An exciting life milestone, a lot changes when you get married. That also means changes to finances between both parties. Joint money spending habits can have a major impact on other areas of your life, including buying a house, getting approved for a loan, and even retirement.
With no plan, money can even become a source of conflict within a marriage. It is one of the biggest reasons for divorce, after all. So, if you are newlywed and want to ensure that your union gets off on the best possible foot, there are a few things couples can do to be better financially.
Know the Motivations
There is no better place to start in financial planning for couples than to learn about the motivations and spending habits of your partner. It can shape those future financial interactions and give your partner a better idea of how you spend money.
It helps to know things such as investing philosophies, what credit scores you each have, how you handle credit cards, and more. Knowing these things is important as each is a part of the foundation of anyone’s financial future.
Have Financial Goals
Another major important factor in financial planning is to know what that money is going to. Yes, it is great to have money tucked away for a rainy day but having financial goals can give both parties something clear to strive for.
Perhaps it can be a home renovation or buying a house. Maybe it is an advancement in education. Maybe it’s even starting a new business. Whatever the case, know the goals so that you can work together to reach them.
Set a Monthly Budget
Budgeting is one of the most important financial decisions that anyone will make. Knowing what your budget is and how to allot your money is the key to financial growth and responsibility.
Lay out income and bills every month. Know where everything is going down to the penny. Then, try to follow the 60-40 rule: 60% to bills, 40% to savings. If you can stay at that mark, the path to financial stability will become more clearly defined.