How to Merge Your Money After Marriage

If wedding bells are ringing in your life, then congratulations! Marriage is wonderful.

However, with that great experience also comes a significant level of responsibility. One of those responsibilities is managing finances. That can be especially tricky when you have to merge money between newlyweds.

Here’s how to merge your money after marriage.

Talk About It

While you’re still engaged, make it a point to talk about money. The last thing you want to do is put your financial future as a couple on autopilot and hope that everything falls into place.

You’re going to need to hash this out with your future spouse. You’ll have to put it all on the table as far as income, debt, and expenses that you’ll bring to the marriage. Also, you should both be following good estate planning tips.

Trim the Fat

Once you’re married, it’s time to realize that you’re not just spending “your own” money any more. Now, you’re spending family money. If you throw cash around in a way that’s not necessarily approved by your partner, then you could create friction in the marriage.

Sit down with your spouse and discuss spending habits for entertainment as well as rules for ad hoc spending. Make an agreement early on about how you’ll handle discretionary spending and you’ll add harmony to your relationship.

Back off the Debt

As newlyweds, you might want to buy your own house eventually. Even if one of you already owns a house, it’s possible that you’ll want to shop for “our house.”

That’s why you want to limit your debt spending as much as possible. If you get into too much credit card debt and auto loan debt, you might find that lenders are unwilling to finance a home purchase.

That could hurt.

Get a Joint Account

“And the two shall become one.”

That’s not only the Biblical view of marriage, it’s also good advice for your separate checking accounts. Merge those two checking accounts into one so that you have a joint account. That way, you share joint responsibility for maintaining a healthy balance. You’re also accountable to each other when it comes to spending.

Build an Emergency Fund

Life is filled with the unexpected. You could go through an unexpected job loss, an unexpected emergency repair, or an unexpected health care cost. As a couple, you should be ready for those emergencies by setting up a “rainy day” fund.

The biggest argument against a “rainy day” fund is that couples say they’re not earning enough money to save. In that case, either find additional income streams or learn to cut corners so that you do have money to put away.

Remember, the objective isn’t to have a “rainy day” account fully funded overnight. You’re looking to just stash a little cash away here and there until, eventually, it will be a sizable chunk that can be used for emergencies.

Marriage is a wonderful experience. However, once the bachelor party is over, and the bridesmaids gifts are opened, and the ceremony is past, it’s time to sit down with your spouse and take your family finances seriously.