Marriage & Money

I read this article in the latest Modern Bride and I found it really interesting and useful so I thought I would share it with all of you. If you're anything like most engaged couples out there, you're probably wondering about if you should combine your money, keep it separate, etc. and how to actually do it. I know it's something that G and I have talked about and definitely need to figure out for sure before the big day...as it has already caused a few squabbles throughout our relationship. Have you thought about how you'll marry your finances together after the big day?


"Very few people in the United States have been untouched by the recession. But it's also been a valuable wake-up-call for twenty-and thirty-somethings about the importance of sound financial planning-and a stark lesson for engaged and newlywed couples on why its crucial to start saving for a rainy day. NYC personal-finance expert, author of The Difference and 2009 MB Trendsetter, offers couples this advice for building a rock-solid financial foundation.

Have a Big Conversation
Before you tie the knot, discuss what's important to both of you in terms of your financial goals. People have a misguided notion that when you get married you'll suddenly become the same person and want the same things, says Chatzky. It's really important to ask yourselves, What do we want? and then make a prioritized list. Another vital component of this pre-wedding discussion: fully disclosing your financial obligations--student loans (G has plenty), credit card debt (I have plenty), etc.--so there are no surprises down the road.

Build an Emergency Fund
Start contributing to this account right away. Chatzky suggests six months of income for a married couple with two incomes or nine months for a one-income household.

Make Your 401K a Top Priority
If your employer matches your 401k contribution, deposit enough to earn the match--it's a terrific perk. With any extra funds, begin to pay off your high-interest debt.

Establish Financial Autonomy
Chatzky recommends "Yours", "Mine", and "Ours" bank accounts. In a marriage you need to give each other the ability to make financial decisions independently, she explains. Both partners should contribute an equal percentage of their income to the "Ours" account to cover the mortgage, utilities, insurance, car payments, gas, etc.

Save as Much as Possible
Start a joint savings account and contribute an equal percentage of your incomes to it. Have it automatically deducted from your paycheck and deposited straight into the account. If you can give 10% of your income a month, that's great, but if you can't, start at 3 or 5% and ratchet it up one percent every few months."

Track Your Spending
It's the best way to back into a budget. Her guidelines for allocating your household income:

35% Housing (mortgage, utilities, upkeep, and taxes)
25% Life (food, entertainment, clothing, travel, etc.)
15% Transportation (car payments, gas, insurance)
15% Pre-existing Debt (student loans, outstanding credit cards)
10% Savings (including an emergency fund)

Her rule: It's ok to borrow from one category to give to another (for example, if you live in a big city then you may spend more on housing but less on transportation), except for savings. That's non-negotiable.