Young couples or newly married people often face difficulties in managing newlywed financial planning worksheet. This is natural because there is a readjustment in living a new life together, including about money.
However, financial planning for young families must be properly managed and reach a mutual agreement so as not to cause headaches and avoid fights.
Money is a serious problem that is often debated by married couples. Therefore, mutual understanding and cooperation are needed in order to prevent future financial fights.
Even though husband and wife both work and have their own income, the couple cannot manage money for the household separately.
Both have to share expenses and discuss finances to stay on track.
The following can be a guide for you and your partner in managing financial planning for young families, referring to various sources.
1. Set priority
After marriage, you must realize that the income will be one. On the other hand, expenditures are also increasing due to increased demand.
It is important to discuss with your partner the financial goals that you both want to achieve together.
For example, setting aside salary for housing mortgage priorities, vehicle installments, childbirth costs, children's education, emergency savings, life insurance, investments, and so on.
Making sure you and your partner have the same priorities or can find a middle ground can help avoid disputes and financial problems in the future.
2. Expenditure sharing agreement
This agreement is usually done before the wedding, before the wedding, or after the wedding.
Having an agreement on the distribution of household expenditures is crucial to discuss because it involves meeting routine needs so that they do not overlap and escape responsibilities.
If you and your partner work together, detail all expenses that are principal or primary, then divide and organize based on the amount of income.
For example, the wife is responsible for daily consumption needs, electricity, water, and internet. Meanwhile, the husband pays the mortgage on a house, car, or motorbike, insurance, and savings.
3. Record monthly financial budget
Recording monthly financial budgets regularly aim to keep household finances healthy and on target. Keep a record of your expenses right after your payday and before you spend them.
Referring to Money Crasher, you can divide it into posts. For example, write in as much detail as possible your monthly routine needs in primary posts such as electricity bills, water, internet, shopping for kitchen needs.
In the wish post, it can be detailed for clothes and snacks outside once in a while. In the extra post, specifically for unexpected expenses such as a friend's wedding gift, service fees or vehicle taxes, medicines.
Don't hesitate to invite your partner to discuss if there are indications of over budget so that a solution can be found, for example cutting unnecessary expenses.
4 One Account Approval
The division of who is in charge of managing certain expenses can be done by both parties. However, to make it easier to record expenses and savings, you can create a special account.
Determine who has the right to withdraw and transfer money from savings accounts and expense accounts.
In many cases, the wife is more dominant in terms of expenses and payments. Put all necessary expenses into a special account, and avoid using personal accounts so that there is no misunderstanding in the household.
5. Investment and Emergency Fund
The next financial planning for young families is setting aside an emergency fund.
This is done to anticipate if an unexpected event occurs, such as disaster, job loss, illness, home repairs, vehicle service, and others.
Having an emergency fund reserve will not interfere with other financial posts for the household. But make sure this emergency fund is easy to disburse.
Although the salary may be classified as mediocre, still be disciplined in saving for an emergency fund even though it is small, at least 10 percent of your and your partner's income.
If it's difficult to reach your emergency fund savings target, use annual income such as THR and bonuses to cover your emergency fund reserves.
6. Spend Money on Needed Items
When shopping monthly, buy what is really needed or what is your main need. To prevent mistakes when shopping monthly, make a list of your groceries at home in advance.
Don't hesitate to buy discounted items, but still, make sure that the items you buy are what you need and are long-term.
7. Avoid debt
As much as possible avoid debt, especially high-interest debt such as credit cards and KTA. If you don't use it carefully, you will fall into consumptive and make it difficult for family financial planning.
Quoting The Balance, normally, credit card bill payments are half of the total bill or usage. If you can pay in full it will be much better because you only pay interest once.
Always remember to never be late paying credit card bills. You will be charged a fine and a fairly high interest per month.
8. Looking for Additional Income
As your skills and work experience increase, it will be followed by an increase in monthly income or an increase in income. In addition to saving, you can use this to increase your investment budget.
Long-term investments such as stocks, property, or mutual funds can be a source of additional income for you in the future.
What if it is classified as a mediocre income?
There are two ways to try. First, take advantage of your free time or expertise by working freelance because it is flexible, and secondly setting up a side business.
9. Routine evaluation
Along the way, you and your partner will have problems managing financial planning. In order to minimize conflict, conduct regular evaluations every month so that the family's financial direction remains on track.
Analysis if there is financial swelling in certain posts. Financial planning with your partner should be fun, comfortable, and always getting better.
What you need to understand is that you both come from different life experiences, so it's only natural to have two very different views on money.
The key is to understand each other and find a middle ground by trying the financial planning stages above so that the household is calmer and happier.
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