Whether you are married or engaged to be married, it is vitally important to discuss your finances together. Regardless of how you structure your accounts, communication is crucial.
Setting goals is one of the most important things many couples fail to do together. Whether you are expanding financially for growth or struggling to make ends meet, budgets and financial goals are essential when starting a life together. No matter what your goals are, the best way to work towards achieving them with your partner is for you to be on the same page.
Limit the Spending
You and your partner are likely to have different habits, lifestyles, and preferences as separate individuals. If you have not lived together before, it can be quite shocking to get used to the changes. It gets even more complicated when one partner earns or spends significantly more than the other. By assessing the sum amount that you can afford to spend each month, you are approaching a merged lifestyle that is suitable for you and your finances. So step one is to cut excessive spending. Most of us spend too much money on entertainment and shopping, Rethink your budget and work on your self-discipline so you can stop the habitual spending of money on material things.
When combining finances in a marriage, many couples opt for setting up joint bank accounts. It can be difficult when you have to decide how to communicate about spending money from that account. Some couples choose to keep their separate accounts and only contribute a percentage of their income to the communal account. Others will decide it is better to close their old account and commit to just one joint account.
Communication and Trust
In the event of a financial crisis, it is vital to communicate with your partners about the importance of a healthy financial life. If you have chosen a joint bank account, you are entitled to all the money in that account. This also means that if your partner gets into a dispute or fails to pay, your account is also placed at risk. Also, consider the laws of your state, it is important to know your rights when one of you gets into a lawsuit.
In addition to merging your finances, it’s critically important for you to have a plan if something unfortunate happens to you and/or your partner. A power of attorney, an estate plan or living wills are all part of mutual protection, should the worst take place.
Savings Plan
The best thing you and your partner can do to secure your future is to save money and work towards your financial goals. A solid financial plan, emergency fund, investment plan, and retirement plan offer security and convenience when an unfortunate emergency happens.
The reality for many American couples is that they live paycheck to paycheck, with little to no savings. Rising debt payments, high-interest rates, and high credit card debt can produce an aggregate effect that makes it almost impossible to move forward. If you have difficulty making your monthly payment, CreditGUARD can help. A certified credit counselor can offer you financial education that will help you work toward a better financial future. Call us at 800-500-6489 or you may visit CreditGUARD of America’s page at https://creditguard.org/ for more information.