Managing finances as an individual is challenging. Marriage only multiplies the depth of the challenge that is money management. If you and your spouse are in line with how, when, and where you are spending your money, it can be easier to manage money with your spouse. However, if one of you have different financial behaviors, then the situation is more complicated. So, we thought knowing some tips to manage money with your spouse is crucial if debt management is your priority.
Tips To Manage Money With Your Spouse
Many couples, especially newlyweds or those newly co-habitating, struggle with making financial decisions and merging financial behaviors, the combining of bank accounts, or keeping finances separate. For these reasons, it is important to go over what accounts you have and how much debt you carry, and be clear on how you expect money to be handled.
To avoid disagreements and long-term disasters, here are four tips to manage money with your spouse.
Be a Team
Arguments can arise from one spouse spending what the other considers to be too much money. Create a budget and plan out your finances together. Do the bills together, and review your net worth together. Make sure your spouse is involved and has a say in the financial decision-making process.
Establish an Emergency Fund
The most important thing you can do to keep your finances under control and work towards getting out of debt fast is to establish an emergency fund. When planning your budget, allocate a portion for emergencies, savings, and retirement. Nothing causes stress more than running out of money before all the bills are paid.
Hold Weekly Budget Review Meetings
Both parties being involved in financial decision making is one of the most important tips to manage money with your spouse. If not, it’s very difficult for the other spouse to know the current financial state of the household. Lack of communication can make it harder to be in line with your credit card payoff plans. That’s why weekly (or bi-weekly) review meetings can really help open the lines of communication and set expectations!
Evaluate your Financial Goals
So you are done creating and reviewing your budget for a period of time and establishing your emergency fund. It’s now important to discuss both of your financial goals. These can include things such as starting a family, buying a new car, saving for a home or traveling. Defining your mutual goals with your partner will reiterate the importance of staying accountable.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.