Budget Tips for Newly Married Couples

Published on September 2nd, 2020

One of the vows couples often take when they get married includes a line about “For richer or for poorer…”. It’s not the most romantic aspect of a marriage, but money matters are important. In fact, according to The Office of National Statistics, money worries are the number one cause of couples filing for divorce. However, proper financial planning can go a long way to alleviate the marital stress associated with monetary issues.

Establishing healthy financial habits and deciding to compromise on issues you don’t see eye to eye on, can lessen or eliminate arguments about money before they arise. To that end, we would like to offer some proven budgeting tips for newly married couples.

Set Aside Time to Discuss Your Finances

When couples become engaged, they often discuss how they will fund their wedding. This is an excellent time to talk about your future financial plans. Each person should list all their sources of income, including bank accounts, revenue from investments, income from employment, and business ventures. It’s also important to be transparent about any debt you may have. Having a frank discussion about your finances and spending will simplify your budgeting and build trust in your marriage.

Settle Your Debts and Stay Out of Debt

It’s always good to have a fresh start when you begin your life together, and it’s never good to have mountains of debt. If you or your partner have student loans, for example, try to settle them as soon as possible. This advice goes for any debt that will keep you and your spouse from pursuing your financial goals in earnest.

Discuss Your Financial Goals

Once you understand your individual finances, determine your goals as a couple. For instance, how much do you want to save toward retirement each year? Do you want to purchase another car or a new home soon? Setting goals for these things will help you determine your monthly budget.

Design a Budget

Now that you have a good idea of where you are – and where you’d like to be – say 2, 5, or 10 years down the road, work as a team to achieve your goals. Design a budget that includes rent (or mortgage), insurance and utility bills, debt payments, and – first and foremost – savings. Depending on your income, allocate a reasonable amount for entertainment and leisure too.

Your savings plan should include three separate accounts. The first should be for retirement savings (no, it’s not too early to save for retirement), then one for short-term goals (i.e. new car, house, etc.), and lastly, an emergency fund for expenses like unemployment, illness, home repairs, or natural disaster. You will never regret putting these amounts aside earlier rather than later.

Work as a Team

Marriage is all about trust, and now that you’re married, it’s vital that you work as a team to create healthy financial habits. Ultimately, you need to trust each other to have an effective team. Marriage takes hard work and sacrifice; by adopting healthy spending habits and setting a budget, you will avoid financial problems in the future.

Consider Enlisting the Help of One of the Best Credit Unions near Elmhurst

If you want to start your marriage out on the right foot, but aren’t quite sure where to begin, our dedicated advisory team at Leyden Credit Union will be happy to help. We can explain the differences in various types of accounts, provide guidance, and help you realize the advantage of working with credit unions near Elmhurst. We also offer free financial counseling from our partners at GreenPath. Give us a call today!

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