Here’s a guide to dealing with wedding finances. It can be difficult to bring two different ways of handling money together. When you are married, it is important to merge your finances.
You should not do this until you are married because there are laws that protect you when you are married. Before you get married, you should keep your finances separate.
It helps to be financially compatible before you get married, but if you work together and communicate your finances, you need to be able to do things.
Remember that talking can prevent you from making financial mistakes when you are first married. Here are five basic steps you need to take when merging your finances.
Talk openly about financial situations such as money/debt
You should have an open discussion where you put everything on the table. This is the time when you list all your current debts, mistakes you made on-time payments, savings, and other financial situations you may have. When you get married, you take each other debt and property. It is important to start looking at money as ours instead of his / her money/debt.
Plan a combined budget
Plan a budget. This budget should make a plan for every dollar you make. It is important to allow each other to spend money that you do not have to account for each other.
Depending on your situation, this amount may vary. Just be sure that you can fulfill your obligations, save and get out of debt before your income is too high.
Set goals together and make a financial plan
Take the time to set goals together. These financial goals will help you communicate effectively about money. They will keep you focused and help you work through difficult times. Some common goals are to save USD 1,000,000 in retirement, save on home pay, or save enough to retire at a certain age.
You can further think about when or when you have children. If you are planning on having one spouse home, then you will need to adjust your finances now to accommodate this in the future. You may also want to prepare to start saving for college.
Schedule weekly budget meetings
You must have monthly or weekly budget meetings. You should set up a system that lets each of you know how much you have left in your checking account at all times. You might consider using an envelope system or budgeting software that allows you to quickly check your balance. You should write bills together and keep track of various spending together. These meetings will help you stay on track. Compensation for each of you can give you money without feeling guilty.
Open a joint account
Lastly, open a new joint checking account. You can buy a bank you like or go to a credit union. You can decide that you want to keep one of your accounts and simply add another spouse to this. When you open this account, close the other accounts. It is important that you change your automatic drafts to this account.
Solving Money Problems in Your Marriage
If your spouse refuses to combine finances, you will need to set up a household budget to cover your common expenses.
You should also find out why he will not combine and work together to solve those problems. There may be times when you should not combine finances. For example, if your spouse is having problems with addiction, you should wait to combine finances until things are under control.
If this is the case, you should probably seek counseling to work on the whole larger issue. If you are open and honest with one another, you can avoid most problems that lead to financial infidelity.