Financial problems are a major contributor of divorce by 36.7% according to Shelby B. Scott’s research. Before you work down the aisle, it is important to have a conversation around your finances. Start with the financial aspect of planning a wedding. Every female’s dream is to have a fairy tale wedding, but it is to the detriment of your finances, for those who cannot afford it.
Though your dream wedding can be achievable when planned and budgeted wisely, a lot of couples still make the mistake of spending money on extraneous things just to have a big and a fairy tale wedding, without having an upright plan for their future.
No wedding has won an Oscar award for being the biggest and no matter how glamorous your big day is, another person’s wedding will surpass it. Furthermore, taking a loan for a wedding is one of the financial mistakes some people make. They take a loan to impress people and end up starting their union on debts. It is important for one to cut down on expenses as weddings are mere events, while marriages are the main journey.
Congratulations! Your wedding was successful, you are ready to embrace each other’s outstanding qualities, unconditionally accept each other’s plight, and set plans on how to manage your finances to have a blissful union.
Here are the basic steps to take to help you set your post-wedding finances on the right track as a couple.
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Have money discussions
Before you walk down the aisle and commit to spending the rest of your lives together, you need to talk about how you will be spending your money as a couple. A lot of people are married but unhappy and the cause has to do with financial dilemmas.
Money has a huge role to play when it comes to having a happy and healthy union, so couples should dedicate time to discuss how they are going to manage their finances to avoid having money problems. An example is having a discussion around your salaries, savings, debts, spending habits and also discuss if you both want to merge your bank accounts or have a separate account.
Be honest with your finance
Honesty has to do with having an open and honest discussion about your financials – both past and future, and it is vital to your financial success as a couple. Everyone has their own money habits, which have been shaped by their past experiences. Approaching money issues honestly and openly gives you a much better chance at having a strong, healthy financial relationship.
Make commitments to each other
No one cares more about your financial security than the two of you. Make a promise to each other to take joint responsibility and take steps to better your overall financial position by paying down debts, establishing a savings habit and investing in viable investment source for healthy long-term returns.
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Have a budget
Setting financial goals together should be your top priority. It is important that the goals are specific and achievable. Set goals that are equally rewarding, so that you both will be motivated to achieve them. Depend on each other for support and encourage one another to stay focused.
Financial goals need budgets, as it enables you to manage your finances. Set a budget on your variables and fixed expenses. Review your budget regularly to identify problem areas. When you encounter challenges, try not to get discouraged and adjust as often as needed to ensure financial success.
Embrace your differences
The most important money move you can make for your relationship is to embrace your differences. Understand that you cannot change feelings created by a lifetime of experience; instead, try to nurture the positive aspects of each of your lifestyles. There is no one “right” way to handle your finances, so managing your money styles may be the perfect solution.
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Here are 10 quick tips for planning together
- Set priorities and specific goals and discuss them. Do not assume you both have the same goals without discussing them.
- Discuss values. Sometimes different values make goal-setting difficult. An example is when one person wants to spend now and one wants to save for later, it can be a source of disagreement. The same is true when one spouse tends to be less risk-oriented than the other about investments.
- Plan in five-year units. When planning for five-year blocks, you can set both intermediate and long-range goals without feeling you are being deprived forever.
- Budget together. Set up a manageable system for your cash flow together.
- Know where your money is going. Keep records of your spending.
- Do not assume that because you are both working, that you have a lot more to spend.
- Save regularly (emergency funds). Set up a savings account in both of your names and either set up an automatic transfer through your online bank app or take turns putting money into the account monthly.
- Ensure you evaluate insurance. Getting insured is a vital part of adulthood, especially as a couple. Discuss the best insurance plan to go for.
- Sit down together and discuss finances at least once a month.
- Consider how many kids you want. This will help you come up with at least an early-stage financial plan.
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Bottom Line
Some of the best marriage advice you can follow is to always be honest about your debts, income, and budgeting history. Marriage finances are a tricky topic, but it’s important that you discuss them regularly with your partner.
Thanks for posting! I learned a lot from the information you’ve shared. We need to keep our finances in order after the marriage. A good financial planning Brisbane North will help you decide the best place to invest and understand on how to manage your finances.