9 Best Ways to Manage Finances After Marriage
How are you going to handle your finances as a newlywed couple? That’s probably one of the questions you will soon find asking yourself. Making collaborative decisions can become more complicated when money is involved, especially for newlyweds.
Financial communication requires deep compassion, understanding, tolerance, and flexibility in a marriage.
Top 9 Ways to Manage Finances After Marriage
As a couple, you should be able to formulate mutual financial goals and be honest about your debts and spending. Keep on reading for advice on how to handle money in a marriage.
1. Make Space for Your Partner
The union of two individuals can be both rewarding and challenging. However, allowing someone to become a part of your financial affairs is always hard. Make room for your spouse and honestly and openly communicate your economic issues.
2. Learn to Compromise
Stop looking for a cookie-cutter solution to design the perfect financial strategy for married couples. Every couple needs a different approach to take care of their money matters. However, there is one thing that always stays the same: compromise.
We know this word has a bad reputation. But all couples must compromise when it comes to finances. That’s because you two may already have spent a fortune on your wedding event. So, it’s natural to think of ways that can help you save money in the future.
Once the wedding is over, you and your spouse should collaborate to decide on your short- and long-term goals. You can avoid confusion by determining how to use the funds in your shared accounts, as a couple and individually. Setting a budget and setting strict rules to follow religiously is also part of the process. We will give more information about this step later in the post.
3. Figure Out Your Differences
Even if you have different opinions, it’s crucial to start managing your finances together while trying to build your relationship. When two individuals become a couple, they may struggle to express their different expectations, especially about money. Discussing your expectations and goals before you get married can help avoid getting into ugly arguments and disputes.
According to research, money is one of the main reasons for disputes and arguments after a happy wedding ceremony. Such conflicts are more likely to arise as you both continue to receive bills and statements reflecting the actual cost of your wedding event. As a result, money continues to be a hot topic long after the big day.
And that’s not the end of it. Couples discussing financial matters also experience significant stress levels because they may need to develop concrete solutions. Poor money management, excessive debt, conflicting financial goals, and a lack of communication can worsen things quickly.
Making financial decisions as a couple after the wedding begins with acknowledging that you have different perspectives on money. In addition, leave room for any compromises, as discussed before. Instead of viewing your differences as a weakness in your marriage, consider them a strength. Being able to get through these obstacles can improve your relationship as well as open new doors for financial freedom.
4. Communicate Effectively
Following the wedding day, making financial decisions will change from “yours and mine” to “ours.” However, a couple can overcome this challenge with compromise, acknowledgment, and effective communication.
It will be simpler for you and your partner to reach an agreement if you have the initial discussion about money and determine what works best for you. According to the University of Arkansas Cooperative Extension State Office, happy couples agree on how to spend money as compared to unhappy couples,
That means discussing your strategies for spending money or dividing financial responsibilities will give you an excellent start. Share any debts you must pay, and never hide anything from your spouse. Following a budget becomes easier when you both work toward the same priorities.
5. Maintain Your Household Budget
At its most basic level, a budget should outline how much money you anticipate earning and where you believe it will go. Once you are married, your income and expenses will change, so you should either open a new joint account or review your budgets.
6. Create a New Spending Plan
Making a joint account may be challenging because changing your perspective from solely considering your financial demands to weighing your partner’s needs and wants is difficult. In addition, couples may later undergo financial trouble if they don’t take the time to talk about money at the beginning of married life.
Consider your financial situation and weigh factors like debt management, traveling plans, and retirement funds to know how much you should spend every month.
7. Learn to Handle Surprises
After completing the marital balance sheet and discussing your money, you and your spouse must deal with any financial surprises. Finally, you and your partner must accept your financial situation, whether stumbling school loans or unanticipated credit card loans.
Military Lodging, Hotels, and Travel: Being in the military requires transferring cities and countries every few years, allowing you to see the world. The United States military can station your family anywhere, from Japan to Hawaii. The military also gives Overseas Cost-of-Living Allowance (COLA) as additional compensation for your spouse.
There are many economical options for a terrific family getaway, ranging from beach cottages to mountain cabins. In addition, you can explore Space-A Travel if you are flexible with location and time.
Basic and Housing Allowance for Housing: Most military posts provide free accommodation, and if you reside off base, you will be compensated with a basic allowance for housing (BAH).
Legal Help: Spouses can access various free legal services through Military OneSource or legal aid centers. These programs might help you understand a lease agreement, prepare an estate plan, or get legal advice on adoption.
Marriage counseling: Military OneSource provides free, confidential therapy. Military Family Life Consultants (MFLC) are available on base at the Family Support and Readiness Center.
Financial Education and Resources: The DOD’s MilSpouse Money Mission provides free financial education and resources from professionals, licensed financial planners, and certified financial counselors.
License Transfer: Many states provide some license transfer benefits to military spouses, such as temporary or permanent licenses or accelerated procedures.
Career Opportunities: For military spouses, several job programs and activities are available, including opportunities through Hiring Our Heroes.
Unemployment Compensation because of PCS: Many states, but not all, provide unemployment compensation to military spouses owing to a permanent change of station.
8. Track Your Money
Keeping track of your expenditure is another effective method to prevent arguments about money. In addition, there will be no ugly surprises if you know where your money is going and why. But for that, you must stick to your budget and fight the temptation of impulsive purchases.
Benefitting from technology is another effective strategy to start tracking your expenses. Many mobile apps and online tools can help you create a budget and stick to it to accomplish your financial goals.
9. Learn from Your Mistakes
No matter how hard you try to follow a budget, make investments, and save for retirement as a couple, you are bound to make many mistakes along the way.
Some of the most common mistakes you will likely make as a newlywed couple includes:
- Buying a new luxurious house.
- Going on a lavish honeymoon.
- Buying a car you can’t afford.
The key is to learn something important from each mistake.
Will a Former Spouse Continue Receiving Military Benefits After Divorce?
A former spouse (civilian) must present confirmation that the military spouse served at least 20 creditable years of service, was married for a minimum of 20 years and that the marriage was concurrent with the service to continue receiving benefits. A former spouse can only receive benefits if they fulfill this criterion. They can also benefit from TRICARE and outpatient and inpatient therapy at military treatment centers.
Final Thoughts
Now you know how to manage your finances after marriage so you can achieve your financial goals. Following our advice in this blog post, you will be more likely to enjoy financial success after uniting with your soul mate.
