Financial Tips for Couples About to Get Married

When getting married, one of the most important things that couples need to consider is their finances. A joint financial plan can help them establish a solid financial foundation for their future together, but it can be overwhelming to navigate all the different components that go into creating one. This article will cover the key subtopics that couples should consider when creating a joint financial plan, including setting financial goals, creating a budget, allocating money for savings, investments, and expenses, creating an emergency fund, handling pre-existing debt, open and honest communication, reviewing your insurance coverage and estate planning.

Setting financial goals

This could include discussing and agreeing on short-term and long-term goals, such as saving for a down payment on a house, saving for retirement, or starting a family.

Setting financial goals is an important step for couples getting married to establish a solid financial foundation for their future together. Financial goals can be short-term, such as saving for a down payment on a house, or long-term, such as saving for retirement. It’s important for couples to discuss and agree on their financial goals so they can work towards them together.

When setting financial goals, couples should consider their current financial situation, plans, and overall financial objectives. The following are a few examples of financial goals that couples may want to consider:

Saving for a down payment on a house: This goal may involve setting a target savings amount and creating a plan to save a specific amount each month.

• Paying off debt: This goal may involve creating a plan to pay off credit card debt, student loans, or other pre-existing debt.
• Building an emergency fund: This goal may involve setting a target savings amount for unexpected expenses and creating a plan to save a specific amount each month.
• Saving for retirement: This goal may involve setting a target retirement savings amount and creating a plan to save a specific amount each month or invest in retirement accounts.
• Building a college fund for future children: This goal may involve setting a target savings amount for future children’s education expenses and creating a plan to save a specific amount each month.
• Building a Business or starting a venture together: Some couples may want to start a business or a venture together, setting financial goals to make sure they have the funds and resources to make it happen.

Once financial goals have been set, couples should regularly review and adjust their plan as needed. It’s also important for them to have open and honest communication about their finances, and to work together to achieve their financial goals.

Creating a budget

This could include discussing income, expenses, and how to allocate money for different purposes.
Creating a budget is an important step for couples getting married to manage their money effectively and stay on track with their financial goals. A budget is a plan that outlines how much money is coming in and going out, and helps couples make informed decisions about how to allocate their money.

When creating a budget, couples should take into account their combined income and expenses and consider both short-term and long-term needs. The following are a few steps couples can take when creating a budget:

• Determine combined income: This includes all sources of income, such as salaries, bonuses, investments, and rental income.
• Identify fixed expenses: These are regular expenses that are the same amount each month, such as rent or mortgage, car payments, insurance, and utilities.
• Identify variable expenses: These are expenses that can change from month to month, such as groceries, gas, and entertainment.
• Create a budget: This can be done using a budgeting app, spreadsheet, or by creating a written plan. The budget should include all income and expenses and should be reviewed and updated regularly.
• Track expenses: It’s important to track the money that is being spent, to make sure it aligns with the budget and to identify areas where expenses can be reduced.
• Make adjustments: If the budget is not balanced, couples may need to make adjustments such as cutting back on discretionary spending or increasing income.

It’s important for couples to have open and honest communication about their budget and expenses, and to work together to stick to the plan. It is also important to have some flexibility and not to be too hard on themselves if they overspend in certain months, they can adjust the budget accordingly.

Allocating money for savings, investments, and expenses

This could include discussing how much to save for emergencies, how to invest for the future, and how to balance needs and wants when it comes to spending money.

Allocating money for savings, investments, and expenses is an important step for couples getting married to manage their money effectively and work towards their financial goals. This involves deciding how much money to set aside for different purposes, such as saving for emergencies, investing for the future, and paying for expenses.

When allocating money for savings, investments, and expenses, couples should consider their financial goals, current income and expenses, and overall financial objectives. The following are a few steps couples can take when allocating money:

• Determine savings goals: This includes setting a target amount for an emergency fund and creating a plan to save a specific amount each month.
• Consider investments: This includes researching different investment options, such as stocks, bonds, real estate, and setting a target amount for investing each month or year.
• Prioritize expenses: This includes deciding which expenses are essential and which are discretionary and allocating money accordingly.
• Create a spending plan: This can be done using a budgeting app, spreadsheet, or by creating a written plan. The spending plan should include all income and expenses and should be reviewed and updated regularly.
• Review and adjust: Regularly reviewing and adjusting the spending plan will help couples stay on track with their financial goals and adjust as needed

It’s important for couples to have open and honest communication about their spending and savings plans, and to work together to stick to the plan. It’s also important to have some flexibility and not to be too hard on themselves if they overspend in certain months, they can adjust the plan accordingly.
It’s also important to have a balance between short-term and long-term goals and not to sacrifice the latter for the former.

Creating an emergency fund

Creating an emergency fund is an important step for couples getting married to prepare for unexpected expenses and financial emergencies. An emergency fund is a savings account set aside for unexpected expenses such as medical bills, car repairs, or job loss.

When creating an emergency fund, couples should consider their current financial situation, future, and overall financial objectives. The following are a few steps couples can take when creating an emergency fund:

• Determine the target amount: This includes setting a target amount for the emergency fund, considering the couple’s income, expenses, and potential unexpected expenses.
• Prioritize saving for an emergency fund: This includes setting a specific amount to save each month or each paycheck and making it a priority in the budget.
• Automate savings: This includes setting up automatic transfers from checking to savings account to make sure the savings happen consistently.

It’s important for couples to have open and honest communication about their emergency fund and to work together to stick to the plan. It’s also important to have a balance between short-term and long-term goals and not to sacrifice the latter for the former.

It’s recommended to have three to six months of living expenses saved in an emergency fund, but the exact amount will depend on the couple’s individual financial situation and goals.

Open and honest communication

Open and honest communication is crucial for couples getting married to manage their finances effectively and achieve their financial goals. It involves discussing financial goals, income, expenses, and any pre-existing debt, in a clear and transparent manner.

The following are a few ways couples can improve their communication about finances:

• Set regular financial check-ins: This includes setting regular times to discuss finances, such as once a week or once a month, to review expenses, income, and progress towards financial goals.
• Be honest and transparent: This includes sharing all financial information, such as income, expenses, debts, and investments, and avoiding any financial surprises.
• Listen actively: This includes listening to each other’s perspectives and considering each other’s opinions when making financial decisions.
• Be open to compromise: This includes being willing to compromise and adjust financial plans as needed, to meet the needs and goals of both partners.
• Seek professional advice if needed: This includes seeking the advice of a financial advisor or counselor if needed, to help navigate complex financial situations and make informed decisions.

It’s important for couples to remember that open and honest communication is a continuous process and that it’s important to have regular check-ins and to be willing to adjust and improve as needed.

Creating a joint financial plan for couples getting married is an important step in building a solid financial foundation for the future. It includes several subtopics such as setting financial goals, creating a budget, allocating money for savings, investments, and expenses, creating an emergency fund, handling pre-existing debt, open and honest communication, reviewing your insurance coverage and estate planning.

Save better for you and your partner’s future!

Investing with CAMCI can help couples address common couple financial problems providing them with a personalized investment plan that aligns with their financial goals and risk tolerance. We provide guidance and advice on how to manage and grow wealth over time, as well as regular reviews and updates to ensure that the couple’s investments are on track to meet their goals.