When you get married, you bring two different lives together – and that goes for your finances. Unfortunately, combining budgets into a single family financial plan can be one of the most difficult things in young people living together.
After all, most people rarely evaluate financial compatibility when they start dating, and therefore, when it comes time to plan a family budget , disagreements arise, minor quarrels and major conflicts erupt.
1. Lack of a long-term financial plan
It is important that you have a long-term financial plan that reflects all the strategic goals of the family, whether it is having children, buying a home, or even when a spouse will retire. Young people should talk about such things before going to the registry office. Discuss your financial goals, timing of achieving them, sources of funding for the family budget, and other problems you may face.
It should also be borne in mind that a well-designed financial plan is always flexible , i.e. the bride and groom must understand that they can and must adjust their financial plans in the future, but as in any organization, these changes must be discussed and agreed upon together.
2. Hiding important financial information
Another common mistake is to go blind. This means that newly-married spouses often make important financial decisions, make large purchases and take out loans, being completely or partially unaware of each other’s personal finances (for example, real income or the amount of debt).
No later than you announce your engagement, you should frankly discuss everything that may have an impact on the budget of your future family: current savings, sources of future income, immediate large spending, amount of debt, any overdue debts, bankruptcy cases, other obligations, etc. etc.
3. Lies about financial management
People often joke about stashing their bags before their spouse gets home, but in reality, this behavior can lead to serious problems in both relationships and finances.
4. Consolidation of finances before marriage
If you just live together, you may run into problems in the future if you buy a house together or act as a co-borrower on a loan (which is possible) and then break up.
Remember! The law of the Russian Federation protects the rights of members of married couples who are legally married.
5. Wedding or honeymoon on credit
You should not start your family life with big debts. This means that it is better to save up for a wedding or honeymoon (or refuse altogether).
6. Refusal to participate in family planning
Marriage means that the spouses are now one team. This also applies to financial management. Excessive spending, hiding spending or income, and ignoring general financial goals should be avoided.
And even if someone in the family is responsible for planning most of the family’s expenses (for example, the husband pays all regular bills and goes shopping), both spouses should discuss their current expenses and plans for future purchases at least once a week.
7. Ignoring alarms
Don’t ignore the signs of your spouse’s suspicious financial behavior, no matter how much you love him / her.
For example, pay attention to frequent reckless spending, frequent avoidance of talking about finances, or denial of a loan.