4 Financial Planning Tips for the Newly Engaged
Congratulations! You’re getting married, and undoubtedly you are focusing heavily on all the planning and details for your wedding. Marriage is a big step in anyone’s life, and it comes with a whole slew of new responsibilities and decisions that you and your partner will now make together.
While it may not seem like the highest priority right now, getting you and your future spouse’s finances in order can make a big difference in how successful your marriage is after the big day.
Starting a financial plan now can help you and your partner with everything from your honeymoon, to healthcare, and even buying a home. With all of that in mind, here are four financial planning tips for the newly engaged to help you get started on the right path.
1) Combining Your Finances
According to a 2017 survey by The Knot, 55% of newly married couples plan on waiting a year before combining their finances. While that may work for some couples, you and your fiancé should strongly consider taking this step much sooner than that.
Why? From a financial planning perspective, the sooner you and your partner can combine two separate budgets into one, the faster you’ll be able to start eliminating unnecessary expenses and start saving for your future.
While there’s no right or wrong way to do this, it will help you both tremendously to have a conversation about it first. You both need to know how the bills are going to get paid and who will be keeping track of the family budget.
2) Achieving Your Goals
Another conversation you’ll want to have with you partner sooner rather than later is what your short and long-term goals are. Are you dreaming of buying a house in the next couple of years while you partner is planning a foodie world tour? You should find out now.
Achieving your goals as a couple will mean careful planning, some sacrifice, and a healthy amount of determination from both of you to stick to your budget and save as much money as possible.
3) Insuring Your Future
Insurance is almost never a fun topic of conversation for new couples, and it’s not uncommon for most to avoid it entirely. But that doesn’t make insurance any less important to you and your partner’s financial well being as time goes on.
Every couple, regardless of age, should have at least the following things:
- Emergency Fund: A must have for (literal) emergencies, unexpected expenses, and last-minute changes of plan.
- Life Insurance: Yes, it can feel a bit morbid to think about needing life insurance, but the peace of mind it often provides is worth the price.
- Disability Insurance: Protect your paycheck in the event of a long-term injury. This may or may not apply to you and your partner, so consider speaking with a financial planner beforehand to see if it’s a good idea.
When all of those items have been addressed, you and your partner will almost certainly rest easier knowing that if something bad happens, you’ll be financially prepared to deal with it.
4) Eliminating Your Debt
Last but far from least, any debt you or your partner bring into you marriage should be addressed as quickly as possible. Whether you plan to consolidate your debts and pay it off together, or handle it individually, both of you should make eliminate debt your top priority.
While things like student loans, credit card debt, and even car loans can seem like impossible obstacles at first, careful financial planning can usually get you through to a debt-free lifestyle if you put in the effort.
Working With A Financial Planner
Most couples need some financial advice at some point in their lives. If you and your fiancé are struggling with how to budget and organize your family finances, consider speaking with a financial planner to get a point in the right direction.
At Miles Brown Asset Management, we work with clients at every stage in life, across a wide range of income levels, to help them plan, save, and invest for the future. If you need help getting your money situation sorted out, please call us or request a free consultation today.
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