5 Money Mistakes Couples Make

Money can be a big source of stress for many couples. Meeting with a financial planner can be a good investment. Although it may cost a couple of hundred dollars up front, it may save you thousands each year. A financial planner can help ensure you don’t make these common money mistakes that many couples make.

1. Spending Like They Are Single

Once you are married, you don’t have the same freedom to spend like you did when you were single. However, many people still make that mistake. They make impulse purchases without consulting with their partner. They focus on buying what they want without thinking about the family’s needs.

Sometimes people say things like “When I get my taxes back I’m going to buy…” and still act as though the money they earn goes directly to their own personal piggy bank. Part of having a healthy marriage means sharing whatever you have, including your paycheck.

It’s important to talk to your spouse about things you want to purchase. Establish a dollar amount that will require you to always consult with one another before making a purchase. For example, do you feel comfortable buying something for $20 without talking about it first? $100? The amount is different for each couple but it should be an agreed upon amount with a plan.

2. Not Establishing a Budget.

Unfortunately, many couples have no idea where their money goes. They have no idea how much money comes in every month and no idea what their monthly expenses total. When people don’t keep track of their finances, they aren’t able to plan for the future and reach their financial goals very easily.

It is important to establish a budget as a couple. It can be anxiety-provoking to face your finances but without doing so, you won’t know how to manage your money well. Consider using some free online resources to help you track your spending or purchase some budgeting software.

3. Not Saving Enough

How many times have you heard someone talking about what they plan to do with that bonus or tax refund before they’ve even received it? Spending money as fast as you earn it is another mistake. It can be disastrous for couples living paycheck to paycheck.

Setting aside money for an emergency fund can make a big difference in your financial future. Sadly, many couples are one small bump in the road away from a financial disaster. Unemployed, a health problem, or necessary major repair may leave many families scrambling for cash. Most experts recommend setting aside 3-6 months of expenses in an emergency fund account. Although this may seem like way too much money, it is obtainable if you start with small steps. For couples who aren’t able to save this much, try setting aside $1,000 or whatever you can to make sure you are covered during an emergency.

4. Not Addressing Debt

Although marriage may mean your income increases, it likely means your debt increases as well. Take twice the student loans, twice the credit card debt, and twice the bills, and you’ve got a whole lot of money owed. Unfortunately, many couples don’t create a plan for how to address their debt.

Take a look at your payments and create a plan to pay off your debt. Different financial advisors offer various words of wisdom on how to address this debt as a couple. Most say to pay off your debt with the highest interest first. However, some people recommend paying off your smallest debt first to check one thing off your list. Whatever you decide works best for you, make sure you have a plan.

5. Not Saving For Retirement

Retirement accounts really only work well when you invest in them early and have years to accumulate interest. However, many people don’t believe saving for retirement is important during their younger years. Make sure to look at your retirement fund and work together on establishing a plan for retirement so you aren’t left with regrets when you reach your golden years.