10 Financial Tips for Newlyweds!

Congratulations! You’re married! I hope your wedding day was magical. Did you have a big wedding, surrounded by friends and family or an intimate affair with just the two of you? How long did it take to find the perfect dress? Decide on the guest list? Venue, music, color scheme, flowers, photographer?

Think about how much time you spent planning for that one, special day. It was likely many conversations over several days and took weeks or months to plan. It was a special day and worthy of the time you spent planning.

We hope you will spend a similar amount of time planning for the rest of your life. The first year of marriage typically includes many lifestyle adjustments. You are merging two households, two lives into one. You are taking two individual goals and turning them into one shared vision.

Here are 10 Financial Tips for Newlyweds that will help you enjoy the journey.  

• Have a conversation about finances. In fact, have several conversations about finances. Discuss savings goals, spending habits, investment strategies, and retirement plans. Include goals that affect finances such as kids, homeownership, vacations, and retirement plans.
• Establish a monthly budget or spending plan and stick to it! List all sources of income and account for all expenses. Don’t skip the small stuff like morning latte’s and fast food lunches. They add up quickly.
• Request a free copy of your credit report from annualcreditreport.com. You are allowed one copy per year from each of the three credit bureaus. Pick one credit bureau to start with and rotate through them, picking a different one every four months. Over the course of a year, you will have received your free copy from each of the three bureaus. You will know exactly what is on your credit report and can quickly correct any errors.
• Review ownership of accounts and assets. Include bank accounts, investment accounts, real estate, and vehicles. Determine whether you want to keep individual ownership or create jointly owned assets.
• Update the beneficiaries on your bank accounts, investment accounts, retirement accounts, and life insurance.
• Re-evaluate your life insurance needs. Your life insurance needs should be re-evaluated with every major life event such as marriage, birth of a child, and purchase of a major asset – like a house.
• Update your retirement plan. Determine when you want to retire, what type of lifestyle you want to enjoy during retirement and how much money you need to fund your retirement. Adjust contributions and investment strategies to stay in line with your long-term goals.
• Establish an emergency fund – usually 3 to 6 months of your total monthly expenses. These funds should be relatively liquid and only used for actual emergencies.
• Discuss the relationship each of you have with money. Are you both spenders, savers, one of each? Talk about the potential conflicts and agree on a workable solution.
• Get help. You don’t have to do it alone. A comprehensive financial plan from a financial planner will address many of these concerns. Even if you each have an individual financial plan, meet with a financial planner to have a comprehensive financial plan created for you, as a couple.

Addressing these topics early in a relationship will create a solid financial foundation for you build your life upon. Some of these are simple while others are more complex. Don’t get overwhelmed. Consult a financial planner to work with you and your spouse to create a plan both of you are excited about.

We are here if you need us. Contact us today to schedule a free consultation.