Newlyweds Combining Finances

FinancesIf you are planning to combine finances in your marriage now is the time to talk about it. You must make sure you’re both interested in the same financial goals or be able to compromise for each person’s vision of your financial future.

  1. Talk About It Before The Wedding

It is good to discuss the state of your current finances. If one or both of you have debt can you come up with the best plan to tackle it. This may be a good time to determine both of your credit scores as well.

  1. Have A Goal To Make A Budget

After talking you may decide your goal is to have 20% down for a house in 5 years or be debt free other than a home mortgage in 3 years. It may be that one of you will need a newer car in just a few years too. Next comes the budget on how to achieve those goals.

  1. Will You Consolidate

Finances from debts to investments can be simplified by combining accounts. It would probably be beneficial to have all accounts at the same financial institution as well.

  1. Make The Big Decisions Together

Both of you should have a say when it comes to money. One of you may take on the main task of bill paying and keeping track of what’s coming in and going out, but where your money is spent is a mutual decision.

  1. Live Within Your Means – Savings Takes Time

Everything adds up. New to you cars, houses, your children, college and retirement are all expensive. If you are able to save even a little every month eventually it will add up. Don’t buy the house, car, or other purchases that may put your short or long-term financial health at risk.

  1. Set Aside More When Times Are Good

Save or invest that new pay raise or yearly bonus instead of spending it.

  1. Be Honest…And Forgiving

It is a given that at some point one of you will make a decision or purchase that the other does not agree with. Work it out.

 

Photo by Katie Lindgren Photography