When you marry or simply share a household with someone, your life changes—and your approach to managing your money may change as well. The good news is it’s usually not so difficult.
At some point, you will have to ask yourselves some money questions—questions that pertain not only to your shared finances but also to your individual finances. Waiting too long to ask (or answer) those questions might have some consequences.
First off, how do you propose setting priorities? One of your first priorities should be setting aside money that helps build an emergency fund. But there are other questions to consider. Should you open joint accounts? How should you title assets that are owned by both of you?
How much will you spend & save? Budgeting can help you answer this. Whether it’s a simple budget, an elaborate one, or any attempt at budgeting, it can provide more insights than you might realize. A thorough, line-item budget may seem a little over the top, but what you learn from it may be truly eye-opening.
How often will you check up on your financial progress? When finances affect two people rather than one, statements become more important. Checking in on these details once a month (or at least once a quarter) may keep you both informed, so that neither of you has any misconceptions about household finances or assets. Arguments can be avoided when money misunderstandings are resolved through check-ups.
What degree of independence do you want to maintain? Do you want to keep some money separate? Some spouses need individual financial “space.” There is nothing wrong with this approach.
Can you be businesslike about your finances? Spouses who are inattentive or nonchalant about financial matters may encounter more financial trouble than they anticipate. So, be mindful of where your money goes and think about ways to pay yourself first. Set shared short-term, medium-term, and long-term objectives.
Communication is key to all this. Watching your progress together may bring benefits beyond the financial, so having regular conversations should be a goal.
In the end, managing money as a couple requires open communication, mutual understanding, and regular check-ins. By setting clear priorities, creating a budget that works for both of you, and maintaining some financial independence if needed, you can build a strong foundation for your financial future together. Remember, money management is not just about numbers—it’s about partnership and making decisions that align with your shared goals.
At SHJ Wealth Advisors, we have partnered with couples for over 30 years with building and maintaining finances. Please reach out to Info@shjwealthadvisors.com if you would like to find a time to meet with one of our CFP® Professionals and thanks for reading!
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
