Dealing with money as a newly married couple

Couples have three basic ways to manage their finances: jointly, separately, or by combining these options. Here are some tips for understanding which method will work best for your couple.

Money serves as a stumbling block for many couples and as hard as it may be for you, you should always understand that lies degrade when it comes to marriage and money. Honesty is great for discussing your affairs together and planning your household budget.

Keeping accounts separately is a very good option for people who like to manage their income independently. It's a great option for couples who have about the same income and are willing to put their money toward common purchases when necessary. A separate accounting system will help you understand who earns more, who spends more, calculate debts, and find ways to solve financial problems.

Even though everyone is responsible for their own income - it implies more communication as a couple. You may be more comfortable investing your money in proportion to your income, or perhaps splitting your expenses equally. A simple Excel spreadsheet is the easiest and most elegant way to divide and track your budget.

Of course, you'll still need to add up for general purchases, plan a budget for household expenses, strategize for a comfortable retirement, and achieve your overall long-term goals. But still, separate accounts give you more freedom to manage your finances.

This is an easy enough plan to simplify your management as a couple. It also has its advantages and disadvantages. You don't have to count who has to contribute how much to the budget, you don't have to constantly update the spreadsheet, and all household or child expenses will be paid out of the overall budget. You can also plan your budget in a spreadsheet or using some third-party application from the internet. It will be much easier with a shared budget.

Co-opting joint and separate accounts is a great way to find trade-offs between the two aforementioned options. The basic idea behind this strategy is that all income goes into a joint account and common family expenses are dealt with from a common budget, but everyone has their own personal account into which a set amount is transferred each month. "A personal fund" helps you manage your finances independently, spend a few hundred dollars on any thing you want and not be judged by your spouse if that money was not taken from the common budget. The amount you want to transfer to your personal accounts should be discussed with your spouse to avoid conflicts.

Regardless of how you decide to plan a joint budget, you must also be prepared for other complexities in life together.

In marriage, you have to decide who pays for what. Of course, this is not the most pleasant aspect of living together, but it is the most necessary. Paying your debts, loans, and bills on time will help you and your spouse worry less. Who and how much money contributes to the common budget, and how you work on your common tasks is an important element to discuss first before moving in together. Talk about your finances regularly, and if you are unhappy about something, try to resolve it sooner to avoid conflicts with your spouse.

 Even if it's not the most romantic part of moving in together, newlyweds need to talk about household logistics - who will pay what bill, how you'll reimburse each other, and how you'll work toward common goals. Plan to sit down and discuss these logistics to make sure you both understand and agree on the plan, and that all your bases are covered. Once it's determined who will pay which bills, automate payments so you never fall behind and your spouse doesn't have to worry. And continue to discuss your finances regularly. Clarity is key when it comes to money matters.