A Young Couple’s Guide to Basic Budgeting

(Image Courtesy of Elevate Mortage Group)

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One of the most common issues that couples argue about is money. Money will inevitably be an essential aspect of your life going forward, so it is understandable why you both may feel passionate about the subject. As a young couple, you can lay the foundation for a healthy, open relationship by developing solid financial habits together. These are some great budgeting tips to get you started.

Create Your Budget Together

A budget is one of the most basic and essential components to financial health. It tells you where your money is going, and it helps you to identify areas to cut back on. It may be used to guide purchases and define healthy spending and saving habits. Your budget is a reflection of your values related to money, so it should be created together. Ideally, you both will also review the budget and recent spending and savings activities every week or two. Remember that all outgoing funds should be accounted for, including those trips to the local coffee shop each morning and those midday runs to the vending machines for snacks at work.

Track and Improve Your Credit Score

When it comes to building up your marriage’s finances, it’s not enough to just take care of the money you have now; you also need to figure out how to afford the debt that you’ll inevitably need for a car, a house, medical expenses, and so on. This means that you need to build your credit score. Credit scores range from 300 to 850:

  • <550: Bad
  • 550–649: Poor
  • 650–699: Fair
  • 700–749: Good
  • 750+: Excellent

Having a better credit score will allow you to get loans more easily and at better rates. This will drastically impact the kind of financial choices you’ll be able to make. Start improving your credit score now by being better at paying off your current debts, never missing bills, prioritizing saving, and getting into debt less often. The long-term benefits are easily worth it.

Take Advantage of Technology

Managing finances is easier to do than ever because of technological innovations. There are straightforward tools like Mint or EveryDollar that you can download to your phone and refer to regularly. They help you with budgeting activities and can tell you exactly where your money is actually going. You may have already downloaded your banking app to your phone. Set alerts so that you can monitor activity without needing to log in regularly. Remember that these are only some of the many tools available. Spend ample time exploring various reputable tools so that you both can find a few that work best for your needs.

Set Goals for the Future

As a young couple, you may share common goals for the future. This may include frequently traveling before starting a family, or it may include starting a family and buying your first home soon. Determine the priority of your goals and a timeline for each one. Ensure that your budget allocates a reasonable amount of money to help you save for these goals and to achieve them within the timeline that you have established.

Money is often a taboo subject for young couples. It may be uncomfortable to speak openly about finances initially. However, when you fall into healthy money habits early in your relationship, you may enjoy a more relaxed and secure future together.