Money management is quite tricky, even more so when it comes to managing your money as a couple, I’d say. It can be a constant struggle that often leads to lots of stress, especially if you’re living together and sharing costs.
Whether you’re married, engaged, or in a committed relationship, you and your partner need to find ways to manage your finances together.
My wife and I struggled with money management for the first few months after we got married. However, with some research and careful planning, we found our path.
From learning new budgeting techniques to planning for the future in ways we’d never considered before, we decided to face our money management worries head-on.
Managing couple finances can be challenging, but with open communication, you and your partner can build a strong financial future together.
1.Creating a Family Budget
Good communication is essential in any successful relationship, and luckily, my wife and I happened to share that quality. This came to our aid many a time when it came to managing our finances.
One of the first things my wife and I agreed we’d have to focus on was creating a family budget. We were both fairly responsible with our finances and already maintained monthly budgets of our own. A family budget felt like the right move.
When you’re young and in love, it’s normal to want to keep finances away from your relationship. However, as a couple, talking about finances can be a great way to grow closer together.
I understand that budgeting may not seem fun, but it’s an ideal opportunity to consider both you and your partner’s existing loans, credit history, debts, and spending habits.
Through our budgeting conversations, I learnt more about my wife’s financial situation and vice versa. I told her about my brief experiences with employed loans, and how it helped me take care of emergency pet care expenses. She also shared more about her impulsive spending habits and how she’s been trying to change them for the better.
Our family budget helped us identify any potential money management issues early on and create a plan for building our future together. As we learnt more about each other, we built an effective budget that would help us work towards our individual and joint financial goals.
2.Planning for the Future
It’s never too early to start planning for your future. Life is quite uncertain, and having a plan in place can help you feel more secure and in control. When it comes to financial planning as a couple, there are multiple aspects you need to consider.
My wife’s always been a bit of a worrywart, so I wasn’t too surprised when she brought up estate planning a couple of months into our marriage. She explained that she just wanted to be prepared for anything and ensure we’d both be protected no matter the circumstances. Having heard her reasoning, I completely agreed.
We looked at multiple online and offline estate planning service options, before finally settling on a Will and LPA online service to get started. Neither of us had any prior experience using an online legal services platform. However, the entire process was easier than we could’ve ever predicted. Within just a couple of weeks, we’d set up our Will and LPAs.
The next task we planned to tackle was more of a long-term effort; building an emergency fund. Having fallen victim to unexpected expenses on multiple past occasions, this was my personal suggestion. An emergency fund would allow us to create a financial safety net to lend us a helping hand if we ever needed it.
Over six months, we’d both contribute to this fund until it was built up to a sizable amount. With our emergency fund and our key estate planning aspects taken care of, we felt more at ease and more secure about our future together.
3.Opening Joint and Separate Accounts
Another key aspect of managing your finances as a couple is setting up joint and separate accounts. Joint accounts can be quite helpful, but you need to ensure you and your partner are on the same page and at the right stage in your relationship to open one.
When you set up a joint account, you’re essentially adding yourself to your partner’s credit history. This means that you’re giving access to both parties to not only use the money in the account but also the credit associated with it.
My wife and I went back and forth about setting up a joint account for quite a while. After much discussion, we finally decided to go ahead with it, but only after we ensured both our financial situations were up for it.
Trust is key when it comes to managing your finances in a marriage or any other relationship. Deciding between joint or separate accounts is not a decision to be taken lightly. It’s important that you both feel comfortable with this decision.
Money can make things harder, but if you’re in the right stage of your relationship and comfortable sharing your finances, a joint account may be the right step.
We used our joint account for our bills and payments as well as standard grocery shopping. A couple of months later, we also set up another joint account for our shared financial goals.
Aside from these two accounts, we still keep a fair amount of money separate and for ourselves. Of course, we do occasionally spoil each other with surprise treats or meals together, but we’ve also managed to maintain a healthy level of financial independence.
To Wrap Up
I believe that managing your finances as a couple is about more than just balancing numbers. It involves building a foundation of trust, open communication, and shared goals.
My wife and I were determined to build a better financial future for ourselves and were eager to work together to do so. By working together with your partner, you can create a financial plan that will reflect both of your aspirations and offer security for your future together.
As long as both you and your partner feel heard and involved, you can effectively manage your money and improve your relationship along the way.
