Did you know, numerous studies have shown that money is the source of many married couples’ arguments? When husband and wife are not on the same page as far as family finances go, other difficulties inevitably arise.
As financial planning in marriage involves two people, naturally there may be differences in opinions and, perhaps, priorities. One might say live a little and spend, while the other might say let’s look at our savings 20 years down the road.
AKPK recommends choosing a minimalist way of living while not forgoing the enjoyment life has to offer. All we need is a little change of mindset and lifestyle. Is your marriage surviving from pay cheque to pay cheque? How do you change that to incorporate savings? If either spouse lost their income or encountered a medical problem, would there be enough funds to cope? It’s not too late to start making better use of your hard-earned money by adopting the minimalist stance.
On the other hand, effective communication often emerges as the most difficult obstacle to establishing goals and expectations, and developing a financial plan. If you and your spouse handle money differently, now is the time to talk, establish expectations and draw up a financial plan. Talk about it now or end up fighting about it later.
Adopting a minimalist lifestyle
Simplifying our lives should not be viewed as toning down our social status, but rather conforming to the art of downsizing and savouring experiences instead. We should change the way we relate to things. It is all about gratitude. In fact, it is said that gratitude is a discipline, not an emotion. That means we can develop it. By being thankful for what we already have, we would not need to satisfy our material wants or even develop any. This helps us save money in the process. Money saved can be utilised for fruitful purposes such as investments.
If we can focus on spending time together as a family and engaging in more cost-effective activities, you inculcate family bonding and, after all, that is priceless. A picnic at the lake gardens over a family holiday trip somewhere would save you money. And because money is saved, much can be done with your savings, such as an education fund for the kids or to pay up the housing loan faster than the loan duration intended.
Track your spending using a good expense tracking system. Find cost-friendly ways to do things. How about selling your usable second hand items online or at bazaars to make some cash for your grocery supplies or family savings? Perhaps you will find that cooking for the family on weekdays is much cheaper than buying outside food most of the time. You may also want to consider recycling as a clever way of reusing your old items instead of disposing them. Certainly by practising it you will be making a difference not only towards your cashflow but also the environment and future.
Use your credit cards sparingly as compound interest can be detrimental to your debt should you not pay your credit card bills in full each month. A credit card is only a payment tool. If you can’t afford it, don’t use it. Practise using cash to prevent overspending.
Clear your clutter. “The more stuff you own, the more the stuff owns you.” A simplified life is light, easy and stress-free. As you declutter yourself of material things, you also declutter your mind. This can be achieved by removing unnecessary material possessions that demand our attention, such as old shoes or discoloured jewelry that have little or no secondhand value. Can you do with one family vehicle instead of two or three to be maintained?
In fact, the things you do not need tend to clutter your life and your finances. Utilise your energy towards quality time and enhancing relationships with loved ones. That goes without saying that not every kind of enjoyment requires money to be spent. All we need is a change of attitude towards wastage and ensuring money grows out of money.
At the end of the day, a thankful heart matters most, as it breeds contentment, optimism, determination, strength and enthusiasm. A content heart encourages you to avoid overindulgence and not spend beyond your means. This would save you from possible future financial troubles.
Losing a job
When one spouse loses income, it can put a strain on the marriage, even potentially leading to a marriage crisis. How can an affected marriage partnership survive this? It is important to be honest to each other about one another’s financial situation. Unfortunate surprises relating to money is always never welcome. If the both of you can communicate openly about your individual financial standing, you will most likely be able to formulate a suitable plan of action. Try to redirect negative feelings into positive channels of hope and then towards positive action. Discuss possible opportunities. Can you start a small business from home? How can you pool your resources and change your lifestyle to accommodate? How can you make the most out of an uncertain situation? Being encouraging and understanding will go a long way in tough times like this.
Tiny tots
A child or a few are a wonderful addition to the family. Planned or unexpected, a pregnancy requires additional budget which a married couple must be ready for. Have you discussed pregnancy costs openly with your spouse? Monthly medical checkups, baby items such as clothes, milk, diapers and things required for the baby’s arrival need to be prepared. Likewise planning for baby’s education, insurance, savings account and other needs in years to come.
Marriage debt and budget setting
Getting out of any debt won’t happen overnight but is possible to overcome. Many couples enter into marriage with existing personal debt. The financial burden is also felt by the other half as they now combine their financial priorities as a household. If you can come to an agreement as to how to manage your money as a couple, relationship strife can be avoided. A family budget allows you to keep your family finances in check. There will be new financial issues such as debt, assets, bills and savings. If you had a set budget for yourself in the past, in a marriage, you will definitely need to come up with a new collective budget.
Delegating money tasks is a way to build trust and commitment in your relationship. Take some time to sit down with your spouse and communicate about your combined cash flow. What debt payments will you both have? How much can you save and invest? Can you find ways to combine expenses, such as switching to a principal mobile phone line with a supplementary line? Ultimately both partners must agree on goals about saving, spending and return on investments. If the numbers are not met, the couple needs to sit down and discuss why.
At the end of the day, realistically speaking, there is an old saying that goes: you can’t live on love alone, you need money to survive. Think about how true this is. That said, before tying the knot, partners must communicate honestly and openly about each others’ finances so that as they embark on their journey of wedded bliss together, all financial expectations are clarified.
As financial planning in marriage involves two people, naturally there may be differences in opinions and, perhaps, priorities. One might say live a little and spend, while the other might say let’s look at our savings 20 years down the road.
AKPK recommends choosing a minimalist way of living while not forgoing the enjoyment life has to offer. All we need is a little change of mindset and lifestyle. Is your marriage surviving from pay cheque to pay cheque? How do you change that to incorporate savings? If either spouse lost their income or encountered a medical problem, would there be enough funds to cope? It’s not too late to start making better use of your hard-earned money by adopting the minimalist stance.
On the other hand, effective communication often emerges as the most difficult obstacle to establishing goals and expectations, and developing a financial plan. If you and your spouse handle money differently, now is the time to talk, establish expectations and draw up a financial plan. Talk about it now or end up fighting about it later.