Whether you are looking forward to tying the knot or already basking in marital bliss, sooner or later you’re going to have to pop the question: “How do we plan to manage our finances as a couple?”
A 2017 study conducted by Dave Ramsey found that the number one issue married couples argue about is money. However, money and marriage can live happily ever after—with proper planning and communication, of course.
Talking about money with your honey doesn’t have to be an awkward conversation!
Weigh Your Options. There are three general options available for combining finances as a couple:
You can have separate bank accounts in marriage. If you opt for this approach, it is best to have a general understanding of who is going to be responsible for which bills every month
Commingle your finances in a joint account. This option is favorable if you want to have a more collective approach to managing your finances. In this case, both incomes reside in one account that is managed by both you and your partner.
Or you can utilize a combination of both. With this option, you and your partner would continue to manage your individual accounts, as well as a shared account that you each can contribute to.
As a couple, you should decide how much money you each will be transferring to your mutual account. For example, you may settle on a proportional method, meaning you each chip in an amount that is proportionate with your income. Or, you may decide to contribute an equal amount each pay. Ultimately, whichever method you choose, it’s important that both of you are comfortable with your decision and that your plan can be sustained for the long-term.
There is no one-size-fits-all approach to merging and managing finances as a couple. It’s simply a matter of deciding which option is right for you, your lifestyle, and your financial goals.
Your approach and efforts may shift over time as your incomes, expenses, and overall needs fluctuate. Our team is here to lend a helping hand through all of life’s changes– offering you protection and security today, tomorrow, and for a lifetime. Contact a member of our team to learn more about how we can make it all work together for you and your loved ones.
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