A Complete Guide to Handling Financial Issues in Marriage: Tips on Money Management in Relationships
If you’re struggling to manage your finances as a couple, don’t worry – you’re not alone.
In this guide, we will discuss some tips on how to handle financial issues in marriage. We’ll talk about how to create a budget, how to deal with debt, and how to handle disagreements about money.
By following these tips, you can create a healthy and happy financial future for yourself and your spouse!
Money Is One Of The Leading Causes Of Stress In A Marriage
In fact, financial problems are one of the main reasons that couples seek therapy. If you and your spouse are having disagreements about money, it’s important to communicate openly and honestly.
Try to avoid arguing about money, and instead have a calm discussion about your financial goals. It can be helpful to write down your goals and make a plan for how you’ll reach them.
If you’re having difficulty managing your finances, it’s important to seek help from a professional. A financial planner can help you create a budget that works for both of you, and they can offer advice on how to deal with debt.
What Are The Most Common Financial Issues In Marriage
1. Debt
Debt is always a major stressor and in marriage, this could be debt brought in individually before the marriage or debt that has been incurred as a couple.
There are a couple of different ways you and your spouse can go about tackling this issue:
- You and your partner both sit down and develop a plan to pay off the debt as quickly as possible. This would require making sacrifices in other areas of your budget to put more towards the debt each month.
- Develop a plan where you both make minimum payments on the debt while still trying to live within your means. This option would take longer to pay off the debt, but would allow you some breathing room in your monthly budget.
2. Different Spending Habits
It’s not uncommon for one spouse to be a spender while the other is a saver.
This can often lead to conflict if both spouses are not on the same page about their spending habits. This is due to both your personality type as well how you were brought up.
3. Not Being On The Same Page About Financial Goals
Both spouses must be in agreement about their long-term financial goals. Otherwise, you may find yourselves working towards different things and not making progress as a team.
This is why it’s so important to communicate openly about your financial goals and have a plan for how you’ll reach them.
4. Children
If you have children, they will undoubtedly have an impact on your finances. From childcare costs to college tuition, there are a lot of expenses that come along with being a parent.
It’s important to discuss how you’ll handle these expenses as a couple and make sure you’re both on the same page.
5. Retirement
When it comes to retirement, there are a lot of different factors to consider. You’ll need to decide when you want to retire, how much money you’ll need to have saved, and how you’ll get there.
It’s important to start planning for retirement early on in your marriage so that you can make sure you’re on track.
Tips For Marriage And Finances
If you want to have a happy marriage without financial stress, read these tips and incorporate them into your relationship.
Discuss Your Financial Goals And Strategies
Communication is key. If you want to be successful in money management, you and your partner will need to be on the same page.
You’ll need to discuss your financial goals and strategies so that you can work together towards them. Be open and compromise.
Everyone has different views on spending so you must both be able to develop goals and rules that you are both happy with.
Don’t Keep Secrets
There must be no secrets about money if you want to be able to trust each other. If one person is hiding debt or spending from the other it will only lead to problems down the road.
Be Supportive Of Each Other
If one person is trying to save money or get out of debt, the other spouse should be supportive. This doesn’t mean you can’t still live a happy life, but it does mean making some sacrifices.
For example, if your partner is trying to save money, you may need to go out less often or cook at home more.
Work As A Team
Money management is a team effort. You’ll need to work together to make it work. This means making joint decisions about spending, saving, and investing.
Set Some Ground Rules
To avoid conflict, it’s important to set some ground rules about money.
For example, you may agree to not spend more than $100 without talking to each other first. Or, you may decide to have a budget meeting once a month to go over your finances.
Set some of those rules upfront to be a good framework for your money management in the futre.
Set Some Financial Goals
It’s important to have some financial goals that you’re working towards as a couple.
This could be anything from saving for a down payment on a house to investing for retirement. Having goals will give you something to work towards as a team and can help keep you motivated.
Keep A Joint Bank Account
One of the best ways to manage money in a marriage is to keep a joint bank account. This will allow you to easily see where your money is going and track your spending. Plus, it can help you avoid arguments about money since you’ll both be able to see where everything is going.
There is a segment of people that prefer separate accounts with the rule of “that money in your account is yours to do what you want with.”
But often times that can lead to resentment and blame and not to mention any type of relationship ideology that favors “less communication is better than more communication” is a philosophy that’s upside down in my book.
Attack Your Debt
If you have debt, it’s important to start paying it off as soon as possible. The sooner you can get out of debt, the better.
Not only will it save you money in interest, but it will also reduce the amount of stress in your life.
How To Get Rid Of Debt
Debt is absolutely a major cause of stress in a relationship.
There are several different methodologies of how to deal with debt. It doesn’t matter which one you choose as long as you both commit to one as a team.
Here is a breakdown of 3 great strategies for reducing debt:
Debt Reduction Methods
- The Debt Snowball Method: List your debts from the smallest balance to the largest. Make the minimum payments on all your debts except the one with the smallest balance. Attack that debt with everything you’ve got! Once it’s paid off, move on to the next debt on your list and keep going until all your debt is gone.
- The Debt Avalanche Method: List your debts from the highest interest rate to the lowest. Make the minimum payments on all your debts except the one with the highest interest rate. Attack that debt with everything you’ve got! Once it’s paid off, move on to the next debt on your list and keep going until all your debt is gone.
- The Debt Snowflake Method: This is a combination of the two previous methods. You list your debts from the smallest balance to the largest AND from the highest interest rate to the lowest. Make the minimum payments on all your debts except the one with both the smallest balance AND highest interest rate. Attack that debt with everything you’ve got! Once it’s paid off, move on to the next debt on your list and keep going until all your debt is gone.
Create A Budget
Once you’ve tackled your debt, it’s time to create a budget. This will help you keep track of your spending and make sure that you’re not overspending. There are a lot of different ways to budget, so find one that works for you and stick with it.
Some people prefer the envelope system, where you put cash in envelopes for each category of spending.
Others prefer to use a budgeting app like Mint or You Need A Budget (YNAB). And still, others prefer to simply track their spending in a spreadsheet.
No matter what method you choose, the important thing is that you’re tracking your spending and staying within your budget.
10 Tips For Reducing Debt Faster
Aside from the strategies mentioned above, here are 10 extra tips for getting out of debt faster.
1. Stop Going Out To Eat
I know we all love going out to eat. It’s easy, fun, and delicious. But if you go back and look at how much you are spending when you go out to eat you may be surprised.
Depending on what kind of restaurant you are going to, It’s not uncommon for a family of four to spend $50-$100 at a restaurant.
That’s a lot of money! If you can cut back on eating out, you’ll be able to save a lot of money.
2. Meal Plan
This is a piggy back on the previous tip but it’s worth mentioning separately. Meal planning can save you a ton of money.
It takes a little bit of effort to get started, but it’s easy once you get the hang of it. And there are tons of resources out there to help you meal plan, like Pinterest and recipe sites.
3. Start A Side Hustle
A great way to make extra money is to start a side hustle. There are tons of options out there, so you’re sure to find one that’s a good fit for you.
You can start a blog, do some freelance work, or even start a small business. The sky’s the limit!
4. Stop Comparing Yourself To Others
This is more of a mindset shift but it’s important. When you compare yourself to others, it’s easy to get caught up in the “keeping up with the Joneses” mentality.
But the truth is, we all have different financial situations and what works for one person may not work for another.
So instead of comparing yourself to others, focus on your financial situation and what you can do to improve it.
5. Sell Things Around Your House You Don’t Need
We all have stuff around our house that we don’t need. And chances are, someone else would love to have it!
So instead of letting it sit around and collect dust, sell it and make some extra money. You can sell things online or have a garage sale.
Either way, you’ll be making some extra money and decluttering your home at the same time.
6. Consider a 0% APR Balance Transfer
If you have credit card debt, you may be able to transfer your balance to a new credit card with a 0% APR intro period. This can help you save on interest and pay off your debt faster.
Just be sure to read the fine print and understand the terms before you sign up for anything. Be sure to check out this great resource for breakdowns and reviews of different credit cards.
7. Renegotiate Credit Card Debt
If you’re struggling to pay off your credit card debt, call your credit card company and renegotiate your interest rate.
Many companies are willing to work with you if you’re having trouble making payments. It doesn’t hurt to ask, the worst that could happen is they so no.
They may also be willing to accept a reduced total payment if it is one lump sum instead of little bits every month.
8. Refinance Your Student Loans
If you have student loans, you may be able to refinance them and get a lower interest rate. This can help you save money on interest and pay off your loans faster.
There are several companies that offer student loan refinancing, so shop around and compare rates before you decide on one.
9. Sell Your Car
We all want a fancy car to impress people but the reality is as long as it is reliable and gets us to where we need to go that is all that we need.
Cars are a huge money pit. They depreciate as soon as you drive them off the lot, they require constant maintenance and repairs, and they’re expensive to insure.
If you can sell your car and downgrade to something more modest, you’ll be surprised at how much money you’ll save.
10. Use “Found Money” Only For Debts
If you come across some “found money” – like a tax refund, bonus, or inheritance – it can be tempting to spend it on something fun.
But if you’re trying to get out of debt, it’s best to use that money to pay down your debts. This will help you get out of debt faster and save you money in the long run.
There are a lot of different ways you can save money and get out of debt. But these are just a few of the most effective. If you’re struggling with debt, try implementing some of these tips and see how it goes. You may be surprised at how quickly you can improve your financial situation.
Remove The Stress Of Money In Your Marriage
So there you have it – a complete guide to handling financial issues in marriage. By following these tips, you can get your finances on track and start working towards a bright future for both of you. Thanks for reading!
