The Best Budget Strategy for You and Your Spouse

Marriage is one of the most notable events of a person’s life. We all want our marriage to work and give us happiness. As a result, we often skip difficult conversations or don’t set boundaries. Sometimes, it can lead to problems like money issues. If you don’t want your marriage to go through financial troubles, you need to plan the budget to avoid running out of money. Here are a few pointers on how to create the best budget strategy for you and your spouse.

Ø  Know About S.M.A.R.T Goals

The first thing you need to ensure is to set up S.M.A.R.T goals. The goals should be specific, measurable, achievable, realistic, and time-based. When you set up goals, you will ensure that you stay focused and don’t spend more money than needed on non-essential stuff. Examples of a short-term goal could be to set up an emergency fund, while a long-term budgeting goal could be retirement planning.

Ø  Count Only the Net Income

When setting up your budget, you need to ensure that you don’t calculate the gross income. You need to keep your net income in mind. In simple terms, your net income is the gross income minus taxes and deductions. It is the pay you take home and have in hand before the spending begins. If you or your spouse don’t have a stable source of income, you should count the net income monthly.

Ø  Remember Mandatory Expenses

When calculating a budget, you need to count mandatory expenses. These expenses are unavoidable and usually recurring. Examples include housing, car payments, parking, utilities, gasoline, loan payments, and food. After calculating the mandatory expenses, you need to deduct them from net income.

Ø  Calculate the Savings

When setting up a budget strategy for you and your spouse, you need to determine an amount you plan to save every month. Deduct this amount from the amount you got in the previous step to get the discretionary spending.

Ø  Divide The Discretionary Savings

The amount you get after all the steps mentioned above and deducting it from the net income is the money you can spend however you want. A smart move is to divide it up equally so that you and your partner can spend it on whatever you like. You might use this money to buy new clothes while your partner might spend it on video games.

Ø  Choose a Budgeting Software/App

If you are not so great with numbers, you can pick budgeting software or an app that will allow you to get the numbers right and ensure that you never run out of adequate cash flow. Here is a list of some apps that you might like if you are budgeting in Canada. 

Ø  Plan Money Dates

Lastly, you should plan money dates every week that allows you to talk about your expenses. These meetings with your partner would help ensure that you stick to a budget, don’t overspend or waste money, and are on the right path to achieve your financial goals.

Need tips on how to save money in your business? Here are a few pointers.


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