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For better or for worse?
It’s a financial promise to keep.
Life is a true adventure. And sharing that adventure with someone you love adds another layer of fun and excitement – along with an additional level of compromise. Now, you’re not only taking your own dreams and aspirations into account, but those of the one you love. And since decisions you make at the beginning of your marriage can have long-term consequences, it pays to join forces and really think them through together.
Is he a spender? Are you?
Are you a spender or a saver? Maybe a little of both? What about your soon-to-be spouse? What’s their take on budgets and finances? If you don’t know, now’s the time to ask. The more openly you talk about financial matters, the more likely you are to find common ground when it comes to spending. And keep talking about it, because your financial situation will change as your marriage evolves.
- Pay it off—The best way to start a new marriage is to rid yourself of as much old debt as possible. Pay off any individual debt you may have, because once the rings are exchanged, you’re both responsible for the other’s debt.
- Talk it out—Be open about your spending tendencies (marriage isn’t going to alter your shoe shopping instincts!) and agree on a budget you can both live with. Another idea is to set a dollar amount you can’t exceed without talking to the other about it first.
- File it away—Work out a routine to pay bills and establish a filing system for all financial statements. It’s a good idea to open a safety deposit box with your bank (some banks may offer them as a part of your checking and savings accounts) to keep all insurance policies, birth certificates, wills, deeds and other hard-to-replace documents safe and secure.
Make it the ceremony of your dreams.
For many women, their wedding day is the one day they’ve been dreaming of their entire life. Hey, we’re not going to rain on it—even though that’s supposedly a sign of luck—we just want to remind you of the importance of not spending beyond your means in search of the perfect ceremony. You don’t want to start your married life together on the latter side of “for richer or poorer”. Set a wedding budget and stick with it. And look for alternatives to sky-high wedding options—such as a Friday night or Sunday afternoon ceremony. The money you save will make a nice addition to a new home down payment or the start of a healthy investment portfolio. And that’s something you can really say, “I do” to.
What’s yours is his—or is it?
The question of whether you should merge your bank account into a joint account with your spouse is one only you can answer. Some couples find keeping a joint checking account for all household bills and separate checking accounts for personal spending works well. Others keep a running total of shared expenses with one spouse collecting money from the other to pay for them. However you work it, remember, this isn’t the place for secrets. You need to know at all times how much is in your checking accounts to avoid the dreaded check bounce. And be open to change. If, after time, you find yourself arguing about your accounts—separate or joint—it might be time to make some changes to the system.
The one area you should keep separate is your credit cards. Keeping a credit card in your own name will help maintain the credit history you’ve worked so hard to build. It might not be the thing you want to think about—especially as you’re just starting out your life together—but if the marriage ends in divorce or with the death of your spouse, you might have a hard time securing a credit card or loan on your own if you’ve only been listed in joint accounts.
I want to start a family »