Couples struggle to discuss finances. They should talk about how they will handle their money in the future. Getting married makes financial sense in general. But even then, the question is how you can make marriage make sense—and cents—for you.
“Never lie”. This is the most important marriage and money rule. It is true, no matter how scary it may feel. Being honest in a conversation about money is just as important as being honest in any other kind of relationship. Trust is broken when a partner is lied to about how much money they have. This can lead to a breakup or divorce.
Usually, there are three main ways for a couple to handle their money. These 3 ways are: on their own, together, or with a mix of separate and joint accounts. Here is a list of strategies with pros and cons to help you and your partner choose the best one.
Tips For Managing Money
1. Keeping Separate Accounts
Many couples may find it natural to start with separate bank accounts. This is especially true for those who are used to managing their own money. Even without debts, their salaries will likely be different when two people move in together. A different accounting system can show how people’s debts and incomes differ.
Having separate accounts gives you more freedom. But it also means you have to talk more about who is going to pay for what. Some married couples agree to split all of the costs equally.
Others may feel more comfortable paying a certain percentage of the bills based on how much money each partner makes. When it comes to keeping track of financial transactions, a shared spreadsheet or a joint credit card may be the easiest way to do so.
You’ll still need to make a budget for your household costs and talk about your long-term savings goals and retirement plans. Still, having separate accounts gives you more freedom to handle your money on your own.
You and your spouse are responsible for your spending habits and for paying off any debts that one of you brought into the marriage. This is the “fair” way to handle money.
If you and your partner are both happy with how you split the bills, you may be less likely to fight about how your partner spends money. This is true only if you and your partner are happy with how you split the bills.
It’s hard to track who owes what to whom and how much every month. When you have kids, and one of you wants to change jobs, managing money gets harder. You may not get the most out of your investments because you’re both saving for retirement or other goals.
2. Having A Joint Account
This is probably the easiest way to streamline the way you and your partner manage. No one has to figure out how much each person should get. You also don’t have to keep a spreadsheet up-to-date every month. The children’s expenses are paid for out of the family account.
Keeping track of spending is easy when budgets are tracked on a spreadsheet. Apps can also make it easy to keep an eye on budgets.
Having a joint account makes it easier to keep track of budgeting and spending. There’s no need to divide up the family’s money every month. As the family grows, there’s also no need to make any changes to the family’s finances.
One downside of having a joint account is resentment. Judging your partner’s spending habits could make you dislike them. This is especially likely if you make much more money than the other. It can also be hard to keep a secret about what’s inside a surprise gift.
3. Maintaining Separate And Joint Accounts
For some married couples, the best way to handle their finances would be to keep them completely separate while still having a joint account. The idea behind this system is that all income goes into a joint account or account.
This way, saving, paying off debt, and planning for retirement are all done together. Also, each person has their own checking account that gets a set amount of money every month.
This “personal fund” can meet any demands or needs that aren’t a joint expense. It can also buy gifts for the other person in the relationship.
Your partner can’t criticise you if you pay for the items with money from your own account. It’s important to talk about and agree on how much each person should put into their bank account each month.
One pro of having joint accounts is that it’s easy to keep track of. You also don’t have to worry about how to pay the bills if your salaries are different. You both have the freedom to buy whatever you want without talking to your partner about it. But you both spend the same amount toward reaching joint goals and saving for retirement.
One con of this method is that it requires you to open up multiple bank accounts, which can be troublesome. If money is put into your personal account regularly, you might feel you are getting an allowance. This could bother some people.
4. More Tips for People Who Are Married
When planning your life together, you need to think about a lot more than just how you’ll handle your money.
Newlyweds must discuss who pays which bill, how they’ll repay each other, and how they’ll work together to achieve goals.
Sit down and discuss these operational details so that you and your partner are on the same page about the strategy. This will help you be sure that you have everything covered.
Once you decide who will pay which bills, you should set up automatic payments. This way, you will never miss a payment. And don’t stop talking to people about your money regularly. When it comes to money, clarity is of the utmost importance.
How To Pay For Your Wedding?
Even if you don’t have money for your wedding, a wide range of financing options can help. You might be able to get the money you need through a personal loan, a payday loan, or door loans to have cash in your hand. However, doorstep loans are the most suitable kind of financing for a wedding.
One reason doorstep loans are convenient is that you can apply for one without having to leave the comfort of your home. You also won’t have to worry about having your loan request turned down because you have bad credit.
All you need to get a loan is a steady income and a checking account. The lender will come to your house each week to pick up your loan payment and talk with you about the loan terms.
If you are looking for a loan to help pay for your wedding in an expensive city like Manchester, then doorstep loans are the best option you have right now.
The interest rate on doorstep loans is much lower than the interest rate on other loans. Interest rates on payday loans can go as high as 2,000%, while rates on personal loans can go above 20% per year. The annual percentage rate (APR) for door-to-door loans is usually around 50%, which means they are much cheaper than other types of loans.
There is no best way for a young couple to handle their money. But if you and your partner keep the lines of communication open, you can have a marriage without money fights. If you and your partner are having trouble coming up with a plan that works for both of you, you should talk to a financial counsellor.