How to Handle Your Finances as Newlyweds
5 Tips to Keep Your Relationship Strong
Congratulations, you’re married. Now, the real work begins. Managing your finances as a newlywed is one of the biggest challenges. Disagreements over money are one of the leading causes of divorce in this country.
These 5 finance tips for newlyweds will help you handle your money to keep your relationship strong, including estate planning.
Be Open About Your Financial State
It’s essential to discuss your financial state well before you get married. Be open about your debt, whether it’s a student loan or credit card debt. Let your partner know if you’ve ever filed for bankruptcy. It’s also a good idea to know your credit score, which can affect your ability to get a loan for a car or house.
Discuss Your Attitude About Money
Some people want to save every penny for a “rainy day,” while others spend most of their paychecks immediately. Your attitude about finances might also be related to your upbringing.
Ask each other questions:
- What was your family’s attitude about spending money?
- Did you grow up with a lot or very little money?
- Do you feel anxious or excited when you spend money?
- Have you ever lived on a budget?
Discuss Your Financial Goals
What is your most important reason for saving money? Determine your financial goals and then chart a course to help you achieve them. Most couples have short-term and long-term goals, including:
You might save for…
- A house
- College education for your kids
- Retirement
- Vacations
- Emergencies
Create a Budget
Once you’ve determined your goals, you’ll need to create a budget so you can reach them. First, it lets you know where you spend your money. It also gives you a map to help you save every month. Be sure to put money into your savings and retirement accounts. Sometimes, you can have this money automatically deposited, so you won’t be tempted to spend it.
Create an Estate Plan
You might think you have plenty of time to create an estate plan. Maybe you don’t believe you have enough assets to even bother considering estate planning. However, it is never too early to ensure your loved ones won’t have to worry if the worst happens. Everyone regardless of their net worth should have even the most basic estate planning in place.
An estate plan can include:
- Wills & Trusts
- Designation of Healthcare Surrogate
- Durable Power of Attorney
- Revocable & Irrevocable Trusts
- Life insurance Trusts
- Special Needs Trusts
- Choosing a guardian for minor children and/or dependents
Do you need help setting up an estate or developing a financial plan? It is essential to work with an experienced estate planning attorney. Contact us to set up consultation.