Financial management in marriage is not always smooth sailing, especially when the husband and wife have contrasting habits when it comes to spending and saving. A recent article from The Wall Street Journal sheds light on the notion of “opposites attract”. People tend to be drawn to partners who possess traits they do not, explaining why you often observe an extravert paired with a reserved person. However, what happens when these personality contrasts transpire into financial disagreements?
Opposed financial approaches often prove to be more challenging to reconcile than differences in personality. Disputes over money are a significant contributor to divorce rates. While we might value our partner’s character traits, their financial habits may not always be desirable. Debt, in particular, can quickly sour the sweetest marital bliss, turning the newlywed dream into a nightmare.
Wondering how to navigate financial hurdles in marriage without driving each other crazy? Here are some suggestions:
Create a Spending Strategy:
If you’re the frugal one, and your partner is the spendthrift, be careful about calling it a ‘budget’ as it might be perceived negatively, indicating unavoidable restrictions. A ‘spending plan’, however, might sound more appealing. It’s a guide that helps you decide on your expenditures and savings. Deduct your fixed and variable expenses from your monthly income, and allocate the remaining amount into savings, retirement funds, and something for your enjoyment.
Set Mutual Financial Goals:
It’s essential to determine your unified financial objectives. Are you considering buying a house, or outlining a retirement plan? Keeping clear goals in your mind eases the process of financial planning.
Address Debt Issues:
If one party enters the marriage with a significant debt, it’s crucial to devise a strategy to pay it off. Do you agree on clearing your credit card dues in full, or are you comfortable with maintaining a balance?
Define Large Expenditures:
What do you consider to be a considerable expense? How will you manage such expenses? Is there a certain amount over which you would need to consult each other before making a decision – $100, $500, $1000?
Establish a Fun-Fund:
Let loose a little. Set aside an allowance that both of you can spend however you please. But remember, this is your cap for the month.
Stay Adaptable:
Remember, particularly if you’re the thriftier one, that your partner might occasionally falter. Perfection in adhering to a spending plan is unlikely. Unexpected circumstances will arise, or perhaps, you’d want to indulge in a luxurious dinner to celebrate something special occasionally. Keeping sight of your objectives is important, but it’s crucial to remember to enjoy yourselves, too.
Ensuring regular communication about finances and openness to modifications in your strategies can help keep any money problems at bay. Always remember to focus on solving the problem instead of attacking the person.
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