Financial Success in Marriage

I have had several friends approach me about financial success in marriage. It's not easy and not always a treat tag teaming expenses. You lose the financial freedom you have as a single person.

Here are some quick tips I keep telling people.

1. You can choose to keep your finances separate or together. Some married people split up bills, accounts, and more. We choose to keep ours together because we have relative low risk. Does one person own a business? I would recommend separate finances in that case because if the business takes a downward slope, you are not responsible for the bankruptcy. There are a lot of things to keep in mind but you have to communicate as a couple.

2. Save, save, save. Retirement should be your biggest investment. Don't regret it later. 10% of our income goes to saving for retirement. Period. You should also have a nice lump sum in a savings account to keep your head above water in troubled times. You may not think you will be jobless but the economy changes and circumstances out of your control tell you otherwise. We also have multiple savings accounts - one that is a high interest yielding one with strict withdrawal and others that are for more immediate needs. The long term ones are for purchases like a house, cars, etc. Others include a few investment opportunities to double our money for travel or even continuing our education.


3. Get a credit card. I am not saying build up debt each month. Credit cards are not for that purpose - well they are but not if you want to benefit from them. I have had a credit card for 5 years. I have not paid a dime of interest. But I use it on every purchase I make. I just pay my bill before the end of the billing cycle so they cannot charge me interest. And I have a rewards card. I have earned free money and trips for no extra cost to me. The biggest benefit - I have a great credit score at my age. Some utility companies require a deposit to even hook up your water. I do not have to pay that because my credit history shows zero financial risk with a decent history.

4. Pay off debt. I graduated college only 6 months ago. I took out $20,000 to go to school. I only owe $3,000 now and don't have to make a payment until 2016 if I do not want to. But I don't want the interest to cost me and every dime not used on something else each month goes towards paying off student loan debt. Soon, I will have saved about $1,000 on interest and will have more financial freedom each month because I have zero liability.

5. Budget. We created a Google Docs with our expenses, dreams, and wants. Each month, each party gets a set amount of money to spend how they choose. If we want to save a couple months money for a larger purchase or trip, we can do that. That allows us to have some financial freedom from each other.

6. Each person should contribute. One person should not be freeloading in the marriage. That leaves room for argument. Kids are a different story as they are a full time job - but you cannot take in a marriage without giving. This rule applies to money.

7. Always communicate wants. Money takes communication. Don't go shopping without first letting your partner know you are spending money shopping. It will not only  save you a couple fights but makes sure you have the same goals.

8. Look for deals. I am a cheap wad and so is my husband. That doesn't mean we have to shop for cheaply made items. But we look for quality at the best prices. We don't buy something we see on the rack for one price unless we know we cannot get it cheaper somewhere else. It makes sense but people often want instant satisfaction instead of looking at what a little research can save you.