How to best handle finances after marriage?

Finances and money are one of the prime reasons why couples fight. And it's not surprising, given that youngsters, even before they get married, are evasive about money matters or money talk. 

According to Investopedia, couples fight when their finances are kept separate, and even when they are clubbed together in a joint account. They fight over debt, children's expenses, extended family's expenses, and then there's the never-ending spenders vs savers' tiff. 
 
The youth today seems surprisingly aloof about their finances. There's an absence of savings or even a much-required emergency fund. 

When money is such an engulfing issue, often causing enough duress to either partners, it's imperative to figure out a way to handle finances right, isn't it. 

Here are some points for financial management after marriage. 

Plan for the uncertainties: Unexpected illnesses, accidents, layoffs can cause a great deal of pain, and hence, it is advisable to save a share of your salary over a period of time to build an emergency fund. This certainly helps in dealing with the uncertainty in a much better way. 

Smart spending and smarter investing: When you are married, both the partners need to be accountable for what is spent and invested. Spending is inevitable but it is necessary for a couple to get on to the same page, and focus clearly on the lines of investment. This may be investments of any kind -- it can be for the next quarter, or year, or for retirement -- planning is the need of the hour. 

There are several investment instruments available in the market today, to help you plan and execute both, short- and long-term investments. Seeking the help of a professional also helps. 

Set achievable financial goals: Having a goal always helps. Try to come up with a savings adenda for life after five, ten, or twenty years. Chart out your career dreams, lifelong goals, and financial expectations, and set a time on it to achieve and fulfil them. 

Combining or not combining accounts: It's important to understand the nuances of both the options before picking one

When you keep money totally separate, everything (rent, mortgages, necessities, etc) has to be split. You also need to evaluate what you spend on, while being careful of not spending too extravagantly, which will make you eat into your partner's money for the rest of the month. You also need to plan spends from each account to gain tax benefits on home loans, EMI, investment proof, and so on. 

If you're going to have a joint account, it means you are going to put money in a single basket, and use it to pay your bills and spend. This requires financial coordination of the highest level, and a mutual agreement on expenditures. Even here, you will need to get on common grounds for spending. This is where the spenders vs savers' premise gains importance. If there's a lot of deviation in spending patters, then you make room for monetary imbalance and arguments. 

Checking financial history: It is important for you to discuss financial history with your spouse. One of the most important tenets of handling finances with your spouse is transparency. Understand the use and number of credit cards, credit scores, spending habits, etc. If one of you have a poor credit score, then having a joint account isn't advisable, since it will affect your future financial needs. 

Managing Debts and Saving: Savings after the wedding is a must, but saving before is essential too. We suggest you to open up a savings account before marriage for setting money goals beforehand and having a vision of future expenses. Both the individuals should invest a portion of their combined income after marriage, and let the account grow.

The author is the Co-Founder and CEO of EarlySalary.com.