Money is a major problem in most marriages and one of the most common reasons for divorce. That’s why newlyweds should really take time and understand how they should deal and manage their finances as a couple to avoid such stress that could potentially ruin their marriage.
No matter what age or how much you earn, here are 5 useful and helpful Financial Tips that for the newlyweds.
1. Communicate openly.
Communication is a very important pillar in keeping and maintaining a good relationship. So when it comes to money matters, it is a MUST to talk about it. You should make it a habit to sit down and talk about any financial problem and all your financial goals as one. After all, you are building a new life together. (Which leads me to the next advice…)
2. Disclose everything.
If you have financial skeletons, better disclose them now and completely. And in the future, try not to hide things from your spouse. Well, I’m not saying that you need to report every penny you spend. But as a couple, you need to know your limits and follow the budget that you have planned together. So please, no secret credit card bills or hidden shopping trips. You will not just potentially damage your financial situation but your partner’s trust as well.
3. Live within your means.
If you think that double income means an opportunity to spend more, then you are wrong. Live within your means, don’t spend on unnecessary purchases, budget your combined incomes and boost your savings.
4. Start saving for retirement.
It may seem pretty far, especially for young couples but it’s never too early to save up for retirement. Experts recommend putting at 10% of every paycheck (that’s for each spouse, not as a couple) into a tax-deferred retirement fund to ensure a future of stress-free retirement years.
5. Have an emergency fund.
Last but not the least, you need to protect yourselves from the unforeseen circumstances. Whether it’s getting insurance or just putting money aside for emergency situations, you’ll never regret this. It’s always these stressful situations that test your relationship and having an emergency fund is very helpful to avoid future money issues.