What To Do Before Marrying: Spender Vs. Saver

If your spending habits conflict with your partner's, follow these steps to prevent issues. You've discovered the one you love and decided to get married. However, when you and your soon-to-be spouse make plans for your shared life, you realize that one of you is a spender and the other is a saver. Fortunately, there are methods for handling shared finances that will satisfy both parties. Here are some pointers to assist you in navigating your way to monetary harmony.

 

•    Before getting married, spenders and savers should discuss their attitudes toward money and how they were brought up to perceive it. Together, make a budget for expenses, long-term objectives, and emergencies.

 

•    The requirements of both a spender (who can splurge on a desired item) and a saver (who can sock away their share) can be satisfied by having a "mad money" budget line for each partner to spend anyway they choose.

 

•    A financial planner can create a budget that works for your marriage if you and your spouse are unable to come to an agreement.

 

•    There are other free financial planning tools available. There are several free online tools available.

 

Our relationship with money is mostly emotional: Having money can make you feel nervous or happy, and handling it can make you feel at ease or dreadful. Spend some time discussing how and why each of you feels about money before getting married. Did you grow up with a tight budget or never having to worry about where the money was coming from? Your background may have a significant impact on how you feel about money, and you and your prospective spouse might not always have the same viewpoints.

 

You will be more able to empathize with and communicate compassionately with your spouse if you are aware of the origins of your and their financial points of view. 

 

Designer clothing may be valued by one partner while a costly pastime may be valued by the other. You two might enjoy travelling together, wish to buy a house, or retire early. You and your partner will probably find some overlap if you and your partner take the time to talk about each of your desires. You and your partner will be happy with the purchase if you make a plan to save for the things you want together and use the savings to buy something or go on an experience that you both really value. 

 

It's critical that you and your partner create a budget together in addition to saving and spending money for enjoyable activities. Together is the essential word here: It's a negotiation, and if both spouses agree, you'll have a clear strategy for how much money to set aside for long-term financial goals like retirement.

 

If the strategy isn't working, you can reevaluate it, but establishing a starting budget gives each partner some acceptable parameters to work with. You won't have to second-guess whether to spend your money on the $150 pair of jeans or the $50 pair, for example, because you will be aware of what falls within your spending limit. Many couples establish a joint bank account for home and common expenses but also keep their individual checking accounts, especially those who marry or live together later in life. These accounts may be the perfect location for each couple to keep their "mad money," which they can utilize for ad hoc purchases.

 

Think about including a "mad money" section in your budget. Give each of you a specific amount of money to spend however you like after paying your expenses and saving as agreed upon for emergencies and long-term objectives. Use your portion of the "mad money" instead of household funds or your emergency reserve if you want to purchase the best headphones or a new pair of running shoes.

 

The freedom to spend whatever one wants will allow the saver to store their money or invest it without worrying about not having enough money set up for emergencies.

 

Whatever you do, don't try to hide anything or lie to your significant other about your expenditures. If you feel that you can't be open and honest about money with your partner, you haven't developed a strategy that works for you both. Visit a financial planner together for help in building a budget that will work for your relationship if you and your partner are having problems coming to terms with a budget or a plan. Financial advisors may help you determine if, for example, that beach vacation is affordable or a splurge that you should pass on this year because they are not emotionally invested in your financial situation.

 

Only 30% of Americans have a compensated financial counsellor, according to a 2022 poll. There are free options accessible if you're among the 70% of people who don't have one or can't afford one. Free financial advice may be available from your bank or credit union. A free financial planning consultation may be included in your benefits package from your union or job, and organizations like the Financial Planners Association may provide free services to individuals who qualify for them.

 

A financial expert can help you create a budget you both can live with if your partner is spending more than your household can afford. Additionally, there are free online resources for financial planning, and certain banks and credit unions could provide free financial counselling.

 

Yes. Naturally, a saver and a spender can remain partners. All couples can gain from having open discussions about money, establishing expectations about how much each will spend and save, and creating a shared home budget. Having separate bank accounts as well as a joint account can be beneficial for certain people.

 

Not every financial advisor bills the same amount for their time. There are financial advisors who work on a fee basis, those who bill by the hour, and those who provide their services for free or at a low cost to certain people. Although most financial services are pricey, a financial advisor may charge a flat, one-time fee of $150 and up if you only need them for one meeting.

 

As long as both parties can agree on a strategy and a budget and follow it, savers and spenders can coexist in success. Try a different strategy if the first one does not work for you both. Don't panic if you can't afford a fee-based financial counsellor.

 

You can create a budget and financial roadmap for your partnership with the help of free online resources and pro bono financial planners. Having a financial plan may result in fewer disputes over money because it makes life easier.