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!
More in Financial Advice
Here’s Why Financial Planning Needs to Be a Part of Your Life
You are probably one of these two kinds of people – you either swear by your financial plan or you wing...June 9, 2020
These Are the World’s Most Expensive Cities!
Let’s say you had the money to live a wealthy lifestyle in the most upmarket cities. Where would you live? Well,...June 8, 2020
Four Ways to Make and Save Money While in College
All your life you’ve dreamt about this big moment. You are going to college and living life on your terms. However,...June 5, 2020
Three Biggest Mental Money Traps You Need To Avoid Right Now
Most of us live our lives thinking just on the lines of the poor and the middle class. Surprisingly, you are never able to...June 4, 2020
How to Become Popular on Social Media
If you are thinking of sharing your art and ideas with the world or wish to become famous and earn money in...June 3, 2020
How To Paint Your Walls Just Like A Pro
Need to give your home a makeover? Well, painting your interiors is the easiest way to do so. Not only you...June 2, 2020
Worried About Your Business? Here’s How You Can Recover After a Crisis
The COVID-19 pandemic is having a devastating effect on humanity by claiming countless lives in its grasp. A man-to-man contact spreads coronavirus. It...June 1, 2020
Craziest Things That Celebrities Have Purchased With Money
You know that your favorite celebrities sit pretty on mountains of money and lead a very luxurious life. However, what you...May 29, 2020
Here’s How You Can Save $5000 A Year!
There’s are tons of advice on ways to save money, investments, and building a fortune. But how often do these work?...May 28, 2020