Budgeting is simple. You calculate expenses, set aside money, and pray that Apple Inc. won’t release their latest product yet. It sounds easier than done. That’s what it is.
The success of the first year of marriage lies in you. As husband and wife, you’re responsible for each other, including your finances. Settling your newlywed budget can be demanding, but working your way together is crucial.
Investments entice you in the same way that your wife does when she wears red. It provides you with a head start in having your finances in order. Is this, however, the first measure that newlywed married couples can take?
If you’re having trouble figuring out how to make a monthly budget, keep these tips in mind.
Do you wish for your own swimming pool? If you do, it’d most likely cost you a fortune. But if having a clogged kitchen sink flood your house is the closest you could have, then you might not be financially secure.
Financial security means having enough funds to support your way of living while managing to pay for emergencies and other unexpected expenses.
If you can still manage to pay for a month’s electricity bill while having repair work in your kitchen, then you’d need not worry.
Budgeting for married couples isn’t an easy task. But for those who aim for financial security, learn good spending habits.
Importance of a Monthly Budget
How do you feel seeing a month’s worth of your salary fade like smoke? Of course, you’d be distressed. Why does this happen so often?
That’s because of poor budgeting. You see, a monthly budget guides you on how to spend. It directs you to save money before you end up spending all of it.
Below are some advantages of monthly budgeting:
- It helps you set financial goals and priorities.
- It helps you learn financial discipline.
- It teaches you good spending habits.
- It helps you to communicate better in terms of money and finance.
- It emphasizes unnecessary expenses and unhealthy spending habits.
- It lessens arguments and fights about money.
- It frees you from financial stress.
To properly budget, married couples should begin with having money talks. There’s no better way to settle with a budget than to talk about it.
The cardinal rule is honesty. It’s wrong of you to feel ashamed in having discussions such as this. It’s not a scab wound that your partner shouldn’t know about. Or your preference for a pink tie over a blue one.
It’s healthy and helpful for you to be fully aware of each other’s financial standing. Through discussion, you’d be able to come to terms with how much the other is willing to spend and save. It also guides you to an agreement on who pays for which. Generally, money talks are a must.
Your wife complains about your empty bank accounts. Opening the fridge, you see that the only food sitting there was a leftover pizza slice from last year’s party. You reached for your wallet, only to find that 10 elephants could fit inside. What could be the problem?
Finances. Some people find it hard to combine finances with their partner. While it’s always a personal decision, merging your money isn’t a bad idea after all. In fact, it’s helpful in many ways.
For people who combine finances, inferiority towards a partner would be avoided since merging doesn’t emphasize who earns higher. It also helps you to adjust according to one another’s financial needs and habits.
Here is an overview of what your newlywed budget would look like:
- food and water
- utilities (transportation, electricity, gas, telephone, etc)
- medicine (insurance, check-ups, etc.)
- debt and loans
- unexpected and emergency expenses
- entertainment and leisure
- personal fun money
Your wife is your partner in handling finances together. To avoid financial problems in a relationship, compromise and meet halfway. Don’t let money be the end for both of you.
Setting priorities impacts your personal finances a great deal. It makes you a better spender, and you’re far from buying impulsively.
When you get married, your priorities come in greater boxes. Instead of saving up for the newly launched video game, this time, you might focus on saving up for your retirement, emergency fund, and your debts and loans.
Be guided on how to come up with your monthly budget through these simple steps:
- Step 1: Engage in a discussion with your partner about the expenses that you’ll need to cover. Tackle topics about savings and other goals that you’d want to achieve together.
- Step 2: Align your needs and finances to your source of income. Avoid an extravagant life if you can only afford mashed potatoes for dinner. Refrain from impulsive buying. Remember that your goal is to spend lower and save higher.
- Step 3: Recognize and apply your priorities. Observe hierarchy in the things that you would need most. If it’s not a priority, you can always wait until next month.
- Step 4: Communicate with your spouse from time to time. See to it that you’re still both comfortable with the arrangement you’ve settled on.
- Step 5: The concept of ‘personal fun money’ in your marriage can be helpful. It’s one way for you to reward yourself after making such a huge adjustment together. However, it’s important not to overspend.
If you can’t afford to have two at the same time, then don’t buy it.
- Step 6: Welcome the idea of change. If you feel like your monthly budget seems to be on the wrong track, don’t hesitate to improve it.
- Step 7: Listing is handy. You’ll be able to keep track of where your money went and how it’s going to be spent. Giving yourselves something to see will help in achieving your goals easier.
- Step 8: As you age, your needs are likely to increase. Because of this, adjusting your budget from time to time depending on the expenses you have is a must.
Stable Money and Happy Marriage
Marriage is like reading a book.
You don’t miss out on a chapter and look back on where you forgot.
You remember significant details and cherish the minor ones.
Marriage is like reading a book.
For couples, creating a newlywed budget can be tough at times. You stumble over and over to learn what you should. Conquer everything with your wife, for she is your partner. She is the one you chose.