Though the marital relationship is perceived to be a 50/50 commitment, money contribution is not always so. Money being quite a messy issue creates a number of problems and bitterness in marital life. Trust is the foundation of marriage and like every other aspect of married life, it must also be reflected in financial matters. The best time to build a trustworthy bond in terms of money management is when the relationship starts. For you to turn what you perceive a settled married life in financial terms, the key to success is sharing and collaborating in all money matters from planning to execution.
Here is what a newly married couple should consider doing that helps pave their pleasant marital journey ahead;
Should we have joint or separate accounts?
People may keep separate accounts, joint accounts and a combination of two. No matter what you choose, everything will remain fine if both are honest and keep transparency among them. Joint accounts are convenient because both may operate it and in case one passes away the other may continue to make transactions easily. Besides, in two-income couples, both may agree to fund it for shared expenses.
The perception that keeping separate accounts is detrimental to marriage is also not correct. According to Emily Sanders, Managing director United capital financial advisers, ”Some of the most happily married couples I have seen are ones that have kept their money separate for their entire marriage”
Keeping joint and separate accounts simultaneously may also work well if partners agree to keep their freedom intact and also to work jointly for family-related goals.
Set goals and start budgeting to achieve them:
The Budgeting process should start even before the marriage and the couple should plan their wedding in budget. If you want fewer disagreements over finances in married life, adopt the budget-making from early married life. Keep the following points always in your mind;
• Set financial goals together and set them for short and long term periods.
• Set SMART (Specific, measurable, actionable, realistic and time-bound) goals.
• keep tracking the expenses
• Check your budget’s success periodically.
• Keep your goals tied with a specific number. I.e. 25% of the income to be saved each year or contributing 7% monthly to your retirement plan.
• Commit to budget.
Avoid financial infidelity:
Financial infidelity appears to be more common in American society than marital infidelity. It is the breach of trust with your spouse and often may lead to divorce. The term includes, hiding purchases from spouses, having secret credit cards and purposeful financial deceit.
In newly married couples, both should honestly disclose their debts and other financial obligations to their spouses in order to know the clear picture.
In a research study published by Journal of financial therapy, 27% of the respondents admitted that they had kept financial secrets from their partners. Remember, honesty about money is a cementing factor for marriage.
Hold money talk sessions quite frequently:
Communication with your spouse is in general the best remedy to build confidence and enhance each other's trust level, but its impact is even more profound if newlyweds make it a practice to discuss their money matters. The pivotal purpose of such discussions should be to keep each other well informed about what is happening around finances and what more is required to be done.
According to a TD Bank love and money study, 42% of the respondents said they are “extremely happy” in their marital life because they talk about money matters at least once per week.
Additional financial tips:
You have entered in a relationship that needs to remain stable and keep flourishing and that besides other things, to a great extent will also depend on your financial planning. So here are some useful financial tips for all spouses;
• Decide who pays what. Sit and talk about these logistics to make clear to each partner what their financial responsibilities are.
• Add your spouse's name as beneficiary to those accounts which you opened before marriage. This will give him/her easy access to funds without legal hassles in case of your death.
• Understand the money personality of your spouse. I.e. a natural saver, a big spender or conscious investor etc. This will help you to moderate things and make adjustments accordingly.
• Plan for the unexpected. It is highly desirable that newlywed couples start an emergency fund for contingencies like job loss or a family emergency.
Final thoughts:
Marriage is something that does not work automatically. Challenges keep on coming and both the spouses must face them confidently, intelligently and with courage. And mark my words; Money ranks at the top in the list of the most significant challenges in marital life. The effective tackling of this challenge is possible only when couples share, collaborate and talk openly about them.
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