Many soon-to-be newlyweds in the Philippines understand that starting a new life together is an exciting and joyful milestone. However, it also marks the beginning of a shared financial journey that requires careful planning and management. Effective financial management is crucial in a marriage because it helps ensure that both partners are aligned in their financial goals, can handle expenses without stress, and build a secure future together. Poor financial management, on the other hand, can lead to misunderstandings, conflicts, and financial strain, which may put unnecessary pressure on the relationship.
When couples address financial matters proactively, they can prevent potential issues such as debt accumulation, unmet financial goals, and financial instability. This approach also supports a harmonious relationship and sets the stage for a stable and prosperous future.
To help you navigate this important aspect of your life together, here are some practical tips to manage your finances effectively and build a solid financial foundation as soon-to-be newlyweds.
1. Have Open Communication about Your Finances
The key to a successful partnership is open and honest communication about finances. As soon-to-be newlyweds, you must openly talk about money before making any financial plans together. Begin by discussing your financial goals, current debts, and sources of income. Remember that it’s important to be transparent about any existing debts, such as salary loans, government loans, or credit card balances, as well as your monthly income and spending habits. This honesty will help you foster trust and avoid unforeseen financial issues that can cause stress and conflict. It can also help manage financial expectations.
2. Boost Your Wedding Funds By Preparing Financially and Saving Smart
Preparing for a wedding involves careful budgeting to cover various expenses like the wedding venue, attire for the bride and groom, reception dinner for your guests, and other essentials, making financial planning crucial for soon-to-be newlyweds.
Leveraging Maya Time Deposit Plus can be a smart tool for couples to grow their savings in the months leading up to the big day. By locking in a portion of their funds at a higher interest rate (between 3.5% to 5.75% p.a.), they can earn more on their savings, ensuring they have extra funds to cover any unexpected costs or to start their marriage on a strong financial footing.
3. Create a Joint Budget
Another tip for managing your finances together is to create a joint budget. Generally, it’s a financial plan that outlines your income, expenses, and savings goals as a couple or household. It combines both of your financial resources and your expenditures to provide a comprehensive view of your financial situation. If you want to manage shared finances effectively and ensure that both you and your spouse are aligned with your financial goals and responsibilities, creating and maintaining a joint budget is essential.
You can start by listing all your combined income sources, including salaries, bonuses, and any additional earnings. Next, document all monthly expenses, categorizing them into fixed costs like rent, utilities, and insurance, as well as variable costs such as dining out and entertainment.
To streamline your financial management, consider opening a dedicated savings account in a digital bank. This account can be used to handle your fixed monthly costs, providing a dedicated space for essential expenses and simplifying your financial tracking. As the best digital bank in the Philippines, Maya allows you to access incredible savings potential. When you open a Maya Savings account, for example, you can earn a base interest rate of 3.5% p.a. that can go all the way up to 15% p.a.
Additionally, the best digital bank in the Philippines offers convenient features like online access, easy deposits, and free transfers to help track your spending and manage your budget easily. For instance, you can deposit funds into your Maya Savings account from your Maya Wallet instantly and for free. You can also deposit money from other banks and e-wallets via PESONet and InstaPay. Additionally, you can easily transfer money to your spouse’s bank account or e-wallet using our online digital banking tools. Transferring money from a Maya Savings account to another Maya Savings account can be done for free, while transferring money from a Maya Savings account to another bank or e-wallet can also be done for free via PESONet and with minimal fee via InstaPay.
Set Financial Goals Together
It’s also best to set financial goals together, as this can ensure you’re aligned with your priorities. Also, prioritizing your aspirations as a couple fosters teamwork and mutual support and helps create a clear roadmap for achieving financial stability.
When setting financial goals, begin by discussing what your short-term and long-term goals are. Short-term goals might include saving for a holiday or upgrading household items, while long-term goals could involve planning for your future children’s education or even for your retirement. Then, work together to create a realistic timeline and budget for achieving these goals.
Consider utilizing Maya Personal Goals to manage your short-term goals efficiently and to get the most out of your savings. This Maya product encourages Maya Savings account owners to achieve their savings goals by setting up to five specific goals with corresponding due dates and goal amounts. Maya Personal Goals also lets you maximize the money you set aside since you can earn a guaranteed 4% interest p.a. from it.
Plan for Retirement Early
While retirement might seem like a distant milestone, the earlier you start, the better prepared you will be for the future. Having said that, explore the various retirement savings options available, such as those from the Social Security System (SSS), Pag-IBIG Fund, and private retirement plans. You also don’t have to instantly set aside a large sum for your retirement. Instead, make small, consistent contributions to grow your money over time with the help of compound interest.
In addition to these options, consider a time deposit account as a conservative investment for your retirement savings. Maya’s Time Deposit Plus, for example, provides an effective way to grow your savings steadily over time. It’s a time-based savings account that keeps your money for 3, 6, or 12 months, and earns a base interest rate of 3.5% per annum, which will be credited to your account monthly. Once you reach your target amount, you can earn an additional, boosted interest rate of up to 5.75% p.a. And like many other Maya digital banking products, your Time Deposit Plus account can be funded easily by depositing money directly from your Maya Wallet, Maya Savings, and other banks and e-wallets.
As you start your financial journey as soon-to-be newlyweds, remember to carefully plan and have a proactive approach. You can also consider following the tips we shared above to build a strong financial foundation and work towards achieving your shared goals as a couple. Moreover, keep in mind that financial success is an ongoing process, and staying informed and engaged will help you navigate your financial path with confidence and clarity.
