Financial Planning after Married – Planning Your New Financial Life Together
Financial planning can become even more blurry for newly married couples. Marriage introduces changes in a new couple’s financial situation that will affect all aspects of their life together. It’s important to plan for your financials future beforehand, so you have idea of what to expect. Once you get married, most newlyweds’ open a joint checking/saving accounts. Understanding how to navigate through these changes can be challenging, but planning ahead can allow you to build a strong financial foundation for your relationship.
The honeymoon’s ever, so it’s time to start living in the proverbial “real world” as a united team! (expert advice)
Here are steps to take and tips to make sure you get on the right track for a lifetime of properly managing your joint .
- Start Talking About Finances
- It’s best to do this before you get married, but if you have not, discuss finances with your new spouse as soon as possible. You’ll need to go over what accounts you have and how much debt you carry. You’ll also want to be clear on how you expect money to be handled. For example, let your spouse know if you expect him or her to discuss purchases over $100 with you first. Make sure each person has a good understanding of where you stand financially as a couple and the expectations that the other holds.
- Determine your net worth
- Net worth is the difference between assets and liabilities. Make a list to figure out your net worth, make a list of all the things that you own and assign approximate values to each one. Then make a list of all your debts. Subtract these two numbers and you will have your net worth.
- Family accounting
- There are both pros and cons to opening a joint bank account or to maintaining your individual accounts after you’re married. You can even do both. Combining accounts can simplify your finances and may help breed trust in a marriage. Moreover, it may be especially valuable when one spouse chooses to take on more household or child-rearing duties than the other and as a result there is inequality in income.
- Set goals
- Discuss your long-term financial goals in-depth. For example, do you plan to retire at a certain age? Do you want to get out of debt and become a millionaire?
- Statistics are showing that 95% of senior citizens can’t afford to retire. Set goals and start saving for your future today. Create short-term goals and long-term goals. Make sure when you set your goals that you are actually striving for them so they should be adjusted to your spending lifestyle
- Planning for the Unexpected
- Now that you’re married, you will also need to make important decisions about insurance and estate planning. If both of you work and are covered by a health plan through an employer, it is important to take a look at which plan will be the most beneficial. Getting married is one of the life events that allow you to change your health insurance election without waiting for the open enrollment period, so use this time wisely.