Managing Finances While Married

Getting married marks an exciting new chapter, but it also brings financial changes that couples must navigate together. Learning how to manage money jointly is crucial for any marriage’s success and stability.

In this blog guide, we will cover tips for newlyweds plus long-term advice for budgeting, saving, investing, managing debt, and more when combining finances.

The Challenges of Managing Money as a Married Couple

Even couples completely aligned on financial values face hurdles when managing joint bank accounts. According to a 2022 study by Personal Capital, arguments about money were the second highest predictor of divorce behind infidelity.

Couples reported clashing on issues like:

• Debt management – 37% listed as a top money argument
• Different spending habits – 35%
• Lack of communication – 27%
• Financial secrecy – 25%

Merging financial lives with a partner tests the relationship by highlighting contrasts in upbringings, incomes, priorities, and beliefs around money. But learning to navigate finances productively and transparently deepens intimacy and partnership.

Setting Financial Goals According to Financial Planning Association surveys, the primary reasons couples set money goals are:

1. Paying off debt (69%)
2. Saving for retirement (54%)
3. Building emergency savings (39%)
4. Buying property (31%)

Partners should start with open conversations about individual attitudes on spending, saving, and managing money day-to-day. Understanding each person helps in crafting shared short and long-term financial goals.

Couples find aligning on 3-5 specific, measurable money aims keeps them focused and progressing responsibly. Whether tackling debt or buying a house, defining objectives – and revisiting them annually – prevents resentment and overspending.

Creating a Joint Budget

One research study showed couples who budget formally are 30% less likely to get divorced than those who don’t. Creating a monthly budget provides visibility and control over expenses – critical for saving towards goals and avoiding fights about overspending.

Most financial experts recommend these steps for making a workable married budget:

1. Document Monthly Take-Home Income
2. List All Expenses
3. Look for Ways to Trim Spending
4. Agree on Expense Allocations
5. Track and Revisit/Revise Regularly

Apps like Mint, You Need a Budget, and EveryDollar simplify monitoring income vs expenses. But budget spreadsheets work too. Routinely comparing projected costs to actual helps catch wasted spending and signals when income/lifestyle changes alter money plans.

Strategizing Debt Management

Debt stresses newly married couples struggling to consolidate past obligations along with current shared lifestyle expenses. Compromises that help direct funds efficiently towards existing debts include:

• List all debts by owner, principal amount, interest rates
• Make minimum payments on all debts first
• Determine if debt consolidation loans better align payments
• Research balance transfer credit cards to lower interest rates
• Pay extra towards highest interest debt each month

Monitoring credit scores routinely also ensures both partners know what debts/accounts are open and avoid surprises. Online tools from Credit Karma provide free credit tracking and analysis.

Saving for Retirement Wisely

With Americans already behind on saving for retirement, young married couples must start strategizing for later years immediately.

• Workers with access to 401k plans should contribute enough to get full employer match
• Open IRAs once maxing out available 401k savings
• Take advantage of Roth IRAs for tax-free growth when income permits
• Split additional monthly savings across spouses’ retirement accounts to maximize growth

Online calculators help couples estimate if current saving could actually replace enough income in retirement using average ROI assumptions. But meeting with a fee-based certified financial planner provides tailored strategies based on lifestyle, assets, ages, and risk tolerance.

Building Shared Financial Assets

While paying off debt and retirement saving take priority, marriages also need “ours” savings for shared goals like:

• Buying a house
• Starting a family
• Vacations
• Home/car repairs and maintenance

Partners should identify specific targets for these sinking funds and leverage high yield saving tools like money market accounts, CDs, or low risk mutual funds. Automating deposits helps ensure consistent progress without tempting couples to raid funds for other spending.

Managing Insurance Needs

Updating property, health, life, and disability insurance is essential when marrying to cover risks faced jointly. Consider if policy updates like adding a spouse make sense for costs/coverage across:

• Health insurance
• Renter’s/homeowner’s insurance
• Auto insurance
• Life insurance
• Disability protection

The optimal insurance mix depends on each couple’s risks, families, careers, properties owned. Meeting with an independent insurance broker provides objective guidance versus insurers selling only their own branded products.

Staying Aligned Through Financial Hardships

Layoffs, children, illnesses, aging parents, moves – married life brings unpredictable circumstances affecting finances. Couples continuing open money dialog during challenges though thrives versus those hiding pressures faced individually.

Partners should expect evolving money views/habits and be prepared to revisit budgets, goals, accounts when facing new lifestyle factors. No financial planmade early on works perfectly forever without adjustments.

Building Wealth Together as Assets Grow

Eventually, diligently paying off debts, saving/investing surplus alongside income growth builds wealth that allows reassessing money priorities:

• Maximizing tax advantaged retirement accounts
• Funding children’s college education
• Planning dream vacations
• Supporting charitable causes

Wise couples remember living below growing means allows finding fulfillment beyond just accruing money. They also pursue rewarding work aligned with values versus chasing ever higher incomes for status.

Staying Happy Together Despite Money Differences

Partners rarely share all money beliefs identically. Couples thriving long-term accept occasional financial differences but keep communicating through them openly. They budget responsibly overall while respecting each person’s right to discretionary purchases not impacting shared goals.

Financial counselor Ed Coambs notes the happiest couples “have an intentionality connected to finances… objectives they manage mutual money around while openly navigating conflicts.” Embracing this mindset helps ensure money facilitates overall marital happiness.