7 Financial Tips for Newlyweds

 

 

Marriage is a joint effort, and the only way it's going to work is if you budget your incomes together. Spend some time throwing together a budget, and try it out for at least three months before getting married. This gives you time to make important adjustments and decide if you should share bank accounts after you are married.

 

 

 

Getting married with a low credit score is a disaster waiting to happen. Make sure that you've done all you can to raise your score as high as possible before deciding to tie the knot. 

 

You can improve the score quickly by paying all bills on time and keeping low balances on credit cards. Pay down as much debt as you can before giving half your debt to your spouse…one wedding gift that is rarely appreciated.

 

 

Do you plan on moving to another state? Or maybe you're interested in renting a downtown apartment after you get married? Whatever the case, make sure you plan ahead and have an idea of what your post-wedding life will be like.

 

It’s best to make major decisions about how many kids you want to have, where you want to live and if one parent will stay home with the kids or not. 

 

If you can’t accomplish these tasks before the wedding, they should be used as a foundation for building a shared financial future that will bring strength to your marriage. Planning your finances together gives you a common goal that is healthy for a marriage. As you work together towards a common goal, you will build a stronger sense of yourselves as a couple that will help you stick together when the going gets tough.

 

 

One of the biggest decisions you'll make in a marriage is whether or not you will be pooling your money together. There are pros and cons to each decision, so be sure to talk this out ahead of time. Improper planning can lead to arguments and hurt feelings.

 

If you decide to pool your resources, one spouse can concentrate on managing the money while the other can take on other tasks. Your credit scores will be inextricably bound which can be a good or bad thing. Your spouse’s bad credit becomes yours. Your bad credit may be overcome by your spouse’s good credit. This arrangement works best when you and your spouse have common goals.

 

If you keep finances separate, you can each contribute equally to the costs of living. Keep an account for bill paying that you each contribute to on a weekly basis. You could also each pay specific bills that equal the same total and each will be responsible for a list of expenses. You will keep separate savings and checking accounts. When one spouse is bad with money or has very different financial goals, this is the healthier arrangement. 

 

 

In general, those who are worried about their finances should plan inexpensive honeymoons. The other option is to wait a few years until you can afford the honeymoon of your dreams.

 

There’s nothing wrong with a small weekend getaway instead of a week-long cruise. A small honeymoon now will help you afford a romantic getaway later. 

 

 

Once you've made your decisions regarding how you will live, whether you will pool your finances and which goals you wish to make priority, sit down with a financial planner. Professional advice will help you both develop realistic budgets and a financial plan that includes both your needs.