Couple Money

Prioritizing Savings in Your Marriage

decide where you want your money to go

In order to produce the podcast and keep content up free for you, I work with partners so this post may contain affiliate links. Please read my full disclosure for more info.

Having a financial game plan as a couple is a big part of reaching your goals.

It can help you two develop ways to communicate effectively and focus your energies on what matters to you.

Prioritizing Savings in Your Marriage

Like many other couples, we have several goals that we're looking at achieving together.

And like many other couples, we first have to figure out what goals to tackle and how fast.

Some of our goals are for the short term while others are more long-term and bigger in scope.

For these goals, we have savings accounts to organize our finances, motivate us, and help our money grow during the process.

Short-Term Goals (1 year or less)

We keep our general savings and emergency fund in the same account.

Some people may view having an emergency fund mentality as a crutch, but we've found it to be the opposite- we're doing better financially.

Having an emergency fund can be good or bad, depending on who's involved.

I've seen how people have dipped into their emergency fund for frivolous purchases.

I've also seen how building and maintaining an emergency fund has encouraged people to continue building their finances.

Having the psychological win spurs people to move onto other aspects of their finances, like debt reduction, investing, and entrepreneurship.

Getting an emergency fund started and maintained means looking at your family's personal needs and adjusting to it. Here are some factors you may want to consider with your savings.

One last note on our short term savings accounts – our main goal with them is to be accessible, so we prefer having them available in high interest savings accounts rather than CDs.

Medium Term Goals (2-4 years)

It's quite possible to get a really good car if you're serious with your car replacement fund. You need to commit to a set monthly payment (to yourself!) and a time frame for buying your dream car.

If you’re looking for general guidelines, here are my recommendations:

You can read my car buying guide to get the details of the plan. Right now the plan is getting a new car for me in about 24 months. The Jetta seems to be doing well and I'm making some low cost repairs to keep it looking as new as possible.

Long Term Goals (5+ years)

Having a freedom fund has been a goal for us before we started this blog and I think it's time for us to create a plan to get this account started.

By our original estimates, we wanted to have the freedom fund ready in 4 years. I think we have a chance of making it, we just need to get more organized on this goal.

We currently have a low-interest student loan and our mortgage as our only debts.

Right now, the goal is to pay off the student loan and have buffer fund to handle expenses if/when he makes the transition.

Want More Info? Read Tired of Your Bank – Make the Switch or Sign Up and Open an Account

Automating Our Savings

The key to keeping our goals is automating our deposits to each of the savings accounts.

We have some money transferred over from checking to savings regularly, like a bill. when we first got married and our income was really small, the deposits were small, but as we've received raises, we've been increasing the deposits accordingly.

If you're looking to get started, find an FDIC bank or CUNA credit union in your neighborhood that offer high interest rates for savings and watch it grow faster.

Look at Bankrate to compare checking and savings accounts. You should be able to find something to suit your needs.

If you’re looking at jump starting your savings and think your social network can help, you may want to look at SmartyPig.

Besides offering good interest rates, it also allows others to contribute.

Prioritizing Deposits

As deposits come in, we allocate it to the appropriate savings account.

While there is a minimum monthly deposit, due to the valleys and peaks I sometimes prioritize where the ‘extra' money goes into.

Currently, our plan is:

I've upped the scheduled deposits starting next month and I'm hoping that we'll see some little windfalls to put some more aside for our goals.

Prioritizing Your Savings Goals Together

Everyone has their own system, so I'm curious to see how you guys do it.

What goals are you working on right now? Which one is your priority? How did you pick it out? What's your system for saving for all of them?

Exit mobile version