2021
When you’re a newlywed, the last thing you want to think about is divorce. However, 50% of marriages end in divorce. One major cause for these splits is financial arguments. Finances are an essential part of life and, when you and your spouse disagree on them, they can lead to major problems. If you’re a newlywed and you want to avoid financial conflicts with your spouse in the first year of marriage, here are some important tips to consider.
Don’t Overspend On Your Wedding
Weddings can be big, elaborate events. The average wedding reception in 2012 cost $13,106 and there are a wide variety of costs. While a giant celebration can be great, don’t spend more than you can afford to. If you are struggling with your finances after your wedding, it can make the first year of marriage more stressful. If you are frugal with your wedding, you can put the extra money toward your other financial needs. This will reduce the financial stress and allow you to enjoy being newlyweds.
Don’t Hide Debt
If you’re combining your finances, you need to be honest about them. Don’t try to hide credit cards or other debt from your partner. Not only will this cause your budget to fail, it will also cause major trust issues between the two of you. If you have debt, be upfront about it. There are many different kinds of debt and the average American has $38,000 worth of debt outside of mortgages. So be upfront about every part of your finances. Then make a plan to tackle that debt together. If you set financial goals together with full knowledge of your situation, you can spend some of your time as newlyweds achieving these goals.
Discuss Large Purchases
As newlyweds, you are sharing the responsibility of your household. This includes your finances. Before making any major purchases, you need to discuss them with your partner. That way, you can both give your opinion on what needs to happen. If you just make the large purchase on your own, you might not realize that your partner had other plans for that money. This can lead to resentment and arguing.
You and your partner will have to discuss what constitutes a large purchase. Depending on your income, that number can vary. As you set up your finances, you can decide on a spending limit that will require you to discuss the plan with your partner. If both of you make these guidelines together, you can figure out a plan that you’re both satisfied with.
Have Separate Spending Money
While your finances are likely combined, you should both have separate spending money. This will allow you a measure of freedom, since you don’t need to discuss purchases made with this money. Add it into your budget so that you both know exactly how much you have to spend outside of your joint expenses. By having some independence with your money, you can each take care of your unique needs and wants without worrying about overspending. This is another thing you’ll need to set up together, but it is worth the extra work.
In your first year of marriage, you’ll spend a lot of time acclimating to the idea of being a married couple. If you want to avoid financial conflicts during this time, you’ll need to communicate effectively and set up a good plan. With a solid balance of independence and teamwork, you can set up a financial plan for your household that works for both of you. If you’re unsure where to begin, use the four tips provided here to get started.
