Budgeting Tips for Newlyweds

Getting married is an exciting, wonderful, new journey to take with your significant other. While the honeymoon phase may last longer than the trip to Costa Rica, the reality of money will set in sooner or later. 

When this happens, it can be easy to get into squabbles about finances and financial goals. Working as a team, you can get through these arguments, and learn how to budget more efficiently together to avoid issues!

Start the Financial Conversation

What most newlyweds will fall into is the trap of not discussing finances. However, this type of thinking can lead to problems down the road, as not learning how to communicate properly about your finances in the beginning can be a hinderance on your financial ideals. 

To start the financial conversation, begin by addressing your monetary goals. How do you want your finances to look 5 years from now? 10 years from now? If there is a shortage of funds, will a title loan be considered as a solution? 

These are questions you should be asking your spouse for better clarity on how their financial mindset works.

Discuss Bank Accounts

Another financial discussion that should be had is how you would both like to divide your bank accounts. If you are a two-income household, will there be a joint bank account in addition to separate personal accounts? Or will there simply be just one joint account? Combining bank accounts can help build trust in relationships, as both of you will be held financially accountable. 

However, if you both prefer to manage your own finances, it can be beneficial to have separate accounts for personal expenses and a joint account for combined expenses like mortgage payments. 

Build an Emergency Fund

If you both do not already possess an emergency fund, this should become your top priority. An emergency fund is money that is saved in case an unexpected expense comes up. While it doesn’t seem likely to happen to you, cars will break down and hospital visits will be had. It’s better to be safe than sorry! It’s advisable to keep at least 10% of your combined yearly income in an account that both you and your spouse have access to, just in case of an emergency. 

Design and Track Your Budget

One financial goal you might have together as a couple is to create a successful budget that caters to both of your financial goals. While one of you might have a goal to get out of debt or pay off student loans, a joint financial goal might be to buy a larger house to accommodate kids. When creating your budget plan, keep your partner’s goals in mind as well as your own. Write down all your expected bills, as well as any additional expenses you may have throughout the month. 

Once your budget is created, make sure both of you are keeping an accurate estimate of your budgets and updating each other. It can be helpful to keep the budget online, as it can be updated in real time for both you and your spouse.