Wedding season has officially started! Regardless of which month you get married in, weddings take a huge amount of planning. Therefore, in preparing for your big day, you and your partner discuss the venue, catering, guest list, music, and more. While these elements are important, it’s critical that you also look beyond the day of your wedding and discuss your upcoming life together. And one of the most important (and often overlooked) topics you should cover is finances. These financial conversations can relief a lot of stress and heartache own the road. What are your financial goals and how will you work towards those? Will you have separate bank accounts? And how will you protect your family if something unforeseen happens to one of you?
Five Important Financial Conversations Newlyweds Should Have Before Getting Married
- Assets and liabilities
It’s vital that you start off your marriage with an honest foundation. And one of the first conversations you should have is about your debts and assets. What are your debts? What’s your credit score? What’s your net worth? Sit down together and figure out your combined assets and liabilities. Because you don’t want any big surprises down the line.
- Bank accounts
Will you have a joint bank account for expenses like rent/mortgage, utilities, and health care? Would you like separate accounts for personal expenses? Figuring this out now can help reduce any stress over expenses.
- Short- and long-term goals
If your financial goals don’t align with your partner’s, this can create tension in the future. Discuss both short-term and long-term goals. What are your priorities? Do you want to pay down debt? Are you saving for a down payment on a house? Are you ready to start planning for retirement? If so, find a plan that works for both of you.
Achieving your financial goals may require investing, but you and your partner may have different strategies for reaching your objectives. For example, your partner is a more aggressive investor and willing to take more risks. If this is the case, you’ll have to compromise on investment tactics. This may involve working with a financial advisor.
- Life insurance
Do newlyweds need life insurance? After all, you’re likely relatively young and focusing on more short-term goals like buying a house and paying down debts. The short answer is yes. Life insurance is an important safety net, even for newlyweds. It can help protect your finances, including paying final costs, paying off debts, and replacing income. You are building a life together, including financially, and should the worst happen, much of what you have built could be taken away. Get a few life insurance quotes online, and you’ll see that it is affordable for young couples. Not only does life insurance for newlyweds help protect you, but it also offers couples peace of mind—which is important for long-term wedded bliss.
If you are recently married, congratulations! May your life be filled with happiness and financial security. Therefore, make sure you expend as much energy, if not more, toward planning your life together as you did in planning your wedding, and that finances play a central role in these discussions. Also, talking about debts and assets, bank accounts, financial goals, investing, and life insurance will ensure that you are on the same page. Because this way it will help reduce any financial stress that might lie in the road ahead. HAve these financial conversations now so you are together in everything.
Richard Reich is President of Intramark Insurance Services and has more than 25 years of experience in the own-occupation disability insurance and life insurance field. He has helped countless individuals and families get the coverage they need for peace of mind. You can learn more at http://www.lifeinsure.com.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.