Your marriage vows bind you and your partner together with the emotional and financial bonds you need to grow stronger throughout your life together. Therefore, sorting out your financial situation as a newlywed will lead to a lifetime of financial happiness. After all, financial security is just as important as emotional well-being between married couples.
Here is 5 solid financial advice for any newlyweds to help them positively put their financial lives together:
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Reconsider Your Financial Goals: Goal setting is an important financial consideration for newlywed couples. Take the time to talk about your specific goals and what you want to achieve financially as a couple. You can discuss things like your debt repayment plans, savings goals, retirement planning, and new members to your family. Next, you need to list the specific steps and time frame for achieving each goal.
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Develop a Joint Budget: A budget is an excellent financial tool for you as a newlywed. Having a budget or spending plan will allow you and your partner to control where your money goes. Whether it’s savings, paying insurance premiums, paying off debt or spending, make sure you’re both on the same page with making decisions.
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Minimize Tax: Once married, you should assess your tax deductions and investment channels to potentially help reduce taxes and increase your retirement savings. Tax-advantaged accounts, including workplace savings plans, health savings accounts (HSAs), and IRAs can be useful tools for wisely planning your long-term goals.
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Review Your Insurance Coverage: After your marriage, it is necessary to review, renew, and in some cases, purchase various types of insurance, including life insurance, health insurance, and disability insurance. If you both work, it may be cheaper to use your spouse’s health insurance than to pay for it yourself.
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Create Will: Your will is the most important legal document to authenticate your wishes regarding the distribution of your property. Also, it provides directions on how it should be done after your death. Even if you already have a will, you will need to renew it after marriage. You should contact your attorney to create or update a will as soon as possible. Be sure to reassess them every three to five years.
Conclusion
The most challenging money discussions for newlyweds. However, an open and honest discussion as well as the tips given above will go a long way towards ensuring lifelong financial harmony in your marriage.