Marriage always feels like riding on a rollercoaster for the first time to new couples. Like a rollercoaster first-time experience, you can only partially prepare for the experience based on the experiences of others you have seen or heard because individuals’ experiences on the rollercoaster may be similar but are never identical.
That is why new couples shouldn’t try to tailor their marriage to look like that of others they admire; they should only take lessons and ideas from them to create the marriage of their dreams that complements who they are.
All the tangible needs of marriage and family revolve around finance; therefore, it is paramount that new couples take their finances seriously by applying these ten financial management tips for new couples in this article.
Why is Financial Management Important for New Couples?
Financial management has made the transition from singles to couples smooth for many couples. It has helped many achieve a lot without wearing out. Financial literacy makes one content and in tune with their reality. It makes people live within their means and patiently work towards their goals one at a time. Couples who manage their finances appear wealthy and have everything going for them because they know how to utilize whatever they have adequately.
10 Financial Management Tips for New Couples
Below are ten financial management tips that new couples should apply as early as possible in their marriage. Don’t say that you would start after a year anniversary or that they are tedious to abide by because the earlier you start, the better you get and the bigger the dividends.
1. Have Financial Goals
Some people say, ‘We won’t worry about anything, we will just follow the flow of the water’. This mindset is dangerous as it leaves the individuals carefree and careless with everything.
Living your life without goals has never been a good thing; this is the same in marriage. A marriage where the couple doesn’t have a financial goal will suffer the effect sooner than thought because life events won’t treat you differently simply because you are a new couple. You can only create better events for your marriage by having financial goals with your spouse.
For example, to clear a debt within a period or to own or start a business. Ensure that there is a financial goal with your spouse.
2. Have a Budget
Having a budget for what you need as a new couple helps you plan better. Budgeting is crucial in marriage because you will need it daily. In budgeting, you don’t just check the cost of what you are budgeting for, and you are done. Instead, there are other things to consider while budgeting, such as price, inflation, duration, a scale to determine what comes first, etc.
Budgeting as a new couple would help you break things into smaller parts and take them one at a time, thereby reducing pressure in the home.
3. Save for What You Need
You have a goal and a budget for what you need; it is time to gather the money. The best way to handle this is by saving for them. Once it is not an emergency, don’t buy things impromptu.
Saving for things affords you time to reevaluate and ascertain their importance. There are many ways to save, such as using a savings account such as a certificate of deposit with which you can save but would choose from how long the bank would hold your money before you can withdraw it. This period can range from a month to five years. This type of account would discipline you towards the cause because even if the bank permits an emergency withdrawal, you must forfeit a percentage of the money.
Also Read: Should I Have a Family Joint Account?
4. Family Joint Accounts
It is not mandatory for new couples to have a family joint account, but it is worth considering. A family joint account has its possible drawbacks, but the benefits for new couples who are loyal to each other supersede the drawbacks.
Some of the benefits of a family joint account include being easy to operate. Both spouses can manage the account independently, steady availability of funds for the family’s basic needs, allowing everybody to contribute to the family’s upkeep, thereby preventing money from putting strain on the marriage, etc.
A joint account is a worthy recommendation for new couples; contact your bank to learn more about this account.
5. Have an Emergency Fund
No matter how much money you have now and how positive you are, it is always wise to prepare for unplanned events. Sometimes, unfortunate situations can come up without any prior notice, and this is why an emergency fund is a must for new couples who want to have as many things under their control as possible.
Emergency Fund, as the name implies, is a fund set aside and not to be touched only in a case of emergency such as losing a job. Emergency funds should be enough to cover the family’s expenses for three to six months.
6. Don’t Spend on Impulse
Impulsive spending is a bad money habit and should be dealt with. Some say they go for whatever they like, even if it will leave them financially broke afterwards. Most of them say it in a braggadocious manner without realizing they are doing something terrible, which can wreck them sooner than expected.
Impulsive spending shows that the individual isn’t intentional about life and doesn’t see beyond the moment. As a new couple, you shouldn’t tolerate that habit. If you spend recklessly, you should do everything possible to stop it.
A family with a reckless spender would have difficulty growing because they would always go for whatever they like without considering the effect on the family.
One of the ways you can tackle the habit of spending impulsively is to limit your access to funds and places you visit both online and offline. You want to avoid visiting places that trigger you to spend lavishly.
7. Invest Your Money
Nobody is excluded from investing. You don’t need a million dollars to start investing your money. New couples should take investment seriously to grow their money. We have discussed budgeting, savings for needs, and family joint accounts, which are excellent and necessary, but have you noticed that none can grow money?
I am not suggesting that you do away with everything we have discussed earlier because doing that would mean setting yourself up for nasty surprises.
8. Basic Needs First
Intentionality makes a lot of difference in marriage. Couples who are intentional make exploits. Recognizing that the family’s basic needs, such as clothing, shelter, and food, come before other things is an attribute of an intentional couple.
No matter what your wants and needs are as individuals. The basic needs should be met first because if not, you are like someone who builds a mud house inside a river; the water will eventually wash it away.
Meeting the basic needs first makes you relaxed and able to go for other goals. No matter the dreams of a starving person, what he needs first is food, not an idea to actualize his dreams.
For a steady, calm atmosphere in the family, ensure the basic needs are always prioritized.
9. Trust and Transparency
Trust and transparency are the bedrock of successful money management in marriage. New couples must be transparent with each other enough to disclose their financial strengths, such as how much they earn and their good savings habits and weaknesses, such as their debts.
Transparency would help couples have a clear picture of what they have and what they want to achieve. It also takes trust in each other to carry out the needed tasks and render sacrifices to accomplish the family’s financial goals.
10. Plan for Retirement
It is never too early to start planning for retirement; the earlier, the better. Some people don’t start planning for their retirement early because they think they have enough time to live carefree.
The fact is that life moves so fast that many people fail to realize that they should plan their retirement even while in their 20s. If you and your spouse are doing 9 to 5 jobs, you can negotiate your retirement plan with your employment if the company doesn’t do that automatically.
If you are a business owner or an entrepreneur, you can start your retirement plan by first paying yourself a salary and, from it, saving a certain percentage of it towards your retirement.
Also Read: How Money Can Put a Strain on Your Marriage
Conclusion
Dear new couples, managing finances should be among the first things you discuss after your honeymoon because many other things depend on it. Don’t think it is too early, and strive to change every lousy money habit to make things easier for your partner.
Have shared goals, then budget, and afterwards save for your needs. Consider a family joint account, and remember to build an emergency fund. One of the bad habits you should eliminate is impulsive spending, and remember that the basic needs should come first.
Trust and transparency matter a lot in this journey of financial management, and start working towards retirement as early as possible.
