Many couples who end up divorcing could blame money problems as the reason their marriage couldn’t survive. As a matter of fact, a study conducted by the National Center for Biotechnology Information (NCBI) showed that around 36.1% of couples divorce due to financial problems.
The way that men and women could try to avoid this from happening is deciding to take all responsibilities that involve the bills being paid. Some spouses choose to handle the money they bring in themselves. Unfortunately, one person could abuse their partner’s trust and purchase things they don’t need or buy something they know they can’t afford.
This does not mean all marriages are doomed to fail because of money. It is just essential to the health of the marriage to keep a close eye on where the paychecks are going. If you are unsure how to manage your money then continue reading to learn tips covering money management for couples.
Tips For Couples Struggling How To Manage Their Money
Many people have trouble budgeting their own money, but that job is much more difficult when you also have to budget your partner’s money. Budgeting for two people is not going to be something that you achieve without trial and error. If you are struggling to manage your money as a couple then the following tips could help make the process easier:
Have Conversations With Your Partner Regarding Money
It’s going to be impossible to manage money well if you don’t know the financial situation of your partner. You will need to know how much your partner makes and how much money they owe to other people. You also need to have a clear idea of where the money will be going when you cash or deposit your paychecks. Something else you might want to discuss with your partner is: How will you make a decision on big purchases? How much will something cost for that item to qualify as a big purchase? You need to know what your partner will be thinking when these situations arise.
Know What You Want To Achieve
After you know how much money you and your partner earn each month and the cost of your monthly bills, you can think about other goals. Do you want to have a nest egg for when you stop working? Is there a certain vacation spot you would like to visit? If you realize that you are saving money every month, one person might be able to quit their job depending on who makes more. When you know how much you are making and spending, you need something to shoot for which will make you work harder when you are trying to save money.
Will You Combine Bank Accounts Or Not?
There is no rule saying you must merge your bank account with your partners when you get married. Some couples agree to merge their accounts with their partner to show there are no issues with trust and that could simplify the process of paying bills if the couple plans to have kids in the future. If you choose to have your own separate accounts and a joint account, it won’t be as hard to hide guilty purchases but both people will have something if the relationship takes a turn for the worst. So there are pros and cons for doing both and it would be worth the time to discuss this with your partner to see how they feel.
Money For A Crisis
Everyone should have money in case of an emergency. You or your partner might find themselves unemployed, ill, or in need of fixing something expensive. If you are not sure of how much money you should set aside, most people would suggest about six months of pay. A crisis will not be as devastating if you have cash set aside.
Plan Out Your Expenses
If you know how much you have to spend each month, you can prevent yourself from spending beyond your means. You will see where all your money is going and know how much you have leftover every month for entertainment whether it’s going to see a movie, go bowling or eating with your friends at a restaurant. If you are not sure how to get started, look over what you spent money on for the last few months, and then set amounts that you will not exceed for every possible type of expense.
Follow Through With Your Financial Plan
Once you have a financial plan in place, you have to commit to that plan. You can always modify the plan as your situation changes but a plan will not help if you don’t commit to it. Many websites offer free budget templates or printables that you could use those templates to track what you are spending, or even budget apps like Mint.
Talk Every Week About Your Progress
You need to communicate with your partner to see if you are sticking to the plan you made. You don’t want to wait until problems arise before you talk about your bills. When you tackle problems together, you will make your bond stronger. Also, problems won’t seem too big especially if you and your partner deal with the problem as soon as it occurs.
Put Money Away For Retirement
Nobody wants to be working when they are 80 years old. Everybody should be thinking about having money set aside for when they leave the workforce. Some companies that employ you full-time will set up an account for you where a portion of your paycheck will automatically be deposited so you will have money when you retire. If your job does not offer a plan like that, you can start one yourself. If you are in your twenties and you add money every month, imagine how much money you will have set aside when you are in your sixties or seventies. Those accounts also generate interest based on how much you put into the account.
Pay Off What You Owe
If you are behind on your bills from when you were single, you owe it to your partner to make sure they won’t be responsible for those bills when you marry your partner. Once you have paid off your debt, you can’t go back to owing money to people while saving money for the future. So if you are currently behind on bills, it would be best to catch up on those bills as soon as you can.
When a couple gets married, divorce is always a possibility in the future. Statistics show that money is one of the reasons many couples split up. However, if you follow this money management for couples’ strategies, then you might not have to worry about divorce in the future.