Getting married brings big changes for both you and your new spouse. Careful planning and communication can help you achieve long-term financial success together like God says.
Discuss your future dreams.
It's a wonderful time to enjoy mapping out your new life together. Discussing your
dreams and addressing your financial situation can help you define your goals as
a couple. Some questions to consider include:
• Do you plan to purchase a home?
• Do you want to start a family?
• Do you have immediate debt, such as wedding expenses, school loans or other bills you want to pay off together?
Make decisions about marriage and finances together
Along with planning for the big picture, make sure you discuss financial details
that may affect you and your budget day-to-day and month by month.
• Budget. List out your monthly incomes and expenses.
• Separate or joint bank accounts. Having a joint account can mean fewer fees or none at all. But keeping separate accounts can be easier for some couples. Discuss your preferences.
• Health insurance. If each of you has separate health insurance coverage, do a cost/benefit analysis for both plans. Which is better — the family plan or two single plans?
• Auto and home insurance. Can you consolidate auto policies and save? Also, when you buy a home or auto insurance policy, choose the highest deductible you can afford. It's the easiest way to lower your premium.
• Life insurance/disability income insurance. Consider protection to make sure one spouse will be able to make ends meet without the other and protect your income in case of sudden illness or disability.
• Employer-sponsored retirement plans/IRAs. Take advantage of as many retirement savings options as your cash flow allows. With tax-advantaged contributions and tax-deferred growth, the earlier you start saving for retirement, is better.
• Credit cards. If one of you has poor credit, it can drag down the other's rating. If this is the case, make the poorly-rated spouse an authorized user of the other's card.
More marriage and financial matters to think about
Financial Counseling is an important first step to take in your marriage. The earlier
and more often you discuss financial matters together, the more comfortable these
conversations will be. Seeking professional guidance can also help you tackle more
complex financial questions such as:
• What are your financial goals and how are they prioritized? How will you work toward these goals?
• Do you have adequate health, life, disability and property insurance coverage?
• How much should you be saving for retirement?
• What is your risk tolerance for investing? Do you and your spouse have the same tolerance for risk or do you differ?
• Do you have a plan to review/update beneficiaries?
• Have you executed or updated your will? Durable power of attorney or health-care proxy?
• How you will handle your tax return depending on the timing of your marriage?
• How you will keep important records and documents now that you are married?
We can help you plan for your future
When you get married, your lives change. So does your financial situation. A Professional Services Bookkeeping Inc, can help your family to move forward about your dreams & finances issues.