5 Smart Financial Tips for Couples

5 Smart Financial Tips for Couples

Marriage is a teamwork. For its success every aspect needs to be sorted out. Money is one of the top reasons couples have disagreements. If love drives marriage, money keeps it afloat. Talk openly about finances with your partner and plan every aspect of it. Following tips can help you to manage your finances in a better way as a team:

Make it a shared responsibility

Let’s begin with changing our approach. Leave the concept of ‘my’ and ‘yours’. It is always ‘ours’ – our expenses, our responsibilities and our savings. This helps in being on common ground and plan accordingly. Agreed, there are two different individuals and hence two different views, but try to merge your thinking. Be receptive to your partner’s ideas and discuss. Put everything on the table and plan your finances with a common goal. Remember – always have equal participation in money matters.

Maintain a system to track your expenses

It’s easy to calculate your income and savings, but the real challenge is to keep track of your spending. Have a system among yourself. Divide your responsibilities – she will buy groceries, pay for kid’s school, and he will pay mortgage and utility bills. Use add-on cards while spending on household items. You can derive your own system, depending upon your lifestyle, which would help to ascertain your spendings, and come with better ways to save or control your spendings. If you are a tech-friendly couple, use apps that help to tabulate your spendings.

Keep a check on each other’s spending habits

Spending habits can cause a rift among partners. Most of the times, the other person is not even aware of his/her actions. Keep a check on each other and guide. Don’t question or criticise your partner. Tell them when and where they are overspending or indulging in impulsive buying. Bring out the matter and discuss it. Come up with ways to save money on things your spouse likes – check online deals or coupons. Find a solution which makes both of you happy.

Cover all your risks with Insurance

Insurance is one of the most important aspect of financial planning, which is often neglected by young couples. Never leave anything to chance. Cover every kind of risk. Bought a new flat, take home insurance. Take life insurance policies for both of you. Be wise while investing, do your research and then invest. Start investing in retirement plans at an early age too. It helps in reducing the burden at a later age when responsibilities multiply.

Think a way ahead and plan for contingencies

Never forget to plan for contingencies. Have a contingency fund – put a sum in a savings account, open a flexible recurring deposit or invest in SIP. Whatever you choose, make sure that you can liquidate it easily or with minimum penalties. There are many flexible options available these days. Check your online bank account. Investing in these schemes guarantees easy access to your money and that too without delay. If feasible, divide and make long term and short term contingency fund.

Stick to these basics and adapt with time. Make a point to sit and discuss your finances once a month. Work upon the shortcomings and revise your plans. And, make sure to do this as a team.

A Company Secretary by profession, Saru found her true calling in writing. She blogs at sarusinghal.com which she religiously updates every Monday for the last four years.