Money Tips for Newly Weds

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June 7, 2019
Money Tips for Newly Weds

Image Copyright Ted Grussing Photography – Used with permission

June is here again and the wedding bells are ringing!

Unfortunately, the euphoria of the wonderful day will linger in varying lengths of time, depending on how the money matters are handled.  Statistics show that money, or issues related to it, is the second leading cause of divorce.  So how can this tragic outcome be avoided?

First of all, a budget can be very helpful and it is essential that these budget items are created together.  We talked about creating a budget a couple weeks ago in our blog of 5-17-19.  Another consideration a newly-married couple might want to take into account is deciding who the financially talented one is.  Forget about rules of “the man should” or “the woman should” and choose the one who has more of an aptitude for finances.

After the “running-of-the household” items are identified in the budget, set up an operating account just for these expenses. If each party is employed, the contribution to this account should reflect the percentage difference in salaries. This account needs to be reviewed regularly in order to keep enough funds on hand to pay bills on time and allow for ups and downs in monthly totals or any items that need to be added or deleted.

Now is a good time to decide what percentage of your remaining income could be comfortably put away into a savings account. The ideal amount to put away is 10% of your total income.  If that amount is not possible, start with a smaller amount and increase it with each pay increase.  The habit of consistent saving will reward you. This savings is set up with the agreement that it is not to be touched without each other’s approval.  That’s probably the hardest impulse to overcome – making a decision without your partner.  That’s probably the glue that holds it altogether – TOGETHER.

After all this togetherness,  good news at last: husband and wife should each have a separate account to use at their own discretion.  If both are working, that’s easy, but if one will not be working, the working partner should fund an account with an equal amount of discretionary cash.

This probably all sounds very daunting, but probably can relieve a lot of stress and allow you to focus on something other than money.  Take time to share the memory of the happiness that lead to your marriage.  Then share a vision of where you want to go.  You probably didn’t choose your spouse for their financial skills.  Don’t expect each other to be perfect, but do remember that you are two individuals acting together on a team!

Have a great weekend!

Source: 7 financial tips for newlyweds. (2017, December 21). Retrieved from https://www.theplanningcenter.com/resources-tools/financial-tips-newlyweds/