Integrate the finances
Preferred approach: yours and mine are ours
The big question is always should we consolidate our finances? Should we maintain individual accounts or joint accounts? It is advisable for couples to try different financial management methods and find the most suitable way for the individual couple. Notably, it is desirable to have autonomy money combining all the money that couple earns. It is important to provide each other space so that no one feels always watched. As kids and mortgage payments take center stage, many couples find merging finances easier. For more information on financial management between spouses read this article from the Weekend Windup.
Preferred approach: we are all indebted, it is our liability
Debt is one of the reason couple fights. Couples tend not to agree on the cost of financing the debt and the type of debt it is. In some instances, one spouse gets in the union with more debt than the other. It is inevitable to get into your 20s and 30s without debt and if you do you are likely to meet a significant other who is in debt. Therefore, one’s married your spouse’s debts become your debt automatically.
Even in instances of separate accounts your significant others, the credit score will affect your desire to get joint credit. If you’re soon to be married the spouses should consider a prenup to ensure that a partner’s liabilities do not affect another asset. For the already married pay up the debt as fast as possible.
Preferred approach: lets budget on spending and saving
Studies show that both men and women spend, but they spend differently. Women spend on daily home purchases i.e. bills, clothes for the family and groceries while people spend on computers, cars TVs, etc. The spending perception is different, but the total may be the same. The solution is to agree on the amount to spend on daily purchases and big purchases so as t0 manage tight budgets.
Preferred approach: Let us take as much risk as our goals with stipulated time frames. Let’s think in time frames and take as much risk as our goals allow
It is wise to have goals where investment is concerned and have time frames. In some cases, seek the help of investment professionals. Always review your investment choices annually and balance out portfolios.
Planning for emergencies
Preferred approach: let as save in the case of emergencies
Anything could happen, an economic crunch, job loss, illness, accident, etc. It is, therefore, advisable to have an emergency saving account in the event of such uncertainties.