Planning for Your Financial Future Together
Your big day is approaching fast! And with the whirlwind of planning and activity that comes with getting married, it's easy to lose sight of the big picture. While the wedding and all the planning that comes with it is important, planning for your long-term financial goals shouldn't wait until the ceremony is over.
After you and your fiance find some time to talk honestly about your financial pasts and make time to consider what you want out of your future, the next step is coming up with a plan that works for you both. Even if you've already taken the plunge, there's no time like the present to start planning for your future together. Here are some simple ways to get started:
Create a Monthly Budget
This is one of the first subjects you should explore as you define your financial goals together. Start by mapping out what you think you should spend on monthly expenses, like utilities, transportation costs, groceries, and entertainment, and then compare that list to what you both make each month. Once you've established what you need to spend and how much you both make, then decide how much you want to contribute to savings and investments. Determining the amount to put aside each month will make it easier to reach clear savings goals for your future. If there's nothing left over after allowing for expenses, take a close look at your combined spending to see where you can begin to cut back.
Your budgeting conversation should also include other spending concerns, like setting a cap on how much you can spend individually before talking to each other. What may not seem like much to one person can seem like a fortune to another, so covering this topic is one great way to keep your relationship with each other, and with your money, healthy.
Develop a Plan to Reduce Your Financial Debt
If neither of you brings a debt load to the marriage, congratulations! Odds are, though, that at least one of you will. If that's the case, your first priority as a couple should be to commit to reducing that debt together. Start with any balances that have high interest rates, like credit cards, and consider consolidating some debts, like student loans, to simplify repayment.
Be cautious when combining your personal debts. In the unfortunate event that you should choose to divorce, both parties would be just as responsible for this debt as they would for debt accrued over the course of the marriage.
Designate a Chief Financial Officer
While both of you should have an equal hand in making decisions about your financial future, you may wish to clarify who will take the lead when it comes to day-to-day financial tasks like paying bills and filing taxes. Take an honest look at your personalities and financial styles. Are you organized and detail-oriented while your true love is more freewheeling and spur-of-the-moment? Are you both budget-conscious, financially savvy and interested in splitting the tasks down the middle? Ask these kinds of questions, answer each other truthfully and come up with a clear plan of action that you both can agree on. Don't forget to add communication to the equation, though. Make sure one of you doesn't feel left in the dark or overburdened by responsibility.
Keep in mind that no matter how you choose to manage your financial plan, you should set aside some time each month to discuss your finances together. Check in often, take time to consider your changing goals and ambitions, and always make sure you both still feel good about where you're heading and how you're getting there. Get the conversation started by exploring our Discuss Your Finances Before Walking Down the Aisle and Merging Your Lives and Your Finances pages.
