Newlywed Finances

If you’ve just got married, financial planning is probably the furthest thing from your mind. What could be less romantic than budgeting? Many people feel uncomfortable talking about money with their partners, especially if one person makes (or spends) significantly more than the other. It’s no wonder than financial strain is the number one reason for divorce.

Financial planning as a couple isn’t all that different than for an individual. The main thing is honesty. Financial secrets are the same as other secrets. If you can’t trust your partner to be honest about money, you can’t trust him at all.

The first thing you’ll need to decide is how much of your finances will be joint. Just because you’re married, it doesn’t mean that you stop being an individual. It’s ok to keep personal accounts for personal spending (though not to lie about it). You’ll probably also need a joint checking account for everyday household expenses such as mortgage or rent, utilities, groceries, etc. If your salaries are paid into your personal accounts, set up an automatic money transfer into the joint account. Depending on how much each person earns, you may each want to transfer the same amounts, or different amounts.

You’ll also need a joint savings account. You can set up automatic monthly deposits so you don’t have to remember to make regular contributions. You can use the account to save up for your retirement or as a college fund for your kids. It’s never too soon to start planning for significant expenses.

It may sound incredibly boring, but budgeting is one of the keys to marital bliss. Sit down with your partner once a month and calculate your incomings and outgoings, then adjust next month’s budget accordingly. It’ll keep you out of debt and prevent many a fight.