Somehow, marriages last longer when there is financial viability. As couples who have tied the knot of matrimony, it is sacrosanct to understand financial responsibility. The lapses and the fact that this topic is usually not discussed hitherto tying the nut has put a lot of homes into disarray.
A biblical allusion says ‘iron sharpens iron’. When it comes to money matters, it is wise to have a partner whose view towards savings, investing and prudence is the same as yours. Entering into a marriage institution changes your life in profound ways. Part of what changes is the fact that since you are now hitched together, you will definitely make financial decisions that could either make or mar your marriage.
One financial advice couples must not ignore is that each must understand the partner’s financial character? Do they save for the rainy day or spend the funds on trivialities? Do they invest?
Money issues are so exasperating that most couple sites it as the number one reason for conflict in their marriage. According to a survey by SunTrust, money issues are responsible for 22% of all divorces making it the third leading cause, according to the institute for divorce financial analysis.
One way a couple can become financially compatible is to share their financial secrets. Have they traded financial statements with their partner? That means sharing everything from your income to your debts. Begin by tallying up what each of you owns and owes. Your assets should include things like your savings and retirement accounts. Your liabilities may include student debt, a car or business loan, credit card balances and even mortgages.
Why is this important? “When you marry someone, you’re combining your assets, but that also means you may be taking on each other’s debts,” says Debra Greenberg, director of Retirement and Personal Wealth Solutions at Bank of America. You may want to help pay down your partner’s debt more quickly. But even if you can’t, it’s better to not be surprised by something that could have an impact on your finances as a couple.
Another way is to create and embrace a budget. Figure out how you have been managing costs, from earning/employment to retirement. Even if you both work, you may not want to divide the bills down the middle. “If you have the higher salary, you might take full responsibility for the housing costs, and your spouse could cover the other monthly expenses. You might also contribute a larger percentage of your income to your retirement fund,” Greenberg says. “Both of you, however, should try to contribute the maximum to your retirement accounts to make sure you receive any matching benefits offered by your employer.”
When it comes to managing your daily finances versus daily needs, talk about what makes you both comfortable. Some couples find joint bank accounts are the easiest to manage while others may decide to keep individual accounts and dually contribute to a joint account to save for larger purchases.
A marriage that has successfully planned its finance will be able to confront any other challenge that may juxtapose their lives.
ThankGod E. Airiohuodion
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