As the married couples’ pledge, “for richer or for poorer,” spouses must plan together to ensure that they give their children a better future and live a sustainable life. However, as many people get into marriage, not everyone effectively managed their money to survive the economic crisis. How many couples were able to fulfill their goals to have a bountiful life?
Sadly, most couples nowadays manage their money individually. Most of the time, women are obliged to do this responsibility. There were also times that men would only provide their wives just enough money for allowance and then they’ll keep the rest.
Also, there were families where both husband and wife are working. We are expecting this set-up to continue to happen since we already noticed how millennials are eager to manage their lives and finances on their own. It will then result in individual decision making when it comes to money. Worst is, most couples quarrel over this matter.
It is not yet too late to fix your relationship when you have this problem. As long as you know the secrets behind proper financial management, you will feel the rewarding experience it gives.
And the best benefit it can provide?
Knowing the right ways to manage your cash flow will strengthen your bond as a couple and keep you on the right track as you grow old together. This action will also have positive effects on your children. So now, invite your partner and let’s talk about financial management!
Talk to your partner
You live as a couple. Therefore, you must talk about money in a way that both of you are calm and willing to fix things. That means one cannot succeed if the other won’t cooperate.
This matter is something that the two of you must tackle so that you can get a better understanding of the real status of your finances. Listen and understand. Set your expectations and discuss whenever each of you wants to purchase. Eliminate cheating or lying since it will only worsen the problem.
Set your goals together
When do you want to retire? Is there a business that you want to put up? It is advisable that both of you set your long-term financial goals while considering your family’s welfare. Don’t be afraid to discuss the consequences and possible results of your financial decisions.
Open a bank account
Every family has different expenses. It is easier to stick on your goals when you open a bank account and separate your savings from living expenses. It is not recommended that you rely all on your expenses from your husband’s ATM because that will surely put all your money out.
Open an account for emergency savings, and daily allowances. In that way, you can control your spending when you set aside a portion of your salary into a different account.
Create an emergency fund
Sickness and medical expenses are inevitable most especially when you have kids or you are expecting another baby. Furthermore, natural disaster and the loss of a job are also other things that you need to consider. Therefore, it is crucial when both of you can prepare for these dreadful situations so that you won’t end up completely wrecked. Sometimes, it is one of the reasons why couples argue and worst, divorce.
Once they were not able to survive or handle this financial crisis, their relationship is greatly affected until they both give up. So, you should not underestimate money management as a couple. After all, once you are married you now have a combined pool of money.
If your emergency fund is not enough, don’t go for each other’s neck. Both of you should decide how much you need to borrow and which payment term can you meet with ease.
Track your budget
Tracking your budget means you keep an eye on your cash flow. Whether that is money that you add up to your savings or a purchase that you should make, it is essential to make your budget. It will help you adjust accordingly when an unavoidable situation occurs like income changes.
Whether you get a salary increase or one of your losses his or her job, it is great when you still control your spending habit. It helps you to easily adjust whenever a financial crisis happens in the family.
When you track your budget, it is important to be completely honest with each other. Make a list of priorities that both of you agrees on. Remember to make a personal list or priorities too and then work on how you can achieve it. Let’s say the wife wants to go on a vacation abroad next year while the husband wants to but a new entertainment system. These are individual goals but you have to work together for it to keep everyone happy.