I wish I had known…
…that we needed a plan for handling our money.
“Our money”: building unity–this is first foundation step in developing a financial plan. After marriage, it is no longer your money my money, but our money. This means that you will work as a team in financial decisions.
Saving, sharing, spending–the next step is deciding how much of income will be spent, saved, and given away. The main reason to is to have an emergency fund in case things happen. The second is to pay off any debts. The third reason to save is for big purchases such as a home. Usually this is 10% of income. The next 10% is given away.
The other 80 percent–is spent paying the other bills. The more you spend on housing the less you have for the other bills. The most common mistake is spending too much on housing and not have enough for other bills.
Who keeps the books–this is the final step in financial planning. Whoever keeps the accounts will also pay for all the bills. However whoever is not keeping the books will need to know how in case they need to do it one day.
After 6 years together my fiance and are just now figuring this one out. We have separate accounts and we each pay a portion of the bills. Right now this works for us. It teaches me responsibility of my own money, which I need to know how to do when I’m married.