Money management issue is one of the biggest problems young couples face today. This is a serious problem for many couples since most of them struggle to come to an agreement while choosing ways to manage money. Since this is a sensitive issue, couples must be honest and straightforward about their individual spending habits. It is also important to devise a plan on how to minimise costs. On the other hand, having a partner is also a blessing when it comes to shouldering the expenses. Couples definitely can bond further over planning how to save money and dividing up the expenses. Being able to save money properly can ensure a long and healthy relationship. Here are a few simple tips to follow that can put you on the right track.
1. Discuss finances beforehand
The best way to start out is to have a free and frank discussion with your partner about your finances. Talk to them about your current financial situation, how many bank accounts you have and how much debt you have accumulated.
It’s important to be clear about how you expect the expenses to be handled. Discuss and set the limits on spending and how much of the expenses you are willing to shoulder. It’s best to get these things out in the open before your relationship gets very serious.
2. Document your goals
Once you have your expenses sorted out, be sure to write them down. Here you need to be clear about each other’s long-term financial goals, such as retiring at a certain age or making big purchases. You can document future expenses such as saving for your kid’s college fees or buying a car or a house. Writing them down and following up on them periodically will make it easier for you to achieve your goals. When plans are written down you are more likely to follow them through.
3. Discuss whether to have a joint bank account
When you trust each other implicitly, you can consider having a joint bank account. Joint bank account makes it easier to share expenses, especially if one partner decides to spend more on the household or other expenses.
This also creates an atmosphere of trust and reliability in the relationship.
On the other hand, you may also decide to keep separate bank accounts if you want to keep your spending information private. Given the high rate of divorce nowadays, many couples may opt for having separate bank accounts to ensure security.
Whichever path you take, make sure to discuss it in-depth with your partner to avoid future discontent.
4. Consider moving in together
Once you are at that stage of your relationship, you can consider moving in together. Sharing the same house can save money in numerous ways. Rent and bills can be shared. Even daily expenses such as food and gas can get cheaper when you share the expense together.
5. Spend less and save more
As a couple when you live together you need to be aware of the spending habits of each other. Make an active effort to cut back on spending that is not bringing back enough rewards.
As a couple, it is easier to identify the others spending habits as one might easily overlook their own personal spending pattern. So cut back on expenses that it not financially viable and invest more in ventures that bring in more rewards as a couple.
6. Cut back on unnecessary expenses
There are many expenses around the household that you can do without as a couple. If both of you have magazine subscriptions then you can cut back just one. Cable bills can be minimised by unsubscribing from channels you no longer view or don’t view together.
These small steps can save money by cutting out on the hidden costs.
7. Make holidays cheaper
Taking vacations is high up on the expenses list for many couples. Although sharing the bills on the vacation can be a great way to save money. You can try to make your own food if you have cooking facilities, instead of ordering or dining out.
Booking cheaper hotels or choosing camping grounds can lessen the expense a great deal. Group coupons are also available for vacations for couples looking to minimise costs.
8. Minimise use of your credit card
Using a credit card is very tempting. It makes you spend money you don’t have. Banks are making it easier nowadays to acquire credit cards for couples with shared incomes.
This encourages unnecessary spending. So, if you are on the lookout to save costs, then refrain from using that piece of plastic as much as you can.
9. Make your dates cheaper
Obviously, couples need to go out for entertainment, but going to expensive restaurants, games or concerts can drain your wallet really fast. So, if you’re focusing on saving money, try going out to restaurants that are budget friendly or just make dinner at home and have it while watching a movie on the TV. Going out for walks in the evening or having drinks or food at stalls by the road can be inexpensive ways of having a fun evening out.
10. Make Use of coupons or reward programs for shopping
You can be on the lookout for coupons online, in magazines or stores tabloids. Using these coupons can prove very useful in supermarkets and many online shops, especially if you are shopping on a budget.
Some media service providers offer free trials which allow you to watch free media content for a limited time. You can take up these free subscriptions whenever you come across one for free entertainment.
11. Go for used furnishings
As a couple, decorating your new house together is exciting. So, if you are planning on furnishing your new place in a cost-effective way, it would be a great idea to buy a few used furnishings.
You can easily find the things you want at local thrift stores, flea markets or the neighbourhood yard sales. Just a touch of paint or varnish can make any furniture as good as new.
Couples can make the best of being in a relationship when it comes to saving money. If your partner is willing to share the expense then it will be better for both if you are aiming to limit your expenses.
Following the easy tips above you can easily ensure to save more money by the end of the month. Happy savings!