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If you are getting married soon, you may want to consider having a discussion with your future spouse or partner about finances.
Here are some tips on how best to navigate the financial sector when you are combining your money and assets in marriage.
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Look Into Joint Accounts
Although it is ultimately up to you whether or not you want to completely merge your finances with your spouse, it is a good idea to research on getting a joint account to see if it is the best fit for your financial situation. The biggest advantage of having this type of account is that you will always know what your financial situation is, without having to check multiple accounts. Both parties know exactly how much money is in each account, making budgeting and paying bills a much easier task. It also promotes equality in your marriage, as you both have access to the same money.
Check Your Credit
Having a good credit score is extremely important. Higher credit scores unlock better deals on car loans, home loans, and extended credit lines. There are many websites that you can use to check your credit score, as well as monitor when your score rises or falls. If you need to improve credit score, then you do not have to worry. You can easily do this by paying down your debts, and making regular payments. A good tip is to make small charges to your credit cards and make payments on a weekly or biweekly basis. This way, you are still increasing your credit score without going into more debt. You should have your credit score up in no time.
Decide on Financial Goals
When you are figuring out how to work your finances in marriage, it is imperative to make financial goals for the future. This is entirely dependent on both of your incomes, as well as what you are planning to do in the first few years of your marriage. Some of the most typical goals of new couples are saving for a down payment on a home, or saving enough to move to a new city or state. Once you make a list of your goals, calculate how much you will need to save in the time frame that you wish to have acquired the funds necessary.
Come Clean with Debts
Honesty is a cornerstone of a healthy marriage, and even if you have debts, it is important to disclose any lingering debts that you have with your future spouse or partner. This way, you can plan on how to pay them off as quickly as possible, and get a good overall picture of your finances. Because these will be a part of your monthly budget, it is essential that you fill your partner in on the amount that your payments will be, and if you cannot afford the debt, how best to arrange your finances to accommodate it. It may seem intimidating, but it will be a huge relief to be completely honest.
Establish a Budget
Once you are married, you will have a completely different perspective on your monthly and yearly budgets. For example, you will now have two incomes, but you will have to factor in things that you would not have previously considered, such as expenses that are exclusive to your partner or spouse. It is best to have a meeting between the two of you where you outline how much income you are bringing in every month, and outline everything that you will be spending money on. Once you have it all down in a spreadsheet or on paper, it will be easier to evaluate where you can cut back, if necessary.
Finances with your married partner do not have to be intimidating. With these solutions, you will be able to form goals, be completely knowledgeable of all aspects of spending, and be at peace with your monetary situation.