Getting married not only marks the beginning of a whole new era in a couple’s lives, but is a very busy time. There can be a lot to sort out, including buying their first home, planning for a family and sorting out finances.
Efficient financial management is vital for newlyweds. This can make the difference between starting married life on an even financial footing when or quickly getting into a financial pickle. With a little thought and a few changes, newlyweds can ensure that they benefit from this efficient financial management.
Tips to aid financial management
There are a number of ways in which you can make financial management easier as a newlywed.
Pool your funds: As newlyweds, you will be sharing a lot of new things and one may be your income. If you are both working – or even if only one of you is – it is a good idea to consider a joint account, which means that you will both have access to the account to make withdrawals/transactions.
Be open with one another: There are many instances where couples have never discussed their financial situations prior to getting married. It is important for both parties to be open about this, and includes telling your partner about any savings or additional income and debts you may have.
Draw up a budget: When you get married, it is not just your income levels that may change – you may also see radical changes to your outgoings, as the outgoings of both parties will have to be taken into consideration. In addition to the bills, mortgage/rent and other shared expenses, you may have to account for subscriptions, memberships, increased shopping costs, two lots of motoring costs if you both drive, etc. You should therefore set up a spreadsheet detailing how much is coming in each month and exactly what will be going out. This way you can see how much disposable income you have and you can better work out what you can afford to spend on yourselves or put aside into savings.
Think about increasing stability: If you will be living together for the first time as newlyweds, getting used to managing your finances as a couple can take some time. If you want to try and stabilise your outgoings as much as possible, you might want to consider going for a fixed rate mortgage if you are buying a home, as this means that your repayments will remain the same each month for a set period of time.
Think about the future: It is important to think about the future as newlywed. You will probably have lots of exciting plans as a married couple, from exploring the world together to starting a family. Of course, all this costs, so start putting some money into savings as soon as you can. Even small deposits can quickly build up. The sooner you start the sooner you’ll have a nice nest egg for your future.
Finances can be one of the main causes of arguments between married couples. However, by exercising caution, being sensible with your money and working together, you can minimise on financial issues and make them far easier to deal with.