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Five Ways Newlyweds Can Effectively Manage Money Together
Managing money as a newly married couple can be both exciting and challenging. While merging finances may seem daunting, it’s essential to building a solid foundation for your future together. With open communication, shared goals, and a collaborative approach, couples can navigate financial decisions with confidence and unity.
Jason Higgs, the Senior Deals Strategist at Bountii, discusses five strategies to help newlyweds effectively manage money together.
1. Openly Communicate About Financial Goals And Priorities
Start by having honest and transparent conversations about your financial goals and priorities as a couple. Discuss your individual values, aspirations, and concerns regarding money. ‘Communication is key when managing finances as a couple,’ says Jason. ‘By understanding each other’s goals and priorities, you can work together to create a shared vision for your financial future.’
2. Establish A Joint Budget And Financial Plan
Create a joint budget and financial plan that reflects your combined income, expenses, and savings goals. Allocate funds for essential expenses, such as housing, utilities, and groceries, as well as discretionary spending and savings. ‘A budget provides a roadmap for your financial journey as a couple,’ advises Jason. ‘It helps you track your spending, stay within your means, and work towards your long-term goals together.’
3. Divide Financial Responsibilities
Divide financial responsibilities based on each partner’s strengths, skills, and preferences. One partner may excel at budgeting and bill payments, while the other is more adept at investment management or long-term financial planning. By delegating tasks according to each partner’s strengths, you can streamline your financial management process and reduce stress.
4. Set Up Regular Check-Ins To Review Your Finances
‘Schedule regular check-ins to review your finances and assess your progress towards your goals. Use these meetings as an opportunity to discuss any changes in your financial situation, adjust your budget as needed, and address any concerns or challenges that may arise,’ Jason says. Regular check-ins help keep you accountable and ensure that you’re staying on track with your financial plan.
5. Prioritize Your Shared Goals
Identify and prioritize shared financial goals, such as saving for a home, starting a family, or planning for retirement. Allocate funds towards these goals and celebrate milestones together along the way. ‘Shared goals provide a sense of purpose and unity in your financial journey as a couple,’ advises Jason. ‘By working towards common objectives, you strengthen your bond and build a solid foundation for your future together.’
Jason’s Top Financial Tips For Newlyweds
Be Honest And Transparent
Share information about your financial history, including debts, assets, and credit scores, to build trust and transparency in your relationship.
Practice Active Listening
Listen to your partner’s financial concerns and perspectives without judgment, and work together to find solutions that meet both of your needs.
Celebrate Financial Wins Together
Celebrate milestones and achievements in your financial journey as a couple, whether it’s paying off debt, reaching a savings goal, or achieving a career milestone.
Seek Professional Guidance
Consider seeking the advice of a financial advisor or counselor to help you navigate complex financial decisions and strengthen your financial literacy as a couple.
Jason’s Strategies For Married Financial Success
Start Early
Begin discussing finances and creating a joint financial plan early in your relationship to establish good habits and alignment from the start.
Be Flexible
Be open to adjusting your financial plan as your circumstances and priorities change over time, and be willing to compromise and adapt as needed.
Stay Positive
Approach financial discussions with a positive mindset and focus on finding solutions and opportunities for growth rather than dwelling on past mistakes or setbacks.
‘Managing money as a couple requires trust, communication, and collaboration,’ says Jason. ‘By openly discussing your financial goals, establishing a joint budget and financial plan, and prioritizing shared objectives, you can lay a strong foundation for financial success and harmony in your marriage.’