Discuss On Financial Planning
As the wedding dust settles, just as there are hundreds of details to discuss for the wedding, planning for marriage should consist of many conversations and the conversations should continue throughout the marriage.
Discuss how you’re going to spend your time. Talk about kids and finances.
Many couples will tell you that money is one of the biggest causes of arguments in a marriage. If you want both wedded bliss and a fat bank account, start your life together on the same page.
This advice may seem simple, but following it, is more complicated, so stick to a few rules and you’ll reap the rewards in no time.
Because much of what couples do together comes down to dollars and cents, set some common goals, whether you’re buying a home, taking a yearly vacation, or planning for retirement. Work together to figure out what you can realistically afford.
Realise The Importance Of Financial Management
One of the worst mistakes you can make is to overstretch yourself by getting into a mortgage you can’t afford and a car loan that is weighing you down.
Managing your own money can be challenging enough. But incorporating your spouse’s finances can be overwhelming. In other words, don’t expect to be an expert right away. The two of you have some things to work out and should take plenty of time to do so.
It’s best to do this before you get married, but if you have not, discuss finances with your new spouse as soon as possible. You’ll need to go over what accounts you have and how much debt you carry. You’ll also want to be clear on how you expect money to be handled.
Take the time to set goals together. Talk about expectations. Decide to budget together on a monthly basis in order to keep communication lines open and keep each other accountable.
What you have, what you owe, what you spend, and how you feel about investing should all be part of the conversation. In other words, avoid financial secrets.
In general, everybody knows the benefits of saving money for our ‘rainy day’. But the truth is that we must know exactly WHY we save. This can range from saving for education, saving for a newborn and saving for a new house, etc
Just remember that when it comes to savings, you have to be very specific so that you will not be spending the money that was put aside for let’s say your University term fees.
Talk To A Financial Advisor
Debt can be damaging to any one person, but it is a double threat when you’re married because two people are responsible for paying the money back. Start your marriage out right by eradicating debt and not racking it up again.
Work out a plan with your spouse on how to get out and stay out of debt. A financial advisor can definitely help you out in this area.
You probably have debt from your wedding, school loans or credit cards. Start by paying off each credit card one by one. Pay off either the card with the highest balance or highest interest rate first, while paying the minimum on the other cards.
For school loans, find out loan consolidation options, which may lower your payments and allow for one convenient payment. Devise a plan for short-term debt, such as cutting expenses or taking a part-time job temporarily to pay your outstanding balances.
Don’t Forget Retirement Planning
Although retirement may seem far away, but making a savings plan now will help you avoid the various and surprising stresses that can come with aging and medical problems. These are life’s obstacles and tests that are inevitable.
If you do not plan for it now, you may retire with nothing. Again this goes back to your culture. Making a culture of saving and looking forward to enjoying a comfortable retirement will help you prioritise spending.
Don’t get so caught up in the romance that you forget the practical stuff. Take the time to sit down with your future spouse and talk about money issues.