Married Life: Plan your Financial Future Together
Marriage is an exciting, fun, and sometimes frustrating adventure that will require planning for the future in many different ways, including financially. Unfortunately, trying to figure out where to start can be a difficult task. The good news is that the following tips can help you navigate through the process.
Set your goals and priorities together. One of the biggest mistakes couples make is assuming their goals lineup with each other without first discussing them. Thankfully, you can avoid this with open communication about goals and priorities with your partner.
Choose the right plan for your situation. Not all plans are right for everyone or for every situation. For example, financial planning for professional athletes usually won’t be the same for a married couple with two children.
Use the five year planning block method. When planning for your future, consider using the five year planning block method, which requires setting long term and intermediate goals within that five year timeframe. This helps to prevent any feelings that you’ve deprived yourself for too long.
Make a budget together. No matter what your goals, you will need to set a budget with your partner that is realistically manageable. You can always alter your budget as your situation changes. Along with keeping a budget, you should also keep detailed records of your spending. Knowing where all your money is going helps to determine what areas you can cut.
Save your money. Even if both you and your partner are working, you should avoid getting caught up in the thinking that more income equals more spending. If you can get yourself out of this mindset and save regularly, you won’t be attached to that second income for bills and weekly spending requirements.
Have a financial talk regularly. At least once a month, you and your partner should sit down together and discuss your finances. Furthermore, you should decide which one has the task of handling the financial paperwork.