As every married person knows, tying the knot can be as stressful as it is exciting. When you get married, you’re bringing two lives with different personal goals together. This leads to the creation of new common goals that both partners now have to work towards.
Apart from being emotionally and mentally compatible, couples also have to find a way to be financially compatible with each other. How you plan your finances as newlyweds will go a long way towards securing your financial future as a happily married couple. Most people forget this factor completely and are often in for a shock when their finances are finally combined.
Here are a few simple tips that can help newlyweds plan their finances with ease.
- Being Transparent
Being married is the same as being teamed up with your favorite human being for life. Just like teammates work with each other and keep communications open at all times, you need to do the same when it comes to your finances. Be open and trustworthy about your money and debts. Unless and until you trust your partner with your financial situation, working towards a common financial goal will not be an easy path.
- Your Joint Net Worth
The first thing you must do when you set forth on your financial planning journey as a couple is to calculate your joint net worth. This number will serve to give you a lot of perspective about a number of things pertaining to your financial plan. Take the help of a certified financial advisor to figure out how you can accurately gauge your net worth.
- Creating A Budget Together
As with any financial plan, you will need to create a common budget amongst yourselves. This means taking into account all your recurring expenses and instances of expenditure in the near future. As you settle down into your newly married life, it’s easy to get carried away and overextend your finances. Having a fixed budget will help you plan out your initial expenditure in a more controlled and stable way.
- Reviewing Your Financial Goals
While you work on a common financial plan you will individually need to review your goals as well. As you take on new investments as a couple, you will have to allocate your wealth and savings differently, perhaps even rework your financial plan completely. This is a must-do for effective financial planning as you embark on your newly married life.
- Update Your Wills (Or Make One)
If you already have a will, make sure to include your spouse as a beneficiary. If either of you don’t have a will, it’s best to start working on drafting one now. You’ll have to do it sooner or later and it’s always a better thing to get this done sooner. This is especially important if either of you owns high-value assets or large properties. Estate planning is an important part of financial planning.
Jumping into financial planning can be an overwhelming experience for some. If you’re ever in doubt or confused about what to do, don’t shy away from engaging with a certified financial advisor or wealth management firm; they will help you get a firm grasp of your financial situation and help you make better decisions for your future.