Before you marry that special someone it’s a good idea to talk about your finances. One of the major hurdles that couples struggle with in their marriage is money issues. It is a key factor that leads to heated arguments. So, it is necessary that both of you face this issue to avoid the consequences of having problems between you about money.
It may seem surprising, but many couples don’t even bother to discuss the important issue of money. According to a survey from “Fidelity,” 43 percent of couples didn’t know how much money their partner earned. This statistic is alarming and explain why money is such a hot bottom issue among married couples.
Make having a discussion about money with your wife or husband a priority. Use these talks to have an open conversation regarding your finances where the two of you can work out differences and reach an understanding.
A good approach to take about money is to:
First: Talk about those things that you want to purchase.
If there’s a big money item, before buying it, see how your partner feels about it first. This let him or her know about it, which will avoid an angry reaction later. Don’t sneak out and buy something, be open about it.
Second: It is a good thing to know the credit score of each other, before marriage.
And you especially need to know after the both of you are married. After you’re married, your partner score will affect you. Their score will impact your ability to get a car or house if it is bad. Many millennials admit to bringing credit card debt into their relationship. So, it is important to join together to manage your finances where the partner with the lower credit rating doesn’t burden the other partner. Work out a solution that has a plan to pay the household expenses and the other necessities the two of you share. Take the extra money and place it into an account that can go toward paying off debts.
Third: After getting married, there’s an adjustment period for the two of you.
Instead of thinking “my money,” you must think “our money.” Plan a budget together, where you make a list of your monthly expenses. After setting aside money for those essentials you must take care of, you can then figure out where the extra money should go, such as, saving, gym membership, date night, or personal grooming.
Fourth: The two of you will have to decide what works best for you in managing your money.
Determine whether you want a join or separate account, or a combination of both. Be aware that you may have different spending habits. If you like to spend big, but your partner is more of a penny pincer, then you would be wise to have two separate accounts. One account can be for shared expenses for the mortgage, insurance, car payment, etc, and you can have a separate account for your personal expenses. The two of you will have to decide what works best for you.
In conclusion: Now that the two of you have shared your financial history, it’s time to plan for the future by making long term goals. If you want a home, it’s not too soon to start saving for it. And don’t forget about your retirement. Even though it may seem like light years away.