It is important that couples manage their money well. One of the biggest points of contention between couples is money; learning ways to manage money better can help prevent arguments. Managing money better can help couples save money and plan for the future. For tips on how to deal better with money here are 20 Ways for Couple to Manage Their Money Better.
Table of contents:
- set solid financial rules
- team finance
- know what you want
- know what your spouse wants
- talk often
- the emergency fund
- shared responsibilities
- honesty is the best policy
- when your spouse overspends
- financial risks
- joint bank accounts
- big purchases
- who pays more?
- learn from each other
- don’t fight when you are angry
- see a financial planner
1 Set Solid Financial Rules
One of the easiest ways to manage money better is to set proper financial boundaries for you and your spouse, for basic everyday purchases. Have a clear understanding of those rules and re-evaluate them on a regular basis, to find out if they are still working for you and your family.
2 Team Finance
As a couple you need to realise that you are no longer a law unto yourself and that now you are part of a team; team finance. Make money and finance a regular part of your communication, and always know where you stand financially.
3 Know What You Want
Have a clear understanding of what your financial goals are for yourself and as part of your relationship. If you want to put away some money and invest it, make that part of your financial goals that you will share with your partner.
4 Know What Your Spouse Wants
It is as important to know what your spouse’s financial goals are and where they want to go in life, as those plans obviously include you. If their goals and yours are totally different you are going to have a problem in working out vastly different futures and expectations. When you both have different views of your present and future money, you need to discuss managing joint finances.
5 Talk Often
One of the biggest mistakes couples make when trying to sort out money issues is not communication about finances at all because the subject always leads to tension. If you make money a regularly point of discussion, you will find that the subject is not that difficult to broach and becomes easier to discuss.
A joint budget is a vitally important plan made for the household and relationship and put together by both of you. Putting financial goals and expectations down on paper will give both you and your spouse a good idea of where you are financially and will help you both prevent you from overspending.
7 The Emergency Fund
Another of the key ways to manage money better is knowing what your resources are when there’s an emergency. When times are good, nobody thinks about when times get tough, and to have an emergency fund, where you have surplus cash for unexpected situations, will help provide you and your spouse with a solid peace of mind. If one of your family members needs an emergency operation, or the car needs an expensive part, you won’t have to dig into your life savings or your monthly budget to cover the costs.
Planning ahead for your retirement is something that should be addressed very early on in a marriage or relationship. Everyone wants to sit in the shade, but nobody bothers to talk about planting the trees. Better money management includes retirement planning and not just grocery budgets.
Debt is something that can really put serious strain on a relationship. If one or both parties have any amount of debt, it can cause ructions and tension between the happiest couples. Work out a plan to manage the debt and how you are going to pay it back.
10 Shared Responsibilities
Taking responsibility for money as a couple is a shared responsibility, and if one party is making bad financial decisions, the other party needs to approach their spouse in a loving and respectful way and find a way to overcome any difficulties.
11 Honesty is the Best Policy
It is so easy, for the sake of avoiding conflict, to lie about purchases to your spouse. But actually, honesty is a much better policy when it comes to managing joint money, as you are part of a financial team, and if you can’t trust your spouse or your partner when it comes to money, you have huge problems.
12 When Your Spouse Overspends
If you have a spouse that is an avid retail therapy enthusiast and you can’t necessarily afford to support their habit, you will need to approach this subject before it starts to have a negative effect on your joint finances. Manage money better by communicating, planning and following up regularly.
13 Financial Risks
As part of a financial team, if one party wants to take some financial risks, such as playing on the stock market, or investing in a get rich quick scheme, then the decision needs to be discussed together. Managing money better is not one party taking heavy financial risks on their own.
14 Joint Bank Accounts
These days, many couple may not have joint bank accounts, as both parties work full time and women like to keep some financial independence. One of the most sensible ways to manage money better as a couple is to have a joint account for household expenses, and reach a decision as to how much each of you contributes to it. Make your contributions like clockwork and if you can’t, discuss it. Don’t wait for a bill to arrive and there’s no money to pay it.
15 Big Purchases
There should be a rule when it comes to large and expensive purchases up to a certain amount. Couples should discuss what a large purchase means to them, and how they are going to deal with the financial implications. It is a good idea for couples to put a rule in place that prevents one spouse from splashing out without the other spouse’s knowledge.
16 Who Pays More?
When one party earns substantially more, it is not fair that both parties should contribute the same amount to the household. If one spouse cannot afford to contribute 50% of their monthly salary, and the other can do so without being left in the dark, the split needs to be fair, otherwise it leads to resentment and fighting.
17 Learn from Each Other
If one spouse has a better knowledge of grocery prices and the other has a better knowledge about the prices of car parts, you can both learn from each other and learn together about how to manage joint money better. If one of you has a strength in budgeting and the other not, then work together, learn from each other and you will become a formidable financial team.
When it comes to relationships, we have all heard about it being a 50/50 partnership, but couples who have been married for a long time will tell you that it should be 40/60. Take 40 % and give 60 % all the time, in all aspects, every day in regards to everything, including money. How is that for a powerful concept?
19 Don’t Fight when You Are Angry
This is especially important when it comes to managing money better, because it can be such a sensitive issue. Anger can take the subject of money to an unprecedented level that can be hard to come back down from. Fight fair, and broach subjects with love and respect and count to 10 before you say something you can’t take back.
20 See a Financial Planner
A financial planner is like a relationship counsellor, except not for emotions but for money. Good money management will need expertise advice from time to time, and a financial planner can give you and your spouse the perspective you need.
Good financial planning is very important for couples who are planning a future together, and good money management really does take a lot of hard work. Consistent, honest and clear communication will help couples manage joint finances successfully. Do you have any more ways for couples to manage their money better?
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