How to Make a Budget for Newlyweds

After the honeymoon, newlyweds should start creating a budget.

Even if both spouses in a new marriage kept meticulous budgets during their single years, they should expect that adjustments will need to be made after the wedding ceremony. Newlyweds often have new financial goals and obligations. They may have trouble meeting these goals and obligations without a solid budget. Newlyweds must discuss financial responsibilities such as who will pay bills and who will take care of investments.

Instructions

1. Write down all of your fixed expenses on a sheet of paper. A fixed expense is an expense that is consistent each month. Not only is the bill due each month, but it also is for the same amount each month. These are the easiest expenses for which you can plan because you know the exact amount of money you need to pay. Fixed expenses include auto loans, mortgages, insurance premiums and student-loan payments. Make savings a fixed expense as well. Add these amounts to determine the total amount of your fixed expenses.

2. Write down flexible expenses. A flexible expense varies from month to month. A flexible expense may include the price paid for groceries, the costs associated with eating out, fuel costs and fees incurred from downloading digital media to your computer or smart phone. Add these amounts to determine the total amount of your flexible expenses.

3. Keep meticulous records of your spending for the first few months of your marriage. At the end of each month, add up your receipts or expense reports to determine how much money you spent. Compare the amount you are spending with the sum of the two total amounts from step 1 and step 2. Adapt your fixed expenses or your flexible expense lists if necessary. Do not assume that the fixed or flexible expense lists are correct after only the first month of marriage. Keep records of your expenses for the first few months to gauge the real amount you are consistently spending on these expenses.

4. Cut costs or increase savings. If you find that the expenses you are incurring are too significant for you and your spouse to keep up with, find ways to cut your budget. Consider consolidating loans, cutting cable in favor of Internet shows and movies or downgrading cell phone service. If you find that you spend less money than you anticipated you would, place more money into savings or create a new savings account specifically for a vacation or for a down payment on a home.

References

• Kiplinger: Six Money Mistakes of Newlyweds
• Mint: Four Steps for Responsible Budget Management for Newlyweds

Resources

• MSN: Your 5-minute Guide to Budgeting