5 Financial Tips for Newlyweds

With getting married comes a lot of changes and these include your finances. Though dealing with money issues is not the most romantic of tasks, couples should take time to sort out their finances as soon as they return from the honeymoon. If you’re a newlywed couple, here are tips on how you can build a good financial foundation at the beginning of your married life.

1. Don’t Keep Secrets

Transparency is the key when you talk about money with your spouse. As you discuss financial matters at the beginning of the marriage, make sure to disclose every financial detail with each other such as your current financial status, debts, and money habits. For instance, do you have the tendency to be impulsive and spend big or are you more inclined to live frugally and do things on a budget? Are you more of a saver or spender? How about investments? Do you tend to be on the safe or risky side? When you discuss finances with your spouse, lay your cards down and be ready with your financial statements and other important documents you have concerning money. Whether negative or positive, you need to disclose these details as early as now to avoid future disputes. In fact, if you are facing financial hurdles before tying the knot, it may become more manageable now that you have someone to help you.

2. Find the Best Account Set-up

Deciding which account to put your money in is another concern that you need to discuss as a couple. Are you going to combine your money in a joint account or are you going to keep separate individual accounts? Most couples today opt to open a joint account for their combined expenses, and retain an individual account for their personal spending. This can be a good way to divide income and expenses when both spouses earn a regular paycheck. It also provides a level of financial independence and space for discretionary spending on both sides. Of course, it can be daunting to ask permission from your spouse each time you want to buy something you want and this may even result to conflicts and fights. Meanwhile, a joint account can make sense when only one spouse is working. That may work because income comes only from one person and there’s only one paycheck to budget. There’s no specific rule on how you and your spouse will allocate your money using different accounts. To find which suits you best, you need to look at your income and how much financial independence you want to retain now that you’re married.

3. Set Goals

As a couple, it’s important to know what you’re aiming for especially in the area of money management. Having goals keeps you focused, enhances your teamwork, and improves your overall financial outlook and status. Experts say that newlywed couples should set goals that can be attained in a matter of months, years, and decades. Short-term goals include building an emergency fund that’s equivalent to about three-six months worth of your expenses. Goals that can be attained in a span of one to five years are going to an out-of-country destination, or putting a down payment on a property. Meanwhile, long-term goals include saving for a child’s college education and retirement.

4. Evaluate your Insurance Needs

Major life changes such as getting married warrants an evaluation of your current insurance policies and in some cases, it may prompt you to consider getting new ones. rnIf both of you receive health insurance through your employer, determine if it will be more suitable for you to be under the same plan. If so, decide which offers the best coverage and reasonable cost. At this point, you should at least look into getting life insurance. This is a good financial risk management tool that can protect your spouse and future family on the impact of an unforeseen loss. If you currently have this policy, evaluate your coverage and see if you need to make changes and adjustments.

5. Enjoy Life

Marriage is not all about hearts and flowers, but that doesn’t make it less worthwhile. If anything, you should enjoy it more now that you have someone to share everything with. Remember that financial planning as a couple is not just about keeping as much money as you can and depriving yourself of the luxuries in life. It’s about creating a balance between allocating your wealth for your needs, working on your financial goals, and enjoying the fruits of your labor. Sources:

• http://www.forbes.com/pictures/fjfi45jgg/13-update-or-re-evaluate-all-your-insurance-policies/
• http://www.kiplinger.com/article/retirement/T037-C014-S001-5-financial-tips-for-newlyweds.html
• http://money.howstuffworks.com/personal-finance/budgeting/5-financial-tips-for-newlyweds.htm#page=5