Managing Money within Your Marriage

So many couples plan to get married and spend weeks, months, and sometimes years to make their wedding day amazing.  But ask them how much time they spend planning to manage their finances afterward. In most cases, you’ll get a completely different answer.  “We don’t really talk about money” or “I let my spouse do all the planning.”   And my least favorite, “We never had a budget.  We just buy what we need or want.”

Finances are a major part of a marriage.  When money is used correctly, it can bring couples closer together.  Unfortunately, the mismanagement of money accounts for many marriage problems.

Studies published by USA Today and Jet Magazine show that the number one cause of marital conflicts and divorce is financial problems.  So whether you’re planning on getting married in the next five months or have been married for the last five decades, start 2009 off in the right direction by learning a few practical strategies about handling your money.

Here are some powerful yet simple strategies to handling money in a marriage:

1.        Talk about your finances.  Share your hopes, dreams, and goals together and make a plan on how to move forward with them.  Ask each other, “Where do you want to be five or ten years from now”?

2.       Make a monthly budget.  A budget has to be detailed enough that it will help you manage money, but not so detailed that it feels oppressive. One person can prepare the budget and the spouse gets to make adjustments. 

3.       Pay with cash, not with credit cards.  People pay 10%-12% more when they use plastic instead of cash.  And many people pay interest on their purchases.

4.       Seek help early.  There are so many areas of personal finances that even the best financial managers get assistance or hire help to properly guide them with one or more issues.  Find an accountant, financial coach, knowledgeable neighbor or family member who can guide you. 

5.       Read.  It is one of the best ways to keep your skills sharp and your motivation high.  Dr. Tom Stanley, in his book “The Millionaire Next Door”, says the average millionaire reads at least one non-fiction book each month.

6.       Plan for an emergency and build an emergency fund.

7.       Be patient and work together until both of you are on the same financial path.  You heard the old sayings, “opposite attract.”  Each of you had different upbringings and probably has different spending and saving habits.  

Larry Burkett once said, “Work together as companions, not combatants, use those differences as assets, and communicate about everything, particularly money, and you will achieve the proper balance in your marriage”.

Happy Valentine’s Day!

Our Financial Peace University class in Florida just finished the 13 week class in January 2009.  The three families paid off a total of $11,630 of debt and saved $5000.  That is a total change of $16,630 in a little over 3 months.  Great job class!