Are you the type of person that likes to “live for the day,” or are you the type that likes to “save for a rainy day?”
Before you get married, couples should discuss finances. It is quite romantic to say that opposites attract, but this does not hold true in the financial realm. Disparate goals on how the money should be utilized makes money a common battle ground in marriage. Financial conflicts arise in a marriage when one person wants to use the money for status and buy a fancy car each year verses someone that wants to use the money for security and save for retirement. The backdrop of competing desires makes money a major cause in divorce.
Financial disagreements with your better half causes stress in a relationship and impacts self-worth. Arguments happen when there is not enough money to pay the bills. Arguments also happen when there is sufficient money; however, the couple does not agree on how the money should be spent.
Money management is critical in a marriage if you would like to live ”happily ever after.” When you say “I do,” you are joining lives together which includes the financial component. To create a strong financial union, look at what you are both bringing to the marriage in regards to income and expenses. Obtain a credit report to confirm that there are not any surprises when you would like to apply for a mortgage loan. Consider how existing debts and future household expenses will be paid. Create a budget and track your spending each month to see how they compare. Create a joint account to cover the basic expenses, have automatic contributions go directly to a retirement plan and to a savings account, and have a predetermined amount for discretionary spending. Coming to an agreement on “yours, mine, and ours” prior to marriage will help prevent resentment.
Advice to newlyweds is to save early and save often but set aside the funds to go on an adventure! ?
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