Everyone knows that weddings have a tendency to leave a dent (or deep crater) in your wallet. Many couples have trouble financing their special day and weddings are actually one of the most common reasons people get a loan.
But what about the financial reality after you’ve tied the knot?
Inefficient money management is one of the leading causes of marital disputes and if left unchecked for too long often leads to divorce. Taking care of finances is vitally important for newlyweds in order to maintain a healthy relationship.
This article will go over some of the best financial tips for newlyweds.
Staying organized
In order to successfully manage your finances as a newly married couple, getting organized and staying that way is how you build a solid foundation from which to grow. Start by listing all income, assets and debts that you may have.
Next, you want to determine how your assets will be joined or split. Discuss with each other if you will have separate or joint bank accounts for personal expenses, paying bills, etc.
You then should be looking to get all your paperwork in order (name changes, etc.) and start thinking about a budget. Keep all relevant financial information neatly ordered in an easily retrievable location.
Goal-planning
Once you’ve got yourselves organized, it’s time to start planning your goals for the future. This includes everything from budget adherence to your retirement plan.
Will you be looking to purchase a home or a vehicle or have children in the near future? All of these things need to be discussed with your significant other.
If you and your spouse aren’t in the same ballpark when it comes to financial goals, you will be setting yourselves up for crash-and-burn failure from the get-go. This means there will have to be a certain level of compromise between the two of you in order to achieve your stated goals.
Communication
Good communication or lack thereof can make or break a marriage, both romantically and financially. If both partners are committed to great communication, the chances of success are immeasurably better than if you try to read each others’ minds.
Communicating effectively is all about listening, timing and compromise. Your finances can easily fall apart if you don’t take the time to listen and understand each other and be prepared to make the necessary concessions to make something work.
Budgeting
After getting organized, planning your goals and establishing good communication, budgeting will be the road to financial success and freedom in the long-run.
Here are some great tips to get you going:
- Categorize (food, entertainment, etc.)
- Look for ways to minimize taxes
- Create an emergency fund
- Make adjustments (budgets change and evolve over time)
- There are plenty of apps to help you budget
Final thoughts
A financially sound marriage is a healthy one and taking the steps necessary to properly manage your money as a couple will benefit you greatly in the long-run.
This means getting (and staying) organized, planning your goals, communicating with each other and budgeting effectively.