If you are newly married, financial problems are sensitive but important to talk about. That is because the money you have is no longer yours but can belong to your partner too. In addition, it is necessary to discuss and adapt to their respective financial conditions to be free from financial problems in the future. Here are 6 ways to manage finances for newlyweds:
Discuss the Common Goals
Discussing the common goals at the beginning of marriage is important. From the discussion, you can find out the purpose of each partner where this will affect finance. If you are not in one destination, you can find a middle ground together. Discussions about common goals should not only be done early in the marriage but as often as possible. Plan each short and long term goals so that you and your partner can control your finances well. For example, if you plan savings to travel abroad, but your partner prefers to have savings in old age. The best way is to sit together and communicate. Communication in financial terms is very important and it makes you know the financial direction for one to maybe the next ten years. In addition, small things start from activities that you want to do every week until your partner education plan should be discussed so you can make financial planning as early as possible. However, you also have to keep making common goals such as buying a house or owning a private vehicle.
Plan a Monthly Expenditure Budget
Every month you should have a budget plan. This will help you and your partner control expenses and prevent getting caught up in debt. You can limit yourself and your partner if the expenditure is not within your budget. Also limit yourself from unnecessary expenses such as eating out or watching movies in theaters. Start by looking at your own expenses and your partner’s past few months and the income you have. From there you can see how much you and your partner spend and what expenses need to be reduced. Keep in mind to allocate funds for unexpected things such as illness or home renovation. It’s not enough to just make a budget but you also have to try to be consistent in keeping your habits from over budget. Make a record of expenses and income so that you can still control the flow of family finances.
Determine Bank Account Ownership
Determine ownership of your bank account whether you want to save money together or separately. There are pros and cons of having a joint bank account or saving money in each other’s accounts. Having a joint bank account means that you and your partner are at the same level regarding financial issues. It can also increase your partner’s trust and you must communicate well in using money to avoid misunderstandings. Even paid bills will be a shared burden because there is only one door to the account. Bills such as children’s needs, household needs, and others can be handled together and more transparently if they have a joint bank account. If you choose to have a separate account, it can make you have savings for personal needs. There is nothing wrong or correct and adjust the ownership of the bank account according to your needs.
Pay off debt
If you have debt before marriage , pay off your debt immediately. Debt can burden your partner if you are married. This is because when you are married the obligation to pay debt is your obligation and your partner. Make careful planning so you can be free of debt and avoid debt in the future. Debt free life is not only good for financial conditions but also for your marriage. There is no harm in having a credit card but you have to control and be responsible for using it so that it is not burdened with debt. If you do not have debt, you can allocate expenses to be saved as old age savings. Reserve funds are important so that you are free from debt. In addition, you can share responsibilities in expenses such as those of you who pay for the needs of school children and couples who buy basic necessities.
Has a Savings Fund
You need to consider having it in a separate bank account. This is important to have before the amount of expenditure. Deposit funds are money used for unexpected things. The amount of the reserve fund depends on the income you and your partner earn each month. It’s good to have a reserve fund that can cover your expenses for the next 6 months. Having savings will make your household safer and safer if there is an emergency such as illness or a massive home renovation. Deposit funds will prevent you from getting into debt later. Remember to only use reserve deposits in an emergency. You can also use this deposit later if it doesn’t work. Avoid saving deposit funds in the same account with the account used to save money so that you and your partner don’t use the money easily and are only used in times of crisis.
Discuss Insurance Issues
When you get married, it’s important to discuss and renew your finances like having New types of insurance include life insurance to protect you and your family, health insurance, and others. Some insurance may have been covered by you and your partner to work. Insurance that has been covered by the workplace can reduce your expenses to pay for insurance. For example, if your place of work already provides health insurance, you only need to make insurance for your partner. Life insurance can help you if you lose income and will help your family maintain life stability.
As a newlywed, financial problems are important to discuss at the outset. Communication and planning are important in managing finance. This can prevent unexpected things and be free from debt.