How To Effectively Manage Your Finances During Marriage

They say there’s no “i” in the word “team”. In marriage you and your spouse are a team. You handle almost everything together and that includes your finances. And when I kicked-off this new blog series last week, I talked about how vital it is to have open communication in order for you to be “one” with each other. You probably won’t be on the same page all the time – that’s just normal – but it’s important that you respect each other enough to eventually make compromises.

Open communication in a way is the foundation for all the other tips I’ll be sharing about managing your finances during marriage. That’s why it’s important to try and work on that practice as you continue to enjoy married life – at least I hope you’re enjoying it.

Newlyweds Without Kids

When you’re just starting married life as a couple, you’re likely still in that so-called “adjustment phase”, where both of you are trying to understand how each other views and handles money. You’re still getting used to knowing that money management is now a joint responsibility rather than something you take on by yourself. And, again, that’s perfectly normal.

To make that adjustment process even easier, you can do some of the following:

Understand Each Other’s Priorities

If you want to be able to effectively manage your finances with your spouse, it’s essential to first get a sense of each other’s money habits and priorities. Doing so can save you from getting into disputes about money in the future. It also helps you get a better idea of the things you’ll have to do and perhaps the sacrifices you’ll have to make to have a good financial outlook in the future.

Someone, who, for example, is a saver might have trouble managing money with someone who is a spender, which, as you might expect, leads to arguments. At times, it might be hard to judge who has the “right” priority or money belief between the two of you. And that’s fine. Just remember to be as honest and as transparent as you can when you’re doing this.

What matters here is that you’re able to come up with similar priorities, or at least find some sort of common ground that works for both parties’ interests.

Set Your Goals

Now that you share similar priorities, it’s time to start setting your goals. As a couple, ask yourselves, “What are the things we want in the future?” Think short-term and long-term here. Be realistic. And be as detailed as possible.

For example, if you want children, think about how many you want and what school you plan to send them to. If you want to enjoy an early retirement, set an age for when you plan to really stop working. Dig as deep as you can and consider how much you’re willing to spend for all these things.

That way you can make a plan, a budget, or a system – whatever works for the two of you – to ensure that these goals are affordable.

Invest In Insurance

If ever you thought you didn’t need insurance before, well, you do now. There’s no better way to financially protect your family from life’s countless risks than with an insurance policy.

You might already have some policies from your employer, but that’s rarely ever enough. So it’s wise to add to them. If you can’t afford it yet, just shop for the basics first, such as life and health insurance. When you have more money to spare, add disability and critical illness insurance into the mix.

Also, don’t forget to go over your existing policies and add your spouse as a beneficiary.

Consult A Financial Advisor

All this can feel overwhelming and stressful at first. After all, you’re starting an entirely new life together and there are a lot of bases to cover. But don’t worry, professional help is just a call away if you need it.

Financial advisors can help you design the most solid plan for your personal needs as a couple. They can find you the best deals on insurance, point you to the right investments, and bolster your entire financial portfolio.

Bridges-PH offers this type of professional service. Reach out to us through janetnng@bridges-ph.com or +63917 891 9069 to book an appointment over Zoom.