Even simply discussing money can have a big impact on your marriage, despite the popular belief that money cannot buy happiness. Here is a checklist to assist you and your partner in budgeting happily ever after. Use it to start the discussion.
Heading towards marriage
Make sure your ﬁnances are in order. Before getting married, many couples might avoid discussing money, but doing so can be risky because past mistakes could have an impact on your future relationship. Before you say “I do,” get to know each other’s ﬁnancial circumstances, including how many credit cards you each have and how you spend your money—including the kinds of things you both indulge in. It will be easier for you to decide how to combine your ﬁnances after you get married if you have a solid understanding of your partner’s spending patterns and ﬁnancial situation.
Recognize the debts of your partner
Before you combine your ﬁnances, learn the extent of your partner’s debt. You can collaborate if necessary to reduce debt. Until then, keep your ﬁnances separate. For instance, refrain from opening a joint account, signing jointly, or adding your partner as an authorised user. You’ll need at least one reliable credit history to fall back on if you’re organising a wedding. Learn more debt-reduction techniques.
Affording the wedding and other expenses
Open a savings account as soon as you announce your engagement, with funds designated for your ﬁnancial objectives and anticipated expenses. In general, many ﬁnancial experts advise setting aside at least 10% of your combined monthly income. If you’re saving for a wedding, you might think about increasing that amount so you can keep making your regular savings contributions and still set money aside for the
big day. You’ll probably still want to save some money, perhaps for a honeymoon or a down payment on a new house, even if you get help paying for the wedding.
Make a living budget for the two of you
Put everything on the table, including all of your bills and paperwork. Calculate your monthly obligations, total income, and remaining funds. Determine how much you will ultimately owe each month. Don’t forget to account for any potential honeymoon or wedding costs. Also helpful are spending restrictions. Before making those promises, set a cap on the amount of money each of you can spend without consulting the other.
Decide who is responsible for each task
It makes sense for each of you to participate in managing your ﬁnances. For instance, one person may be in charge of paying the bills on a daily basis while the other handles retirement plans and long-term investments.
Should you or shouldn’t you combine?
There are numerous approaches to handling money while married. So consider your options and decide which approach will beneﬁt you both the most. You may want to open a joint account, link your separate accounts together, or keep your separate accounts open. It’s a personal choice, so weigh your options and select the one that best suits your way of life.
The bottom line:
The most important details in this text are the steps couples should take to budget for marriage. Before getting married, couples should get to know each other’s ﬁnancial circumstances, such as how many credit cards they each have and how they spend their money. They should also recognise their partner’s debts and keep their ﬁnances separate. Additionally, couples should open a savings account as soon as they announce their engagement, with funds designated for their ﬁnancial objectives and anticipated expenses. Finally, couples should learn more
debt-reduction techniques. When saving for a wedding, it is important to make a living budget for the two of you. Determine how much you will owe each month, how much income you will have overall, and how much will be left over after all is said and done. Set spending restrictions and decide who is responsible for each task. There are numerous approaches to handling money while married, so weigh your options and select the one that best suits your way of life.