Marriage is one of the most notable events of a person’s life. We all want our marriage to work and give us happiness. As a result, we often skip difficult conversations or don’t set boundaries. Sometimes, it can lead to problems like money issues. If you don’t want your marriage to go through financial troubles, you need to plan the budget to avoid running out of money. Here are a few pointers on how to create the best budget strategy for you and your spouse.
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Know About S.M.A.R.T Goals
The first
thing you need to ensure is to set up S.M.A.R.T goals. The goals should be
specific, measurable, achievable, realistic, and time-based. When you set up
goals, you will ensure that you stay focused and don’t spend more money than
needed on non-essential stuff. Examples of a short-term goal could be to set up
an emergency fund, while a long-term budgeting goal could be retirement
planning.
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Count Only the Net Income
When
setting up your budget, you need to ensure that you don’t calculate the gross
income. You need to keep your net income in mind. In simple terms, your net
income is the gross income minus taxes and deductions. It is the pay you take
home and have in hand before the spending begins. If you or your spouse don’t
have a stable source of income, you should count the net income monthly.
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Remember Mandatory Expenses
When
calculating a budget, you need to count mandatory expenses. These expenses are
unavoidable and usually recurring. Examples include housing, car payments,
parking, utilities, gasoline, loan payments, and food. After calculating the
mandatory expenses, you need to deduct them from net income.
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Calculate the Savings
When
setting up a budget strategy for you and your spouse, you need to determine an
amount you plan to save every month. Deduct this amount from the amount you got
in the previous step to get the discretionary spending.
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Divide The Discretionary Savings
The amount
you get after all the steps mentioned above and deducting it from the net
income is the money you can spend however you want. A smart move is to divide
it up equally so that you and your partner can spend it on whatever you like.
You might use this money to buy new clothes while your partner might spend it
on video games.
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Choose a Budgeting Software/App
If you are
not so great with numbers, you can pick budgeting software or an app that will
allow you to get the numbers right and ensure that you never run out of
adequate cash flow. Here is a list of some apps that you might like if
you are budgeting in Canada.
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Plan Money Dates
Lastly, you
should plan money dates every week that allows you to talk about your expenses.
These meetings with your partner would help ensure that you stick to a budget,
don’t overspend or waste money, and are on the right path to achieve your
financial goals.
Need tips
on how to save money in your business? Here are a few pointers.
Source:
https://www.investopedia.com/articles/personal-finance/120315/how-create-budget-your-spouse.asp