Greetings! Today, we have a guest post from Kimberla Lawson Roby, author of The Best of Everything, a novel about a woman and her cash. I’m still holding it down for the single ladies, but if I were to get married, I would like to make sound financial decisions with my hubby. Romance with bad finance doesn’t have a chance! Heheh!
Here are Roby’s tips on marriage and money:
1. For soon-to-be married couples, be honest with one another before getting married about your financial history and any current debt you owe. This way, you’ll enter the marriage with full disclosure, as opposed to being caught off guard, and perhaps even position yourselves to tackle the debt together.
2. Treat all financial debt and responsibility as if it belongs to both of you. For example, if you owe $10,000 in bills and your husband owes $10,000 as well, then come to an agreement that together you now owe $20,000.
3. Open a joint checking account and have all income, yours and his, directly deposited into it. This means that regardless of whether you earn more or he earns more, you both share all income equally.
4. Once a monthly budget has been created, determine how much money you will save together: i.e., how much you will each add weekly, bi-weekly or monthly into your individual retirement accounts, how much you will save in a joint savings account, etc.
5. Determine how much spending money you will be able to withdraw and deposit into your own separate checking or savings accounts and make sure that whatever that amount ends up being, you will each take 50% of it.
6. Discuss all financial decisions before taking any action and more than anything, remember that this is no longer about just you but instead, it is about the two of you who have made the decision to become one.
What do you think about Roby’s tips? Is it harder to manage your money as a single person or a married person? It’s a big step to only have a joint account like Roby suggests.