It is well known that the most common topic of arguments that may occur between you and your significant other is money issues. You may have differences of opinions on how money is spent, frivolous buying habit or simple choices on how to save money. Below is a list of Bad Money Mistakes Couples Should Avoid – They May Be Making You Poor and Stressed Out.
However, it may be easier than you thought to solve these problems so that money doesn’t lead to a full blown argument. Here are some simple tips how to avoid stress inducing money mistakes as a couple:
1.Planning a Lavish Wedding
If you and your significant other are not yet married or in the process of planning your big day, there is no doubt you have been given the advice of ‘your wedding day is the most important day in your life’. In simple, terms you are being told ‘go big or go home’.
Instead of planning a ‘big white wedding’, why not consider having a smaller one? You can choose to have a ceremony with only your close friends and family members. Instead of booking a venue, why not ask one of your friends or family if you can have the ceremony at their house or in their garden? Or renting out a nice home? Just by doing these two alternatives you will have already saved a lot of money.
For your reception, plan a simple meal instead. The wedding dress is always important, try renting instead of buying. The most important thing to remember and take into consideration is to plan a wedding that will fit into your budget and being able to avoid going into any debt.
2. Expensive Dates
No matter how long your relationship lasts, you and your partner will occasionally plan and go on dates. This is a good thing, it means the two of you can spend some alone time together and rekindle the romantic spark. But be careful to not plan a date where you may overspend. How can you do this?
Don’t be fooled into thinking that an outing with your partner can only be considered a ‘date’ if you go out to eat at a smart, expensive restaurant, go to a concert, opera or a live musical play or something similar. You can make just about any casual outing with your partner a ‘date’.
You can even have a date with spending minimal or no money. This will ease any strain there may be concerning money AND make your outing more enjoyable and carefree.
There are a few examples of simple dates. Do you and your partner enjoy eating out? An idea the could be cooking a new meal at home. If you don’t, you could find any hiking trails or parks relatively nearby and pack a simple picnic to sit and enjoy at a scenic spot you find.
3. Not Buying/Expecting Expensive Gifts
If you and your partner live on a tight budget, anniversaries and birthdays could turn out a little stressful. You may feel that the only suitable gift for one another has to be something fancy or expensive. One of you may earn a quite substantial higher income than the other and this only makes it a possibly more difficult situation. This doesn’t have to be.
Think of a creative and inexpensive gift for your significant other. You can even look around on the web for ideas. Are you talented in cooking or baking? If so, search for new, special goodies you can make for your partner, you can also learn to make simple cardboard paper packages for the treats.
Are you good with working with your hands, or able to learn simple DIY ideas? You can then buy an inexpensive plain mug and create a design specifically suited to them, or make some cheap scented soaps or candles. If you plan well enough, the amount of gifts you can make for them yourself are endless.
4. Not Allowing for Money Autonomy
You may create unnecessary tension in your marriage if you lump both of your incomes into one shared account and don’t make an allowance for each other. Why so?
The fact is the money you put in and earn is after all money you worked hard yourself to get. If you simply lump all the money together and don’t have separate allowances you and your partner may start harboring resentment towards each other. You may feel like you are being cheated in the relationship because you feel like you have to ‘ask permission’ to take some of your hard earned cash.
How can you make sure this doesn’t happen? At the beginning/end of the month, while working out your budget, it will be a good idea to provide a certain amount of cash for each of you as a ‘spending allowance.’ This means that each of you can have their own money to pay for separate bills or make an allowance for small purchases without having to ‘ask permission’. This will stop any resentment forming in your relationship.
With this in mind, there is a caution warning attached. Once you and your partner have set out the separate allowances, you still need, to be honest with each other about your spending. I’m not suggesting that you have to tell your partner the minute you spend money and the amount instantly.
Rather, don’t be tempted to hide your spending habits from your partner. Be sure to disclose any unexpected costs that came up that you had to pay and any excessive luxuries expenses you may have bought that could possibly end up tightening the budget even more.
5. Not Budgeting Together For Both Of Your Needs
It is essential that as a couple you and your partner draw up a budget together. An important factor when doing this is that you and your partner consider each other as equals, and both get a say with managing your money. If one partner earns more than the other, do not let this seep into the equality and create an argument of ‘who has the most say’.
The first thing you can do together makes a list of non-negotiable expenses, like rent, insurance (car and health) and car/phone payments. It will be helpful to make a note of any individual expenses on this list, so you can see who needs to pay what.
After, that you can then sort out other non-essential expenses you share. If there is a large difference in each of your incomes, calculate how much percentage wise each of you should put in. This will make sure that your budget is fair to each person and not put too much stress solely on one person.
If there is a large difference in each of your incomes, calculate how much percent each of you should put in. This will make sure that your budget is fair to each person and not put too much stress solely on one person.
By following these tips and making sure you avoid any mistakes, the likelihood of money matters putting stress and strain on your relationship is minimal. You will also be able to manage your money better and prevent the need for mid-month quick loans to make ends meet.
What financial mistakes have you seen or experienced?
If you are not in a relationship, what mistakes will you make sure to avoid?
I’m going to have my wedding next year, first I did wanted to be a big wedding, but now we put our mind on a really small and intimate wedding, only with family and closest friends, and I couldn’t be happier with our decision. Love this article.
Congrats! That’s awesome you two were able to decide on what works best. To go a little further, checkout how you can save money on a wedding gown!