Creating a shared financial strategy with one’s spouse is one of those parts of marriage that is rarely discussed. One of the keys to improving as a married couple is mastering the art of compromise.
Marriage can be thought of as a merger, a union, or a partnership on equal footing. Whatever form your relationship takes, you can probably agree that good communication is crucial to your happiness. Lifestyle decisions, kids, sex, and money are just few of the many important topics that you and your spouse will need to discuss openly and regularly.
The Solution to Financial Problems
The discussion about budgeting as a couple need not be contentious. Having a financial plan or budget is essential for any married couple, whether they are newlyweds, veterans of many years of marriage, or somewhere in between. Although creating a budget may seem daunting, it is actually rather simple. A budget is an estimate of the money you and your partner will bring in over a certain time period, combined with a plan for how that money will be spent.
Calculate Your True Take-Home Pay
Once you have established your financial objectives, it is time to evaluate your monthly income. The term “gross income” refers to earnings before any deductions or taxes are taken out. That’s not useful for budgeting, but it is important to remember to include any money set aside for retirement, a pension, or Social Security when calculating your total income. Use what you really get paid each month (your take-home salary) as the basis for your budget. This is the sum available to you before any expenditures are made.
Compute the Required Investments
The monthly payments you make towards your mandatory expenses are required. Payments for mortgages or rent, cars, petrol, parking, utilities, insurance, credit cards, groceries, and other necessities all fall into this category. Some people view food as “what’s left over after all the bills are paid,” but you and your partner should have an idea of the bare minimum required to cover food costs and factor that into your budget.
You Need A Budget
(YNAB) is built on the zero-based budgeting idea that requires you to “give every dollar a job.”1 It’s most effective for people who are serious about taking control of their financial situation and willing to make some changes to how they’ve always done things.