One of the main issues for young black married couples is disagreements with regards to finances. In fact, finances are one of the principal reasons why black, married millennials end up in separation court. Here are 9 tips to get you set up for success with your finances as a young black married couple.
One of the main issues for young black married couples is disagreements with regards to finances.
In fact, finances are one of the principal reasons why black, married millennials end up in separation court.
Budgetary counsel is promptly accessible, yet so many young black couples are still at odds about cashflow. Why is that?
For an assortment of reasons, however, black couples will not admit that they need financial advice despite the fact that most have never received a proper financial education. Everybody seems to want to appear to be financially literate and often won’t admit it to each other that they are not financially literate – It remains their dirty little secret until it begins to severely impact the relationship.
Well, no more…
Here is the monetary counsel that young black married couples regularly disregard:
1. Have Both Separate Accounts and Joint Accounts
“Should we open a shared bank account or keep everything separate?”
This is one of the most significant choices you two need to make concerning your finances. Having your own cash that you can spend however you want can decrease contentions about cash. But we also can’t help contradicting the conviction that having separate services diminishes the feeling of solidarity in marriage and demonstrates an absence of trust in each other.
For this reason it is best to decide between yourselves what you will open your joint accounts for and what the terms will be. For example; a joint savings account for holidays, joint business ventures, property etc. And a joint current account for bills and unexpected occurrences. Separate accounts for everything and anything else.
2. Track How You Are Spending Money
It’s known as a spending limit. Following your spending isn’t an approach to point fingers at each other concerning who is spending what. Nor is it having somebody peeping over your shoulder each time you go to pull out your card or when an the Amazon delivery guy knocks.
Tracking your spending could be the savior of your marriage. It shows that you are responsible and is the foundation to being monetarily secure. Young black married couples often admit that they don’t know where a huge chunk of their money goes each month. If you both know where your money is going then you can easily decipher when it is being wasted and where. Additionally, you can easily see what you might need to cut back on if you have agreed on financial targets together.
3. Set Your Financial Priorities Together
Decide what is mutually important in your marriage. One of you might desire to purchase a house but setting aside retirement money might be the other’s main priority. This is where getting financial help or a financial organizer can aid a young black married couple because it would be unrealistic to expect all the big priorities to win all the time. There will still be a need to spend on date nights, outings and things of that nature. Otherwise it becomes all about money, and, well, that presents a whole new set of issues.
4. Talk About Finances Together, Regularly
Of course, speaking with your mate about accounts isn’t always easy since finances can symbolize various things to either party. One may see cash as security while for the other it is a means of power. On the off chance that the subject, bills, savings, and financial objectives makes either of you awkward or protective, look for the assistance of a financial consultant or organizer.
What has helped many couples is gaining financial education together. Most of us were never taught about money, so we don’t understand it beyond getting it and spending it or tying it up in a scheme or some sort. And when we do try our hand at investing, end up in terrible pyramid schemes, bad deals or just straight up losing money from jumping into the market too late.
The solution would be starting off right. If you have heard of Robert Kiyosaki, great. If not, he is the author of the book Rich Dad Poor Dad (and many others under that brand) teaching people about investments and the 4 different types of revenue streams – Employee/Self-Employed/Business Owner/Investor. His ‘poor dad’ (biological father) knew nothing about investing and was an employee all of his life while his ‘rich dad’ (his friends father) was an investor and taught him all he knew.
The reason I mention Robert Kiyosaki is because he was the first person I ever heard talk about the cash flow quadrant (Employee/Self-Employed/Business Owner/Investor) and break down how a residential property was a liability and not an investment.
A whole new mindset!
I say all this to say, going on this educational journey together will be fun as well as enlightening and you will not struggle to talk about these things if you take this route because your conversations will be actually informed discussions rather than you both stepping into the danger zone.
At the very least it is paramount that young black married couples know where they stand, monetarily with each other.
So, have the talk! …
5. Spare 10% of Your Income
Couples living month-to-month, paycheck-to-paycheck regularly say that they wish they had more disposable income.
Settle on the choice to spare at least 10% of your pay. You can then begin to fund your rainy day account or joint account, put resources into a retirement account among other things. The sooner you two begin setting aside cash for rainy days and the like, the better you will both feel about your financial security within the relationship – it is about being on the same page.
6. Handle Debt as a Couple
You should know where you both stand with regards to your credit before you tie the knot, of course. Whether you are going into it with debt or manage to accumulate it during the relationship it is something that needs to be monitored and handled. Make an arrangement to settle any existing debt.
Deciding that your life partner’s debt obligation isn’t your concern isn’t the best way to go about things. Again, as a married couple, their obligation is also yours. Your credit score can be adversely affected by theirs. You might end up paying the highest end of interest or being denied credit altogether.
It is best to tackle these together, head-on rather than keep it as a dirty little secret.
7. Attempt to Live Debt Free
While young married couples are certainly better off not buying the latest iPhone, a bigger TV or a second car – it is unrealistic in modern day society that they will not spend on these things. They justify these purchases frequently by stating that the use of cards means they aren’t spending a big chunk of money in one go. Even though the facts demonstrate that the majority of individuals are severely underwater simply from buying things they don’t need.
Credit cards and monthly instalments create an illusion that you are doing yourself a favor by using one. You aren’t.
While credit cards are great for building credit by using them to make all your payments for your necessities – the illusion that you have access to thousands when you actually don’t is very risky.
0% interest credit cards can be a great tool if used correctly, however, especially if being used to consolidate a higher interest debt. As long as you keep to a schedule and pay it back on time then you have nothing to worry about. Again, do this together – it makes things a lot easier and makes it harder to miss payments. In any case, married millennials who are debt-free with minimal financial obligations is better off than the financially reckless millennials creating debt because everybody else is doing it.
8. Try not to Keep Big Financial Secrets
Withholding the truth or lying about the weight of your financial obligation can crush your marriage.
No long explanation needed here…
9. You May Have to Face Tough Times Financially
Understand that regardless of how much you put down, plan and talk about finances, invest and grow economically aware there still could be extreme occasions, joblessness, business failure, investment failure etc. in your monetary future. But if you are communicating on it, you can get through it together.