Marriage and Financial Goals
Ah Spring, a popular time for those who have found true love to tie the knot.
Healthy Financial Goals for Couples
While making plans for engagement parties, showers, the wedding venue, cake, flowers, dresses, music, the honeymoon, and so on, it’s all too easy to get caught up in the romance and overlook your finances. However, it is important to take the time to make realistic goals and organize your finances together as a couple to support your marital bliss.
Marriage and Financial Stability
There is data that shows that financial stability is increased by marriage. Whether you are considering marriage or have recently been married, defining financial goals together is essential. Open discussion about financial goals such as savings, spending habits, debt, and even charity need to be part of contributing to financial plans that meet both partners’ desires.
Healthy Financial Habits for Couples
Full disclosure before strolling down the aisle. Make sure you and your partner are aware of all liabilities like credit card balances, car loans or other personal debt. This will serve as the foundation for building your financial plan together.
Kiss your debt goodbye.
Make reducing and paying off debt a priority. At the same time build a savings account for emergency funds to use. Save up the cash for large purchases for a new couch or appliances.
Build a budget together.
Take an honest look at all of your ongoing expenses from trips to the spa to car payments. One person needs to be the keeper of the checkbook to help avoid confusion. If you are planning on buying a home together, contact a mortgage loan officer for a consultation on how much you should budget and how to prepare for an application before starting the home-buying process. A good rule of thumb is to make sure payments do not exceed 25% of your total take-home income.
Financial planning for the future.
Make sure to have a conversation about your retirement goals and agree upon the vehicles such as IRAs, 401Ks, and other investment strategies to help get you there.
Review your financial plan regularly.
Annually if not more often, take time to review your plan to see what is working and what is not working. Address goals and whether these need to change, be modified, or be deleted. Continued monitoring of your plan will help you stay on track and maintain financial bliss in your new life together.
While it may not be the most exciting part of your wedding plan, it is a very important component to ensure that financial bliss isn’t just a fairy tale.