When newlywed couples are merging their households together, one of the trickiest parts of the merger is combining their finances. You need to think carefully about how you are going to approach this. It can be a sticking point for a lot of new couples. If you want to make it easier on yourselves, follow these five money saving tips on merging the finances of two households together.
The absolute most important part of the process of merging your finances is open and honest communication. Failure to communicate openly and honestly will lead to arguments. Money arguments are one of the most common types of arguments for couples. Make sure that you avoid them by always discussing your finances with each other thoroughly. Sit down and share all of your hopes, dreams and fears about money. Make sure that you come to an agreement about how you will budget your money, and donâ€™t ever make any big financial moves without discussing it with your partner first.
Set a Budget and Monetary Goals
You need to sit down and create a careful budget that you can follow. First, you will need to add up all of your income, and then you need to subtract all of your monthly bills. The remainder is the money that you have to spend and save. You should try to save at least 10 percent of your income every month, but try to push that up to 20 percent if you can. Set goals for these savings. A great goal for newlywed couples is a down payment on a house. Saving for cars and trips are other good ideas if a couple already has a home.
You will want to open a joint checking account that you can both have access to. This will be the easiest way to manage your money. You also want to look into other accounts that you can combine to save you money. For example, there is no need for both of you to have different accounts for your iPhones or Blackberry phones. You can save a lot of money when you combine your iPhone plans into one plan that you share the minutes and data on.
Managing your finances together doesnâ€™t have to be difficult. Donâ€™t fall into the trap of letting money problems ruin your relationship. As long as you are always honest and openly discuss your money issues with each other, financial difficulties will never come between you.