A 2024 study by Fidelity shows that 45% of couples argue about money occasionally.
In the real sense of it, almost every couple argues about money at one point or another in their marital life.
Flashing back, you would remember countless arguments you have had with your spouse over money.
The good news is that rather than letting finances be the leading cause of argument; with mutual understanding, intentional planning, and teamwork as a married couple, you can build a happy future of financial stability together irrespective of your income level or financial background.
How to Easily Manage Money as a Married Couple
1. Start with Open and Honest Communication about Your Finances
Communication is often the first line of resolving issues before they prop up.
The first thing we did as a married couple was to have open and honest communication, not holding back anything about our finances.
Together, we have learned about being financially transparent and it has impacted our financial mindset greatly, helping us to avoid future misunderstandings.
As a married couple, have an open and honest discussion about financial issues like your income level, spending habits, savings, outstanding debts, and short and long term goals with your spouse to avoid future money arguments.
Also, let your partner feel safe to express his/her opinions, desires, and concerns openly without blaming or shaming each other for past financial mistakes.
2. Set Short- And Long-Term Financial Goals Together
Marriage is a union of two people to become one entity. Therefore, for your marriage to work, you must marry your visions, desires, aims, and aspirations, and most importantly, your finances together.
You must both set and achieve short- and long-term goals together.
You and your spouse should plan short-term goals like vacation, home upgrades, buying a new car or electronics and have a mutual conclusion before proceeding.
On long-term goals, rather than carrying your spouse along, plan together on retirement, starting a business, owning a home, funding your children’s education, and planning your estate.
Read Also: How to Set Financial Boundaries in a Romantic Relationship
3. Create a Joint Budget
One of the best decisions I have made in my marital life is agreeing to create a joint budget with my spouse; it formed the basis of our financial harmony, helping us to achieve our financial goals together.
If you’re about to take the same step I took, start by taking the following steps together:
- Make a list of you and your spouse’s income include salary, freelancing/consulting, pension, rental, cryptocurrency, and other investment sources.
- Make a list of your expenses as couples, categorizing them into fixed (rent, utilities, insurance, mortgage payment), variable (groceries, gas, car maintenance, pet food and care, medicals, subscriptions), and discretionary (clothing, cell phones, entertainment, dining out, vacationing).
- Agree on spending limits for each category of expenses.
- You and your partner should agree on how to fund your budget without one spouse having a sense of imbalance.
- Include personal allowances (for discretionary purchases), savings, debt repayment, and emergency in your budget.
- Track, review, and adjust your budget monthly for transparency using a budgeting app or spreadsheet.
Read Also: 9 Practical Budgeting Tips for Easy Money Management
4. Decide On the Right Bank Account Setup for Effective Money Management
Initially, my partner and I adopted the joint account option of managing our finances, but along the line, issues crept up. I am a saver, intent on conserving money, while my spouse is a spender, good at splashing money.
After back-and-forth arguments, we both arrived at the decision to manage our finances using the hybrid system, where we pooled our income into a joint account from which we fund our budget for the month, and then transferred equal amounts of spending money into separate personal accounts out of each other’s control.
Likewise, you and your partner should have an in-depth discussion on which model of account setup to adopt for an effective money management system.
Adopting the ‘all-in’ model is the easiest way of pooling resources and spending from a common purse usually a joint savings or checking account; for this method to work, you and your spouse need to have mutual understanding and trust for each other.
If you or your partner loves being financially independent, then adopting the ‘Venn diagram’ style might just be the best option for you.
You and your partner maintain financial independence with separate accounts, but share expenses like housing, groceries, and utilities equally or percentage-based.
You and your spouse might choose not to open a joint account for funding expenses, but agree on who funds what expenses.
Read Also: 8 Spending Habits You Should Imbibe When Passing Through Financial Crisis
5. Build An Emergency Fund Together
Being battle-ready in the face of emergency expenses like emergency plumbing work, medical bills, fire outbreaks, loss of jobs, and loss of a loved one requires that you set aside an emergency fund as a married couple.
You and your partner should discuss the target amount you want to save as an emergency fund. Often, it is advised that couples save six months of their living expenses as an emergency fund.
After agreeing on the amount to save, you should also decide how much you’ll each contribute monthly.
For consistency, you should automate your emergency fund contributions to a savings account you have designated as ‘emergency,’ of which you and your spouse can both have access to easily.
Having an emergency fund is a safety net that keeps you and your spouse going, especially during tough times, without feeling much of the blow.
Read Also: 7 Easy Money Management Tips You Can Start Today
6. Address Debt Together As a Team
This is where you’ll likely have money issues with your spouse if you’re not open about your debt history. You and your spouse should have an open, heart-to-heart discussion laying all your cards on the table.
You and your partner should be transparent enough to discuss credit card debts, student loans, car payments, mortgage, and personal loans.
While ironing out this issue with my spouse, we made a complete list of our debts with balances, interest rates, and minimum repayments, after which we decided on a repayment plan as partners.
In paying your debt together as a couple, you can consider the debt avalanche method of paying high-interest debts first, or the debt snowball method where you tackle small debts first.
Also, you might consider consolidating high-interest debts into a low-interest loan for easy debt management.
Irrespective of the method that works for you, you should track your progress together and celebrate small wins. Remember, avoid playing the blame game for past mistakes; the goal is to achieve financial success as teammates, not opponents.
Read Also: 10 Financial Hacks to Save Money on a Low Income
7. Be Open To Further Planning and Discussion on Finances
Enjoying financial harmony in marriage involves having mutual understanding, trust, and respect for your spouse.
You should be open to solving issues amicably by approaching issues calmly and constructively, discussing joint savings and investment opportunities, and, if possible, planning towards starting a joint business in the future.
Also, you and your spouse should be wise enough to secure your future with insurance and also by creating and updating your wills and estate plans to ensure that you’re both protected financially.
If there’s a huge disparity between you and your partner’s income, you should both acknowledge and respect your income disparity without using it against each other’s demerit.
By aligning your financial interests together, you can build long-term financial security to ensure a happy-ever-after kind of marriage.
Conclusion
Always remember that achieving financial freedom together as a married couple does not happen by accident, but by the hard work of open and honest communication, aligned goals, and team spirit.
Challenges will rise along the way, but your focus should be on resolving the financial issue at hand, not the person.
Read Also: How to Live Below Your Means: 7 Hacks You Were Not Told
