Merging finances - Essential tips for newlyweds

Wedding and honeymoon may make you feel that you are on the seventh heaven and life is wonderful! But when it comes to merging finances, life may not easy after wedding. Though married, both the spouses will be two individuals with their own likes and dislikes. Some of the common problems that couples face regarding finances include building up debt load, overspending, etc. It is quite common to find out that one spouse is critical of the expenses of the other spouse. Thus, it is very important to know how you can successfully manage your finances after marriage.

Tips to manage money after wedding

Here are some of the tips which will help you in managing and merging your finances better after marriage:

• Acknowledge the importance of money: It is very important to understand that money is important. After all the fun and frolic is over, money matters should be recognised, acknowledged and discussed. While merging finances, the newly married couple should control their spending so that they do not accrue loads of debt at the start of their new life. It is always better if you do not purchase things instantly. You should give yourself a cool off period and you will be surprised to note that you will end up avoiding a lot of purchases if you sleep on it.
• Consider opening a joint account: Even if you cannot fully merge your finances with your spouse, it will be better if you could open a joint account for certain expenses like child care, property, utilities, etc. Also, you should make sure that both of you decide how much amount both of you will put down in the joint account. The contribution and sharing expenses may vary from one couple to another and from one spouse to another.
• Create an emergency fund: After the fun and frolic of the wedding ends, sit with your spouse and set up an emergency fund. Both of you should decide on a particular amount which you will be contributing toward it. You should not use the emergency fund unless some serious emergency has cropped up.
• Speak to each other about finances: While dealing with finances after marriage, it is important for both the partners to be transparent and honest. This will help them better manage their finances. Also, if you are true to each other, then even if an investment fails, it won't come as a shock to your partner or he/she may not blame you for a wrong investment.
• Combine your lifestyles: Merging your finances will not be of any help unless you merge your lifestyles. You need to accept and compromise about what one can afford and the other cannot. In order to maintain a standard lifestyle, you need to control your socialising expenses.