Can Money Management Break Marriages?
There is always a possibility that money can break marriages. It means that misunderstandings arise when spouses do not manage their resources well, such as fighting over money and dividing roles to handle the family’s affairs. This article will focus on approaching the finances in a marriage to avoid unnecessary disagreements and enhance trust between partners.
PRE-MARRIAGE MONEY MANAGEMENT DISCUSSION
Before getting married, it is essential to discuss the roles that you and your spouse intend to play in handling the family’s financial affairs. For example, decide who will operate the expenses and manage the household budget or do it jointly.
DISCUSS YOUR FINANCES AND FINANCIAL RESPONSIBILITIES
You should have a joint meeting with your spouse where each person will disclose their salary, monthly expenses, and financial responsibilities. In this way, both of you can know what the other is doing in handling financial matters, which may lead to more effective management if done together. You need to plan an adequate budget so that there won’t be any financial problems.
IMPORTANCE OF AN INCOME PLAN
It is important to know the family’s financial situation and salary to create a concrete financial plan. After that, decide on whose salary will be used to pay for which expenses. You can also draw up a monthly budget based on your income, expenses, and savings so that the family will know how much they are supposed to save.
MAKE A DECISION ON A JOINT OR SEPARATE ACCOUNT OR HAVE BOTH
You need to establish whether you will be using a joint account, a personal account, or both. Some couples opt for separate accounts to use the money as they see fit without having the other involved. On the other hand, some spouses keep personal accounts but work together to manage them together.
HAVE A BUDGET AND COMMUNICATE YOUR EXPENSES
Managing finances is not about drawing up budgets alone. What’s more important is to regularly communicate your expenses with your spouse to know what needs to be covered by the budget and where more money should be allocated if possible. You can make it monthly or weekly, depending on how often you can discuss it with them.
HAVE EMERGENCY FUNDS
One important point to remember is that having an emergency fund will provide you with a fallback plan should there be any financial problems. It would also act as your last resort. This way, it won’t be more challenging for you even if your monthly budget does not work out due to unavoidable circumstances because you can still rely on this fund.
Having a secure retirement is also important. Retirement planning starts way before you actually reach that age when you should no longer work and pursue other things to accomplish in your life. You can start investing early on so that you will have enough for your future needs. You can even do it with your spouse by setting aside a common fund for this purpose.
STEER CLEAR OF DEBT
It would be best if you avoid having consumer debt as much as possible as a couple. If you have already incurred debt from various expenses, then try paying them off as soon as possible, whether through cash or installment payment plans to avoid incurring any more debt. When you make a budget plan, it is important to consider this factor to become free from debt and enjoy the fruits of your labor.
Managing finances should not be done alone because it is deemed effective if done together. It would help if you established transparency with your spouse so that both of you would know the income and expenses available for covering all your needs. It is vital to communicate your budget plan regularly so that there won’t be any miscommunication which may lead to more problems in the future. Retirement planning is also essential to provide you with a fallback plan when you get older, which should be done early in your marriage. Finally, it would be best if both of you steer clear of consumer debt since it doesn’t help in the long run.