Personal Finance Strategies
Personal finance strategies for newlyweds is a topic that many people don't approach until after they are married for awhile.
The problem is most newlyweds get in trouble with money in the beginning parts of their relationships. They do not go to counseling or take any classes on personal finance when married so they keep approaching money from a single person's viewpoint.
What this causes is a discontinuity between the newlyweds and their money. Usually, one person takes over the money and the other person does not pay attention anymore.
This can cause even more problems because usually the newlyweds end up getting in trouble financially because it is to much for one person to handle.
Also, when starting out couples by a new house, furniture, have children, move, change jobs, etc. which adds debt and puts more stress on personal finances.
With all these challenges, newlyweds need strategies they can use to help with their finances.
This is what this article is about. In the list that is coming up, I will go over personal finance strategies that newlyweds can use to help them better manage their finances, grow their savings, and strengthen their relationships through fiduciary responsibility.
(Fiduciary responsibility means trust that builds up through financial actions, whether they are positive or negative.)
1. Separate And Joint Banking Accounts - The first thing you should do as newlyweds, is open a joint account. This account is used for all joint expenses, i.e. bills, food, projects, etc. Each month, both people should give a specified amount in the joint bank account.
Most people wonder if they should keep their personal accounts. The answer is most definitely yes! It is important for newlyweds to keep up some feeling of control over their own money.
Keeping their own bank accounts allows them to spend money how they want to, even if it is only a little.
2. Open A Savings Account - Newlyweds should open a savings account immediately and start adding as much money as possible to it. The goal should be 6 months of income for both people. This is a hedge against anything that could arise in those early stages of marriage. Thinks like moving, changing jobs, having baby's, etc. are all reasons to have 6 months of savings.
3. Get Life Insurance - I am a firm believer that you can never have enough insurance. I know that paying money for something like life insurance can be hard, especially when you don't want to think about your spouse dying. But, purchasing life insurance when you are young and just married is the best time and the most important. If anything were to happen to one, the other would be taken care of. This is probably the most important thing that newlyweds can do.
4. Set Financial Goals - Setting financial goals as a couple is extremely important. This makes sure that both newlyweds will have a clear idea of where they are going financially and what they are working towards.
5. Find A Financial Advisor - A financial advisor can help in many ways but the biggest benefit is what they can do for your investments. Finding the right advisor is real important because their advise can make or lose you a lot of money. This is how to pick the right financial advisor. Take your financial goals and interview at least ten advisors. After you have interviewed them, simply pick the one that best fits your goals. After you have interviewed the first few, you will be able to see what I am talking about.
6. Plan For Retirement - Newlyweds need to plan for retirement as soon as possible. After choosing a financial advisor, he or she will help figure out the right plan for retirement. It is important that the goals from the financial goal list are followed.
7. Plan For Large Events - Newlyweds usually don't have too much time to think about large things happening to them. Having baby's, buying large items, etc. just seem to happen. So it is important to plan for the event. Most people do not think about when they should have a baby. But planning to have children is very important. Just remember to plan financially for big events. Some events might include children, new homes, furniture, vacations, new jobs, moving, etc.
These strategies will help newlyweds with their personal finances and hopefully bring them closer together. Starting at the beginning of their marriage will insure that their future will be secured.