Posted on Friday 27 April 2018
Marriage is an exciting step for most people. Entering into a union and partnership with the person that you love, cherish, and care about is wonderful. However, like most things, entering a marriage requires and involves thorough financial planning.
Chances are that both people have contrasting financial histories. When entering into a legal partnership, total and complete transparency are absolutely paramount.
Here are helpful steps you can take as a couple, as you prepare to say your wedding vows.
As cliche as it may sound, honesty and communication are the foundation on which a good marriage is built. This is especially applicable when money is involved. Before and throughout the marriage, both parties need to be honest about their financial standing and positions. For instance, if one of you has fallen into debt, it’s best to be upfront about this. If one person is being badgered by debt collectors, this will ultimately affect you as a couple.
Entering into a marriage based on lies is extremely problematic. When money is involved, this can lead to dire consequences. The bottom line is to always be honest, omit nothing, and make sure that both of you are on the same page.
As affirmed by The Balance, the creation of a joint budget is very advisable for couples. A budget matters because it allows both people to assess their financial standing and then come up with a plan to meet all needs. For instance, one or both of you may be bringing certain liabilities, assets, or spending habits into the marriage. There needs to be a common understanding of incomes, expenses, payments, etc.
Many spouses also use joint bank accounts. Joint accounts are usually used for mutual expenses such as rent, groceries, car notes, etc. However, most people maintain ownership of at least one separate, independent account. This is great for attending to your personal spending needs such as eating out, shopping, going to the movies, or other similar expenses.
Ultimately, having a budget and an understanding of who controls which account is important.
Married couples who want to record milestones should plan thoroughly. Your plans may include having children and reaching retirement. The fact is that both children and retirement are expensive.
If parents also consider that their children will one day want to attend college, putting aside funds for their college tuition and other associated fees is a pretty good idea. The cost of living keeps going up with each passing day and a couple needs to be prepared. You both need to have basic knowledge of how to handle money.
This is applicable to not only having children but also for entering retirement. Both parties should have enough money saved up to live comfortably and handle emergencies without having to worry about funds.
Marriage often requires good financial standing. This means that both apartments need to take important steps to improve their financial habits. Regardless of how much planning is done, marriage can still come with certain bumps in the road. However, nine times out of ten, financial planning can considerably decrease and minimize the impacts of any problems which may arise. You may seek alternative ways to bring in revenue as a couple. For instance, you can make money on Instagram by creating sweet and realistic couple content.