A quick guide to starting your financial life together.
My first real tip is actually so important that I am not even considering it a top 10 tip because it is basically a MUST.
Be very careful with credit cards.
Yes, they can give you points which are “free money” and cash back and all the incentives they offer but there is a reason they offer them:
THEY ARE NOT FREE!
The only time I’d recommend having one is if you’re confident you can treat it exactly like a debit card and pay the full balance off every month.
For many people, that’s easier said than done. It only takes one missed payment or one month of overspending for debt to start building up.
Carrying a credit card balance WILL cost you more in the long run. Interest adds up, and what started as one little purchase can quickly become a much bigger bill. It can kick you over the edge to the dark side of credit card debt and interest payments. If you’re okay with taking that risk, then go right ahead. But don’t say I didn’t warn you!
Now… let’s get into the top 10.
1. Budgeting = control, not restriction.
When people hear the word budget, they often think it means saying no to everything they enjoy.
It doesn’t.
A budget simply tells your money where to go instead of wondering where it went.
When you know exactly where your money is going each month, you’re in control. And having that control gives you far more freedom than constantly feeling like your bank account is one big mystery.
2. Communicate first.
Before spreadsheets, talk. Figure out your “financial identity” as a couple (saver, spender, worrier) and where you overlap or clash.
You both come from different backgrounds and have different preferences when it comes to money, so getting on the same page and knowing where you each have to compromise is only going to strengthen your relationship with money and with each other.
3. Expenses should never exceed income.
Simple rule, but it’s the foundation everything else sits on. It is simple math really. If you make $100 and spend $110 – that $10 needs to come from somewhere.
If your basic expenses are higher than your income, don’t ignore it. Work out exactly how much you’re short by so you can decide where to cut back or how much extra income you need to bring in from a side hustle.
4. Agree on a “big purchase” threshold.
Decide together what dollar amount requires a mutual “yes” before buying. Some couples are happy discussing anything over $100, while others are comfortable up to $500. There’s no right or wrong amount. You just need to agree on what works for both of you. Communication really is another power up.
5. Build your emergency fund.
Aim for 3–6 months of essential living expenses set aside for the unexpected: job loss, medical stuff, car repairs… life. Emergencies WILL happen. Sometimes they are a broken washing machine and other times they are major medical expenses. Either way, having a minimum of 3 months of essential living expenses saved will really help alleviate the stress and not send you spiraling into credit card debt when something does come up.
6. Split savings into short-term and long-term.
Short-term: vacations, Yom Tov, emergencies. Long-term: house, kids’ weddings, kids’ college. Short-term should go into a high yield savings account (that means an account that pays a competitive interest rate). The long-term savings can be invested so they have the opportunity to grow over time, although returns are never guaranteed.
7. Don’t forget retirement.
Retirement probably feels like a lifetime away.
But even putting aside a small amount each month can make a huge difference over time thanks to compounding. Government pensions alone often aren’t enough to fund the retirement people imagine, so starting early gives you a huge advantage.
8. Track everything, every month.
Every coffee. Every bill. Every little purchase. Write it down.
Use a spreadsheet or an app (EveryDollar, YNAB, Emma) until it becomes second nature. This is extremely important in the first few months because it will help you accurately see what your expenses are and which categories you tend to splurge the most on. It will also help you see where you can cut expenses out and save instead.
9. Give every dollar a job.
It is fine to have a petty cash/miscellaneous line in your budget, but even “miscellaneous” needs a number. Every penny accounted for is the goal here.
10. Progress over perfection.
You’ll go over budget sometimes. That’s normal. Don’t quit, don’t spiral. No one is perfect and if they say they are… they’re lying! Just adjust, do the best you can, and keep going.
Okay, but how do you actually make a budget? Don’t worry. A full step-by-step budgeting guide is coming soon!
