Getting married is one of the most exciting experiences of your life. It is the official union of two people who love each other very much. However, it is also the union of your finances. From this point on, you need to work as a team to build your financial future. If you have never done this before, it can be very intimidating. Here are some financial tips for newlyweds to get you started.
Make Your Will
The last thing you want to think about just after your marriage is the possibility of one of you dying. But since this can happen, it is essential that you have a will. If you’re under the age of 40, you should do so now. This way, your spouse is protected if something happens to you. You’ll also be able to set up your assets for the possibility that both of you die. Making your will does not have to take a long time. Work with a lawyer who can help newlyweds with these kinds of things. Then you can finish it quickly and move on to happier things.
Make Goals Together
All newlyweds know that it is important to communicate with each other. But part of that communication has to include goal setting. Make sure that you’re both on the same page when it comes to setting goals for your future. Consider what you want to do and how it will impact your finances. For instance, what if one of you wants to become a lawyer? While this will require you to pay for school upfront, it can be a good investment for the future. According to the American Bar Association, 28% of lawyers are between the ages of 45 and 54. This is the majority of lawyers. So during these years, you’re likely to make good money.
You should also agree on goals like buying a house and having children. These things can have an enormous impact on your finances. As newlyweds, you might not be considering them right now, but you will have to eventually. If you find that you disagree on how to handle things like this, it could have an impact on your marriage.
Be Honest About Debt
You need to know how much debt your spouse is bringing to the relationship. Likewise, they need to know about yours. This can include things like credit cards, student loans, and medical debt. When you get married, you can become responsible for each other’s debt. Exactly how much you are on the hook will depend on your area, but it will impact you. So make sure that neither of you are keeping any secrets about your debt levels.
Set Aside Emergency Savings
You and your spouse need to work together to save up for emergencies. If you have some money set aside, you can take care of unexpected expenses without having to put them on a credit card. According to a study done by Willis Re in March 2017, the average annual loss from severe convective storms in the US is $11.23 billion. Meanwhile the cost for hurricanes is $11.28. If you find yourself with hurricane damage to your home, you’ll need a way to pay for it.
Newlyweds have a lot on their minds already, but it is important that you set a healthy foundation for your financial future together. As long as you communicate clearly and save money when you can, you’ll be in good shape. Use these tips to help you get your marriage started in a financially healthy way. Applying them now will save you stress in the future.
