If you are a newlywed or someone that has been married for a while and wants to know how to manage finances in a marriage then this post is for you.
Hopefully, you will never have to experience poverty, but in the interest of keeping your marriage strong, healthy, and happy, you may want to spend some time talking about money.
Money can be a sensitive subject, especially if the two of you have spending and saving habits that aren’t similar.
While your marriage is young and tender is an excellent time to take stock of your current financial situation, set goals for the future, and decide how you want to achieve them.
By establishing a smart financial plan early in your marriage, you may find yourself with some real wealth in the future, both in your bank account and in your relationship.
Let’s dig deeper into how to manage finances in a marriage…
- Be A Team
- Budget Your Finances Wisely
- Stay On Track With A Monthly Checkup
- Ensure Your Future With Adequate Insurance
- Create A Fun Account
- Agree On Spending In Your Marriage
- Create A Debt Payoff Plan
- Develop A Financial Plan For Future Goals
- Update Your Beneficiaries
- Start Up An Emergency Fund
- Continue To Learn And Grow
Be A Team
An important part of marriage is teamwork. Whether you’re shouldering wage-earning responsibilities, dividing household chores, or taking care of children, working as a team is fun, fair, and effective.
Likewise, deciding how to handle your finances should always be a team decision.
You are a team now so all the major financial decisions should be made together.
Now, of course, you don’t need to ask your partner if you can buy a bag of chips or a soda, I’m talking about big purchases like a car, furniture, etc…
It’s a simple method and seems like a no-brainer, but many married couples make purchases behind each other’s backs which causes clashes.
So, work together on big financial decisions because you are a team now and you will either grow together or fall together!
Budget Your Finances Wisely
By budgeting your monthly take-home pay, and sticking to it, you can avoid the credit card trap and enjoy living in financial freedom.
Creating a budget will be easiest if you both have the same priorities, but in case you don’t, be prepared to make compromises.
For example, each of you may need to give something up, such as weekly manicures or weekday lunches with a buddy.
Having a budget is a great way to learn how to manage finances in a marriage!
With a budget, you will find things you can cut out to save money, and as I mentioned before there might be some compromises that will need to be made but it’s for a brighter financial future.
You can create a budget with pen and paper, spreadsheet software like Excel, or use an app like Mint.
A budget is super important to have as a married couple to manage your finances so I highly recommend starting one!
Stay On Track With A Monthly Checkup
Having a conversation about money early in your marriage is just the beginning.
To keep your finances and your relationship healthy, plan a monthly checkup with each other.
Discuss the prior month’s spending, and pinpoint where you can do better as a couple in the coming month.
To properly manage your finances in a marriage, you need to stay on top of things so definitely have monthly checkups to make sure your finances are in check.
I recommend going out for dinner and then talk over your finances over some good food and drinks!
It shouldn’t be dreadful to talk about money with your partner so make it as fun and comfortable as possible.
Review your goals and track your progress in achieving them. If you’ve done well, reward yourselves with a fun night out or whatever you would enjoy together.
Ensure Your Future With Adequate Insurance
Preparing for the future is important for couples of all ages. Once you are married and your assets have been combined, your insurance will need to be updated.
Auto, home, health, and life insurance are all critical to maintaining healthy finances so make sure you set these up with your partner.
As newlyweds, you may have a lot on your mind, but be careful not to overlook the importance of insurance.
Just a tip, to get the best deals on home and auto insurance I recommend checking out Gabi which is a free service that compares many different insurance plans to get you the best deal!
Insurance is important but it shouldn’t cost an arm and a leg so definitely check out Gabi!
Create A Fun Account
Just because you want to learn how to manage finances in a marriage you shouldn’t have to give up having fun in order to save money.
A really simple way to continue to have fun while still focusing on improving your financial life is to set up a fun account.
A fun account is simply a checking account that is dedicated to fun things you and your partner (and kids) want to do like going out to restaurants, activities, etc…
The reason this is great to have is that you are putting a set amount of money aside for having fun and when this money is done, so is the fun.
It’s a great way to limit yourself from overspending so definitely set up a fun account and be conservative with how much you fund the account.
For example, don’t fund the account with $500 a week to “cheat”. Be conservative and set a limit of $50 or $100 a week that both you and your partner can fund.
I highly recommend setting up a fun account!
Agree On Spending In Your Marriage
One of the biggest challenges in a marriage or really any relationship is agreeing on what is an appropriate amount of money to be spending.
Everyone is different which is why you probably heard the cliche saying “personal finance is personal” which is very true!
In many relationships, there is most likely one person who is considered the spender who is a little looser with their wallet.
There is nothing wrong with spending money you worked hard for, but certain things can be definitely cut out to save money.
So talk with your partner about the spending you both are doing and agree on what things can be cut out.
Create A Debt Payoff Plan
If you or your partner has any debt then you should develop a debt payoff plan.
Remember, you both are a team now so if one of you has debt then both of you pretty much do.
So, it’s best to come up with a game plan to tackle this debt to get rid of it forever!
Debt like student loans, car loans, credit card bills, etc… should be paid off as soon as possible because you are basically throwing money away due to interest.
I’m sure you already know but if you don’t, when you carry over a balance on a loan you will be charged interest every month which is basically flushing money down the toilet!
So, talk with your partner and list out all the debts you both have, and work together to develop a debt repayment plan.
Develop A Financial Plan For Future Goals
Marriage is a big step in life but it’s definitely not the last step you will take so you will have to plan for future goals.
For example, some of your goals might be to purchase a house, move to a different area, have children, etc…
Whatever your goals are, it will most likely cost money so you need to plan financially for these goals.
After marriage, couples usually have multiple goals like purchasing a house and having kids so you should definitely work with your partner to come up with a game plan for these goals.
Update Your Beneficiaries
After you get married an important step to manage your finances is to update your beneficiaries.
On your investment accounts, life insurance, etc… you should add your spouse as a beneficiary.
It’s a really simple step to take but a really important one so I highly recommend updating your beneficiaries.
Start Up An Emergency Fund
One of the most important steps you can do to start managing finances in a marriage is to set up an emergency fund.
If you don’t know what an emergency fund is, it is pretty much just what it sounds like. It is an account that you fund to cover those unexpected expenses that occur in life.
We all know life can hit you hard sometimes, for example, your car can break down, have a medical emergency, plumbing issue in your house, etc…
Many things can go wrong in life so it’s better to be prepared!
All you need to do is open a high-yield savings account from a bank like CIT Bank and then start funding the account with money each month or so.
It is recommended to have enough money in your emergency fund to cover at least three months of expenses but the more the better and covering six months of expenses should provide enough coverage.
If you really want to know how to manage finances in a marriage then starting an emergency fund with your spouse is one of the most important steps!
Continue To Learn And Grow
The last step I want to mention is to continue to learn more about personal finance and implement changes that can better your financial life.
As I mentioned before, marriage is not the last step you are going to take in your life which means that there will be other goals to reach and attain.
Also, your goals might change over time and you might find yourself in unfamiliar territory so you will have to learn how to adapt to different situations.
I highly recommend staying on top of the news and reading personal finance books with your spouse so you always have up-to-date information.
Managing your finances is not something that you set once and forget about it, you need to constantly review your finances and make appropriate changes.
If you are looking for a great and affordable course on personal finance then I recommend checking out the Rich Dad Summit which is an awesome course that teaches many different personal finance topics.
In fact, you can get 2 full days of training for only $1! This is a great way for you and your spouse to learn more about personal finance so I highly recommend checking this out!
Now you know how to manage finances in a marriage!
When you are married it is very important to manage your finances properly to ensure you are financially stable and prepared for unexpected expenses that occur in life.
These tips will help you greatly in your personal finance journey so I highly recommend using these tips to improve and manage your finances.
Are you married? If so, what are some tips you use to manage your finances? Let me know in the comments below!