A Newlyweds Guide to Marriage and Finance (2022)

Having a successful wedding that you’ve always dreamed of is not the last stage of an exciting married life, but rather the start of it. Marriage is not only about being swept off of your feet with small and grand gestures of love. To make a marriage work and withstand the test of time, careful planning is important, especially about finance. After all, love is not enough to make a marriage work. You need time for each other and money to support your family's financial needs.

And They Lived Happily Ever After, Financially Stable: A Newlyweds Guide to Marriage and Finance

If you just got married, congratulations! Now that the fairytale part is over, it’s time to face reality. In this article, newlyweds and other married couples will learn how to communicate about money matters.

Tips and Tricks to Budgeting and Financial Planning

Married couples are partners so you will do your best to work together to overcome problems that arise. While this is easier said than done, regular, open communication plays a key role. So, when planning about your finances as a married couple, sit down and talk about the matter and make the conversation lively and enjoyable no matter how serious it is. Take your time and be open about what you can do as a couple to achieve financial freedom as newlyweds.

Here are some of the things newlyweds and other couples should discuss regarding budgeting and financial planning:

1. Be transparent about your spending habits

Overspending can cause conflicts among spouses. Why not inform your spouse about your spending habits to avoid strains in your marriage? Remember that since you are married now, you can’t just spend money the way you used to when you were single. However, with open communication, both you and your spouse can conclude how much you should spend on certain things you may want for yourself based on your income and other financial obligations you now have.

Aside from your spending habits, you can also take a trip down memory lane by sharing stories of how money has been handled in your family growing up. This will help your spouse to understand the reason for your spending habits. During this discussion, you can also share how you manage your money if you use spreadsheets or apps to track your expenses, and your thoughts on spending, cash, and investments.

List your assets and liabilities

As a couple, you should also discuss the assets you’re bringing into the marriage and potentially some debt you may have since you are now partners. Your assets may include cars, houses, investments, and savings, while liabilities may consist of mortgages, student loans, or credit card bills.

Knowing your assets as a couple can help you determine your priority and what financial goals you may set for your family.

It can be embarrassing to tell your spouse about any existing debt you may have. However, your spouse deserves to know these things. Openly discussing these things can help newlyweds find a way to pay it off faster and if you should pay for it together or separately without harming the budget they need as a starting family. You may also want to discuss your credit score so that you can work together to improve it if you have a low score.

Consider opening a joint bank account and be cautious about spending

Whether you combine all your finances after marriage or if decide to have separate bank accounts as a married couple is something you two should talk about. However, it may be practical that you open a joint bank account aside from your separate accounts (should that be your decision as a couple).

When you have separate bank accounts, both of you need to individually pay attention to budgeting and splitting the expenses between the two of you and wisely plan on how to spend the money in your separate accounts. On the other hand, when you have a shared account, you both will have access to it and contribute to the account, making it less complicated, especially if you are paying bills. Moreover, having a shared account makes it easier for both of you to track the ins and outs of the money in your account.

As a word of caution, though, both parties should be careful about spending the money in their joint account to avoid overspending.

Create Financial Goals as Newlyweds

Having financial goals as a newlywed is exciting. During one of your money talks, you may write down your short- and long-term financial goals. This may include the home purchase or renovation, advancing your education, a new business, having a child and childcare, large purchases, vacations, emergency funds, and retirement.

When you have a goal in mind, your spending and saving habits will be geared towards that goal. If you have varying goals, you may discuss ways to meet halfway so that both of you are happy and satisfied.

Create a budget that works for you as newlyweds

Once you live together after the wedding, you need to create a monthly household budget. To do this, you should first determine your shared monthly income and then list your expenses and savings budget.

When you are planning the expenses that should be spent in your homes, such as groceries and clothing, make sure to address both of your needs as individuals. You may also set up an allowance each of you can spend on anything you want without being accountable to your spouse.

Have an Emergency Fund

Life has a lot of surprises, and sometimes, they are a mix of good and not-so-good surprises. For example, a baby may be on the way, or someone may lose a job, the car needs repair, or the roof has leaks. Your emergency fund can cover these unexpected expenses during these times so that your savings and budget won’t be affected by these sudden changes.

Ideally, your emergency fund should amount to three to six months of your salary or household expenses.

Plan for retirement

Retirement is part of marriage. Planning to set up a retirement savings account will help you be more financially confident that once you retire, you have enough money to support your needs while spending quality time with your spouse, doing the things you love.

You can also seek the help of financial advisors to include an estate plan to be part of your retirement plan. You can also look for ways to diversify your investment portfolio.

Don’t forget to set aside money for budget-friendly dates

Whether you recently married or have been together for a long time, married couples should regularly find romantic and fun things to do. Doing so will help strengthen your marriage bond. Going out on dates should not always be expensive and extravagant. You can plan affordable date nights such as cooking a special meal, eating out, watching movies, going on a picnic, or going ice skating are ideal budget-friendly options. What matters most during this time is giving your attention to your spouse.

Open and regular communication about your finances may not be the most romantic topic couples can discuss. However, when you talk about this, you will surely get to know your spouse more, love them more, and make your relationship stronger. May these tips help you enjoy a financially stable married life that can stand the test of time.

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