How to Budget When Married

Conflicts can arise between savers and spenders.

Getting married isn't just about allocating closet space, picking names for your future children and deciding which in-laws get your company for holiday dinners. Drafting a workable budget and learning to diligently manage it are not only among the biggest challenges of newlyweds but can also be an ongoing vexation for couples who have been married for years. Candid discussions about respective attitudes toward money and responsible budgeting are critical lest they escalate into major arguments and/or potentially jeopardize the financial security and credit history of either partner.

Things You'll Need

• Ledger or accounting software
• Calendar

Instructions

1. Make a list of your respective incomes, debts and ongoing legal obligations such as alimony and child support. Evaluate your spending and saving habits and set realistic goals to keep monthly bills paid as well as routinely set aside money for future expenditures such as buying a home, having children, continuing education and planning vacations.

2. Divide expenses into fixed and variable categories. Fixed expenses are those that do not change from month to month and include items such as mortgages, insurance and car payments. Variable expenditures are typically revolving credit card payments, groceries, gasoline and utilities, which fluctuate up and down and, accordingly, give you the most flexibility and control in your budget plan.

3. Identify who will pay what each month. Assuming that you will each be responsible for the credit card and loan debt you have incurred as individuals, make a list of joint expenses such as rent or mortgage payments, utilities, groceries, insurance and transportation. If your income is fairly equal, you may want to split these bills down the middle. If not, define contributions based on equitable percentages of income.

4. Use a calendar or software program to track when bills are due. Consider using automatic deductions to avoid late fees on revolving charge accounts.

Tips & Warnings

• Seek the advice of a professional tax accountant regarding property that was held prior to the marriage as well as any money that is inherited over the course of the marital relationship.

• Never use money as an instrument of power to control or belittle your partner.

References

• "First Comes Love, Then Comes Money: A Couple's Guide to Financial Communication"; Bethany Palmer, et al.; 2009
• "Money and Marriage: A Complete Guide for Engaged and Newly Married Couples"; Matt Bell; 2011

Resources

• "The New York Times"; Money Talks to Have Before Marriage; Ron Lieber; October 2009