Strategies for Managing Financial Ups and Downs in Marriage

Brian Page
Dec 23, 2025
3 min read

Essential Considerations for Transitioning into Marriage

Discussing money before marriage helps prevent financial surprises after tying the knot, including paychecks that change from month to month. Conversations about money should begin well before marriage, and income expectations for each partner are a critical place to start.

Many couples face the challenge of managing large swings in monthly income, often referred to as income volatility. This can show up as unexpected windfalls, such as large tax refunds or bonuses, or sudden setbacks like job loss, reduced hours, or fluctuating self employment income. Balancing financial stability while navigating these ups and downs requires intentional planning and honest communication.

This post explores practical ways couples can manage income volatility and build a solid financial foundation together.

Understanding Income Volatility: Insights from the Aspen Institute

Income volatility refers to irregular changes in household income over time. It can result from changes in employment, variable compensation, business income, or unexpected financial events. Research from the Aspen Institute shows that income volatility is increasingly common and affects households across the income spectrum.

According to research released by the Aspen Institute:

According to the Aspen Institute’s findings:

55 percent of American households experienced an income drop of at least 25 percent within two years
40 percent experienced a job loss or reduced work hours
33 percent experienced fluctuations in self employment or business income
25 percent faced unexpected expenses such as medical bills or major car repairs

Importantly, this research shows that income volatility is not limited to low income households. Middle and higher income couples experience it as well, especially when compensation includes bonuses, commissions, tips, or equity based pay.

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The Importance of Budgeting for Emergency Funds

A clear and realistic budget is essential for managing income volatility. Budgeting allows couples to track income, expenses, and savings so they can make informed decisions together rather than reacting in moments of stress.

A core part of any strong budget is an emergency fund. Research from the Financial Diaries Project highlights how critical savings are for absorbing income disruptions without relying on debt. A healthy emergency fund typically covers three to six months of essential expenses, including housing, utilities, food, and insurance.

By consistently setting aside a portion of income during higher earning months, couples can create stability during leaner periods.

The Budgeting Process

When building a budget, couples should start by identifying fixed expenses such as housing, transportation, and debt payments. From there, they can plan for variable spending like groceries, childcare, travel, and discretionary purchases.

Savings should be treated as a priority rather than an afterthought, especially for couples with unpredictable income. It is also important to plan conservatively when committing to major fixed expenses. Large obligations such as mortgages, long term leases, or car payments can become a source of stress if income dips unexpectedly.

Couples who experience significant income volatility, including tipped workers, entrepreneurs, or bonus based earners, should be especially cautious before locking themselves into high fixed costs.

Knowing When to Seek Professional Support

Income volatility can strain even strong relationships, not because couples lack discipline, but because uncertainty increases emotional pressure. In these moments, professional guidance can be helpful.

A trained financial professional can help couples align on priorities, create flexible systems, manage debt, plan for taxes, and make long term decisions with greater confidence. More importantly, the right support creates space for productive conversations instead of recurring conflict.

Professional Support

I support couples who want to better manage money or the home as a team in their relationship.

I am the only Accredited Financial Counselor™ and Fair Play Facilitator™, and as of 12/23/25 a Certified Financial Therapist-I™ Candidate.

I empower couples build systems for managing money and household responsibilities together. My work integrates financial planning, emotional awareness, and practical teamwork so couples can feel more secure and connected as they make decisions.

If you and your partner are navigating income volatility, preparing for marriage, or trying to create a more stable financial foundation, you do not have to figure it out alone.

Click here to set up a free 15 minute exploratory call and explore how we can build a plan that supports both your financial goals and your relationship.

Citations:

Aspen Institute. "Understanding Income Volatility: How Income Volatility Affects Families and Communities." Aspen Institute, https://www.aspeninstitute.org/publications/understanding-income-volatility-how-income-volatility-affects-families-and-communities/.

Aspen Institute. "Financial Security and Mobility." Aspen Institute, https://www.aspeninstitute.org/issues/economic-opportunity/financial-security-mobility/.

Financial Diaries. "Building Financial Stability for Low- and Moderate-Income Families." Financial Diaries, https://www.financialdiaries.com/.

U.S. Department of State. "Personal Budgeting Basics." USA.gov, https://www.usa.gov/personal-budgeting.