Finance management is one of the harder things to do along and when you have to handle the combined finances of two people it gets even worse, couples who merge their finances face numerous problems which can even have a negative effect on the relationship. Below ill be listed 6 things new couples face when merging finances.
- Handling Debts: When a couple merges their finances and one or both party has a debt it can really have a negative effect on the overall finance and also the relationship so it is important to know that trying to pay off the debt together is the main goal and once you are debt free you can move further and balance your combined finances together, start with the smaller or the more important debts that you need to pay off and then make your way up
- Spending habits: when a couple merges their finances they don’t change their personal spending habits or their lifestyle this can dis balance the merged finances especially for couples with income discrepancies, couples need to talk about how they are using the money and discuss their financial status and merge their lifestyles as well.
- Joint account: One of the best ideas after merging finances is to establish a joint account which can cover expenses for things such as house rent, utilities, food etc and will be easy to keep a track on how much you are spending and the general financial status, pooling your money and using it together for things you need can really help maintain a stable financial status.
- Keeping Secrets: When in a relationship with merged finances people sometimes tend to lie and keep secrets regarding their finances like not telling their spouse that they might have spent a little extra or brought a dress that was a bit expensive etc which might seem small and inconsequential but really build up to cause problems later. Always try to tell everything to each other and not keep secrets.
- Emergence Funds: New couples can face a lot of financial trouble and it is best to keep an emergency fund stashed away for a rainy day, couples can have varying amount that they deem is enough for emergencies and discussing about it and coming to an agreed amount along with working together to save up that amount for future needs is a good idea.
- Defining Goals and Roles: One of the main problems when couple merge finances is how to spend the money and on what hence it is best to plan for a budget and also what they are working towards like maybe a house or a car or to just pay off the debts and bills which can help achieve goals easily and more quickly, define your goals and if you can also define your roles if the finances are hard to manage together, one can handle the finances who is more capable of money management which In most households tends to be the wife.
Most of the problems faced by new couples can be solved by communicating and making plans to help with their finances, if you are having similar trouble then it is a good idea to start with just communicating to each other about the problems.