Every young couple wants to maintain material prosperity and harmony in relations. For this, they should pay attention to financial issues. Of course, money is not the main thing in life, but it provides comfort and makes families happier.
When you build a strong family, romantic relationships are replaced by harsh everyday life. You should solve many problems daily. Many young men and women are not ready for such a turn of events. It can lead to very acute and serious conflicts that can destroy the marriage.
Read five budgeting tips for newlyweds from the North’n’Loans specialists, who know a lot about payday loans in Quebec. They will also be useful for any other couple which wants to manage their finances better.
Talk about your common goals
You should have the same goals and methods for achieving them. If you do not try to help each other, your money and time will work against the goals of your partner.
For example, one of the spouses wonders how to save money for retirement, and the second one wants to collect some cash for traveling to another country. If you pull this money from the family budget, then none of you will achieve his/her goal.
The best solution is to discuss your goals and decide which ones are the same. Then you need to plan how to reach them.
During this conversation, tell how each of you imagines his life in 5,10 or 20 years. In the end, determine your common views and joint goals.
Do not forget that your goals can change over time. Thus, discuss this topic to make sure that you are still working towards a common goal. Do not be afraid to set new goals and give up the old ones.
Create a budget
You work hard, earning your money, so it will be quite difficult to switch from thinking “my” to “our”. However, this is very important.
Tina Tessina is the author of the book “Money, Sex, and Kids: Stop Fighting about the Three Things That Can Ruin Your Marriage”. She says, that “Marriage involves partnership in all aspects of life, including financial terms”.
But spouses have different views on the necessary costs and rational savings.
That is why Tessina advises sharing your ideas about finances in the family and listening to your partner’s propositions. Perhaps the financial problems of his parents cause his desire to share all the costs equally. But these moments will help you understand the overall picture. Later you will accept decisions and proposals of each other.
Another way to solve the conflict is a budget for newlyweds spreadsheet. This program will help you control family finances and not to collect debts.
“You do not have to agree with your spouse, but it’s very important to have an idea of each other’s spending,” says Tina Tessina. “Set the price limit, exceeding which you should talk about the pertinence of this purchase”.
Take care of a reserve fund for your family
Reserve fund is money that is set aside for unforeseen expenses. A reserve fund will be useful if one of the spouses has no job or breaks the car. As a rule, for this purpose families open a common or separate savings account. You can also add this saving item to a sample budget for newlyweds.
Set automatic transfer of funds to this account. You should be unable to use this account whenever you want or withdraw funds from it. In such a way you can avoid the temptation to spend the gathered money.
Gradually the number of funds on the account will increase. But you must forget about it. You can spend it only on special occasions. When you create a reserve fund, unexpected problems will not be a catastrophe for you.
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Do not hide your expenses
Both spouses should have money for personal expenses, which they could spend without asking for permission. But this amount should be limited and well known to both husband and wife. If you do not follow these simple rules, it can lead your family to financial problems.
If you have a secret credit card, you are making a huge mistake. If you withdraw money through an ATM and hope that the spouse does not notice this, it is a mistake, too.
Why? Imagine that your spouse is planning a budget. He/she thinks money will not disappear from your bank account. All your joint plans related to money rely on funds that are supposed to be on your account.
Plan your retirement
No matter how young you are, everyone gets old. Working will become a burden for you, and you will want to retire to enjoy a well-deserved rest.
The secret is that at a young age you can guarantee yourself a carefree retirement. If you start to save money, you will not experience any problems with retirement. If you postpone this question for 10 or 20 years, then you will need to save bigger sums. Think about what you would like to do after retirement and talk about it with your spouse.
In some cases, one of the spouses has more opportunities to save money for retirement. In this case, there is a temptation to shift all responsibility for a comfortable old age to a partner. This is a big mistake.
In reality, there is always a threat that you will break up. Then one of you will have no money for retirement and will regret it. So the best option is to open a personal account for pension savings.
You should think about opening a personal pension deposit. It will help you raise funds for retirement. Ensure that 10% of your income comes on this account every month. If you open such a contribution 35 years before you retire, then in old age you will not have financial problems.