Hustle Jimmy! | Follow Our Journey Towards Early Retirement!
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description: If it were ever possible to have a sit-down conversation with the Newlywed version of us, they would be overwhelmed with the amount of information being thrown at them! There have been so many lessons we have learned in our 10 1/2 years of marriage, especially since we started off tying the knot at 20 and 21!
Below are 5 simple and easy tips we've learned along the way and would like to share with you. They are applicable to anyone in a relationship, and can also be tweaked to your particular situation- whether you are engaged, newlywed, or even thinking about taking this big step in your life. It's valuable information we now know and wished we knew back then! So let's get to it!
5 Simple and Easy Budgeting Tips for Newlyweds
1. Have an open communication about your financial goals and plans. What exactly do you guys want to accomplish together? You're a Team now and the best way to start on the right foot is to have an open and honest dialogue about what your financial goals are. The more in sync you are with your goals as a team, the better your odds are in succeeding.
Discuss common goals like the purchase of your first home together, or perhaps a yearly vacation trip. How much will each of you be contributing towards your retirement? How much savings will you set aside for an Emergency Fund? Set a monthly budget and help each other stick to it! Teamwork!!!
2. Keep a detailed budget. This will help keep you accountable for all your expenses and you'll be able to know exactly where your money is going. Remember, numbers don't lie. This is one of the most helpful tools we ever had at our fingertips to track all of our expenses. You can use a notebook, phone apps, saved receipts, and any ways you can come up with that will track how much you are spending daily.
The goal here is to get you to notice HOW MUCH you are spending and WHERE you are making theses purchases. You will be astonished as to where you are spending your money if you are consistent with it. After you've diligently kept track of all these expenses, you can review them with your partner and make improvements.
3. Review your budget weekly and set new spending limits. Now that you've gathered some numbers from all your tracked expenses, review them once a week or more if necessary. Did you find any shocking surprises? It's crazy how even the smallest of purchases can still add up, right?!? What areas can be improved? What is going well?
Next, discuss your new spending limits you both agree not to exceed. If you spent a total of $80 in dining out last month, bring yourselves to $60. Do everything in your power to keep yourselves on track and under your new spending limits. Encourage each other and help each other come up with innovative ways to stay under budget. With this change of attitude, you will gain control of your bad spending habits and your money will go farther.
4. Stay away from unnecessary expenses and find alternatives for a similar result. These are the kind of expenses we don't really NEED in our life yet we make them without even thinking about it. They include trips to our favorite coffee spots, eating out, buying clothes at department stores, and essentially all the vices we tend to indulge in and waste our money on. But you can still have all those things, there's just different ways to go about getting them. For example, you can brew your own cup of coffee instead, cook at home more often, and buy used clothing and accessories at your local thrift store- all of which we have done in our personal lives. Make a list of all the things you guys can find cheaper alternatives for and save your money to put towards things that really matter!
5. Stay consistent. Even though budgeting is a challenging task, don't give up! Your future selves will thank you for your commitment to save and stay money minded in a world where many tend to spend instead of save. Always remember, nothing that is ever worth it comes easy. It takes great discipline and practice every day but if you stay consistent with budgeting, you will reap the financial rewards!
By following these 5 simple budgeting tips for newlyweds, you will be better prepared for your financial futures. Keep in mind that budgeting is a discipline that takes practice to perfect, so stick with it! Good luck!
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