How Successful Couples Manage Their MoneySubmitted by Total Clarity Wealth Management, Inc. on September 3rd, 2021
Money and finances can be the main problem and source of arguments in relationships. Managing money as a couple can be difficult to sort out with two incomes, two different financial situations, and many different types of expenses. There are several different ways that you can go about combining finances and managing your money together as a couple. Continue reading for how successful couples manage their money.
Create a Budget
The first step of managing your money as a couple is knowing what money is coming in and what money is going out. Both people need to track their spending habits to get an understanding of how each other spends their money. Having a spreadsheet outlining income and expenses makes it much easier to identify where spending can be decreased and saving can be increased.
Build an Emergency Savings
In the case of an accident or unexpected job loss, as a couple you want to have money set aside to cover expenses if necessary. A typical emergency savings has 3 to 6 months’ worth of expenses saved up, ready for use. You want to keep an emergency fund in an easily liquidable account, so you have easy access to it.
Set Goals Together
While each person can have their own individual savings goals, as a couple you need to have common goals. Some of these common goals include buying a house and prioritizing retirement savings. Having a combination of short term and long-term goals makes it more achievable.
Have Open Communication
Money and finances can be a tough subject. The only way to understand how both people are feeling about their financial well-being is to have an open and honest conversation about it. You can both explain your thoughts and feelings about what should be done financially. This also reduces the opportunity for misunderstanding each other on the topic of finances.
There is not one single best way to manage your money as a couple. It is dependent on both of your outlooks on finances, both incomes, different expenses, and goals. You need to determine your money management strategy as a team.
If you are having trouble combining finances as a couple or managing your finances together, give us a call at Total Clarity Wealth Management. We can help you and your partner navigate the difficulties of combining finances. Get started on your path for financial well-being in your relationship!
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