Do you plan on tying the knot this summer? Here are a few financial tips before taking a trip down the aisle:
1) Talk about money – It’s important to communicate with your partner, especially about finances. Have a conversation about each other’s budgets, financial goals and investments.
2) Compromise – If you end up having different views on finances, try to meet in the middle. Discuss how you can compromise based on both partners’ financial needs and expectations. Agree on a budget together or allow each partner to keep some money separate for their own personal spending.
3) Discuss finances – If you’re the one managing all the finances and your spouse doesn’t have any interest in crunching numbers, make sure you keep them in the loop even if it’s only on a monthly or quarterly basis. Both partners should be aware of their financial situation. It is also a good idea for both partners to know account information in case the person managing the finances is not able to access it.
4) Don’t spend too much on a house – After combining incomes, it becomes tempting to purchase a more expensive house. However, buying a pricey house does not lead to much flexible spending for the future. You must think about expenses that you may have in the future such as kids, schooling or starting a business.
5) Be honest – Don’t hide or ignore debt issues. Both partners become responsible for debt after marriage, even if only one person brings it into the relationship. Discuss your financial issue with your partner and come up with a solution on how to repay it. It’s also a good idea to check your credit reports together.
6) Prepare for emergencies – Make sure you are prepared if anything should happen to either partner. After you get married, make sure to update the beneficiaries on retirement accounts, compose wills and assign health care powers of attorney.