When you get married it's not only love that is going to guide your path but financial matters as well. When you are coming together as a couple, you'll need to sit down and put together some financial plans carefully so that you're both on the same path. Money can easily spoil the bliss that comes with the new marriage when both partners aren't tracking.
Here are 4 financial tips that newlyweds can use either before or shortly after the wedding takes place:
1. Organize everything
Sit down and put together a budget based on your income, your debts and your lifestyle. Important topics for conversation include your feelings about investing, taking out loans, the ownership of assets and how the money will be divided.
2. Setting strategic financial goals
A lot of your financial plan should be based on your short-term and long-term goals. For example, if both you and your husband love to travel, you'll need to see how the yearly vacation can fit into your budget. In some cases you may need to forgo a vacation in order to save up for a new home. This should also be discussed so that you're both in agreement with the ultimate long-term goals.
3. Organizing the bank accounts
Are you going to own a joint account for savings and have 2 separate chequing accounts? Do you want to bundle all of the money together into one chequing account? Who is going to be in charge of paying all the bills? These are just some of the questions that you'll need to go through as part of your marriage plans. Usually there is one person that handles the logistical part of the money, which includes paying the bills, putting money into the savings account, dispersing the spending money etc. As long as everything is kept transparent and the other partner knows exactly how things are getting handled, this can work out fine.
4. Put a protection plan into place
Once you have organized your finances you'll need to protect them. You should both explore your insurance coverage options and see what is needed and makes good financial sense. If you and your partner are eligible for reasonably priced life insurance, this can be an important step to take. The best time to get life insurance is when you're healthy and still qualify for the lower rates. It will be especially useful when you start to have a family and look at home ownership. Overall, you need to have the income rolling in, have it organized, make someone responsible for it and then protect it as best you can.