Financial Advice for Newlyweds
Financial issues can cause a great deal of dissatisfaction in the lives on newlyweds. In order to keep money from ruining your honeymoon, you need to be able to evaluate and make common sense decisions about how to handle your money. By taking these steps early in your marriage, or even before you are married, you will make this aspect of your married life much easier.
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Be upfront about debts
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Newlywed couples, or better yet engaged couples, need to sit down and discuss the state of their finances. They need to be upfront about debt, credit ratings, income and expenses. They need to work together to improve any financial issues and to plan for a healthy financial future. It may even be smart to make an appointment with a financial planner to help make sense of it all.
Assign payment duties
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Look at your combined income and at the costs of your newly combined household. While you still have separate debts incurred before marriage, it is a good idea to make each person responsible for the bulk of his or her own debts plus a portion of the household debts according to income.
Set shopping permission rules
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As you are now a couple you need to understand that purchases made by one family member will affect the other. Depending on your income, you need to set a price point at which you will get permission from the other person before making a purchase. For some it's $100, for others it could be more or less depending on income.
Update your policies
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Update your insurance policies and write or change your wills. As a couple, you may want what is yours to go to the other person should something happen to you. If you are independently wealthy of course, you should consider prenuptial agreements, but beyond that, you should make sure your spouse is provided for.
Work toward combining finances
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A loving, trusting couple should be able to combine their finances with one person taking the primary responsibility of paying bills and keeping the other person informed of their financial situation. Sharing financial duties and concerns might be difficult at first, but as the couple eliminates individual debt and gets into a comfortable financial rhythm with their new household, this should be a natural progression.
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