Getting married is an exciting milestone in your life. And, as with any big milestone, it requires planning and preparation. Don’t just pick out the flowers and book the honeymoon, talk about your finances too. Use these 4 money tips to create a financial plan with your spouse and start off your finances as newlyweds on the right footing.
Arguments about money are the top predictor of divorce, but getting on the same page now can lay a strong foundation and lead to a healthy marriage! Most married couples want financial security – having money to achieve your desired standard of living now while still being able to cover emergencies and reach long-term financial goals. Financial security means greater peace of mind!
Organizing your finances doesn’t have to add stress to your wedding planning. We’ve got 4 financial tips for newlyweds to start your marriage off on the right financial footing so you can live happily ever after!
Be open and honest about your current individual situations, including your debt and your views on money. What do you have? What do you owe? What do you spend? How do you feel about investing? These should all be part of the conversation to avoid any financial secrets.
- Make a list of shared assets.
- Develop a strategy to pay down debts.
- Start a budget.
- Establish your financial goals.
- Plan your spending and saving together.
Join Your Accounts
Newlyweds who start with joint money management can often avoid problems, achieve financial goals, and build wealth. So, start your marriage unified. Working together from a shared account promotes honesty and a sense that “we’re in this together!” Look at your:
- Bank accounts – which accounts will you combine and how?
- Credit cards – will you keep individual cards or add your spouse as an authorized user?
- Tax withholding and investments to minimize taxes and maximize your investments.
Add a Layer of Protection
When you get married, it is important to review, update, and in some cases purchase different types of insurance, including life insurance, health insurance, and disability insurance. You may find that health insurance is more affordable on a spouse’s workplace plan, or you can save by bundling your car insurance into one policy.
If you’re making financial commitments that rely on two incomes, such as buying a house or having children, a life insurance policy is important to make sure your share of the expenses are covered if something happens to you.
Create a Will
Your will is the most important legal document to have. It establishes your wishes about the distribution of your assets and how things should be carried out after your death. Even if you already have a will, you’ll need to update it when you get married. It’s also a good idea to review your wills every 3-5 years to address your changing circumstances.
Congratulations on your decision to make financial security a priority from the beginning, and blessings on your marriage! And know that Members Trust is here to walk with you through your journey!