…Money mistakes can mar marriage
Lack of money is one of the major reasons some people opt-out of marriages (divorce). Quite a number of couples make that mistake of not having money talks during courtship. This in turn becomes a huge problem when the marriage progresses.
Personal finance experts usually counsel young couples on the need to have a conversation around finances before settling down for marriage, the reason being that money is one of the most critical aspects of one’s future marriage/household finance.
However, bringing up the money topic may seem less engaging and even intimidating as the two parties are still trying to understand themselves. Nevertheless, it is imperative to discuss it as well as any other financial matters that might cause detriment in the near future. Having this conversation, as uncomfortable as it might be, will enable the duo to have financially-independent marriage and also avoid the money mistakes the newlyweds usually make.
Here are 7 money mistakes newlyweds should look at for from the beginning:
1. SHYING AWAY FROM MONEY TALKS
Partaking in money talks with your spouse will aid your journey to financial freedom. Discussing your finances with your spouse can be a bit uncomfortable but, if tackled head-on you will surely have a blissful home.
Understand your partner’s financial goals and spending habits. Ask questions and understand what the future holds for you both. Do not shy away from asking your partner if they are in any debt and if yes, you both should devise a means to clear it.
Having conversations about your finances will assist you develop an approach to money management and also aid you in planning for a better future.
2. NOT HAVING BUDGET PUT IN PLACE
Some grave money mistakes many couples make include not having a budget in place at the early stage. Some usually spend their money on extraneous things, like having fairytale weddings, without having a tight plan for the future. They overlooked the fact that weddings are just mere events while marriages are the main journey.
Setting up a budget is always a good financial plan for couples as this will aid them in managing their finances. It is always recommended to have a good conversation with your partner in other to understand how you can plan for a beautiful future not only for yourselves but that of your offspring.
Setting a budget is not always facile but is something feasible.
The best technique to get started is by asking yourselves these questions: What measures can we put in place to attain financial freedom in a stipulated period? What are the best savings packages some banks offer kids? What are the affordable and respectable schools for our kids? And finally, how much are we budgeting for our variable and fixed expenses?
If you have all this budget set aside, and strictly adhere to it, you will be contended to see what you have achieved in years to come.
Read also: Budgeting 101: 5 simple ways to budget your way to financial freedom
3. NOT HAVING A PLAN FOR YOUR ACCOUNTS
There is no right way to manage your accounts. Couples can choose to have exclusively joint accounts. A joint account as well as separate accounts for savings or personal spending, or keep things entirely divided. Discuss your preferences together and decide what makes you both the most comfortable.
A couple needs to have this conversation on having a joint or separate account. But it is always advisable to have a joint account where you can contribute funds to.
4. FAILING TO SET UP AN EMERGENCY FUND
Life is full of surprises and unfortunately, some of these surprises can be expensive.
Having an emergency fund will help you avoid precarious financial situations that sometimes come up. It is important that you decide together how you will set aside the money.
5. BEING FULLY DEPENDENT ON YOUR PARTNER
It is always advisable not to leave all your whole expenditure for your partner alone. Always look for a way to be a support system. This way, the other party wouldn’t be overwhelmed with the whole process of taking care of the family financially. Getting a job/starting a business will also aid in easing some financial burden off your spouse.
Being fully dependent financially on your spouse is one of the worst money mistakes newlyweds make. Though it might not be the fault of the party as one tends to restrict the other from working/starting a business, with the notion that they will cater for all their essential needs.
However, this kind of arrangement has made some marriages to crash, because the other party will, in due time, become overwhelmed with the financial burden, which will definitely deteriorate once the kids start coming in.
Read also: LOVE ZONE: This is why people cheat
6. COMBINING YOUR FINANCES
There are few valid reasons for keeping your finances separate after you are married. If there have been issues like gambling or severe overspending, you may need to work on building trust before combining your money.
Generally, though, combining your finances and budgeting together can help you work more easily toward your financial goals.
This also means that there are no hidden savings accounts, credit cards, or bad money habits.
Sit down with each other on a regular basis and make sure you are reaching your goals. If your spouse will not combine finances, they may be hiding a bigger issue.
7. INGORING DEBT
The best time to deal with your debt is when you have just got married, before you have kids or the added financial stress of owning a home or your own business. You will likely have more disposable income in the early years of your marriage, so use that money to start tackling your debt.
Once you are debt-free, you will have more available funds and can start working towards your next financial goal, such as buying a home. Ignoring debt early on will only make those dreams harder to attain.
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Reference
- https://money.usnews.com/money/personal-finance/slideshows/money-mistakes-newlyweds-make
- https://www.kiplinger.com/article/saving/t065-c006-s003-money-mistakes-that-newlyweds-make.html
- https://www.thebalance.com/newlywed-financial-mistakes-4053749
- https://www.huffpost.com/entry/8-biggest-money-mistakes-_b_5842432
