Joint finances mean different things to different couples. Some couples keep their money separate and only share one or two bank accounts.

Others combine everything — bank accounts, credit cards, investments accounts, and more.

When it comes to combining finances there isn’t a right or wrong answer. Instead, it’s important to find the best solution that works for both of you.

Here are six tips for combining your finances after marriage.

1. Manage your debts together

Openly discuss each other’s debts. Exchange information about loans, credit history, and spending habits. This will prevent miscommunication or financial mishaps in the future.

It’s alright if you want to treat each other’s debts separately, but if they are household debts, it’s easier to put aside some money to clear them.

Clearing existing debt is important for your cash flow especially if you wish to make big purchases later like buying a home and car or even having kids.

2. Draw-up a household budget

If you both work, each of you can contribute towards household expenses. However, your contributions might not be equal if you earn different salaries and have differing debts or financial commitments.

To determine how much each of you should contribute to household expenses, make a list of your separate debts. Next, list the household expenses – utility bills, groceries, rent or house loan.

Now you can determine the percentage you each must contribute towards every expense.

For example, both of you want to contribute 10% of your income to utility bills. If you earn RM4,000 a month and your spouse earns RM4,500, your contributions can be RM400 and RM450 respectively.

3. Create an emergency fund

Financial planners advise that emergency savings should ideally cover six to 12 months of your household expenses.

With this fund, you are more than ready to face unexpected situations like losing your job or falling sick.

Getting started is hard, but try to save at least RM100 per month as a couple, and if both of you are working, you can increase that amount according to your budget.

Small change like coins or RM1 notes are essential and can be saved separately in your ‘tabung’ to help add to your existing monthly savings.

4. Set your goals

Short-term goals are anything you want to achieve in the next two years or less. Do you want to buy a house, rent another apartment, travel every year or have children?

Once you’ve agreed on your goals, set up different money jars for each and determine the amount you will put in each jar weekly or monthly until your goals are met.

List your long-term goals, which are anything more than two years away. This may include saving for your kid’s education, retirement, or buying a second home.

Set up a plan that stretches for several years to include how you plan to achieve these goals. This planning can help you work harder to earn more money.

5. Pursue combined investment planning

Never jump blindly into any investment opportunity unless you are familiar with the technicalities and your risk profile.

If you aren’t sure, consult a licensed financial planner who can guide you through the process.

Be mindful not to over-invest or over-fund your retirement fund even if you’re worried about the future. If you do, it can hinder your short-term goals.

The better way is to lay out all your financial goals so you can ensure your investment strategy is not in conflict with them.

6. Seek professional support

If planning your finances with your spouse proves too difficult or ends in too many arguments, get the help of a professional.

A counsellor can act as an intermediary to unearth the deeper issues affecting the both of you and help figure out a way to face your financial issues together. Joint sessions where both you and your spouse are present with the counsellor is the most effective.

For the financial aspect of your relationship, seek the services of a licensed financial planner to help ensure your financial goals are correctly aligned with each other.

A financial planner will help ensure your household cash flow is balanced and your asset allocated for properly.

Conclusion

Talking about finances with your partner can be awkward as many consider it extremely private in nature.

However, when you open up about your financial situation, it will help set the course for better financial planning as both of you can slowly but surely work towards achieving shared goals.

In the process, you will also realise that marriage is not a one-man show and that you need each other to make it work.

Create a judgment-free space. Regardless of your partner’s financial situation, approach the discussion with neutrality and compassion so you can create a sound financial plan for your household expenses.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.