How To Save Money as a Married Couple

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on August 16, 2022

Learn How To Save Money as a Married Couple

Have you recently embarked on the marriage journey? Then, you probably have a lot of dreams and goals, like maybe moving out. There is no better way to achieve them than with your other half, but there is more than enthusiasm and mutual support you need. To achieve almost anything today, you need money.

From buying a home to raising a child, everything has a price. For this reason, it’s important to plan ahead and save money. Whether you need a down payment for your first home or money for your kid’s college, it may seem like you won’t be able to do it.

Saving a significant amount of money is not easy. You need to have patience, time, and a solid budgeting plan. Learn a few hacks on how to save money as a married couple.

What to Consider Before You Start Saving Money as a Married Couple

There are numerous things that might come to mind. If you often wonder how to save money as a married couple, you probably have a list. One of the most common questions couples ask themselves is: how much should I save?

How much is a decent amount to put aside each month in your savings account? There is no one-size-fits-all solution to this question. It all depends on your income and your goals. We will discuss a few budgeting strategies later on.

According to some of them, saving 20% of your income is an excellent savings goal. There are also flexible budgeting strategies. They allow you to save as much as you want and highlight the importance of saving on a monthly basis.

The bottom line is you should save as much as you can. If you can afford to put aside 10 to 20% of your salary each month, it would be great. If you can only save 5%, that’s ok too. Make it your goal that no month passes by without sending an amount into your savings account. Being consistent helps you:

• Achieve your savings goal easier.
• Save more money in the long term.
• Feel more confident in your money-saving capacity.

Set a financial goal together

Saving money together is a great way to build a stable financial future. But just like any other ambitious project, it requires careful planning. It all starts with setting a goal and keeping it as realistic as possible.

Think about your income when you establish a savings goal. You might dream of saving $20,000 per year. Yet, if you can only save up to $1,000 per month, the numbers simply don’t add up. You can’t save more unless you increase your earnings. If you are not able to do that, set a lower goal.

Let’s say you will only save $1,000 this year. Next year, you might get a promotion or change your job. As a result, you’ll afford to save more.

Saving money is a continuous and flexible process. It needs constant analysis and adjustment. Especially if you don’t have a fixed income, expect to save different amounts each month. Also, before you start saving, write down your purpose. What do you want to accomplish by saving money? Some of the most common savings goals include

• Retirement funds
• Kids’ tuition fees
• A down payment for a new home
• An emergency fund
• Money to invest in a new business

Having a concrete goal is essential. This is the factor that will motivate you to save more. If you simply save money with no specific purpose in mind, you’re more tempted to use it.

As a couple, it is also important to establish your goals together. You can have several. After you know your purpose and more or less your monthly savings capacity, go to step two. This involves creating a savings plan. Follow these three main steps.

1. Determine the amount you want to save.
2. Choose a strategy (how you’ll budget, how much each one will save).
3. Started saving money in a separate account each month.

How to Put Together a Savings Plan and Stick to It

Many people ask themselves why they can’t save money. You and your spouse might be in the same situation. There is no secret recipe for saving money, but you definitely need a plan. That is the part where most couples fail. They want to save money, yet, they don’t have a clear path in mind.

How much money you save depends on how you plan for this goal. Organize your budget and adjust your lifestyle to be able to save money. Decide how much each one of you will save. You might have different salaries. Will the one who earns more contribute more, or will you both save the same amount?

Then, set a deadline, which will depend on your savings goal. You might want to buy a home in the next two years. In this case, you need to have a deadline. You are probably saving money for the down payment. This is usually 20% of the property’s value. Calculate if two years is enough to save this amount. If not, you need a more generous deadline.

Here is a simulation for a $100,000 property that might inspire you.

Savings goal	20% (down payment)
Amount you need to save	$20,000 (20% x $100,000)
Initial deadline	two years
Amount to save monthly (for the initial deadline)	$833 ($20,000 in approximately 24 months)
New (extended) deadline	three years
Amount to save monthly (for the new deadline)	$555 ($20,000/36 months)

You will also have to consider other factors. To get a mortgage, you’ll need a good credit score. That means you might need to start working on fixing your credit.

You might save money for retirement instead. In this case, you don’t necessarily need to have a deadline. You only need to contribute each month to your savings account. The more you manage to save, the better.

How to Save Money as a Married Couple with a Savings Account

Another aspect you must take into consideration is where you will save money. You can keep the money in cash if you want, but this is not a very practical method. You could lose it if someone breaks into your home. You could also lose it if a natural disaster occurs and it affects your house. The safest solution is to keep your money in the bank. You can create an account or even keep it in a deposit box.

No matter the option, it’s safer there than at home. With a savings account, you also get some benefits. For instance, you can earn interest over time. If you have several accounts at the same bank, other perks might apply.

For example, you could pay lower fees. It depends on each bank’s terms and conditions. Try to look for a savings account that offers good interest rates. The purpose is to make money by earning interest as long as it is in the bank. Then when you withdraw it, you want low fees. Make sure you also check out this information before opening an account.

A tip to help you save money with a savings account is to automate payments. You can set up automatic payments with internet banking tools. Another option is to use budgeting apps. These help you both automate payments and track your budget. Some apps you can explore on our website to learn more about their benefits are:

1. Mvelopes
2. Pocketguard
3. YNAB

These apps work better in conjunction with a budgeting strategy.

How to Save Money after Marriage with Budgeting Strategies

Here are some examples of budgeting methods couples can use to save money.

The half-payment method

The half-payment method aims to help people pay their bills. Yet, you can repurpose this budget method depending on your goals. It works for any type of recurrent expense. The strategy recommends saving 50% of your bill’s worth from each paycheck. If you get paid twice per month, you will have the bill budget ready by the end of each month.

The 50-30-20 budget

This budgeting strategy is flexible and straightforward. With the 50-30-20 strategy, you need to save 20% of your monthly income for your financial goals. Here is how you can divide a monthly budget of $6,000 with this method.

Category	% of your budget	amount
Wants	30%	$1,800
Needs	50%	$3,000
Savings	20%	$1,200

The digital envelopes budgeting strategy

The digital envelopes strategy involves separate accounts or digital envelopes. Divide these envelopes according to your budgeting categories, which represent your expenses. You could have the following broad expense categories:

1. Housing expenses
2. Groceries and gas
3. Non-essential expenses
4. Savings

Then, think about how much you can spend each month on each category. Transfer that amount into each envelope. Make sure you don’t exceed the limit set for each envelope.

Simple Tips to Save Money as a Married Couple

Learning how to save money as a married couple is not easy. Both of you have to make some sacrifices for the greater good – building a savings account. But with a sound plan and commitment, you can do it. Saving money also means making some lifestyle adjustments. Here are some aspects you might have to change to save more money.

Choose more affordable entertainment options

Leisure activities make life at work worth it. You need a bit of motivation to push further. Enjoying a bit after each paycheck is natural, but make sure you don’t overindulge. You can choose cheaper alternatives and still have fun.

For example, give up that fancy restaurant. Pick more affordable places when eating out. Go to concerts if you really want to see a band, but try to do it only once in a while. Instead, look for fun, free events. Meet friends at your place rather than going out every Friday evening. The list can go on and on. You get the picture. There are more affordable solutions to having fun in your free time.

Buy Pre-loved Objects

Many people might feel that this is a compromise. If you don’t share their opinion, you’re on the right track to saving more money. Pre-loved objects such as clothes can be excellent options.

For example, you might attend an important event together. You can save money on fancy clothing by checking out options at your local thrift store. These are not outfits you will use daily. Getting pre-loved objects can be a better choice. You will save precious bucks that can boost your savings account.

You can apply the same principle when decorating your home. There are all sorts of flea markets and thrift shops. Take a tour and see what furniture bargains you can find.

Save Money When You Buy Groceries

Buying groceries is part of the “needs” budgeting category. You can’t skip this spending, but you can reduce it. Saving money on groceries doesn’t mean eating less. Yet, as a general rule, avoid buying too many fresh products. If you don’t eat them in time, they end up in the garbage and you lose money. The golden rule of budgeting for groceries is to use a shopping list.

Write one together each time you go shopping. Make sure you only buy what’s on the list. That is how you avoid spending more. Assign a strict budget to each shopping session. Take cash with you and avoid paying with cards. Other ways to save money on groceries include:

• Shopping at more affordable stores
• Buying more products in bulk
• Looking for discounts and using all the coupons you can get
• Shopping early in the morning when some products cost less

Saving Money While Going Together on Vacation

You two deserve to unwind every now and then. If you love traveling, you probably go on vacation at least once a year. Vacations don’t come cheap, especially if you travel abroad.

Still, there are ways to pay less. You just need to plan ahead. Buy your airfare tickets a few months or weeks before the journey. You can save hundreds of dollars this way. Book accommodation at hostels, since these cost less than hotels. Make your own meals as much as possible since eating out every day can drain your vacation budget fast.

Frequently Asked Questions (FAQs)

How can I save money after marriage easily?

To save money each month faster, you should budget and track your spending. Use one of the budgeting methods above to help you out. Make sure you save money in a separate account. You will be less tempted to access it for other purposes.

How can we make sure we both save money each month?

For this, you should decide your savings goal together. Then, make a plan. See how much each one of you can afford to put aside each month. The amounts don’t have to be equal. Make sure you both commit to your purpose. Contribute to your savings account with the agreed amount.

How can we avoid debts and save money as a couple?

You can avoid debt by not using credit cards. Try to limit your spending to your available budget and use cash more often. Credit card debt is a vicious cycle. It can stop you from fixing your credit as fast as you can.

Sources:

Can I have two bank accounts with the same bank? (n.d.). Retrieved July 18, 2022, from https://financeband.com/can-i-have-two-bank-accounts-with-the-same-bank

Down-payment: 20% is the benchmark. How to Calculate the Size of your Down Payment? 20% is the Standard. | Mortgage News Blog. (n.d.). Retrieved July 18, 2022, from https://news.mortgagecalculator.org/down-payment-20-is-the-benchmark/

Best online banks and rates – July 2022 | US news money. (n.d.). Retrieved July 18, 2022, from https://money.usnews.com/banking/online-banks

Keyes, S. (2022, May 12). 25 ways to save money on flights. RSS. Retrieved July 19, 2022, from https://scottscheapflights.com/guides/how-to-save-money-on-flights