One of the biggest issues in any marriage is money. It’s one of the main reasons couples fight and can lead them to get a divorce if not properly addressed. Disagreements about spending and saving don’t have to create an impenetrable wall between you and your significant other. Here are some great finance tips to help you and your partner save money this year.
Track Spending
In order to start saving money, you need to figure out where all your money is going in the first place. This will help you determine how much you could be potentially saving each month. For an entire month, write down exactly how much you both spend on essential and non-essential items. While you may not have much wiggle room with essential fixed costs such as rent or car payments, you can choose to eliminate some discretionary items such as takeout and specialty coffees on the way to work. You can find various finance apps online that can help you track your spending habits.
Ideally, approximately 50% of your income should be spent on absolute essentials. You should strive to have at least 10% to 20% of your total income to go towards savings. That leaves 30% for discretionary spending. If you can reduce the discretionary number even more, that’s more money in your pocket for emergency savings or your retirement fund.
Start Your Own Business
Starting your own business is an ideal option if you want to make and save more money this year. There are currently 30.2 million small businesses in the U.S., and 40% of them are profitable. You can look for businesses online that you can start from the comfort of your own home for little to no cost. You can work on whatever business you and your significant other choose outside of your normal jobs to build up cash for your future.
Create An Emergency Fund
Set aside a certain percentage of your income weekly or monthly into a fund for emergencies. At the very least, work to save at least one month’s worth of finance expenses. This money can only be used for true emergencies such as unexpected medical bills. If you put your savings into a high yield cash management account, you can earn more interest than you would by having it in a checking account. You’ll be able to save even more money over time.
Resist The Urge To Splurge
The urge to splurge is incredibly detrimental to trying to save money for your future as a couple. One of the most common areas where people splurge is on their wedding ceremony. The average wedding ceremony in New York City costs $70,030. If you and your significant other are planning to get married soon, look for ways you can cut costs. You can have your bridal party pay for their wedding attire or have family cook dishes for your reception. You can also look for low-cost venues for your wedding and reception.
Avoid These Household Finance Mistakes
If you want to save money together, you’ll need to avoid some common financial mistakes that many couples make. One of the biggest mistakes is setting goals together. It’s crucial that you are both on the same page with each regarding money, and you can do that by figuring out what’s most important for each of you. By setting common goals, you’ll be more motivated to work together to achieve them.
Another big mistake is not allowing room in the budget for discretionary spending for each of you. Many fights can occur when the finance for the household puts one person in a situation to constantly have to ask permission from the other in order to spend money on themselves. Come together and agree on a certain amount that each of you can spend on a weekly basis on things of your own choosing. Discuss how each of you will contribute to the household bills and savings, then split up whatever is left.
Meet With A Finance Counselor
If you and your partner are having a hard time discussing money matters with one another, you may want to consider meeting with a financial counselor for assistance. The counselor can help you settle your differences and come with a budget that you can both stick to for the long term. You’ll be able to have a clearer understanding of each other’s perspective around money and come up with ways to work together rather than against each other.
Create A Retirement Fund
Ideally, you’ll want to set aside approximately 15% of your income into a retirement fund. Take advantage of the 401k contribution matching programs offered by your employer. You can save hundreds of dollars through compounding with even the smallest employer match. If opening up a 401k fund isn’t an option, consider opening up a Roth IRA to help you save money for your retirement.
Maximize Cash Back And Rewards Programs
A great way to save money is by making the most of the various cashback and rewards programs that are available. The credit card you own should award you points or cashback on everyday purchases such as groceries or dining out. Take the money you get back and transfer it into a savings account where you’re less likely to touch it. You can use price comparison tools online in the same way. Whenever you find a deal through these tools that save you money on your online purchase, take that amount you saved and put it directly into savings.
Finance can be a difficult issue for a couple to conquer, but it can be made easier with open and honest communication with each other. Focus on working together as a team to achieve your financial goals. It’s time that your money worked for you, not against you. Choose the finance solutions that work best for both of you. This will help you both save more money so you can create your happily ever after together.
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