Thursday, July 4, 2013, AM | Leave Comment
When couples begin their shared journey, common misconceptions about finances can set them back. People who were successful managers of their personal finances while single often believe that this success will simply continue into their next phase of life. Combining finances can be a tricky business, and when just starting out, it is important to respect your spouse.
There are a great many paths to financial success, and two people can be highly successful while using very different approaches. If a couple does not prepare and adapt to each others needs, they set themselves up for disaster.
The good news is that with the consideration of a few key elements, moving into the new partnership can save a lot of headache and hassle in the future.
The first thing that a new couple has to discuss is the management of budgets and how to divide up the financial tasks. When single, people typically develop a system of record keeping which works for them.
However, even with separate accounts, it is important for the new couple to consider an approach to record keeping that works for both parties.
When both parties know the particulars of both finances, they become a resource for each other. As they say, two heads are better than one. Keep each other informed of all changes and major purchases.
Listing and Layout
Once a budget has been decided upon, make a list of all the monthly payments to be made. Set aside a fixed amount for paying back on loans, rent, or any other regular bills and fees. Prioritize the most important on the list and decide together a few goals to reach.
Savings and Goals
Keep in mind putting aside money in savings to protect against any unforeseen events. Or perhaps one of your goals is to save for a vacation, new car or house, create a savings account to help you achieve your dreams together. According to a bankruptcy attorney in St Louis, couples who save early on are less likely to run into financial trouble later on.
Fun and Games
New couples must figure out in their new budgeting process what is a comfortable amount of discretionary money for each person to have. As a couple, you should decide together what you both feel comfortable allowing as “fun” money. Allocate a fixed amount for each person to spend however they want.
Couples should keep equity in mind, and both parties should feel as if they have equal access to their shared resources, or else resentment and animosity can build.
While new couples face a difficult task when they construct their new financial landscape, the process can be made much simpler if they keep these items in mind prior to their start. That way, there will not be any unpleasant surprises or unfairness waiting for them down the road.Facebook.com/doable.finance