Many couples do not know what to do with their finances when they get married. Several couples assume that they should put all of their money into one account and then pay all of their bills out of that account. While that may work for some couples, it does not work for all couples. The following guide walks you through a few things you may want to discuss with a financial advisor at a company (like Advanced Cash & Check Cashing) that offers financial services to private individuals before putting all of your money into one account.
Before you were married, there is a good chance that you both established debt as a result of student loans, car loans, or credit cards. There are some people who have thousands upon thousands of dollars in debt before they are married. Knowing that a portion of the money that you have earned is going to pay off debt that you did not accrue can cause arguments in a relationship. It may be best to keep your money separated until both of you have paid off all of your prior debt so that no one is paying for any debt they did not accrue.
Debt to Income Ratios
When you consider placing your money into one bank account, it is important to consider the amount of monthly expenses you each have and the amount that you each make per month. Subtract the debt amount from the income amount and you will determine how much money you have left over for other things, such as entertainment or savings, each month. If your spouse is someone who prefers to spend money and you are someone who prefers to save money, it could cause a huge fight when you go to the bank and determine that he or she has spent money rather than saved it.
If you are a saver and your spouse is not, having a large amount of money in savings that you are asked to put into a joint account can be difficult. You may need to discuss with your spouse how difficult it was to save the money and why you feel it is so important to keep it rather than spend it. If he or she does not acknowledge the importance of saving, you may want to keep your money in your own savings account to ensure you have the money you need if an emergency arises.
By taking the time to consider all of these factors, you and your spouse may be able to avoid arguments about money. The financial advisor can help you establish specific financial responsibilities for you each to have to ensure that you are both helping with the costs of the marriage, but also not taking on one another's debt from before you were together.