There are few guarantees in marriage, but one of them is this: You’ll have to spend much time discussing your household’s finances with your spouse. It doesn’t matter the age you marry, your commitment means you’ll have to share in the good and the bad. You may have to share your spouse’s credit card debt, student loans, child support commitments and other messy financial troubles – or it could be the other way around where you subject your spouse to your financial woes.
You might be tempted to shelve the topic of your finances for as long as possible. A history of poor financial management may put a damper on romance, after all. But even if you’ve both managed to keep your financial profile intact, marriage links both your finances, so it’s a topic that deserves some thoughtful discussion.
As a start, you’ll have to address questions like: Who will pay the bills? How will you share the expenses? What are your plans for saving? Will you combine finances?
The tips below will help newly married couples to manage their joint financial status and avoid the pitfalls that affect so many couples. Discuss your financial matters today to ensure marital bliss later on.
Commit to Saving A Percentage Of Your Household Income
Don’t assume that you’ll always have the income you now enjoy. Sudden interruptions in your income – whether voluntary or involuntary- may be lurking around the corner. In this uncertain economic climate, there’s the possibility of losing your job. One of you might decide to go back to school or stay at home to care for the children. You’ll have more options if you have a substantial amount of money saved. Your savings will guarantee that you avoid a sharp drop in your lifestyle when one salary is no longer available.
Commit to saving a percentage of your income every month, and stick to your commitment.
Compare Spending Habits
Your spouse might not share your beliefs about money; his spending habits may come as a complete surprise. Spouses who have different financial values need to spend a lot of time discussing their finances. This includes talks about spending habits, debt, and how to manage it.
Plan A Budget
A budget will help to curb unnecessary spending and point out exactly where your money goes. Discuss your financial goals before you build your budget. This will help you to include a plan for meeting those goals.
Get Rid Of Debt
Have a plan to pay off credit cards and student loans. Clearing your debt is the first step towards achieving the goals you’ve set as a couple.
Purchase Life Insurance
You might be uncomfortable discussing the subject of death, but you need to be prepared if the unthinkable happens. Life insurance will protect your finances if your spouse should pass away.
Combine Your Policies
Combine all your insurance policies under one provider and save money. For instance, companies will give you a discount if you combine your car insurance, health insurance and life insurance.
Start a Retirement Fund
It is never too early to start planning for retirement. Make an appointment with a financial advisor to discuss your options.
Live within your means and you’ll enjoy years of marital bliss.
Barry Johnson is a personal finance consultant. His articles mainly appear on money blogs.
Recent Comments