In any relationship, sharing can be the key to balance and happiness. Whether we’re talking about feelings or finances, the lesson remains the same—you’re stronger together.
Reaching financial freedom for two means not only joining forces, but also finances in saving for the future, establishing goals and getting the most out of your shared earnings. Keep reading for the simple, 1, 2, 3 of setting up a joint savings account for you and your spouse.
1. Define what financial freedom means to you
Picture your ideal day. Is it spent lounging by the pool in the Caribbean or exploring the ancient streets of a faraway land? Are you your own boss with a business empire to manage, or did you retire early?
While no two definitions of financial freedom are the same, it’s important that you and your spouse’s visions are at least somewhat similar. Whether you want to pay down debt and travel the world, or purchase your dream home on a quiet street, financial freedom looks different for every person and every family. And it’s up to you to determine what you want your financial future together to look like.
2. Find the right approach to family finances for you
Combining your savings with your spouse can feel overwhelming at first, but joining finances doesn’t mean giving up your individuality, or your purchasing power.
There are countless ways to set up family planning and finances, and each approach features its own advantages. Before you merge every single account under your name, take some time to figure out which joint financing method is right for you and your spouse. Many couples, even those who have been married for decades, choose to keep separate accounts. Others opt for a fully “what’s mine is yours” approach, with joint checking, savings and credit accounts.
Personal finances are, indeed, very personal. To make sure you feel comfortable in how your financial matters are handled, you can create your own, personalized approach. This may include separate checking accounts for everyday spending and one or more joint savings accounts to help you meet your financial goals.
3. Explore joint savings options for your family
When it comes to choosing a savings account as a couple, the options are vast. Finding the account for you means knowing exactly what you’re saving towards, and having a plan in place.
If you’re setting up an emergency family fund, a regular savings account lets you make deposits as you need and have easy access to your money when and if you need it. Planning for baby? This kind of account gives you the peace of mind of knowing your money will be ready for you the second you need it.
For couples with long-term savings goals, consider an interest-bearing savings account like a CD or Money Market account. You’ll be boosting your savings as you put money away, which can help you reach your goals faster.
Really planning ahead? Look further into the future with an IRA or help from our retirement planning experts.
A solid plan for your shared finances can not only drive you towards your financial freedom faster, it can also strengthen the bond between you and your spouse by easing some of the most common stressors in relationships.