Money. Money. Money.
Money alone is responsible for most of the divorces in the United States. So if you want to avoid money problems in your marriage, you should sit down with your spouse and have a serious discussion about your finances. It may not be an exciting event for a newly married couple or for couples about to be married but it is something you should do. If you don’t the consequences can be serious. Here are some tips that can help you void money problems.
Tip 1: Set Expectations
Everyone looks at money differently. While you may want to save money for the future, your spouse may want to spend it on buying stuff for the house. Sit down together and decide on how the two of you will deal with money:
– How much of the money will be spent on essentials and on discretionary items.
– How will expenses be shared? Which accounts must be accounted for?
– Which accounts will remain separate accounts and which will be made joint accounts?
– In case of a disparity in the income of the spouses, who will contribute to what?
– How will debts be dealt?
– Who will pay the bills?
Tip 2: Planning for the future
While no one can predict the future, you should make plans on how your financial future should be. Plan on what you need to save and how long you will need to save. Your circumstances and expectations will change over time. You should therefore make adjustments to your plans accordingly. Here are some of the things you should consider when making plans for your future:
– Home buying
– College education for the children
– Home renovations
As time passes, your needs and expectations will grow. No one wants their money go disappear overnight through uncontrolled spending. If you sit down with your spouse at the beginning of your marriage to decide on your future plans, it will go a long way in avoiding future plans.
Tip 3: Budget
Make a budget. List all the money that comes in and where it goes. When making a budget, you must include:
– Your income. Income includes your wages or salary as well as income from business, property and investment.
– Your assets including property, bank accounts and financial investments.
– Your debts such as loans, mortgages, credit card debts.
– Your expenses. Expenses includes your utility bills, mortgage payments, insurances, food, travel expenses and any other expense – anything that you will be spending your money on.
Tip 4: Make it all Work
It’s easy to make plans. But making it work is the most daunting part. Be prepared to compromise. Patience and honesty are vital for making your marriage work. If you are able to work out the financial aspects of your marriage, you will overcome the number reason for getting divorced. You should revisit your expectations as time goes by and update them to match your changed circumstances.