Just Married? These Six Financial Advice Might Be Helpful!
When you are starting a family, it is time to take your finances much more seriously than before. After all, marriage signifies the start of a new relationship where the two partners depend on each for everything – and that includes finances. Money often becomes a topic that gives birth to several marital issues, and in worst case scenarios, this can even lead to divorces. Only one or both of you may be earning, but in marriage, you should both have a say regarding financial planning. In fact, if you want a strong and loving relationship, you and your spouse must help each other constantly when it comes to finances, among other things. Be transparent about money matters, and don’t ever hesitate to come clean about an issue. Here are some of the best tips for newlyweds regarding finances post-marriage:
Talk About Financial Goals
Talk about each other’s financial goals. Embrace the fact that you two had different backgrounds while growing up and might have your own ideas and goals when it comes to money. So have a lengthy discussion on that and understand each other. Someone who has grown up in a financially backward environment and seen their parents fighting over it all the time might want to do things differently while it might not be the same for someone with a completely opposite background. This will take some time but have the discussion when you can. Once done, talk about your mutual financial goals, and always make sure that you are both on the same page while doing it. Compromise if any disagreements arise and try to be understanding of what your spouse wants financially while also calmly sharing your own.
Get Organized With Your Money
Once you have set your financial goals, you need to work towards them, so draw up a contingency plan. The first step would be setting up a budget for your home. The 50-30-20 rule might work well for you at this point. Here, you will keep 50% of your earnings for your needs, 30% for your wants, and 20% for your savings. Of course, you must differentiate between your needs and wants. Newlyweds often end up using a lot of money towards unnecessary things; of course, spending money to surprise your partner during a special occasion is totally allowed. Once the budgeting is done, decide how you would like to save – whether to have a joint account or individual ones. Update paperworks that require your spouse’s name on them. If you have any active loans from before your marriage, try to repay them first or have a plan that will resolve it fast.
Now that you are married you might get a few tax benefits. Do your research and ask your employer or your financial advisor if you have any. If both of you have 401 (k) or 403 (b), contribute to those accounts as much as you can afford. Also, it might be wise to know about all tax-saving options once you have kids. It is better to be prepared. Health saving accounts might also help you save on taxes.
As a married couple, it would be wise to take care of each other and make sure that it happens even if you are not around. Invest in health insurance, disability insurance, and life insurance to make both your futures safe and secure. Life insurance can be of two types – term and permanent. As the name suggests, term insurance is less expensive and works only for a certain period of time. Permanent life insurance is more costly but covers you for life. Discuss with your spouse which ones you can avail based on your needs.
Make A Will
It is hard to think of making a will when you have just begun a life together but this world can be very uncertain, and you probably don’t want your money to go into wrong hands, so make a will. Your attorney will help you out with it if you have little to no knowledge about how things work. You would need an executor, and you can state in there how you would like things to continue in your absence.
Finances should play a big part in our lives, but we tend to keep neglecting it because it is not easy. Well, handle the tough things first; the easier ones will follow soon!
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