an affordable house and lot for sale in Cavite to a brand new SUV.
Speak to a financial advisor
A financial advisor can help you design a solid financial plan when it comes to saving and investing your hard-earned money. Having a practical strategy in place ensures that you’ll have a bright financial outlook ahead of you.
Figure out your financial situation
Have an open discussion with your spouse about your financial situation as a couple. During this conversation, you should talk about any debts either of you have, your respective spending habits, your salaries, and what your plan of action is.
This is also the best time to bring up any financial milestones both of you want to meet. Try to be as open as you can be during these discussions. Even if it gets uncomfortable, it’s something that will benefit both your financial outlook and your marriage in the long run.
Tackle debt together
The best way to tackle debt is to turn your individual financial obligations into household ones.
Rather than having one person having to deal with debt, it’s better to work as a team and combine your household income to pay everything off. You’ll be able to conquer your debts much quicker and more efficiently this way.
Invest in insurance
Marriage is the best time to invest in life insurance since it will protect your family when you inevitably hit a rough patch. Go over any of your existing insurance plans and add your partner’s name to it.
Besides your life insurance policy, you should also update your health insurance plan as well as any critical illness or disability insurance you or your partner might have.
Take advantage of the financial benefits of marriage
Despite the many expenses you’ll have to shoulder when you get married, there are actually some financial perks you can look forward to, as well.
Besides the fact that you’ll be combining two different salaries to pay for your basic needs, you’ll also be eligible for certain tax exemptions and deductions so do your research and make the most out of these benefits.
Keep these money management tips in mind and don’t let money problems get in the way of you enjoying the newly married life.