If you just got married, your finances are no longer your own. You now share your assets as well as your debts with your spouse, which is why it is important to get on the same page financially with your spouse. Once you wrap up the wedding and the honeymoon, you really need to make sure that you and your new spouse are on the same page money-wise.
Be Honest About Your Financial Situation
The first thing you need to do is have a series of honest conversations about where both of you are at financially. This may not happen in just one conversation and is going to require both of you to get some paperwork together.
Start out by figuring out what debt both of you have. Get the paperwork together and determine how much you each owe on things like student loans, credit cards, mortgages, and car loans. Figure out what the interest and payment terms are for all of the debt that you have together.
Next, figure out what assets you have. How much do you both make a year? How much do you have saved up? What do you have investments in? Do either of you have a retirement account? Looking at all of this information will help give the two of you a clearer picture of where you stand financially as a couple.
Make A Debt Reduction Plan Together
Your credit scores are now married together as well, so you need to come up with a debt reduction plan together. Set up all of your debt so that you have automatic payments to ensure that you never miss a payment together.
Determine together what loans or debt you want to focus on paying down first. Figure out how much extra you can put towards paying down this debt, and use the snowball method, where you pay off one debt and then use the money you were investing to pay off that debt towards other debts that you need to pay off. You don't want to be saddled with debt your entire married life, and you may have goals you want to pursue together that require a lower debt load, such as purchasing a house, so this should be a top priority.
Invest in Your Future
You are investing in your spouse now and in the future; make sure that your finances reflect that. Start by building up an emergency fund so you have cash if something unexpected happens in your life together.
If you are not paying into a retirement plan, both of you need to set up retirement plans and make sure that the other is listed as a beneficiary. You should also both invest in life insurance to ensure that the other is taken care of should anything happen to one of you.
Together, you should determine what else you want to invest in as well. Coming up with a plan for what you want to invest your money into.
The key to financial success in a marriage is to work together to figure out where you are financially and where you want to be together financially. For additional advice, contact companies like Delphi Wealth Management Group.Share