Officially a married couple? So, you must know the tips and procedures for how to handle finances in a marriage. Unlike other plans, sometimes, budgeting plans are often forgotten by couples who are about to or have just married.
If it is not discussed immediately, your new family’s financial future could be threatened with bankruptcy, you know. And not only that, but other problems in the household will also often occur if you are not good at managing your household finances.
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How to Handle Finances in a Marriage
So, so that your married can be prosperous, here are 7 tips for how to handle finances in marriage specifically for those of you who are planning or are married. Come on, take a look!
1. Determine the total net income
Quoting from Investopedia, tips and how to handle finances in a marriage is to determine your total net income. The net income in question is the amount of income before taxes or other conditions.
This figure is not useful for budgeting purposes. However, its role will be very large to determine the amount of savings for retirement savings, social security, and others.
2. Estimate the exact amount of expenditure
Next, when you are married, all you need to do is to estimate the exact total expenses. This is important enough so that you don’t need to be in debt or avoid primary needs.
These definite expenses can be in the form of car loan bills, rent for boarding houses, to food costs for a period of one month.
3. Same or separate savings account?
In order how to handle finances in a marriage, generally married couples will ask, is it better to have the same savings account, or separate? Well, according to The Balance, the best option is to have one common savings account and one separate account.
This same savings account can be used to manage family financial needs, such as paying electricity bills or other household needs. On the other hand, the separate savings owned by each partner can be used for personal purposes, such as vacations or shopping.
4. Prepare an emergency fund
According to Kompas Indonesia, married couples need to prepare an emergency fund. Why is that? The reason is, every family needs money for unexpected events or risks.
This fund should be set aside from monthly income, and should not be touched unless there is an urgent need. With the preparation of this fund, your family can avoid the risk of a more severe loss.
5. Passive income or investment
Furthermore, how to handle finances in a marriage is to have passive income. Because every household life has a long-term plan and not only a short-term one.
Therefore, separate some of the funds for investment purposes. In the future, your family will be more secure even though your financial condition is bad.
6. Update wills and other legal documents
This one tip is quite easy to do, however, there are still many couples who are hesitant to implement it. In fact, launching Merrill Edge, updating and agreeing on important legal documents for the welfare of the family in the future.
So, so that you and your partner can agree with each other, communicate your needs and goals together. In every document, prioritize plans for your baby and your goals when they are no longer working.
7. Plan and make a commitment
Finally, so that you and your partner can successfully manage your finances after marriage, review the entire plan regularly. Why is it necessary to review? Because sometimes plans need to be revised due to changes in the economy or other factors.
Review all of your monthly savings and income plans until you and your partner agree. When you have found a bright spot, don’t forget to make a firm commitment, because one person will not be able to manage the financial needs of a family.
Those are seven important tips and how to handle finances in a marriage. In essence, pay attention to all the short-term and long-term needs of the family. Because domestic life does not only focus on today’s plans but also on unexpected plans that will come in the future.