11 Ways Engaged Couples Should Deal with Finances Now

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11 Ways Engaged Couples Should Deal with Finances Now

By Deepak Reju

So you’re engaged, and now you’re preparing for the big day. There are a thousand things on your mind. Wedding dress. Invitations. A cake. A photographer. The list goes on and on.

What about your finances? If you’re a typical single, you do your best to manage your finances and have a good sense of how much is entering and exiting your bank account. But now you’re getting married. What should change? Marriage gurus name the three big areas of conflict as sex, parenting, and finances. How can you prevent future fights over money?

Here are 11 recommendations.

1. Your money is not just a practical issue, but a spiritual one.

Don’t falsely divide your life into financial management or spiritual issues. As Christians, all of life falls under the sovereignty of God, including our finances. As Jesus said, “No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money” (Matt. 6:24).

A follower of Jesus cannot have divided loyalties; the Lord is to be first in all things. And Christian priorities should guide your handling of money. How you steward it is a spiritual issueYour money can be used for kingdom purposes, or it can hinder your relationship with God. Which is it for you?

2. Don’t merge your finances before the big day.

David and Sally were engaged. Things went so poorly they broke up. Problem was, they’d merged their finances and didn’t keep track of who spent what.

You aren’t yet married. So don’t pretend you’re married with all the perks of marriage. It’s a colossal mess to deal with merged finances after a nasty breakup. Tensions are already high enough when things fall apart. Why add to this mess?

3. Merge your bank accounts after you get married.

How you handle your money in marriage says a lot about your trust for one another. Getting married means merging everything. It’s no longer his money, or her money, but our money. Traditional marriage vows often state, “With this ring, I thee wed, and with all my world goods I thee endow.” If you’re not willing to entrust your money and everything you own to your future spouse, why are you getting married?

This is serious business. I won’t marry a couple if they won’t merge their bank accounts after marriage. It signals they don’t trust one another with important things.

4. You need a budget.

In and of itself, money is not anything. It’s a proxy for value. So when we fight over our money, we’re fighting over what we value.

We learn these values from different places (family, church, education, and so on). As Christians, your values will be similar. You treasure God and his kingdom (Matt. 6:19–2133). You desire a generous spirit (Prov. 14:21312 Cor. 9:11). You steward your resources wisely (Prov. 27:23). Nevertheless, even as Christians you’ve learned different financial values due to your differing educations, upbringings, and experiences.

Here’s the rub: Your financial values are primarily intuitive. And these implicit values will be made explicit in marriage. As your differing values come into conflict, they can create tension.

So how do you prevent conflict over money? Establish a common set of values—a shared value system. A husband and wife should operate with a mutually-agreed-upon set of financial values. When you form a budget together, implicit values get discussed as you answer the question, “What do we mutually value?” Your family budget is a primary way to give expression to what is important to both of you.

There will be less conflict in a marriage marked by careful financial planning and explicit shared values. So why not start working toward that goal during engagement by planning your future budget and discussing your common values? A budget turns conversations about money from reactive and constraint-driven to proactive and opportunity-driven.

5. Take the one-income challenge.

If you want to take things one step further with your proposed budget, remove one of your incomes and figure out how to live on just one salary. For some of you, the thought is painful. Here are four reasons I ask couples to consider this practice:

  • Learning to trim unnecessary expenses, like frequent eating out, is a good habit. It takes discipline to live on less.
  • A second income (while it’s available) can be used to eliminate debt or prepare for the future (for example, save for a down payment on a home or create a rainy-day fund). Use that second income to be especially aggressive about paying off debt with high interest rates.
  • If the wife desires to be at home once you have kids, it’s good to figure out now (while you’re engaged) what’s required financially to make that life possible. And no matter what you think you’ll do regarding employment once kids come along, you want to give yourselves flexibility for that new stage of life.
  • A one-income budget prepares you for uncertainty. Jessica and John got pregnant in their first month of marriage. She was sick throughout the pregnancy and was no longer able to work. They didn’t plan for it, so they weren’t prepared.

Even if you don’t end up living on just one income, learning to discipline your budget is a wise thing to do.

6. Establish a habit of communicating about finances.

Don’t leave one another in the dark. I cringe when I hear someone say, “I don’t know anything about our finances. If my spouse died, I don’t know what I’d do.” During engagement, communicate about your finances. Think, plan, and scheme together about your financial future. Establish the habit now, so that it’s normal in marriage to discuss it. Your finances are God-given means of building unity.

7. Figure out a plan for the grunt work.

Establishing a budget is easy. Executing a budget is hard. Too often I’ve met couples who created a viable budget, but never followed through. Don’t let that be you.

8. Get out of debt.

Take advantage of the time when you have no children and two incomes. Establish an aggressive payment schedule for getting out of debt now. You won’t regret it.

9. Don’t let difficult circumstances get in the way of giving.

The churches in Macedonia were suffering great trials and didn’t have much, yet they gave sacrificially (2 Cor. 8:1–2). They were poor, and they still gave. The love of Christ compelled them to live this way. Adopt a gospel-mindset that, no matter what, you’ll give generously to others.

10. Establish a habit of giving sacrificially and cheerfully.

Giving is an act of grace (2 Cor. 8:6). It’s a reflection of the grace we’ve received through Christ who, though rich, impoverished himself for our sake (2 Cor. 8:9). A gospel mindset says because Christ gave up his life for me, I should give up my life for others. A gospel-saturated life, then, results in generosity toward others. Oh that we wouldn’t be stingy Christians, but those who would beg for the privilege of giving more (2 Cor. 8:4).

Additionally, develop the habit of focusing outward and serving others rather than obsessing over the perfect wedding day. Give your money first to the Lord rather than spending it all on wedding vendors.

11. Give to missionaries and parachurch work, but start with your local church.

If your local church is the main hub of your spiritual growth, it should be main source of your generous giving (Gal. 6:6). Give to missions, campus workers, or lots of other solid Christian causes, but start with God’s primary plan for advancing his kingdom—the local church.

Start Now

Because your finances matter to the Lord, they should matter to you and your fiancé. Don’t wait until you’re married to take finances seriously! During engagement you can establish the habits of creating a budget, adjusting your spending, communicating about money, and giving generously to your church. This preparation will position you for a lifetime of wise financial choices.

Stewarding your money in a way that glorifies God is a privilege. A challenging one for sure, but a privilege nonethless.

If you are looking for more premarital help or premarital counseling, please contact CornerStone Family Services at 614-459-3003 to talk with a coach or counselor.

3 Can’t Miss Financial Tips for Married Couples

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3 Can’t Miss Financial Tips for Married Couples

By Drs. Les and Leslie Parrott

Money is one of the toughest subjects to tackle in marriage. It’s one of the top reasons married couples fight, and it’s a source of constant stress and strain for many couples around the world. But the good news is, you and your spouse can create a healthy attitude around money in your marriage if you know where to start.

It’s important to establish healthy financial practices as early in marriage as possible. Today, we’re sharing three financial habits you can establish to start out on the right foot.

BE RESPECTFUL OF EACH OTHER’S MONEY STYLE

Are you a saver, while your spouse is more of a spender? Savers and spenders have the uncanny ability of finding each other and getting married; it’s rare for both spouses to have the same financial style. And when it comes to spending versus saving, it’s important to have empathy for one another.

First, acknowledge that each of you might be a little more extreme in your stance than you need to be. When you acknowledge your spouse’s voice, it helps to prevent them from becoming more extreme in their money behaviors to protect themselves and their preferences around spending and saving.

The most important thing here is to create a sense of balance and shared ownership in your finances so neither of you acts out the most extreme version of your money tendencies. If you both decide to split bill-paying duties, that will serve as its own form of accountability.

An effective way to generate empathy for one another’s money personality is to go shopping together and reverse roles. If you’re the saver, act like the spender and have your spouse urge you to save. This could completely transform the way you each approach money because it gives you a chance to understand what kind of anxiety you create for each other when you’re digging in your financial heels by either pushing hard to spend or save.

If you’re the spender, maybe you could take over financial responsibilities for a month to see the reality of your expenses. Money will become more tangible when you’re making bank deposits and withdrawals, paying bills, and monitoring the budget. It will also give you empathy for your saver-spouse’s stance.

START A BUDGET TOGETHER

Once you’ve become more familiar with each other’s money style, start a budget. Budgets don’t work unless they’re a shared dream, so carve out some time to put your heads together and create a great starting point for your monthly finances. You’re going to want to do this together; this isn’t a solo act where one person runs the numbers and lays down the law. Look at the numbers together, talk through each issue, and chart a budget you agree on using our handy budgeting sheet (you can download a copy here).

The most important thing to realize when you’re creating a budget is that this is a work in progress; it’s not something you have to set in stone from day one. It’s not finalized; rather, it gives you a healthy starting place to operate from when it comes to spending and saving money.

Once a month, quarterly, or bi-annually, sit down together to take a look at your spending and saving patterns against the budget you established. As you review the numbers, ask yourselves what life has demanded from you in comparison to the budget you created. Talk through what’s negotiable versus what’s not, then adjust your budget to something that’s more realistic for you as a couple. (You can find a deeper dive into getting on the same page financially in this post.)

AUTOMATE YOUR SAVINGS

One of the best ways to save money every month is to put a system in place that will save for you. Set up automatic withdrawals that funnel a certain amount of money into your savings account as soon as your paychecks hit the bank; this creates a disciplined savings routine so you don’t have the option of changing your mind.

The most important thing is to build savings systems that provide automatic discipline so the hard decisions are already done for you. It’s like anything that requires willpower or sacrifice; you have to remove the temptation to spend the money by moving the money out of reach.

If you have a hard time saving toward a specific goal, set goal markers for yourself and build in gratification along the way as you reach each milestone. Maybe you allow yourselves to purchase something you’d like, or maybe you take a nice vacation. Or perhaps you can plan for small, realistic daily rewards. But be realistic; you can’t deny yourselves everything.

YOU CAN DO THIS!

It can feel a little tricky to navigate financial issues together, but you can absolutely find common ground and a way to deal with money in your marriage that works for both of you. Stay patient, empathic, and kind as you create your unique financial style as a couple. The payoff will be worth the preparation!

 

If you would like help with your relationship or marriage, give CornerStone Family Services a call at 614-459-3003 to talk with one of our counselors or coaches.

Finances: How to Get on the Same Page With Your Spouse

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Finances: How to Get on the Same Page With Your Spouse

By Drs. Les and Leslie Parrott

Money is a loaded issue in most marriages because it represents the ability to get the things we need and want. It tends to become an issue of power, dictating who makes the decisions and whose dreams get fulfilled. Needless to say, discussions about money, bills, and budgeting can generate some powerful emotions.

It’s not always easy to navigate money matters, especially in the early years of your marriage. In today’s post, we’re going to explore some ways you and your spouse can get on the same page about your finances–and stay there.

WHICH ONE OF US SHOULD HANDLE THE FINANCES?

When it comes to handling the finances, the best decision is what works best for you as a couple. This could look like one spouse primarily handling all the finances (which is often the case in many marriages) or you could split responsibilities according to what each of you is most comfortable with handling. The most important thing is to generate positive discussion around the subject and avoid putting unnecessary pressure on each other as you hash it all out.

If you’re going to be handling the finances together, make a checklist of all the financial details that you and your spouse need to manage every month, then decide who handles each item. Create calendar reminders to keep up with payment due dates and be diligent to check in with each other to make sure all the bases are covered.

If just one of you is going to take on the bulk of the money management in your household, make sure you both agree to this arrangement and feel comfortable with it. One spouse taking the reins doesn’t mean he or she is going to be controlling your finances. Rather, the person who handles the majority of the bill-paying should primarily be taking care of recurring monthly payments and keeping an eye on where you stand financially.

However you decide to handle money in your marriage, agree together on the parameters surrounding it. It’s important to set a budget that will give each of you freedom, but also accountability; for example, you might want to decide how much spending money you each get every month that doesn’t require you to report back to each other or share every single receipt.

HOW DO WE PREVENT THE MONTHLY FIGHTS OVER BILLS AND BUDGETS?

If your regular financial check-ins tend to dissolve into ugly fights, take a step back to see how you can work together to prevent those unnecessary conflicts. Do you have different spending or saving styles? Does one or both of you hate dealing with financial matters? Does budgeting stress you out?

One easy way to prevent the monthly money fight is to make decisions about how your money gets dispersed before you ever sit down with the books. Then, figure out the non-negotiables for each of you; what items do you need every month (or every two months), and what do they cost? As we mentioned above, you might want to agree on a finite amount of money that each of you gets every month to avoid excessive check-ins surrounding purchases.

Automating some of your monthly bills can reduce the amount of work you have to do when you sit down with the finances. If one of you hates handling finances and wants to be hands-off, delegate the remaining bill-paying tasks to the other.

We all have different styles when it comes to money, so it’s important to know where you both stand and what’s going on with your money so you can make the best choices possible going forward. Some people like to spend; some like to save. Others are skilled at handling administrative tasks, while others are money-avoiders. Wherever you stand, don’t run from the subject of finances. Both of you really need to know what’s going on, whether one or both of you is ultimately handling the bills.

WHAT IF MY SPOUSE GETS DEFENSIVE EVERY TIME I BRING UP MONEY?

What do you do when you can barely broach the subject of money with your spouse? Does he or she become defensive when you attempt to discuss enacting a budget or reevaluating your finances?

A lot of people equate how much they make with how valuable they are to their spouses and families. It’s an identifiable, results-oriented way of defining themselves. If your spouse is feeling insecure about the amount of money they make, it’s possible that they could be mistakenly reading messages of disapproval from you when you bring up the topic.

It’s important to communicate to your spouse that you’re not evaluating their value as a person or a provider when you bring up financial matters. Tell them you respect them, you love the work they do for your family, and you want to strategize together so that you can both steward your money well.

If your spouse responds in a reactive or defensive way when you talk to them about money, it’s important to work together to find out where it’s coming from. Explore these issues in a natural course of conversation. How did their parents approach finances and make decisions regarding money? What were some differences between their family and yours? Maybe there are some deeply embedded beliefs in their mind that get triggered when you bring up the topic, and talking these things through could help you unravel them.

No matter what, remember that finances are an emotional issue for most couples–but don’t run from the conversation. It’s important to get on the same page with one another to create a shared vision for your future together.

If you would like help communicating about finances with your loved one, please give CornerStone Family Services a call at 614-459-3003 to talk with a counselor or coach.