Tuesday, 16 July 2019

Money Advice For The Newly Wed

Guest Post.

The Last thing you think of when you're madly in love and about to marry is their bank balance, but once the honeymoon is over, reality sets in. How will you manage two incomes and two sets of expenses? Is your partner a saver or a spender? 

Are you saving for a home or putting money away to travel? This article will give a ton of money advice for the newlyweds that do not want to find out the full meaning of "for richer or for poorer". 


History Matters

If one of you has a dodgy credit history, joint finances may not be a good idea. Living with or marrying someone with a bad credit score will not affect the other person until you open a joint bank account or apply for a mortgage together. In those cases, you will be scored jointly, and applying for credit could get tricky. Before you tie the knot, check both parties credit rating and do not combine finances until you are both aware of the scores.

One Size Fits Most

That would be easy, but it is not the way most newlywed couples can manage their money. It is a good idea to decide which one of you will make sure bills are paid on time, gather tax documents, and keep the other one informed of the big money picture in your relationship. Keep in mind these responsibilities can be shared, but before you decide to make sure you both understand each other's approach and attitude about money. 


Expect The Unexpected

At some point during your relationship, the unexpected is bound to happen. One of you may lose your job, want to look after the children full time or have an accident or illness that affects income. Have an open, honest discussion about putting aside an emergency fund of three to six months salary that is easily accessible to both of you, just in case.

Be Clear

From the very beginning, make sure both of you understand expectations about managing your money together. This may mean that you have a spending limit and any purchases above that amount need both parties to sign off before it happens. Be clear about how much independence you will both have, and do not be afraid to write it down if that makes it more understandable. 

Share and Share Alike

Avoid any scenario that means only one of you has a grasp on your finances. Even if you are a stock market wizard, allowing one person to control all the money is bad for both of you in the end. Have a mutual understanding and make sure both of you understand savings and investment goals as well as spending. 

Talk the Talk

Talking about finances regularly is important for the sobering fact that, if something happens to one of you, the other needs to be fully aware of your financial status. This goes for any important documents like wills, insurance policies and any bank accounts in the other person's name only. Keep each other updated regularly on the status of your finances, any changes in goals or income, and do not let money come between you in a happy relationship.


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