How to navigate finances as a married person?
Goals that individuals plan for themselves before marriage can vary from person to person. Sometimes the goal is to have a fit body that looks amazing in a wedding dress and at other times, the goals are more long term like buying a house of their own or a car.
Marriage is a big event in anybody’s life and it is normal to divide your goals into pre and post-marriage. However, it is not enough to just have goals.
You should plan out how you are going to lead your life post-wedding to achieve these goals
While money is not the only important factor in a marriage, setting concrete and judicious financial goals becomes crucial to leading a happy married life.
Below is a list of things that you can do as a married person to lead a better financial life after marriage.
1. Open a separate bank account
You might already have a joint account with your spouse but that is not enough. It is always advisable to get another bank account that will be solely devoted to your monetary expenses as an individual.
Having a bank account exclusively for this purpose serves many purposes other than keeping you from mixing up your finances.
It might bear witness to how independent and responsible you and your partner are. Offering each other time and space can be as important as contributing to your relationship, financial or otherwise.
In the long run, it bears testimony to how invested you are in your marriage.
Moreover, being in a marriage does not have to mean that you don’t have any personal goals anymore. These individual goals can be for yourself, your parents, your child, and so on.
Having a separate bank account will also prove how invested you are in yourself despite being married.
2. Talk about finances
It goes without saying that in any relationship, communication is key. In a marriage, too, it is important to keep your partner in the loop, as you have decided to live your life together.
Among other things that partners should talk about, money is one of the most significant.
Being actively involved in marriage also means that partners should stay aware of each other’s monetary difficulties like debts.
If your partner is trying hard to pay off debts, home loans, education loans, and the like, it should be a priority to help them overcome it.
Romantic gestures need not just be about taking your partner out on dates or handing them a bunch of flowers. Being the person they can depend on in times of adversity can strengthen your bond tenfold.
3. Make a priority list
One of the most important steps in navigating finances is to make lists that state your financial priorities in order.
Sit down with your partner and discuss at length if rent should come first or debts, or retirement savings.
Financial planning takes into account things like emergency funds and the first step to start planning these is to place them on your priority list.
Ideally, emergency funds should come before investment plans. You should also start clearing up your debts as soon as you can. This way your EMI money will be ready to be spent whenever you need it.
4. Get started with budgeting immediately
Budgeting is indispensable if you are looking to manage your finances effectively. In marriage, you need to go about every step of budgeting along with your partner as you are managing a household together.
Budgeting includes your daily expenses and putting away a part of your income as savings every month.
Planning is key, be it for expected or unexpected expenses. Put aside money on regular intervals for expenses you are expecting – those can be a phone or car upgrades or even getting a new house.
For unexpected expenses, save money every month as part of an emergency fund.
Be in constant touch with your partner about their financial goals so that you can find out how to be compatible.
Surveys often indicate that couples might face stress in their married lives over their unregulated spending habits. Creating separate buckets of savings for different expenses is the healthiest and most systematic way of budgeting. It saves you and your partner the extra tension and ensures happy married life.
How finances are best handled in marriage?
The best way to handle finances is to have an open discussion around money and expenses. Talk about the shared expenses and individual expenses. Whether you have dependents like children, siblings and parents? Try to have two separate accounts for personal expense and a joint account for shared expenses. Plan and save for major events like raising a child, their education, buying a house and trip.
What is the best way to budget in a marriage?
The right way to budget in a marriage is to discuss the income resources and expenses with each other. Divide the expenses, find out how much you and your partner can contribute and follow the 50-30- 20 rule. Herein you can dedicate 50% of your shared income towards household needs, 30% towards wants and 20% towards savings.
Who should be in charge of the finances in a marriage?
Both partners should be equally in-charge and responsible for finances in a marriage. Its important to budget, save and investment as partners and discuss the well of contribution towards shared expenses openly.
Managing finances together with your spouse might not always be easy because as individuals you might have different monetary goals and spending habits.
Nevertheless, keeping judgments at bay and instead, helping each other overcome their unhealthy lifestyles and financial adversities can go a long way in securing your marriage.
You can start your investment journey right away with your partner by downloading the EduFund app.
Consult an expert advisor to get the right plan