*Disclosure: This page may contain affiliate links. We receive a small commission if you purchase something we recommend (at no cost to you). All opinions remain our own.

How to Successfully Manage Money as a Newlywed

Congratulations on your marriage!

As you start this new chapter together, there’s a lot to think about – combining your lives, setting up your home, planning for your future, etc. But these aren’t the only big things to consider. You must also decide how to manage your money together.

It might seem a bit overwhelming, but with the right approach, you can set yourselves up for long-term success.

From budgeting to saving for your future, here’s how to manage money as a newlywed.

1. Have open and honest conversations about money

Starting your financial journey together as newlyweds begins with open and honest conversations about money.

Take the time to sit down together and discuss your financial goals, values, and any concerns you may have. This is an essential step in building a strong financial foundation for your future.

Begin by asking each other questions like:

• What does being good with money mean to you?
• What are your financial priorities?
• What do you like to splurge on, and where are you willing to cut back?

By having these conversations, you’ll gain valuable insight into each other’s financial habits and attitudes. This understanding can help avoid misunderstandings that could lead to conflicts.

Some couples avoid talking about money due to fear of judgment, discomfort with their financial situation, or a lack of financial literacy. They might worry about revealing debt or differing spending habits.

Avoiding these discussions can be dangerous, though, leading to financial mismanagement, hidden debts, and unmet expectations. However, without open communication some couples risk financial instability.

2. Create a joint budget

Creating a joint budget is also essential to manage money as a newlywed couple.

Start by tracking your combined income and expenses. Next, identify your fixed expenses, such as rent or mortgage, utilities, and debt payments, as well as variable expenses like groceries, dining out, and entertainment.

From here, decide how you’ll split expenses, if applicable, and make sure it’s fair so that one person doesn’t feel as if they’re spending a greater percentage of their income. For example, if one person earns considerably more, you might agree on a 60/40 or a 70/30 split.

It might help to use a budgeting app or other software to set spending limits for different categories. Review and adjust your budget regularly as your financial situation changes. (Related: How to Create a Budget You Won’t Hate)

3. Set financial goals together

Setting financial goals as a newlywed couple can help you stay motivated and focused on the big picture. Of course, before you can establish goals, you’ll need to understand each other’s vision for the future. Ask questions like:

• What are our top financial priorities as a couple?
• Where do we see ourselves financially in 5, 10, or 20 years?
• What are our non-negotiable financial goals, and what are we willing to compromise on?

Break down your goals into smaller, more manageable tasks and set deadlines for achieving them. Celebrate your successes along the way and adjust your goals as needed.

4. Designate responsibilities

Assigning specific financial responsibilities can help streamline your finances and reduce conflicts.

Play to each other’s strengths and interests when assigning financial responsibilities. Schedule regular check-ins to review your finances and ensure that everything is on track. Also, be open to revising your roles and responsibilities as time progresses.

5. Plan for the unexpected

Life is full of unexpected surprises, so it’s essential to prepare for emergencies.

As a newlywed couple, consider establishing an emergency fund to cover unexpected expenses like medical bills, car repairs, or job loss.

Aim to save three to six months’ worth of living expenses in your fund. Set up automatic transfers to ensure that you’re consistently saving, and periodically review your insurance coverage (including health, life, and disability insurance) to make sure you’re adequately protected.

6. Be mindful of your spending

To manage money as a newlywed couple, it’s also important to be mindful of your spending and avoid unnecessary expenses.

Take the time to review your spending habits and identify areas where you can cut back. Look for ways to save money on everyday expenses, such as meal planning, shopping in bulk, and using coupons. (Related: 39 Ways to Be Effortlessly Frugal)

Consider setting spending limits for non-essential purchases and consulting with each other before making large purchases.

7. Invest in your future together

Finally, as a newlywed couple, it’s essential to invest in your future together – whether you’re saving for retirement, planning to buy a house, or starting a family.

Start saving for retirement as early as possible and take advantage of employer-sponsored retirement plans like 401(k)s or IRAs. Consider meeting with a financial advisor to help you create a personalized investment strategy based on your goals and risk tolerance, and continuously review and adjust your investment strategy as needed.