As a young couple, you definitely have some goals you intend to achieve within a stipulated duration. But do you have a workable plan to achieve them? Some people get into a marriage without knowing how to handle certain challenges and responsibilities. Remember you are going to live with someone who has been managing their finances differently. Therefore, how you merge your finances will have a great impact on the way you will spend and manage family resources including the money coming or going out.
The argument about financial matters can bring a lot of friction to any couple but it is usually worse for young couples who are still financially unstable. Young couples need to have similar financial goals and money values to avoid arguing about money all the time. Always arguing about money can be very frustrating and even stop you from progressing. The good news is that if you learn those financial mistakes and avoid them, you will not fall in this trap. Although as you get older the arguments will decrease, you do not have to wait that long to enjoy financial freedom with your spouse.
Common money mistakes to avoid
Below are some of the most common money mistakes young couples make. If you avoid them, you will not only get your financial breakthrough while still young but you will also lead a healthier and fulfilling lifestyle. Be smart and lead the rest.
While a big wedding is awesome, having one when you are not financially stable can cause your marriage to start off on the wrong note. You need to remember that there will still be bills to pay even after the wedding. Come to think of it, if you already have a student loan, why should you add another loan on top of it just to have a wedding? These are the issues that will make you start arguing with your partner even before the honeymoon period is over. Be smart and only have a wedding that is within your budget. Even a small intimate wedding can remain a memorable event to you and your spouse.
Lack of communication
Not communicating about money in a marriage can have very dire consequences to your union. You need to agree on how you intend to spend your money and the amount you wish to set aside for saving and other needs. Always consult your partner before making any financial decision. Allow them to share their views and then come to an agreement. If you fail to communicate, you will be welcoming fights and arguments about money all the time. It will also be difficult to give each other the support you need to grow as a young family.
Not having a budget
If you want to excel, have a budget of the things you intend to do as a family. A budget can help you determine the amount you can save for future investment, emergencies, daily expenses and other miscellaneous expenses. When you have a budget, it will be easier for you to know the amount left out after you have settled the bills. Otherwise, if you both get your wages and start doing things haphazardly, you will realize that it’s not possible to save or even invest. So, before you think of that upgrade, vacation or a night out, have a budget. It will be easier to know the amount of money you can allocate such activities without getting into debts.
Failing to have future plans
Immediately you get married, you are head over heel in love that it is easier to forget there is future. Well, it’s perfectly fine to feel like nothing else matters but it should not take too long. Do not be tempted to think future plans are meant for people about to retire. The truth is, the earlier the better. If you have plans to own a home, have children and invest in their education, go back to college and any other plan you may have as a couple, regularly discuss them. Discussing them often means you are working hard towards achieving them. It also means you still have the same goals you had when you were getting married.
Living an extravagant lifestyle
Living an expensive lifestyle is a major financial mistake that most couples make. Probably you met in college when both of you were financial dependents’ when you begin earning some good cash, you start leading a flashy lifestyle. Most young couples who fall into this trap do so majorly because they think it’s still early to get serious with life.
The biggest mistake you can make as a young couple is to spend all your money improving your lifestyle. Some will even borrow to meet certain standards of living all in the mane of enjoying life to the fullest. Even if the bank is excited and very ready to give you a car loan and a big mortgage, take your time before you accept the offer. Try as much as you can to avoid leading an extravagant lifestyle. Please, note that once you are in it, it will be very difficult to come out. Instead, consider a modesty lifestyle right from the beginning. You will avoid stressing issues and at the same time, be in a better position to save and invest for the future when you are still young.
Make worthwhile decisions from the beginning
Being in love and getting married is not enough to strengthen your relationship. You need to be smart on the decisions you make as a couple. Learn to discuss your issues and completely avoid financial secrets. They are the main culprits of friction in the marriage. When you have similar money values, it will be easier to invest in the things that matter the most to both of you. The above mistakes can guide you on the best financial decisions you should make as a young couple. Don’t give up if you have already made one or more of those mistakes. The best thing is that you have realized where you went wrong and what you should have done instead. Learn from your mistakes and most importantly, work as a team but not against each other.