Money Tips For Newly Weds
posted on Oct 18, 2018 | 105 likes
The money talk with your better half
As unromantic as it sounds, finances play a big role in how successful and how happy a marriage would be. On the bright side, a survey revealed that couples who trust their partner with finances feel more secure and happy in their relationship.
As married couples, you would inevitably begin to coexist, co-spend and co-save and the finances could become a bit tricky and overwhelming sometimes mostly because you now have to consider your partner.
But as overwhelming as it may seem, the following tips would help pave the way for a smooth financial start for newly married couples.
1. Start The Conversation
Ideally, the money conversation should already occur before walking down the aisle and saying I do but, if that has not been done to the letter, now is the time to have the money talk. One of you might be tempted to abandon the financial details to the other partner but this should not be so.
You both need to be aware of your financial situation to know what each person is bringing to the table in terms of salary, savings, assets, loans etc. This would pave a way for proper planning.
2. Set a Budget Together
Budgeting is usually not fun for most people but it is very necessary in preparing for a tension free, financially healthy marriage. Although how you set your budget depends on the details from your financial conversation, the most important thing is that your needs and wants should align with what you both have at hand to spend. Most importantly ensure you both have a long term savings or investment plan.
3. Set Some Goals
Every financially healthy marriage begins with goal setting. To be financially healthy, couples need to set both short and long-term goals. When setting a short term goal it is important to be certain of your short term goals. If you are not sure of what your short term goals are, they are usually things or activities you would like to buy or achieve in a year or two, like taking a vacation or renovating your apartment or buying a new car. Once you have set your short-term goal, it is advisable for you to set up different savings account for each goal with an automated savings plan in order to achieve your short-term goals.
In regards to long-term planning, anything two years out and further should be considered as a long-term goal. For instance, buying and owning a home could be a long-term goal, sending your kids to a private or government-owned school is a long-term goal. And of course, your retirement plans should be considered as a long-term goal. Since these goals are further out, you'll want to get your money working harder for you in the meantime and this is when investing comes into the mix.
4. Start Investing
The image of what you want your retirement to look like is as important as your investment plan but before you take the decision to invest, you need start an investment plan with goals in mind on what and why you are investing, next to that is knowing the right financial institution to invest with, so it does not seem like you are gambling with your money.
If you could start and stay committed to these four tips at the very beginning of your marriage, then be sure to have a smooth ride financially. You could also visit financial institutions like Page Financials when you need to get a loan to pay heavy bills or start an investment plan.