Getting married is a milestone, but managing finances together is a new adventure. From joint expenses to long-term goals, how you handle money can shape your future.
Whether you’re newlyweds or planning bigger dreams, here are six money management tips to help you build a strong financial foundation.
TALK ABOUT MONEY
Open communication is key to a successful marriage, especially about money. Discuss your income, debts, savings, and spending habits to ensure you’re aligned on financial priorities. Regular “money talks” help both partners stay informed and involved.
CREATE A JOINT BUDGET
A joint budget helps manage shared expenses and save for future goals. List monthly expenses like housing, utilities, and groceries, then divide them based on your income. Tools like Intuit Mint or DBS NAV Planner can help you track spending and stay on budget.
ESTABLISH AN EMERGENCY FUND
Life can be unpredictable, so having an emergency fund is essential. Experts recommend saving 3-6 months’ worth of living expenses. An emergency fund provides financial security during job loss, medical emergencies, or unexpected costs.
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START SAVING FOR THE FUTURE
The earlier you start saving, the better. Whether it’s for a home, children’s education, or retirement, setting aside money for the future ensures your dreams become a reality. Consider CPF contributions or joint savings accounts for long-term security.
MAINTAIN SOME INDEPENDENCE
While joint finances are important, separate accounts allow each partner to enjoy personal spending without guilt. Keep a joint account for shared expenses but maintain individual accounts for personal or “fun” funds.
INVEST TOGETHER
Investing is a great way to grow wealth as a couple. Research low-risk investment options like ETFs or unit trusts, and consult a financial advisor to create a strategy that aligns with both your goals.
IN A NUTSHELL
Managing money as a couple requires trust and teamwork. Use the strategies above to stay on top of your finances. Stay transparent, keep some independence, and enjoy the journey together.
Congratulations on tying the knot! Now comes the real test: managing money as a TEAM. Whether you’re saving for a BTO, cutting tax bills, or just splitting date-night expenses, combining finances is key.
On that note, here are ways to make it seamless and drama-free.
DECODE EACH OTHER’S MONEY HABITS
First things first, how does your partner handle money? Maybe you’re a spreadsheet whiz, but they’ve been winging it with an “I’ll deal with it later” mindset. No judgment here!
Before you start pointing out their questionable spending habits, take a moment. What are they actually good at? Perhaps they’re great at saving or scoring insane deals. The goal isn’t to replace your system or theirs but to create one that works for both of you.
TALK ABOUT YOUR MONEY VALUES
Don’t just focus on what to spend or save, talk about why instead. What matters to both of you? Is it traveling, securing a comfortable retirement, or splurging on coffee from that atas café every weekend?
For instance, I’m all about giving back as a secretary of a non-profit foundation (yes, I know it sounds like a Hallmark card, but it’s true). When my partner found out, he was like, “Wait, we’re giving how much away?” Once we had a proper chat about our values and got on the same page, planning became much easier.
HAVE NO SECRETS AND SURPRISES
Transparency is everything. Lay it all out there: your income, debts, investments, and even that sneaky monthly subscription to a gaming app.
Have debt? Earning less than you’d like? That’s okay. What matters is honesty. The last thing you want is for your partner to find out about a hidden credit card bill. Marriage is about supporting each other, not sweeping stuff under the rug.
SET UP A JOINT ACCOUNT
Sharing finances doesn’t have to be complicated. Start with your combined income and work your way down through expenses. Keep it realistic, and remember that your money should work for you, not stress you out.
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Think of it as a team project (but less annoying than group work in Uni). For example, in our household, we split the bills and stash some cash in a joint savings account. Having that structure has been a game-changer for hitting our goals, like saving for a big trip or investing in that dream flat.
PLAN FOR THE FUTURE TOGETHER
Now that the basics are sorted, it’s time to think long-term. Review your health, life, and home insurance policies, and make sure they reflect your new life as a couple. Have elderly parents to support? Factor that in too.
Financial security is about building a future you both want. With open communication and teamwork, you’ll be ready to handle whatever life throws at you, whether it’s unexpected hospital bills or sudden home repairs.
KEEP IT FLEXIBLE
Managing money doesn’t have to feel like boot camp. Make it a regular thing: grab kopi, whip out your budgeting app, and review your goals. Celebrate your wins, no matter how small, like sticking to a grocery budget or paying off a small debt.
Ultimately, it’s not about being perfect but about being partners. With a little give-and-take (and maybe some bubble tea or artisan coffee as a reward), you can ace this whole money-managing thing.
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Here’s to happily ever after… financially and otherwise!
You’ve found the love of your life and decided to get married. However, as you plan for your shared future, you realize that one of you is a spender while the other is a saver.
Fortunately, there are strategies to manage joint finances that can satisfy both partners. Here are some tips for maintaining a balanced relationship between a spender and a saver that have been beneficial for me and my spouse.
TALK ABOUT YOUR MONETARY FEELINGS
Money often elicits strong emotions: it can cause anxiety or excitement, and managing it can either calm or stress you out. Before getting married, take time to explore each other’s feelings about money and the reasons behind them. Did you grow up in a household where money was scarce or abundant? Your upbringing significantly influences your money attitudes, and your future spouse might see things differently.
When my husband and I were engaged, we had a deep conversation about our financial upbringings. He grew up in a frugal household where every dollar was accounted for, while I was raised in a family that enjoyed spending on experiences and luxuries. Understanding these backgrounds helped us empathize with each other’s financial perspectives.
DISCUSS YOUR SPENDING PRIORITIES
One partner might value designer items, while the other enjoys an expensive hobby. Perhaps you both love to travel, aspire to own a home, or want to retire early. By discussing your desires, you can find common ground. Planning and saving for shared goals can ensure that both partners are satisfied with the purchases you make together.
We both love to travel, but I tend to splurge on spontaneous trips while my husband prefer saving for bigger vacations. By discussing our priorities, we agreed to save a portion of our income specifically for travel, allowing us to enjoy both planned and impromptu trips. If both partners agree, you can establish a clear plan for discretionary spending and saving for long-term goals.
CHOOSE PAYMENT METHODS WISELY
The pain of spending can be mitigated by using credit cards or small denominations of cash. One-click purchases and buy-it-now payments are also less painful. These payment methods can make spending less distressing for savers. Conversely, using cash, especially in large denominations, can make spending more painful for savers, though spenders are generally less influenced by the payment method.
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I noticed that my husband found it easier to stick to our budget when using cash. We decided to allocate a monthly cash allowance for discretionary spending, which helped us control our expenses better.
CONSIDER OPPORTUNITY COSTS
Many people, particularly spenders, often overlook opportunity costs at the time of purchase. When reminded of these costs, spenders tend to make more frugal choices.
For example, in a study where spenders had to choose between a S$950 and a S$1,360 stereo, they were more likely to choose the S$950 stereo when reminded that the cheaper option left them with S$410 in cash. This extra cash can be used for a weekend getaway. Highlighting opportunity costs can help spenders make more mindful decisions.
HIGHLIGHT VIRTUE IN SPENDING
Savers are more willing to spend on virtuous items, such as healthy food, compared to vices. If a saver is hesitant about a vacation, emphasize the virtuous aspects of the trip, such as quality time with family or the health benefits of relaxation.
SEEK PROFESSIONAL HELP
If you struggle to agree on a budget, consider consulting a financial planner. They can help create a budget that works for both of you.
Financial planners offer impartial advice and can determine whether certain expenses are affordable or should be postponed.
AVOID COMPARING YOURSELF TO OTHERS
Spenders and savers often have different life goals, which can lead to tension. Avoid comparing yourself to your partner as a way to justify your spending habits. This approach only deepens the divide and rarely resolves issues.
If you’re a saver, it’s easy to feel superior because you save more, but such feelings can harm your relationship. Remember, spending habits do not define a person’s worth or value in a relationship.
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By following these tips, you can foster a financially harmonious relationship. Embrace your differences, communicate openly, and work together towards common goals to ensure a happy and prosperous future.
Deciding on the ideal amount to spend on an engagement ring has been a timeless debate, often surrounded by varying opinions.
As I vividly recall our search for the perfect engagement ring, my partner presented me with various options and price ranges, all of which he planned to order from the United States. Ultimately, we chose a dreamy topaz set on rose gold for just under S$500. While this may be considered a modest price tag by some, I preferred to invest in our future lives together after the wedding. The joy I felt when he finally proposed with the ring was immeasurable.
While the classic rule suggests investing three months’ salary, emphasizing the significance of a lifelong commitment, a more thoughtful approach to ring budgeting becomes essential in the face of challenges like rising prices, inflation, and economic volatility induced by the pandemic.
UNDERSTANDING THE AVERAGE COST
Selecting the perfect engagement ring requires insight into the average costs. While the two-month salary guideline, originating from the Great Depression era, was once prevalent, it’s crucial to recognize its outdated nature.
In Singapore, engagement ring prices generally range from S$700 to S$100,000, with the most common choice being a 0.5-1.0 carat diamond priced between S$1,230.90 to S$2,066.30. A key takeaway is that the price escalates with the carat weight.
GRASPING THE FOUR Cs
Delving into the intricacies of engagement ring prices, factors like carat, cut, clarity, and color significantly influence the overall cost. A higher clarity grade commands a higher price, as flawless gems, detectable only under powerful microscopes, come with a premium.
The cut of the diamond, with the round brilliant being the most expensive, and the type of chosen band are vital considerations contributing to the overall expense. For example, there is a S$15 difference between an oval cut and a round cut 0.3-carat ring of SI2 clarity. Additionally, emerald-cut diamonds can be anywhere from 12% to 42% cheaper than round diamonds of the same carat.
CREATING A RING BUDGET
Similar to planning a wedding budget, setting a reasonable engagement ring budget is paramount. Evaluate your financial standing, considering salary and savings, and establish a budget that aligns with your preferences and capabilities.
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Utilize spreadsheets to create a tangible plan, factoring in additional costs like jewelry insurance. Strive for a special ring without harming your financial stability. And, explore payment plans or financing options responsibly. Ask yourself: Do you really need to take out a personal loan for this?
SHOPPING AROUND
In the pursuit of the perfect ring, don’t hesitate to explore various options. Resist the impulse to settle for the first option, and instead, compare prices across different designs and jewelers.
Educate yourself on high-quality jewelry and confidently navigate through price points, acknowledging that the national average may not necessarily apply to your unique financial situation.
OPTING FOR VINTAGE
Vintage or antique engagement rings present an alluring alternative. Apart from their historical charm, these rings often come at a more affordable price compared to contemporary options.
Delve into the nuances of eras, ensuring awareness of any alterations the ring may have undergone over time. Your dream ring might be a yellow-gold band from the Art Nouveau era, carrying a distinct character. You can buy vintage pieces from Revival Vintage Jewels at Wheelock Place.
EXPLORING NON-DIAMOND OPTIONS
With the surge in popularity of non-diamond engagement rings, considering alternatives like precious stones becomes viable. These options not only offer a potentially more affordable choice but also provide a chance to symbolically personalize the ring.
Embrace the uniqueness of birthstones such as sapphire, emerald, or ruby rings. Sapphire rings is the most expensive among non-traditional options, averaging S$1,075.29 for a 0.5-carat ring.
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In the pursuit of the perfect engagement ring, combining emotions with practical considerations leads to a more meaningful choice. Best of luck!
After an amazing 12 years together, my husband and I finally tied the knot last year. Before embarking on this new chapter in our lives, we made sure we were financially prepared. Are you financially prepared?
When couples get married or move in together, they naturally take on shared responsibility for each other and their finances. Nonetheless, money-related misunderstandings can arise, which is why it’s essential to address them.
To help iron out these common money problems, let’s explore some practical financial tips for couples. Remember, there’s no one-size-fits-all rule, so these tips are here to guide you and your partner in achieving your financial goals together.
BE OPEN
Right from the start of your relationship, it’s essential to be open and honest about where you both stand financially. If one of you is dealing with debt or has specific financial goals, discuss it openly. Take time to understand each other’s money habits, like spending tendencies and risk tolerance. You don’t have to have identical attitudes towards money, but finding a middle ground through compromise can be beneficial. Addressing these issues early on will prevent misunderstandings and arguments down the road.
CATEGORIZE YOUR EXPENSES
Not all expenses need to be shared. While bills, groceries, and travel costs are typically shared, individual expenses like personal shopping or sending money to family back home remain separate. By clearly identifying your expenses, you can streamline money management and reduce complexity.
PRIORITIZE AND SOLVE ISSUES
Discuss what financial goals are achievable for both of you in the long term and identify problems that can be resolved immediately. For example, if different earning capacities are a concern, consider starting a small business together or exploring additional income streams. Whenever possible, prioritize reducing debt, as this will save you money on interest in the long run.
MAKE A BUDGET PLAN
A budget plan can be a lifesaver when it comes to managing your expenses. Decide on a reasonable amount to spend on everyday items, take-outs, entertainment, and personal expenses. Also, include bills, debt payments, irregular expenses, and contributions to your emergency fund in the budget plan. This step is especially valuable for young couples looking to stay on top of their expenses.
TAKE ACTION
After discussing, analyzing, and crunching the numbers, it’s time to create an action plan. Determine who will handle the primary bookkeeping responsibilities to ensure that all bills are paid on time and accounts stay in good standing. However, it’s essential to keep the non-bookkeeping partner informed about your financial progress.
Once you have identified and addressed your pain points and financial objectives, develop a comprehensive action plan with a clear timeline. This plan may involve the following steps:
1. Establishing a joint savings account. 2. Exploring opportunities for additional sources of income. 3. Gradually settling smaller debts. 4. Conducting thorough research on investment options. 5. Making a structured plan for significant purchases.
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Lastly, don’t forget to reward yourselves along the way! Even after being married, my husband and I still make time for regular dates and save up for enjoyable activities like travel and relaxing spa treatments.
Remember, open communication, understanding, and teamwork are the keys to successfully managing your finances as a couple. By following these financial tips, you and your partner can build a strong financial foundation together and enjoy a prosperous future.
