After focusing on wedding planning, the details of married life often get put on the back burner. But the financial future that you share with your significant other is just as important, if not more, than when you say, “I do.” Here are some financial mistakes to avoid when starting off your life as newlyweds.
- Avoiding Talking About Money
Discussing your finances can be a bit uncomfortable for many couples, but those who tackle it head on will be better off and stronger for it. Understand your partner's financial goals and spending habits. Don’t keep any financial secrets from each other. If you have debt, be open and honest and hiding it will only make things worse. While you may look at finances differently, this conversation can help you develop an approach to money management that works for both of you.
- Not Creating a Budget Together
A mistake many couples make is not establishing a budget in the beginning. After assessing your finances as a pair, determine how you'll spend your money each month. Are there certain expenses that you should be cutting back or things you should be saving up for? Coming to an agreement on these things and setting a budget will be beneficial for the health of your bank accounts and your relationship.
- Not Having a Plan for Your Accounts
There is no 'right' way to manage your accounts. Decide on a system that works for both—joint accounts, separate accounts, or a mix. Discuss your preferences together and decide what makes you both the most comfortable.
- Failing to Set Up an Emergency Fund
Life is full of surprises and unfortunately, some of these surprises can be expensive. Having an emergency fund will help you avoid troublesome financial situations should something come up. It's important that you decide together how you'll set aside the money, stick to this plan.
- Failing to Set a Big-Spending Discussion Rule
While small purchases may not need a discussion, larger ones that affect your budget should. As a couple, decide on a dollar amount where you’ll check in with each other before making a purchase.
- Forgetting to Update Your Beneficiaries
Now that you've officially tied the knot, you should likely identify your spouse as the person who will receive the benefits of your will, life insurance policy and financial accounts like your 401(k), checking, and savings. Don't make the mistake of waiting for an emergency to arise to handle this.
Now that you've read this list of don'ts after saying the “I do's”, it's time for you to start the steps to better secure your financial stability to pair with your matrimonial bliss.
