When you marry or simply share a household with someone, your approach to managing money may change as well. The good news is it is usually not so difficult.
At some point, you will have to ask yourselves some money questions — questions that pertain not only to your shared finances but also to your individual finances. Waiting too long to ask or answer those questions can have real consequences.
One of your first priorities should be setting aside money toward an emergency fund. But there are other questions to address. Should you open joint accounts? How should you title assets owned by both of you? These decisions form the foundation of your shared financial life.
A simple budget, an elaborate budget, or any attempt at a budget can prove more informative than you expect. A thorough, line-item budget may seem like a lot, but what you learn from it can be eye-opening. Budgeting together gives you both a clear picture of where your money is going and how to align spending with shared goals.
When finances affect two people rather than one, account statements matter more. Checking in once a month — or at least once a quarter — can keep you both informed and prevent misunderstandings about household finances. Many disagreements stem from assumptions that regular check-ins can resolve.
Do you want to keep some money separate? Some couples maintain individual financial space alongside joint accounts, and there is nothing wrong with that approach. The key is agreeing on the structure that works for both of you.
Spouses who are inattentive or nonchalant about financial matters can encounter more trouble than they anticipate. Watch where your money goes. Think about ways to pay yourself first. Set shared short-term, medium-term, and long-term objectives — and revisit them together.
Communication is at the center of all of this. A regular financial conversation with your partner can have benefits well beyond the balance sheet.
If you have questions about managing finances as a couple, let's talk.
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Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. This article and images may have been enhanced by utilizing artificial intelligence (AI). Wela may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
