Life as a couple is not always straightforward. Often, we need extra doses of patience and dialogue to maintain a healthy relationship.
It’s hard work.
And when it comes to money, things can change drastically.
Will love be enough to maintain a healthy and happy relationship when we organize our financial life?
This post gathers the main tips that a couple should know to organize their finances better.
We’ll show you what my wife and I have experienced in our own married life over 20 years ago.
Want to know how to do this? Let’s go!
- Know Yourself How to Handle Finances
- Always Talk About Money
- Keep Personal Expenses Separate
- Share Expenses Proportionally
- To Each One’s Income
- Control financial health
- Recognize the importance of managing your finances
- Put saving tips into practice
- Set goals for spending and reserves
- have an emergency reserve
Avoid conflicts to continue united with each other. It’s essential to know how to divide the bills and define clear rules for both.
We’re two different people who start to share the house, the routine, the tasks and, of course, the money!
A couple’s finances can be one of the more delicate points in a relationship.
If organizing individual finances is difficult, after marriage, everything becomes more complicated.
Don’t you think?
1. Know How Your Partner Deals With Finances
One of the biggest mistakes in any relationship is the lack of dialogue. So often, we try to avoid discussing certain subjects in order not to cause conflicts.
But this isn’t the best choice, especially when it comes to finances.
It’s normal for each of us to have a particular way of dealing with money. We’re people with different life histories and financial points of view.
But that’s an excellent opportunity for couples to learn the advantages and disadvantages of each other’s financial planning and exchange knowledge.
If we are more out of control and buy impulsively, this isn’t a reason to stop talking about it for fear of conflict.
At the beginning of a marriage, both need to be committed to doing things right. Dialogue and organization are crucial! Don’t forget that!
2. Always Talk About Money
So, remember the first thing both of you need to do is have a transparent dialogue about each other’s financial reality.
We’re going to need to talk about fixed deposits, debts, purchases, rents, and the financial reserves each of us has.
It’ll be possible to plan based on your particularities and standard points.
Hiding debts, purchases, or even savings from the other is serious in a marriage.
Transparency is key.
The ideal is to always talk about the subject and review the rules. This way, both of you will feel comfortable in the relationship.
Our relationship with money cannot be limited to the first few conversations. We need to talk until we come to an agreement and set a financial plan.
Talk about money and finances naturally. Look over your bills together, review plans, and think about it.
3. Keep Personal Spending Separate
When we get married, one of the main questions for couples is whether the accounts should be separate or joint. Each pair will decide what is best for them.
But the most comfortable option is usually to share joint accounts and keep personal expenses separate.
This way, you maintain balance; you divide the typical income from the private one.
It’s possible to pay all bills and have a shared reserve without giving up the freedom to spend your own money.
That way, you won’t argue about every single thing you buy. Transparency in the dialogue does not mean that you will not be able to buy something personal.
Sometimes one person considers a purchase more important than the other person. Either way, each needs to be respected.
Each of you can use a part of your salary to spend on your things as you wish.
4. Share Expenses Proportionally To Each Person’s Income
Some couples can have doubts about how to separate expenses. If you earn different salaries, it’s crucial to have an understanding of this issue.
So no one is stressed to pay bills and has some money for personal purchases. The ideal is to divide the money proportionally to the earnings.
Dividing the bills is not the best way to organize your household budget unless your salary is the same.
If each of you has a different income, pay the expenses in proportion to what each receives.
The logic is simple:
Respect differences to keep harmony in the marriage. For example, if wages are not equal, the two do not have the same ability to pay, save or guarantee their expenses.
When you organize your accounts, you have to consider the ratio between salary and contribution.
5. Importance Of Financial Control
Among our tips for organizing life together, keeping the situation in check is one of the main ones.
Knowing where the money goes is the basic rule of any financial plan.
If you want to organize your life better, your situation has to be in check. Therefore, the basic rule of any financial plan is to know where your money is going.
Organize all your expenses and reserves. This simple action will ensure unity between you when it comes to finances.
Doing so is not too difficult.
See next how you can do it in 3 simple steps:
- Begin by taking note of all your bills and household expenses. It’ll help you identify difficulties and propose changes in consumption. At first this habit will take an effort, but it’ll soon become natural.
After a few weeks of doing this, it becomes easier to keep the commitment.
- Resist the temptation to use these notes to control each other. The idea is not to generate discussions, but to allow a better financial evaluation.
- By taking note of spending for a month or two, you’ll have a better idea of the lifestyle you are living. So you can think about changes and adjustments.
6. Recognize The Importance Of Managing Your Finances
Saving seems to be difficult for many couples. However, creating savings habits within the family budget is an essential step towards good money management.
Even though expenses are different every month, saving is always possible. However, those who spend everything they earn are more vulnerable in emergencies.
So even couples who live comfortably still need to cut back on spending and secure cash reserves.
Savings Account, Yes Or No?
The answer is yes.
A savings account is essential in a couple’s life.
Whether it’s for unexpected expenses that don’t fit in the budget, it’s for children’s education or planning a vacation.
One of the golden rules of saving is that objectives must do it. Naturally, therefore, there must always, and in any case, be an emergency fund.
This fund will have to cover between 3 to 6 months of the family’s monthly income to face any situation of unforeseen unemployment or illness.
The amount to be saved should be a percentage of income or a fixed amount.
You can activate this simply by giving an automatic bank transfer order.
As soon as the salary enters the family’s account, an amount will go into the couple’s savings account.
The important thing is not the value. The important thing is to get into the habit of setting a percentage aside for this purpose.
Know that it is also possible to save by earning little.
Many people miss opportunities because they wait for their salary to increase and start saving and making plans for the future.
However, even with little money, those who start early are already one step ahead in building financial independence.
7. Put Saving Tips Into Practice
Checking your financial records lets you identify expenses and save money.
Controlling credit card use, for example, is one of the most valuable strategies for making more money.
Doing this will help you keep an eye on your credit card balance.
Here are other simple savings which make a big difference in your life:
- Ask for discounts on monthly services, like cell phone plans;
- Change your internet or cable plan for a cheaper one;
- Ask for exemption from bank and credit card fees;
- Cook and make meals at home or take a lunch to work;
- Have friends over to your home instead of going to bars or restaurants;
- Look for free or cheaper leisure options/programs;
- Always check for a cheaper price when you need to buy something;
- Take advantage of discounts for cash payments;
- Check online for discount coupon apps, like Honey.
8. Agree On Spending & Saving
Saving money is not always easy. You have to be very organized and disciplined.
As long as you never go overboard, you will have to rely on occasional expenses that guarantee your quality of life.
Tips for organizing a couple’s finances always start from the point of balance. To meet this challenge, you need to set some goals.
After you know your spending habits, you will analyze what’s important and where you can cut or minimize spending.
For example, if trips to the beauty salon or the barbershop are essential, specify the amount in this category in the monthly budget.
The same for leisure. Set an average amount of money to spend on monthly outings.
You don’t have to stop having fun, but you don’t need to break the bank either!
The first step is to separate the amounts for the payment of bills and your saving goals.
Whatever is left, distribute it for leisure and individual purchases.
For this financial control, you will need some apps, such as Mint, Wally, and Goodbudget.
9. Set Up An Emergency Savings Account
An emergency reserve is essential to any financial plan!
We are always vulnerable to unexpected expenses. It can be a health problem, a family member who needs help or paying for a sudden car accident.
So, a portion of your monthly income must be separated to protect the couple from unforeseen events.
This practice allows greater security for you, avoiding significant financial difficulties.
Often, people need to borrow and go into debt to deal with unplanned expenses.
It can destabilize a family’s entire budget for months or even years, depending on the size of the cost.
Having money set aside will help to keep the family’s stability even in critical times.
Financial reserves use savings in general. But there are also other options. For example, some low-cost investments you can use as a way to save for a rainy day.
If you want to start right away, I recommend a savings account.
For example, we have different savings accounts for other goals. One is for paying property taxes or any related taxes and another for car repairs. We use these accounts to help pay for significant expenses.
Start with a savings account and get going!
10. Plan for Short, Medium And Long Term
Besides creating bank accounts and managing your costs, you need to include future goals in your financial plan.
Planning by putting aside a certain amount each month for your plans will help to organize your financial goals. It’ll also avoid putting extra weight on your budget at any point in time.
If you’re interested in buying a new car, a house, or thinking of having a baby, you have to plan. So it’s always best to be prepared!
Also, saving for your retirement is another factor to keep in mind.
Even if it takes a long time to reach your goals, do not give up. Don’t set up high expectations.
In the beginning, it’ll go slowly, little by little. But you will be able to provide for the future.
11. Expand your property
Investing in usable assets, like a house, is a great way to strengthen your finances. So if you have money to invest, it’s something to consider.
Think about building your family heirloom. Then, in the future, they can be a source of income.
The objective is to make these purchases in a controlled and regular (planned) manner.
For this, the economy is the best option. You pay for a product in installments over time without having to pay interest.
Type of collaborative economy in which you pay a product in installments but without interest.
There are also many types of credit cards. Please choose the one that fits your budget, so it doesn’t affect your other expenses and savings.
With transparency and dialogue, we couples can arrange our bank accounts and grow our money.
These tips for organizing family finances will be handy for you to reevaluate the paths to take and build new strategies.
By carefully studying your income and expenses, you can set savings goals to work towards a healthy financial plan.
So, are our guidelines useful for you?
Are you excited to start a cycle of a more financial organization?
