Money is the leading cause of many marriage break ups. It’s important to talk about money before marriage and during marriage.
Many people who are married make many money mistakes as they fail to they manage their finances right from the beginning of their marriage.
I remember my first years of marriage we managed our money differently from what we do now.
Back then we managed our money using this approach “his money was his money and her money was her money”.
We learned that this approach was not bringing us together as a married couple, we had to change the way we managed money.
“His money and her money” approach changed to “our money”.
In this article, I will share money lessons and mistakes I have made and have seen some married couple make.
Here are 10 Money Mistakes Married Couples Make.
1. Failing To Budget Together As A Couple
Budgeting is an important tool that helps you to analyse your spending against your income.
One of the biggest financial mistake that a married couple can make is not budgeting.
Failing to budget money together as a couple will contribute to many financial problems and may eventually lead to a divorce.
Have monthly budgeting meetings where you discuss how you are going to spend your money for the month.
2. Fail To Save For Emergency Fund.
Emergencies of any kind can hit you at a time when you least expect them.
Why not plan for emergencies as a couple before they hit you?
A job loss, sickness, accident or even death can come at any time.
Make sure every month you are saving money for emergencies.
It important to save at least 3 months to 6 months of your monthly expenses into the emergency fund.
For instance, if your partner was made redundant would you be able to live on one income or live off your savings until he or she got a job?
3. Fail To Set Financial Goals
Do you ever set financial goals?
It’s important to make plans and set financial goals together as a couple.
No matter how big or small your financial goals, learn to set goals with your partner.
Maybe you might be planning to buy a new car in the next year, sit down together and work out how you are going to save money to buy the new car.
4. Fail To Manage Debt
It’s easy to accumulated debt with small purchases, before taking out debt talk together as a couple.
Ask yourselves if you really need to take out debt?
Ask yourselves how many credit cards do each one of you need and do really need them?
Debt is all about borrowing into your future earning which you have no guarantees.
Are you willing to take that risk by borrowing more money?
Too much debt can cause a lot of problems in marriage such as being taken to court or losing your house.
If you decide to take out debt learn how to manage debt better without letting it ruin your marriage.
5. Fail To Say No To Relatives
Learn to say no at times when it comes to relatives.
Sometimes in marriage, they will be relatives who are always there knocking at your door asking for money.
This month its mother-in-law wants this next month it’s sister-in-law want that!
It’s good to give when you have but when you don’t have money and you are struggling it’s a good idea to tell them the truth and say no.
Don’t let your relatives get in your marriage finances.
6. Fail To Open A Joint Account
Opening a bank joint account will help you to manage your finances better as a couple.
Having a joint account will help both of you to be more responsible on how you spend your money.
A joint account will make your budgeting a lot easier as both of you can control your expenditure.
7. Fail To Apply For Marriage Tax Allowance Tax
Each year millions of pounds of tax allowance go to the government without being claimed by married couples.
Make sure your you are claiming your marriage tax allowance if you qualify for it, it’s free money why not take it.
If you qualify for marriage allowance you can transfer £1,150 of your personal allowance to your partner that is if they more than you, this will reduce their tax for the following year.
8. Don’t Save For Retirement
Failing to save for retirement is one big mistake that you will surely regret later in life.
As a couple make sure you are both saving for your retirement whilst you are working.
Stop thinking that the government will look after you or your children will look after you, don’t be a burden to your kids when you are older save for your retirement now.
9. Keep Money Secrets From The Other Partner.
As a married couple try to be open and don’t keep any money secrets from your other partner.
Buying big purchases or making huge financial commitments without consulting your other partner will create room for arguments in your marriage.
Communicating is the key to managing your finances.
10. Choosing To Have Two Cars Instead Of Having One Car
Keeping up with the Joneses can be a bit of a problem when you can’t afford what the Joneses have.
I have seen many married couples making the mistake of having two cars when clearly they don’t need them.
Make sure that when you chose to be a two car family it’s really necessary because having two cars can cost a lot of money.
Think of MOT, road tax insurance, fuel, car servicing and maintenance, these car costs all add to a big sum.
Ask yourselves do you really need two cars?
If you work out that it cheaper to have one car then get rid of your second car.
Over to you…
What are your financial goals?
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