Married Couples: Pros of Merging Finances
The “us” factor
In marriage, it is wise to refrain from the use of phrases and words like “I”, “mine”, “my”… for obvious reasons. Try using these words and you will be up for a gigantic fight for a couple of weeks or even months. Instead try to involve your spouse in all financial aspects. Let “my” money become “our” money. Let “my” financial goals become “our” financial goals. That way, a sense of financial security is created.
Since you become one in marriage, most needs are shared for instance food, housing, transport (car) in some cases, entertainment like TV, radio… You will most probably need one item hence being effective and cost saving for you as a unit. It is therefore easier and cheaper to contract one financial adviser for your assets.
Better financial opportunities
With more income and assets combined, you as a couple/unit are faced with better opportunity when it comes to investing. As certain investments require much more income, combining funds will provide the extra income needed and an advantage over the rest of your competitors.
Easier tax management
For those with business income, you will be at an advantage because now will you plan manage and distribute your income evenly. Your income will no longer be at the highest tax bracket. Seek your tax agent’s advice.
Either one’s opinion matters
Financial decisions will be made through discussions hence bonding of the couple in the process. Whether spending or saving, one should inform and involve the other. There are no personal or whatever loans taken from either husband or wife. Sharing dinner bills, personal loans, cinema bill… No more of that! Remember that you merged finances so both of you feel the pinch. You are in it together.
Who should be the financial head?
Every family has a financial head. This individual will be responsible for account and investment management, expense monitoring, financial planning, much more. It should be a no brainer therefore to pick the financial head of the family. Follow the criteria below.
● Who is more economical?
● Who is more informed about finance?
● Who understands accounting better?
● Who has better investment knowledge?
● Who is more reliable at account management, monitoring and planning.
● Who is more assertive?
Do you merge finances with your spouse?
Like I mentioned earlier, I do merge finances with my wife. It’s a mutual agreement that I am more economical and do possess vast knowledge about personal finance.
Nonetheless my wife’s opinion matters as much in big financial decision such as mortgage financing, financial investment, buying a vehicle… My wife can still spend on herself and the kids as long as it is within the budget.
Did you merge finances? Who is the financial head of your family? Go ahead and share your scenario with us.
This is a guest post by KCLau. KCLau is the best selling author of Top Money Tips for Malaysians. His popular personal finance blog is one of the most visited websites in the financial blogosphere with more than thousands of email subscribers. He also hosts regular and free financial training online featuring different financial experts. You can follow his latest updates by visiting www.KCLau.com.