(MP) I wanted to give you the best money management tips for couples because truth be told that’s where most relationships fall into trouble. It seems men and women have different ideas about money: men tend to take more risks and don’t save for emergencies, while women tend to see money as a security issue, so they gravitate toward rainy-day funds. 50 percent of marriages end in divorce over money; it’s the thing couples fight about the most, even more so than over children. So if you are married, in a domestic long-term relationship, and have money fights, you are alone.
The thing is money doesn’t have to be the elephant in the room for your relationship. Successful couples are making money work for them every day by following some basic money management tips. Remember a relationship is a partnership, both parties need to be involved in the finances. Separating all the money and splitting the bills is a bad idea. I’m not talking about anything complicated, but rather a comprehensive plan that each of you can follow, understand, and find common ground. Whether you’re starting out or already have several decades under your belt, it’s important to always be in the know about your finances. Be a pro with these tips that will make you and your partner not just stay afloat, but actually be stable and happy.
Best Money Management Tips For Couples
1. Set financial goals
The first part in setting financial goals involves figuring out what matters the most to you both. Having everything you want is simply not possible. There just isn’t enough time or money to have it all. That is why financial goals are necessary. They force us to prioritize and focus on what is most important. If you are to succeed together financially, then it’s important that you both are looking in the same direction.
2. Create a family budget
Both of you should have input in the budgeting process. This is really a critical component of any budget that is actually going to work, which means that it is respected and followed by the entire family.
Before you can even plan for anything, you should first be honest with each other about your spending habits. This will help both of you manage expectations down the road.
3. Have both separate and shared accounts
Some happily married couples try to achieve the benefits of sharing and independence by having both joint and separate bank accounts. They both put a set amount of money in the joint account to pay the regular expenses, such as the mortgage, car payments, and utilities. Any extra money goes into their separate private accounts to be spent any way they want. This option allows the married couple to share in the expenses while not having to be questioned about personal purchases.
4. Trim your core expenses
These include housing, food, transportation, utilities, loan payments, insurance and retirement plan contributions. And while you’re at it do you really need caller ID ($6) and call waiting ($9)? How about the premium cable ($60) or satellite package ($55) that you subscribe to? Examine your list of monthly expenses, and determine what you can live without — short term or long term.
5. Monitor your finances
One of the ways happy couples take charge of their finances is by keeping track of their spending habits. The information you collect will help you identify opportunities to reduce your spending. Save receipts, update records, and review results monthly, if not weekly.
6. Start an emergency fund
An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly.
Here are some of the top emergencies people face:
- Job loss.
- Medical or dental emergency.
- Unexpected home repairs.
- Car troubles.
- Unplanned travel expenses.
7. Take note of payment schedules
Use your phone’s calendar to mark bill deadlines, especially those from the credit card companies, as late charges can be a pain in the ass. Mark two dates on your calendar for bill payments. Each bill payment date should come a little bit before the bills are actually due. For example, on the 1st and 15th of each month, set aside an hour or so to both review and settle your bills. Make sure to keep this appointment with yourself.
8. Pay in cash
There are a bunch of studies out there that compared cash and card spending behavior, and they all came to the same conclusion: you spend more with plastic. Part of the reason behind this is the disassociation factor: you don’t feel as if you’re actually parting with money when you swipe your card at a terminal, especially if you don’t have to face the bill for a month. Paying cash is the equivalent of a dieter’s keeping a food diary: it forces you to hold yourself accountable for what you buy over the course of a day.
9. Live within your means
Knowing your financial limits gives you more freedom, so spend only within the boundaries of your budget.
10. Take advantage of free money
We’re particularly fond of money management tips that do not require our sacrificing anything. Take advantage of 0% balance transfer credit card offers, and buy store gift cards at a discount, also look for ways to lower your utility bills.
Love & Money: What Statistics Say – Business Insider
Link Btwn Income & Happiness – Princeton.edu – Disputes Statistics
Setting Goals As A Couple – Of The Hearth