Marriage is one of the most exciting times in a person’s life. It can also be one of the most expensive. If you’re not prepared for the financial commitment, it can be easy to fall into debt quickly. There are several intentional and informed ways to financially prepare for this milestone. It is a challenging task, full of timelines and goals that require planning and communication, but with the right roadmap, and the proper resources, you’re well on your way to having everything in place before you tie the knot.

Communicate

One of the most important things to do when preparing for marriage financially is to have an open dialogue with your partner about your goals and expectations. This includes everything from how you want to handle money as a couple, to saving up for larger purchases down the road. It’s also important that each individual in the relationship takes responsibility for their own financial health before getting married. This means creating and sticking to a budget, paying off any outstanding debt, and having an emergency fund saved up.

Set Goals

Another key element of pre-marital financial planning is creating a realistic timeline. There are certain benchmarks couples should hit before saying “I do”. These can include things like opening joint bank accounts, merging finances, buying a home, or even starting a family. Knowing what you want to achieve and when you want to achieve it is a great way to stay on track financially and keep your marriage healthy.

Combine Assets

One of the biggest financial decisions couples make is combining their assets. This can be a scary proposition, but it’s also a very practical one. When you combine your finances, you’re essentially pooling your resources and working together towards a common goal. This can be helpful in cases where one spouse earns more than the other, or when there are large expenses looming in the future (like children). There are several different ways to merge your finances, so it’s important to discuss what will work best for both partners.

Get Educated

One of the best ways to ensure a smooth financial transition into marriage is by educating yourself about money management. There are plenty of resources out there, like books, articles, or even online courses. It’s important to have a solid understanding of things like budgeting, investing, saving for retirement, and more. This will help you make informed decisions as a couple and avoid any potential money-related arguments in the long run.

Being financially illiterate is one of the quickest ways to put a strain on your marriage. It’s detrimental to you and inhibits the progress you instead to make together as a couple.

Learning about money management together is a great way to bond as a couple and prepare for your future.

Utilize Resources

There are also many helpful resources available specifically for couples preparing for marriage financially. These can include online calculators that help estimate how much you’ll need to save for a wedding, or organizations that provide free or discounted counseling services. If you’re feeling overwhelmed, don’t be afraid to reach out for help. The most important thing is that you start planning early and stay organized.

Prepare For The Changes

Your financial status will change once you’re married. There will be several adjustments to your monthly expenses like adding your spouse to your health insurance or combining your debts. It’s important to be prepared for these changes and have a plan in place to make them as seamless as possible.

You need to update your car insurance policy as well. If you have a joint policy, both drivers will be covered under the same plan. This can be helpful in case of an accident, as both drivers’ rates will not increase. If you each have separate policies, make sure that your insurance company knows about the change in marital status. You may need to switch to a joint policy or add your spouse as a driver on your existing policy.

Move Forward

If you’re planning to buy a house, start budgeting for the down payment. You can meet with a realtor to get an estimate of how much you’ll need to save. If you’re expecting a baby, start putting money away for diapers, formula, and other newborn essentials.

If you’re wanting to make a change in your career path, factor in the cost of additional schooling or training. You may need to purchase equipment or take a pay cut in order to make the switch. Make you’re financially prepared for the adjustment.

If you’re bringing children from a previous relationship into the marriage, talk with your partner about how you’ll handle child support and custody arrangements. You’ll need to make sure that your finances are able to accommodate any additional expenses. This includes any medical needs the children require, and all extracurricular activities they participate in.

No matter what your goals are, there are steps you can take to financially prepare for marriage. By communicating with your partner, setting goals, getting educated about money management, utilizing resources, and preparing for the changes, you can create a plan that’s right for you and your spouse-to-be. Moving forward with a solid financial foundation will help ensure a happy, healthy marriage.