How to Manage Finances After the Wedding
Getting married is usually a big adjustment for many couples, both emotionally as well as financially. After the excitement of the wedding has died down, and the honeymoon phase is over, the couple find themselves settling into the day-to-day of married life. And when adjusting to this new partnership, newlyweds can sometimes find their shared finances awkward to deal with.
Just like in any business partnership (even for individuals who are well-versed in remote business analyst careers), managing joint finances needs to be sorted out at the outset. However, it can be difficult to navigate financial matters in the beginning, especially when both partners are used to being financially independent. In this article, we teamed up with experts from job aggregator Jooble, to take a closer look at how married partners should manage their finances after the wedding.
Have an Open and Honest Discussion
Just like with every other aspect of a marriage, managing finances requires open communication. Have an honest discussion about your mutual finances and expectations and lay all your cards on the table. Yes, talking about personal finances can sometimes be a little awkward, but having an open discussion about each partner’s financial affairs including income, debt, and expectations for the future, is crucial.
Here are some tips:
1. Choose the Right Time and Place
Set aside time to discuss your finances. Choose a time and place where you both feel comfortable and relaxed and can have a meaningful conversation without interruptions. Avoid bringing up the topic when you’re both tired or stressed or in the midst of an argument.
2. Be Honest About Your Finances
Take this time to be honest about your personal finances. For example, each partner should disclose their income, expenses, and any debts or investments. Be open about your financial obligations (student loans, credit card debt, child support, etc.). You should also be upfront about your personal spending habits.
3, Listen Without Judgment
When discussing finances, try not to be judgmental. You and your partner may have different views on money, but even so, you should respect each other’s opinions. Approach the conversation with an open mind and avoid criticizing or blaming.
4. Set Realistic Goals When discussing your joint finances, you should both agree on short-term and long-term financial goals, such as saving for a down payment on a house or paying off debt. Have a clear understanding of each other’s priorities and expectations.
Create a Budget Together
As a couple just starting out in a new marriage, it’s a good idea to create a joint budget. A budget will help you to see the bigger picture. It can help you to manage your finances more efficiently, avoid debt, and ultimately achieve your financial goals. Be realistic about your budget and set achievable goals.
Here are some tips:
1. Determine Your Joint Monthly Income
Determining your joint monthly income includes all sources of income, such as salaries, bonuses, and any additional income streams.
2. Calculate Your Monthly Expenses
Calculate your monthly expenses, including all your regular expenses, such as rent/mortgage, utilities, groceries, transportation, insurance, debt repayments, and any other regular payments.
3. Prioritize Your Expenses
Prioritize your monthly expenses by deciding which expenses are essential and which ones you can cut back on if necessary (it’s essential to agree on these priorities together).
4. Allocate Money for Individual Expenses
Each partner will have individual expenses, such as personal hobbies, clothing, and entertainment. It’s important to agree on how much money will be allocated to these expenses.
5. Set Financial Goals
As a married couple, you will need to set financial goals not just for the present, but also for the future. Set short-term as well as long-term financial goals. For example, paying off debt, saving for a down payment on a house, or buying a new car.
6. Plan for Financial Emergencies
Have a plan in place for financial emergencies, such as job loss, illness, unexpected medical expenses or vehicle repairs.
Maintain Separate Accounts
While it’s crucial to have a joint account for shared expenses, maintaining separate accounts can help maintain some independence in your finances. Each partner should have their own account, which they can use for their personal expenses. Have a clear understanding of how much each partner should contribute to the shared account to avoid any misunderstandings or resentment later on.
Final thoughts Successfully managing joint finances as a married couple can be a big adjustment. However, with open communication and by working together as a team, you can build a solid financial foundation that supports a stable and happy future together.
