Marriage is an exhilarating turning point in one’s life. Prior to the big day, it’s usual to gather as much insight about your imminent partner, including their financial position and objectives. However, post-wedding, you start putting these plans into action in the context of cohabitation and finance management. If you are still immersed in the bliss of the newly-married phase, here are five financial themes you might want to consider discussing with your better half once the honeymoon is over.
1. Allocate Responsibility for Bill Payments:
Generally, what matters is bills being paid promptly, rather than who pays them. By now, you ought to have a clear picture of whether or not you will be merging your finances, which will aid you in determining who takes charge of monthly bill payments. If one of you is more proficient in money management, it might be wise for them to take the lead. Conversely, if one of you enjoys ample leisure time after work, they might take on this added responsibility. My spouse and I utilize a joint method, assigning ourselves specific bills to ensure balanced responsibility. Whatever your method, maintain seamless communication and avoid any misunderstandings that could lead to late fees or miscommunication.
2. Revising Insurance Policies:
Marriage often necessitates revising existing insurance policies or even cancellation in cases where you decide to combine healthcare plans. Ensure adequate insurance for your home, automobiles, etc., and consider changing your life insurance policy to list your spouse as the beneficiary. It’s also necessary to have a living will and a healthcare power of attorney. While these tasks are not enjoyable, they are crucial elements of financial housekeeping for new spouses.
3. Plan Your Savings:
Post-marriage, with a larger household, you might want to increase your emergency fund or other savings accounts. Discuss and agree on a comfortable savings balance. To do this, consider your debts, decide how much you would need if either of you lost your job, then set a deadline to boost your savings. If you’ve previously decided to save for a big expenditure, agree on how much you’ll save monthly and where you’ll keep it.
4. Approach to Budget Exceedance:
You likely have a monthly budget, but have you contemplated your reaction to a case of overspending or encountering unforeseen expenses? While enhancing savings is commendable, some couples neglect to designate situations that would justify drawing from their savings. It’s important to prepare for monetary inconsistencies and understand how mishandling finances could impact your relationship. Also, establish a common understanding of what constitutes an emergency.
5. Conversations on Your 10-year Plan:
You’ve possibly discussed your five-year plan pre-marriage, but also consider your long-term aspirations. Your future objectives and life plans together are likely to involve finances. Discuss your career paths, income projections, retirement plans, support for potential children’s education, vacation plans, or other priorities. Address these topics early to set realistic expectations and prevent future finance-related disputes.
Remember to keep an open mind and be prepared to compromise when discussing finance-related issues. With patience and understanding, you’ll make gains in this initial overwhelming phase, recognizing that your spouse’s opinion is just as valuable.
So, have you discussed these finance-related issues with your spouse yet? Have any other topics you’d like to discuss?
