Getting started with managing your finances as a couple is one of the most important things you can do in terms of getting what you want out of life. It helps you to focus yourself, make sure your money is going where you want it to, and direct your energy where it needs to go.
First, it is essential that you begin communicating openly about your finances. This will pave the way for everything else in your relationship and your financial well-being.
Second, it is important to master the art of establishing a working budget. You can check on our tools page for our download for his and hers budget. Keep in mind that setting up your budget just isn’t a one time thing, but a continual process.
Third, establish goals and what it was that you want most in life. Everyone has different goals, so figure out what yours are. Keep in mind for couples that you’ll want to make both individual and joint goals so that you are both getting what you want.
Next, is achieving your goals and dreams. Goals are all about choices and trade offs, but you’ve got to find something that motivates you. With that in mind, there are generally some good steps to take, depending on where you are at.
- Emergency Fund. Having a fund to rely on when the unexpected turns up is essential. Emergency funds should also be customized to your specific needs at this moment. For instance, you’ll want to prioritize your debt pay off, and if you have credit card debt you will want to make sure that you have enough set aside to make it so that if something comes up you can still manage to pay your make your minimum payments if times are rough.
- Pay off Credit Cards. After you have at least a small contingency fund, you’ll f you’ve got credit card debt, then this is the first step to financial freedom. Once that monkey is off your back you can move on to more interesting things.
- Retirement. This may seem like a long ways off, but it is essential to start saving early when saving for retirement. Keep in mind that you’ll want to put away at least enough to take advantage of any matching funds offered by your employer, and before you know it you will maxing out before you know it. Plus, we all know that social security may not be around, and it certainly isn’t something you’d want to rely on.
- Stocks. Getting into the world of picking stocks might feel a little scary at the beginning, but being in the market is part of building wealth.
- Bonds. In this market it is also good to keep in mind the merits of bonds.
- Buying a Place. Taking the step to buy your own place may come before or after other investment options, but it is definitely something you’ll want to think of once you are ready for it.
- Investment Real Estate. We DINKs are particular fans of acquiring rental properties.
Good luck with getting started!
Miel&James
DINKS (Dual Income No Kids) Finance is a blog discussing personal finance for couples. While by no means financial experts, we own a variety of assets including real estate and stocks. We've both been up to our eyeballs in debt and have made tons of financial mistakes. However, we've both successfully retired that debt and we both do learn from our failings. We hope that our voice in this blog can help others in achieving their goals!
