How to budget as newlyweds.

Talking about money is no easy task. In the whirlwind of deciding on cake flavors and invitation designs, this discussion sometimes falls through the cracks. You assume that things will be fine, but everyone has a different approach to managing (or maybe not managing) their personal finances. Do you know if your significant other owes a massive amount of credit card debt? Is one of you good at saving while the other person is better at spending?

Check out three strategies to manage your money as a couple to get started on a new budgeting strategy.

Review your finances and create a plan.

Before you decide how you're going to manage your newlywed finances, sit down and discuss your personal current financial situation.

• What debts do you currently owe?
• How much do you pay in rent/on a mortgage each month?
• What's your monthly salary?
• What things do you like to spend your extra money on?
• What is your credit score?

Each of you should fill out a personal monthly budget worksheet. Remember that you're going to be saving for two people now, so you might need to cut back on a few expenses to set a little more aside each month.

Compare your budgeting worksheets sheets and figure out where you can eliminate or combine expenses. Once you've talked about each of your financial obligations, it's time to figure out how you're going to save your money and pay your bills as a couple.

Combine your finances.

Since you share food and utilities, it only seems fair that you both pay for household expenses. If you combine financial obligations, you won't have to worry about who paid each bill. Another perk is that you won't have to play bill collector and constantly ask your spouse for money to cover their half of the bills. 

If you have a joint account, both you and your spouse should log in to Online Banking and the Lake Trust Mobile App to check your account balances. Go over payment amounts and dates together so you both know when expenses are coming out of your account. Use the budgeting tool within Online Banking to make a budget together, get a spending snapshot, and view upcoming bills. 

The challenge with this method is adjusting to each other's spending habits. If one party isn't good at managing money, it can be frustrating for the other person to constantly monitor your accounts. Remember, you're a team now and you're working together to achieve your goals.

Establish personal and joint accounts.

With this option you both keep separate accounts, but you also have a joint account for household expenses. Use your joint account to pay your mortgage or rent, utilities, groceries, and insurance. Then use your personal account for splurges, non-essential expenses, or personal items. Work with your spouse to determine how much money (a percentage or a specific dollar amount) should go into your joint and personal accounts each month.

With this method, you don't have to feel bad buying an expensive lunch with your coworkers because the funds will come out of your personal funds and not your joint savings account.

Keep separate accounts.

Keeping your money completely separate isn't a bad idea, as long as you can both cover your part of the bills. You can divide your bills 50/50 to make things even, but then that puts the responsibility on one of you to ask for money when expenses are due. To make it easier, use Online Banking to transfer money between your account and your spouse's. If you have trouble saving money for large expenses, open a Special Savings account. Use this separate savings to stash away a little bit each paycheck so your larger costs don't take you by surprise. 

Another way to make this method work is to have each person take responsibility for certain bills. For example, you could take care of groceries and cable and your spouse could pay for utilities and the rent. With this option, you don't have to worry about asking the other person for money. 

Start the conversation.

As with all changes in life, it’s going to take some time to figure out a plan that works for your household and adjust to the new method of managing your money. Figuring out your finances before you tie the knot can help you and your future spouse establish expectations and set goals together. Communication is key to creating a successful financial management plan together. You have many years of happiness ahead!