Marriage is a new adventure and learning experience. Newlyweds are aglow in marital bliss enjoying every moment of the first official chapter of their lives together. Often couples are caught up in the excitement after the wedding including adjusting to a new life together that they don’t think too strongly about their combined finances. Marriages can experience stress very early on when relating to money. Avoid these unnecessary struggles by following these key tips to have a stronger marriage and a solid financial foundation.
Couples will have more control over their money when both parties combine their assets. This can be done by opening a new joint checking and savings account, or by adding an individual to an existing account. Direct deposits forms will need to be updated if applicable, so there aren’t any potential hiccups when payday arrives.
Protect Each Other
The future is always uncertain, and that is why one of the first thing newlyweds do must be purchase life insurance together. There are two main reasons for this suggestion. First, to financially protect each other in the event of sudden death. Second, whole policies are a financial investment that grows in value and can be cashed in after a certain amount of time if desired. Life insurance is mutually beneficial for the unforeseen and planning for a long, happy future together.
Use Those Cash Gifts from the Wedding Wisely
Along with the slow cooker, flatware sets, and new linens, newlyweds often receive monetary gifts on their wedding day. It is tempting to use these funds for things or experiences, but there is a better option. That cash can be used for much better purposes like creating an emergency fund or investment portfolio. Large cash gifts don’t come along frequently, so consider the options before going on a shopping spree.
Couples of all ages have hopes and dreams for their married lives. A priority for many people is buying a home and then starting a family. Sitting down together to create a list of short-term and long-term goals provides a shared vision to work towards. Once these goals are established, then steps can be taken to reach them. For example, monetary gifts from the wedding can be the beginning of a down payment on a first home.
Reduce and Eliminate Debt
A common challenge for most Americans to reach their financial goals is debt. Instead of making the minimum payments and paying too much in interest, a plan is needed to reduce debt. Creating a monthly budget will shed insight into the total costs of bills and the remaining balance. Next, a plan to pay more each month to debts is the first step to eliminating debt. This can then lead to increased credit scores to help purchase a home, car, or other major expense.
Being financially savvy early in a marriage can prevent many costly pitfalls. Newlyweds can work together to combine their accounts and protect each other financially with insurance. Using wedding gifts for savings, investments, or debt reduction are wise choices with positive long-term effects.