Money and Marriage
An important part of the wedding vows is “for richer or poorer” and we’d all prefer the former!
But after the euphoria of the wedding day passes, many couples leave their financial management to chance. Money often becomes a bone of contention, especially if each has different goals and attitudes.
It’s unlikely that anyone would vow on their wedding day “I will love and honour you, keep only one credit card and pay it off every month”, but seriously, couples need to develop their own financial vows. It’s not very romantic however this five-step guide could save a lot of heartache.
Step 1 – Prioritise
Agree on what is most important to you both. You could spend big on lifestyle. Or you could save to afford a house, children, retirement or some other goal such as further education. Once you’ve agreed on a list, give it a name (something simple like “Our Money Plan”), put it on paper and post it on the fridge where you see it every day to keep you focused.
Step 2 – Know where your money goes
If you can’t measure it, you can’t manage or control it. However, boring it may seem, you need to look at your spending habits and decide if they are consistent with your priorities. This can be easily done by regularly checking your bank and card statements. There are also many smart phone apps that are great at helping track where your money goes.
Step 3 – Don’t eat your money
Most cash spending goes on food, so if you ever wondered where that $100 you withdrew yesterday from the ATM went – you probably ate it! Reduce impulsive food buying by eating before you shop so you’re not hungry. And only shop once a week. One weekly trip to the supermarket will also cut petrol costs. And most importantly, always shop with a list.
Step 4 – Shop wisely
When you are spending on larger items, think before you buy. Do you need the big brand name? Maybe yes on electrical goods but maybe not on new clothing. Comparison-shopping does make a difference and there are many websites to help you find the best deals. And when in the store, always ask for a better price. If you don’t ask…you don’t get.
Step 5 – Keep talking
Having a plan is no good unless you review it from time to time. This is a time to leave the boxing gloves off – because you will both make mistakes and maybe even cheat on your agreements. Your priorities will change over time and your Money Plan will change too. It’s important to agree on your goals, maintain good communication and keep your sense of humour.
Whilst these steps were written for newlyweds, they are just as appropriate for any couple, families, empty-nesters and retirees… it’s never too late to start.
If you would like assistance in getting a money conversation started, we at Finance Detective are happy to assist. Call us on (08) 9289 7777 to arrange a time for a chat about how you can make your money work best for your marriage.