Financial Tips for Newlyweds

A marriage is a new financial start. When couples get together there are adjustments to be made, goals to be set, and financial adventures to take. Share information. Both partners should be fully aware of each other's financial situations, from spending to debt to investments. With full financial disclosure, you'll be better equipped to plan together. Review and establish goals. The sooner you set financial goals, the better your chances of reaching them.

Do you want to buy a new home or move up in the housing market? What about a retirement savings strategy? How much will those goals cost and how long will it take to reach them? Budget. Create a budget that will allow you to save and invest enough to reach your goals. A good budget will help identify how much you earn and spend, and how to divert more income to savings. Decide how finances will be managed. Will one spouse be responsible for a larger percentage of bills and expenses, or will they be shared equally? Will you have joint savings and investments? Who will physically handle financial transactions? Pay down debt. If you owe money, particularly high-interest debt such as credit card balances, formulate a plan to pay it off. Consider ways to reduce borrowing costs-for example, setting up a home equity line of credit if you own a house and quickly paying off any amounts you borrow.

Assess insurance needs. Life insurance is a necessity when you're married. The last thing you want is for your spouse or family to be left in dire financial straits if something happens to you. Consider disability and critical care insurance as well. Make or update wills. Both partners should have up-to-date wills. This means jointly discussing estate planning needs and goals. You should also have powers of attorney for financial and personal care, in case one of you is unable to manage your financial or personal affairs because of illness or injury.

Establish an emergency fund. Keep six to nine months' combined living expenses in an emergency fund. If you run into financial difficulty-perhaps one of you could fall ill or lose your job-an emergency fund can help you get through. One final tip. It's a good idea to get help from financial experts. At this stage of life couples can benefit from professional advice, including the services of a financial advisor. With the right advice you can ensure your financial life together gets started on the right note.

Ryan McLellan, Financial Advisor
Edward Jones Barrhaven
613-823-3404
[email protected]