The first few weeks after your wedding can be very exciting — your wedding gifts may still be waiting for you to unwrap, you may have congratulatory messages to reply to and memories from your honeymoon may still be swirling in your head. Now, you have your lives together ahead of you and to succeed, you need a plan.
In this article, we lay out 10 newlywed financial planning tips to help you build a strong foundation for your new family.
For most couples, money is a huge discussion point — and often, a significant stressor. In fact, money is the primary reason why married couples argue. It’s also the second most common reason why spouses divorce, after infidelity. Therefore, it’s extremely helpful for newlyweds to establish open, honest communication about finances early on in their marriages.
Here are three solid reasons following money tips for newlyweds makes a real difference in your marriage:
To put it simply, how you and your spouse discuss and handle your money can forge the foundation for a strong, lasting marriage. Many successful couples discuss and plan their finances, setting long-term financial goals along the way. Those who don’t struggle more in their relationships. To ensure you and your partner are in it for the long haul, you’ll want to consider proper financial management sooner rather than later.
Those who follow budgeting tips and other financial tips are more likely to succeed in both their personal lives and their relationship. It’s no secret that money makes the world go round — and if you and your spouse stick to a financial plan, you can ensure you’re set on a path toward success together.
Taking a team-based approach to your finances can help build trust between you and your spouse. Additionally, you’ll experience less stress and anxiety about your finances, helping you focus on other aspects of your life. Without budgeting issues, you and your partner are more likely to have a happy marriage.
So, how do you effectively plan and manage money together as newlyweds? Here are 10 financial tips for newly married couples:
Start by scheduling a time to discuss your finances with your spouse. It all starts with building a healthy habit of regularly talking about money, and creating a plan and schedule to discuss your finances can help you achieve that consistency. Whether you do so weekly or monthly is up to you — the key is to stick with the schedule you make. Choosing to ignore your financial situation won’t work in the long run.
Set financial goals and ambitions with your spouse. As newlyweds, there’s a lot you may want to do and purchase. Top on your list may be purchasing a home, moving to a new state, getting a new car, saving for your children’s education or planning for retirement. No matter how you want your future to look, you first have to agree on a plan to get you there.
If you want to purchase a used car in the next three months, you may both aim to set aside a certain amount of money each week to achieve your goal. On the other hand, you may have longer-term goals, such as purchasing a home. In that case, you may want to explore other options to help you get there faster, such as investing.
In any case, you should both agree on your goals, their timelines and how you want to fund them.
As newlyweds, you may have heard a lot about operating a joint account with your spouse. In a joint account, you and your spouse fill out some applications with your bank that make you both equal owners of the money — normally called assets — in the account. This means you and your spouse have equal and unrestricted access to the money in the account — you can withdraw from and deposit to the account at any time.
Here are three reasons why operating a joint account could be a good move for you and your spouse:
Alongside your joint account, feel free to keep your own individual bank accounts. Having both separate and joint accounts often makes sense if both spouses have their own sources of income, as they can keep some of their income for personal use while contributing the rest to the joint account. Combining finances as newlyweds can happen in numerous ways. In any case, you’ll want to consider whether a joint account makes sense for your situation.
Additionally, you’ll want to decide together how much money you spend and where and when you spend it.
Whether you operate joint or separate accounts, you should build your budget together. This figure will largely depend on your income and monthly expenses, so your budget will be completely unique to you as a couple. Some of the things you can budget for together may include:
Ultimately, budgeting together can help you collaborate in managing finances as newlyweds, ensuring you don’t spend over your means and keep a solid tab on your finances. The most beneficial budgeting tip for newlyweds is helping each other stick with the budget — and sometimes, you may find yourself overspending. By working hard to keep each other accountable, you can incorporate budgeting into your new life together.
This and certain savings tips for newlyweds can be a major discussion point in your regular financial meetings.
It’s no secret that finances can be a difficult topic to discuss. However, establishing trust with your spouse by being transparent and open about spending can help make your talks about money easier. Those who lie about expenses are hurting their financial situation — and contributing to a lack of trust in their marriage. The same idea goes for debt.
Now that you’re even more of a team, it’s important for you and your partner to tackle your finances together. If you go over your monthly budget because you spent more than you allotted on entertainment, you should be upfront with your spouse about it. This way, you can discuss it, working on a better approach for next month to help you stay on track.
Ultimately, you’re not doing yourself any favors by hiding spending or debt from your spouse.
As a couple, you stand to gain a lot by doing your taxes together.
First, you can enjoy tax breaks and deductions by filling your tax returns together. For example, filing your federal income taxes as Married Filing Jointly (MFJ), not Married Filing Separately (MFS), can offer you a lower tax rate and update how much of your income is taxable. As a married couple, you can gift unlimited cash to your spouse tax-free. In addition, you could also claim deductions for child care expenses and education tax credits if you’re a student.
On the side of your marriage, it can also help to promote transparency and honesty about your earnings and expenditures. While completing your taxes may not sound like much fun, doing so with your spouse gives you yet another opportunity to bond over your finances. Take this time to grow your financial knowledge together.
To help you enjoy the changes on your taxes, there are some necessary steps you and your spouse have to take. For example, make the necessary changes to your name with your employers — for your W-4 form— and update your social security details with the Social Security Administration (SSA) to ensure there’s no confusion when you file your returns. Feel free to speak with a tax expert to learn more about tax breaks, deductibles and exclusions as a married couple.
As newlyweds, you may not be thinking too far in the future. However, spending time thinking about estate planning will make a difference down the line. Why is a will necessary? In case either you or your spouse dies, estate planning will enable the easy and smooth distribution of your assets. As a result, you can know your estate won’t be mishandled.
If you have a will and retirement account before you got married, it’s advisable to revisit it and make the necessary changes with your spouse now that you’re married. Also, create a regular schedule to visit and revise your estate plan to update it based on changing circumstances. Even reviewing the will every year will ensure it remains effective, outlining what you wish to happen.
Part of your financial planning as a newly married couple is safeguarding your assets in case of loss or accidents. Most married couples share numerous assets — top of the list could be living in the same house. Therefore, you should discuss your insurance coverage now that you’re married., especially your auto, personal, life and homeowners insurance policies.
That’s because insurance is a huge part of your financial safety in the event of an accident — whether involving your vehicle or your home — or the death of a partner. As newlyweds, you need to revise your existing individual insurance coverages to help you uncover how you’d benefit from operating combined insurance policies.
Discussing insurance with your spouse can enable you to make some important decisions. For example, having an insurance conversation can enable you to decide which person’s insurance plan to join, which new insurance coverage to purchase and which new insurance services you need. And if either or both you and your spouse don’t have life insurance before getting married, now may be the best time to sign up as you continue through life together.
Navigating insurance can be confusing for you and your spouse, especially if you both have coverage from before and you want to combine your plans effectively. Be sure to speak with an insurance agent to help you figure out how to properly go about your insurance coverage now that you’re married. This way, you can make the most beneficial choices for you and your partner.
As newlyweds, remember that what’s important is your attitude towards money, not how the numbers look.
The key isn’t how much money you have or spend, but how you spend it, how you manage it and how both of those situations affect your marriage and relationship with your spouse. Disagreements over money issues are the second reason couples divorce for a good reason. Remembering your values as you navigate your financial ups and downs ensures you and your spouse stick together as a team.
Unfortunately, emotions can often get in the way of making the right decisions financially. When you discuss money with your spouse, you always want to do so from a logical standpoint. This will take practice, but you can get there with the help of each other. Setting clear boundaries and a budget will set up the foundation for productive financial talks that aren’t interrupted by emotion.
If you discover you and your spouse can’t tackle financial issues on your own effectively, you can hire an expert to help you. There are financial planning experts who specifically offer financial advice for newlyweds to help couples effectively manage their money together. This way, you can set yourself and your partner up for success regarding your money.
Remember, even when you want to hire a financial expert to help you plan your finances, it’s best to do so together. Avoid taking this route by yourself and informing your spouse later. As a couple, you can choose the correct type of financial help for your situation. Be sure to explore options regarding your debt, taxes and more to ensure you have help for all of your financial troubles.
The same idea goes for your insurance, too. Ensure you have experts working hard on your finances, as your money is a crucial part of your life — not just your marriage. At David Pope Insurance Services, LLC, we’ve been helping individuals and couples find the best insurance policies in Missouri for more than 15 years.
Ultimately, financial planning for newly married couples may seem like a challenge at first — but over time, you can work together to build an open, honest relationship with your finances. To start your marriage off on the right note, start discussing and managing your money early. This way, you can keep the money-related stress out of your marriage — and tackle life together.
To wrap it all up, consider this newlywed financial checklist:
When it comes to getting the best insurance coverage, David Pope Insurance can help you find the best insurance policies for you in Missouri. At David Pope Insurance, our reliable team is ready to help you and your spouse set yourselves up for success. When you contact us, we can typically give you a same-day insurance quote. Come to us to find low rates on home, commercial, life and auto insurance coverage to give you and your spouse peace of mind.
Ready to get started? Check out our insurance services and contact us for a free quote.
