When I help married or engaged couples, most of them have no idea about their partner’s spending habits, how or if they save, their credit score, estate planning, or how much debt they have. Most people get married and never talk about finances, budgeting, spending habits, or estate planning.
When my husband and I got engaged, I wanted to know how he managed his money, and I wanted to share my money system with him. It was a Sunday afternoon at his house. We sat and wrote down our expenses, income, debt, and our credit score.
During that time, I felt vulnerable. I had to share how I spend money and how much I had in the bank account. I didn’t want to share that information because, during that time, I was receiving unemployment due to being laid-off from my job of five years. Also, I had just started my tax business with my business partners. My income during that time was not great, but I had enough money to pay all my bills for four months.
We learned a lot during that discussion. He didn’t have a credit card, student loans, IRS debt, nor owed back child support. On the other hand, he learned that my student loans were current, my car would be soon paid-off, and my credit card was $300.00. Having that meeting brought us closer together and gave us a clear vision of our money and how to manage money in our home.
The money management game plan we created: I would manage all the paying of bills. We created a family account from which the bills would be paid. We opened our emergency fund account. This account would allow us to save for emergencies. Also, every first Saturday of each month, our monthly management meeting allowed us to discuss the expenses and see if we were still on track. Five years later, we still use this system and we’ve had much success!
Food for Thought:
- Annual income of over 50,000 can decrease the risk of divorce by as much as 30% versus those with an income of under $25,000.
- Feeling that one’s spouses spent money foolishly increased the likelihood of divorce 45% for both men and women.
- Couples that argue about finances at least once a week are 30% more likely to get divorces.
Check out my blog about Envelop Money Management Plan and Couples Monthly Money Management Meeting.
Be aware, be informed!