The Honeymoon’s Over: Time to Budget
One of the smartest moves newlyweds can make is learning to budget their money as soon as they get married. Often times newly married couples do not take the time to sit down and work out a budget that they both agree upon. This leads not only to financial problems but has the potential of leading to relationship problems as well. Here are some important steps to making a budget and learning smart spending habits.
Study Both Incomes
Whether each person is working or one is staying at home or going to school, it is important to look at each income and decide just how much money is being made and more importantly, how it is being spent. Some couples may find they are making a great deal below the state median income. In this case, new job training or a new career may be necessary to help make a better financial future.
Stay Away from Credit
As tempting as it sounds, keep credit cards to a minimum and pay for everything with cash if possible. Having one or two credit cards for emergency situations may be okay, but consider keeping them out of reach where they cannot be used often. If a line of credit must be taken out, for instance for a car loan, be sure to look at each person’s credit report to decide what sort of interest rate you’ll qualify for and so that there are no hidden surprises when it comes time to get financed.
