It doesn’t matter if you have loads of cash or just have enough to get you by. Now that you’re married and all your money and assets are conjugally-owned (unless you had a prenuptial agreement), you may one day find yourselves running into arguments over how to manage your finances and assets on a day-to-day basis.
To avoid these issues and set your marriage off to a good start, especially on the money front, here are some tips to help you:
Discuss your life goals
To plan and manage your finances together, you need to know each other’s goals in life since these will determine your spending and your investment strategy. Do you want to have children? If so, how many and how soon? Do you plan to buy a house? If so, what is your time table for this? Do you plan to relocate? Pursue further studies? Start a business together? Travel? Goals can evolve with time, and make it a habit to revisit your goals every so often.
Set your priorities
This is directly related to the first. Money issues usually begin when spouses cannot agree on their priorities. Before these issues come up, have a conversation so that you would know what matters to each of you as individuals and as a couple. Let’s say you both decide that starting a business is your top priority for now, then both parties would understand that most of your joint funds will be going to the business, and that purchases of big-ticket items such as a house or car may have to take a back seat in the meantime.
Set a monthly budget
Now that you know each other’s life goals and priorities, set a monthly budget that you can live with. This will be based on your joint monthly income. Determine how much you would spend on the basics (utilities, housing, transportation) as well as on non-necessities (entertainment, leisure). Make sure to set aside an amount for savings. Determine how much each one would contribute to this budget (if applicable) and agree to regularly review this budget.
4. Decide on your bank accounts. Discuss if you would want to have separate bank accounts, a joint account, or both. Most likely, both of you already have individual accounts. If you are employed, then you would continue to have your own personal bank account. You may also wish to talk about how you would regard each other’s money. Some couples may prefer to have freedom to use their own money, while others may be more comfortable consulting each other on various expenses. This would differ greatly among couples, so you need to know what you are both most comfortable with.
Have a record filing system
Records are often overlooked by most people, but this is very important so that you can study your finances and have quick access to all the important records you need to have available. This would include bank statements, real estate titles, billing statements, etc. Make sure that both of you know where to find these records. You can also keep electronic copies of these records using various shared programs and apps that both of you can access anytime.
Start investing
Investing early in your marriage gives you one great advantage: time. You don’t need large amounts of money to invest especially in mutual funds or other investment products for retail investors. What you invest in will depend on your circumstances and your strategy, of course. Make sure you top up as you go along. Find a financial adviser you both trust and are comfortable with.
Set up a sinking fund
Both of you can contribute to this fund on a regular basis. Agree on how this will be used—as an emergency fund, to purchase a large-ticket item that you are planning for, to pay for childbirth expenses, etc.
As with almost anything concerning your marriage, your joint finances will run smoothly if you both remain open and honest to each other about the direction you want it to take. All it takes is a little careful planning—and a whole lot of communication.
source: www.abs-cbnnews.com
