If you are getting married soon or have recently tied the knot, you will know that building your life together can be overwhelming. There are so many things to consider. One of the most important factors to discuss and agree on is your financial health as a couple.
Here are some tips for all newlyweds or future married couples to consider:
Talk about your financial aspirations and habits as a couple.
Consider the expectations you have for yourself and your partnership and be honest about your strengths and weaknesses upfront as you explore steps towards your financial union.
Try to identify the total income available for your household and formulate a budget.
If need be, track your spending for a month or two before you set your budget for a more accurate outline. Set a maximum amount for big ticket expenses and decide what type of purchases you want to make using [credit cards] and personal loans. If you want to buy something over and above this amount, you should discuss with your partner, not necessarily for permission but for clarity and agreement.
Decide on financial responsibilities and roles.
Designate each person to specific shared financial responsibilities based on your capacity and meet regularly regarding your money. Decide how to set up your accounts. Will your accounts be joint or separate or will you have a combination of the two? These are details that should be discussed and decided on in advance, factor in what you have that is existing and work from there.
Set manageable financial goals for yourselves in terms of savings.
Having two types of savings for both short and long-term goals is a great way to achieve milestones. You can use a fixed deposit account or notice deposit accounts for saving, in conjunction with a tax-free investment account to plan for different types of expenses, from your retirements to your next holiday.
Ultimately, if you want your life as a couple to be free from major mishaps, the best way to strive for this is to plan together. Making sure you have covered your financial security is important even if it means having potentially uncomfortable conversations. In the long run, these discussions are for the best.