Marriages are made in heaven and that is all about it. Actually marriage and money planning are the basics of a happy life – have a lot more meaning than that. When you marry you are not tying knot with your spouse only but you are tying several knots with several added responsibilities. One such responsibility is providing financial security which is primarily important to prevent a marriage from falling apart.
Marriage And Money Planning Are The Basics Of A Happy Life
Marriage means you are entering into a new life full of commitment and financial management that must be done together. Therefore, compatibility and understanding is primarily important for a successful marriage.
You will have to be well prepared to deal with the unexpected together and with confidence on each other. There may be a lot of unforeseen occurrences such as:
- Death of a loved one
- Trouble in conceiving or
- Loss of your job.
All these situations ask for heavy trials for a couple. All that matters is how you both deal with these unexpected situations. The most effective way is to have faith in one another, foster positive attitude, practice patience and help one another to deal with the potential trials in the future in a better manner.
Change in financial situation
Marriage announces changes in your financial situation. It will affect all aspects of your life. Everything from your financial goals to personal credit card debt review will bring in new challenges to your relationship. That means you will need to find out new ways to manage your debts, money and your life to start with.
Right at the outset you must understand that navigating through these challenges and changes is never going to be easy. To keep things simple and manageable you will need a proper planning way ahead of time although success in such aspects can never be guaranteed.
You will need to build a strong financial foundation for your relationship. This will ensure that you do not need to borrow money from any sources be it a traditional bank or any financial organization or any online sources such or others.
How build a strong financial foundation for your relationship
To do this, ideally there are five key questions that you should ask and along with it look for the answers that will shed some light on how you and your spouse can proceed towards your financial goal at the best and stick to your own financial plan.
Question #1 Should you set up joint checking or keep accounts separate?
This is one of the first questions that come to the minds of almost all newly married couples and rightly so because this is an important issue that all married couples should handle proficiently. It is recommended that you consider a combination of both individual and joint accounts.
Use the joint account for family expenses such as mortgage or rent, utilities, bills, groceries and others. Both of you can add money to this account so that the share of each in the household expenses is maintained. As for the individual discretionary account you can use it to pay a few bills on personal spending so that your financial freedom is not compromised.
Question #2 When is the right time to discuss our finances?
This is an important part of finance management. Good communication and openness will help you to manage money successfully and will eliminate the chances of any conflicts or problems down the road. Stress can make even the smallest of all problems to grow big and therefore should be avoided.
Discussion is required at any time you feel that the money management is becoming a bit tough. Moreover, if any one of you is bringing substantial debt along with the marriage then an immediate discussion regarding that matter is required. If you are honest you will come up with a better plan to pay it off. Since every person has a different value when it comes to money, a communication will help you to identify the one that is important to either of you and make the best decisions as a couple.
Question #3 How to create a budget?
This is another problem that most of the people face and not only married couples. There are lots of tools and budget planner available in the internet that will help you in this process. However, budgeting as a couple may be a bit difficult as individual assets and liabilities must be considered while preparing. The spending habits of each will also play a very significant role in your budgeting process.
Take time and sit down with your spouse to look for answers such as the debt payments that you both have, how to match up the incomes, how much to save, what are the ways to combine the expenses or eliminating a few completely, and others. All these questions will help you to draw up the most realistic budget. However, since this is a primary tool for financial management and need to be completely error free, you are recommended to take help of a professional expert in case you are not very sure or confident with it.
Question #4 How to handle beneficiaries?
Since you are married, each of you will have the legal right to the beneficiaries of another. You will need to take some most important decisions regarding insurance, estate planning, and inheritance and other matters. You both may have a health plan through your employer if both of your work. You will have to take a look at this and consider the best plan to take so that it proves to be beneficial to you both.
Also consider the premiums you need to pay and budget accordingly. Apart from health insurance, you must also discuss about life and home insurance as well. This will not put any one of you at a dire strait if anything happens to any one of you.
Question #5 How to handle retirement?
Lastly, consider the retirement and how you will handle it. Pensions, IRAs, and other assets that you may have will be of lot of importance when it comes to leading a married life happily even after you retire. It will also ensure that you assets are disbursed properly amongst the beneficiaries and heirs when you die.
This article is written by Isabella Rossellini
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