Some couples like to implement their own specific methodologies to manage their finances. Although people can successfully share their financial responsibilities in any way they choose; it helps to stick to a properly devised monetary system to create a budget you can adequately supervise without going overboard.
Money management can be a rewarding way to bond with your loved one. The absence of which can result in lying or deceiving each other to hide personal disappointment and failures.
Here are 8 tips for sharing finances for all married couples and couples in general:
1. Create a Budget
Today, nobody has an excuse for not creating a budget to manage timely and monthly expenses. There are many mobile and web apps to create a budget that works by allocating funds to your expenses while also giving tips to cut down your spending.
You can also use the good old enveloping system. Evaluate how much you will be left with after you pay your dues and bills; put the remaining money aside for investments, savings or unforeseen expenses.
This will also help you to know how much you spend on entertainment, household items, dining out, groceries, gas and a bunch of other stuff.
2. Monitor Your Budget
Creating a budget is just the first step. Monitoring your budget to know if it is working out for you is equally important. Make sure you remain within your spending pattern to adjust to all income changes or various situations.
3. Track Your Credit Card Expenditure
Maintain a spreadsheet that keeps a daily track of your spending. Review this spreadsheet often and highlight the days when you are likely to spend the most. Use credit and debit card discounts to break down your leisure expenses. But remember to pay your credit charges every month. By mixing a few different approaches, you can know what works out best in your individual case.
4. Share Responsibilities
Money management in a long term relationship is not just about dividing bills and paying for each other. It means that you have a clear understanding of your own responsibilities and contributions. Discuss the matter with one another and make plans about how you should manage your expenses as a couple.
Each partner must have clearly defined responsibilities to avoid making last-minute payments or accumulate any sort of debt. When you fail to work as a couple, your bills may go unpaid and you rarely save anything at the end of the month.
Moreover, working as a team is only possible when you have the same goals in mind; such as paying for the mortgage or saving for a family trip. Encourage each other and appreciate the efforts made to accomplish your goal as a couple.
5. Be Honest
Honesty in money matters is more important than you think. When you lie or cheat to your spouse about a bad financial decision, a missed payments or a hidden debt; you are at risk of damaging your relationship forever.
Talk to your partner and discuss all available options to help you get out of the mess. List down your strengths and weaknesses and have your spouse do the same. This will help you to know who is capable of saving more.
6. Hold Weekly Money Discussions
Meetings are not just for work. You need to discuss some important things at home too. Talking about money matters clears away any misconceptions that you may have. It also helps you to make payments on time and gradually accomplish your financial goals.
7. Save for Retirement
Many people start saving for retirement long before they enter into a relationship. This is because your retirement fund is responsible for keeping you and your spouse happy for the remaining years of your life. You can enjoy maximum benefits by contributing as much as you can afford if you work for a company that offers a 401k plan. You can also maintain a personal account to save for holiday trips and retirement days.
8. Invest in Different Ventures
Apart from saving, you should also participate in profitable investments such as real estate investment, stocks, bonds and mutual funds. Take action when the market is volatile and grasp opportunities as they come to make quick profits.
Elena is a personal development coach at maltasothebysrealty. Her passion lies in bringing out the best in people. Her other interests are swimming, traveling and helping her local charity Caritas.