Financial Planning For Married Couples: How To Combine Finances After Marriage

Learning to combine finances after marriage is crucial, and At Home Title Loans will show you how it’s done. Careful financial planning can help married couples avoid stress and friction, which is why it’s wise to do it early in the relationship following good strategies.

This article will lay out a five-step process for combining your finances after marriage, regardless of whether you are newlyweds or just getting around to handling your finances.

Let’s get started!

Combining Finances After Marriage: A Five-Step Process

Financial issues remain one of the most significant causes of marital friction. That’s why it’s important to be open and honest about money with your partner, no matter how uncomfortable those discussions might be.

Ideally, a couple should combine their finances and establish a mutual understanding early on in the marriage, though it’s never too late to start.

Here are the five steps you and your partner can follow to combine your finances:

Step 1: Talk About Your Finances

The first step in combining your finances has nothing to do with numbers, at least not directly. Instead, you should start the process by normalizing discussing finances in your marriage.

Some couples might be fine talking about money. However, others will likely feel incredibly awkward about discussing the topic.

Here, the goal is to establish a judgment-free environment in the marriage that encourages talking about money.

Step 2: Audit Individual Finances

Next, take an honest look at each partner’s finances. Again, it’s normal for some people to feel over-exposed by this process.

The point is to put everything out in the open, including:

• Earnings and savings
• Regular expenses
• Debts
• Accounts
• Financial goals
• Any other financial assets, liabilities, and obligations

Auditing individual finances gives both partners a clear picture of their shared financial starting point. That will enable you to combine your finances more effectively.

Step 3: Create A Joint Budget

With a clear and honest understanding of each partner’s finances, you can now come together to create a joint budget.

The process is pretty much the same as creating an individual budget. However, this time around, you’re accounting for things like:

• Your combined income
• Your combined savings
• Your combined expenses for housing, groceries, transportation, and more

As you go through this process, you’ll gain a strong understanding of the shared financial goals and priorities you’ll want to work towards.

Step 4: Establish A Joint Financial System

Once you’ve built your shared budget and understand each other’s finances, it’s time to establish a joint financial system. In other words, this is where you decide where every dollar you earn and spend will find its place and purpose.

The aim here is to combine your finances as a married couple, you’ll first want to establish one or more joint accounts. For example, you could have a joint account for household expenses. Similarly, you could open a joint account where each partner can contribute to the couple’s shared financial goals.

Joint accounts encourage transparency, as both individuals can monitor and control the money in them. You can also use additional features like automation to make saving money easier. Doing so will ensure that money is saved in the right accounts, even if you forget to do it manually.

Step 5: Discuss How To Handle Emergencies

Even the best-laid plans can go wrong when financial emergencies occur. That’s why a critical part of this process is discussing how you’ll handle a crisis together.

First, you must set up a joint emergency fund to cover at least six months of your shared living expenses. Both partners should contribute to this account regularly to ensure it grows, making it a helpful tool against future emergencies.

Still, some emergencies will cost more than you’ve saved together. That’s why it’s best to discuss ways to borrow money on short notice should it become necessary.

One finance option that you can consider is getting a title loan. This method requires a lien-free car title as collateral to borrow up to $15,000 within a short period.

If at least one partner owns a car outright without any outstanding loans or judgments against it, they could qualify for a title loan to help cover any emergency costs.

Get Emergency Funds Fast From At Home Title Loans!

Financial planning, or a lack thereof, impacts a marriage more than most people realize. That’s why married couples must carefully combine finances after marriage and create an open and honest environment with money.

Among other things, couples must be prepared to weather a financial storm together with a shared emergency fund and a backup plan like getting a title loan. At Home Title Loans can help you get the money you need through a reputable lender in your area, all you need to do is complete the secure inquiry form to get started!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.