One of the major contributors to divorces today is poor money management skills. When newlyweds manage their money poorly, it can lead to stress, which ultimately can lead to a divorce. To make sure that your marriage remains strong and your pocketbook stays happy, here are five money managing tips for a happy marriage:
#1 Write Down Goals and a Budget
First off, the both of you should be on the same page when it comes to finances. Every week or month, set aside some time to discuss where your money is going to go that month. After the bills are paid, figure out where the extra money is going to go.
Are you saving up for a new house? Should the extra cash go towards that hospital bill? When you have a set budget and everyone sticks to it, it’s a lot easier to know where the money is going.
#2 Build an Emergency Fund
When creating a budget, it’s only going to take you so far. What happens when the car dies? What if you lost your job?
For those emergencies, always make sure that you have a separate emergency account. This account should always have at least six months of living expenses inside of it. However, if an emergency does arise and you don’t have the funds yet, consider alternative funding options.
#3 Start Saving
While retirement may seem like it’s years away, it doesn’t mean you shouldn’t think about it. Since you want to enjoy your golden years, the last thing you want to do is rely on the government when it comes to your paycheck.
Even if it’s a few bucks, start contributing to your retirement nest egg. Since time is on your side when it comes to retirement, the earlier you start, the better you will be financially when you’re older.
#4 Stay out of Debt
A debt-free marriage is a healthy marriage.
Even if you took out a payday loan a few years ago and you’re still paying it off, it doesn’t mean you have to stress out. In the future, just make sure that you’re spending less than what you make, and make it a habit to ask yourself if you really need that item before buying it. Yes, it really is that simple.
#5 Be Honest
Being married isn’t an easy gig. When working with finances, just be honest about what you want to do with your money and what you bought for the day. Hiding purchases and lying about what you spent at the store will do no good.
As long as you love one another and everyone is on the same page, there’s no reason you can’t be on the track to financial freedom for years to come.