3 Financial Tips for Engaged and Newly Married Couples
By Solid Serenity Legal Solutions
Marriage is a lifetime commitment between 2 perfectly imperfect people. Along with that commitment, come the different habits and ideas each person in the couple brings to the table.
Combining your lives, and your finances, can be tricky at any age and stage of your life. Here are 3 Financial tips for engaged and newly married couples to make the transition easier.
(1) Agree On a Budget
Budgeting is important for everyone. But, combining households makes the process a bit trickier. As a single person, you could do what you wanted when you wanted with your money. But now, each individual’s spending decisions will affect the couple as a whole.
You will need to look at your combined monthly expenses and income. Then, plot out how much you need each month to cover your basic needs. If there is any extra money left each month, plot out how to properly use the extra money- whether to save for short or long-term goals, or to pay more toward debts.
Money is one of the biggest areas for fights in a relationship. So, make sure you are both on board with the budget so you can reduce the risk of fights about money.
(2) Set Financial Goals Together
You are no longer a lone wolf in the big, vast world. Your fiancee/spouse and you are now a team. So, you must approach your financial goals together.
Take the time to discuss what goals each of you have. Make a plan together about how to achieve those goals, with set dates and times. Review your goals together throughout the years to make sure you are on the right track and nothing has changed.
(3) Make Plans for the Future
Sometimes it can be hard to see the forest for the trees. When you are struggling to pay your bills, enjoy your free time, and have a productive work schedule, looking to the future seems like an afterthought.
But, planning for your future is vital to your success in reaching your goals. First, think about the benefits each of you get from your employer/business. Would it save you money for one person to carry the benefits for the couple? Does one person’s company offer a better matching plan for retirement? Would it make more sense to pool your resources to get a higher amount from the company?
Second, save an emergency fund. Life loves to throw us curve-balls. For instance, you could be having the best year of your life when a Pandemic hits and your hours are suddenly cut.
An emergency fund with 3 to 6 months of living expenses saved can be the make or break for your family in hairy situations. That fund can also help when the air conditioner or hot water heater suddenly break and your facing a large, unexpected expense.
Lastly, think about how you will protect your fiancee/spouse when you die. Life insurance can help your spouse replace your income for a period of time to pay the bills. Estate planning like Wills and Trusts allow you to make the plans and provisions for your spouse you want, instead of leaving it up to the Court.
Planning your financial goals and future can help couples navigate the financial challenges they face throughout their lives. Book an appointment so we can get your plan started.