You and your love muffin may be planning to get married. But is your bank balance ready for this big step?
Are you and your partner on the same page financially? How can you know you’re financially ready for marriage?
If you have these and more questions, don’t worry. Here are signs you're financially ready to get married in your 20s.
Before walking down the aisle, it’s critical to know both your income and spending habits. If you’re opaque about your finances, the chances are your marriage will be difficult.
As such, you should know how much debt your partner has, what their income is, and what their spending habits are.
This information can help you decide whether outstanding debts will become ‘couples debt ‘or if it will remain individual responsibility.
Although these can be tough talks, having an agreement before getting married can prevent arguments down the road.
“ A penny saved is a penny earned” Benjamin Franklin
It may be challenging to save up to 6 months of your monthly expenses before marriage. Nevertheless, you’ll be thankful because you’ll be prepared when an emergency strikes.
Here are more benefits of setting up a rainy day fund before getting married:
Saving up 6 months’ worth of your expenses can take time. So it's important to start as soon as possible.
Begin by looking at your budget and seeing where you can cut back on expenses. Then, start setting aside money each month into an interest savings account.
Other places to save your emergency funds include:
If you can stick to your plan, you'll be in good shape financially when you walk down the aisle.
Paying off debt before getting married ensures you start on a clean slate. But if you wait until you get married to pay off your debts, it can be challenging to pay the future monthly expenses that come with getting married.
This doesn’t mean you should be completely debt-free before getting married. However, keep it at a manageable level.
No matter how much debt you have, don’t get overwhelmed. You can use the debt avalanche or debt snowball method to tackle one debt at a time.
The debt snowball method focuses on paying off the smallest debt first. As such, it can give you the motivation to pay your debts faster.
On the other hand, the debt avalanche method focuses on paying the debt with the highest interest first. A benefit of this method is that it can prevent you from paying high-interest fees.
Many couples are uncomfortable discussing their finances. But no matter how uncomfortable it may seem, you need to regularly and openly discuss money matters with your partner.
Discussing money matters together can minimise disagreements and ensure you have a long-lasting relationship.
So schedule money dates with your partner each month. A money date is a planned time to sit down with your partner to discuss your finances.
Your discussions should center around:
You can discuss many money subjects with your partner. If you cannot comfortably discuss finances with your partner yet, then you’re not ready to get married.
Read Also: Money Conversations With Your Partner.
Most young couples don’t think about retirement before getting married. Starting early makes a big difference because of the magic of compound interest.
So don't wait until it's too late to start planning for your retirement. Talk to your future spouse about your plans and ensure you're on the same page.
There are a few things to consider when creating a retirement plan. These include:
Lastly, having a retirement plan in place can be a major selling point if you're ever looking to get married. After all, who wouldn't want to marry someone who is already thinking about their future together?
So if you're ready to take the next step in your relationship, be sure to have a retirement plan in place first.
Read Also: How to Plan for Retirement While In Your 30s.
If you're not on the same page financially, it can create a lot of tension and conflict. Besides, you’ll hurt your partner if you can’t manage your finances.
So master personal finances before getting married. This means:
Mastering personal finance can be a bit of a learning curve. Even so, there are plenty of resources out there to help you get started.
Read Also: 10 Long-Term Finacial Goals to Start Today.
Marriage is a big commitment and your finances are a big part of the commitment. As such, you’ll need to trust your partner with your finances.
You’ll also need to be able to work together to manage your money. This allows you to pool your resources and make joint decisions about how to use your money.
It can also help you avoid arguments about money, which can be a major source of conflict in marriage.
So before getting married ask yourself the following questions:
Read Also: Yours, Mine, Ours: How Couples Can Manage Money.
Let’s face it. Money is the leading cause of marriage breakups. So before committing yourself to one, you need to be ready financially.
Hopefully, these indicators discussed in this post will help you know if you’re ready. Even so, it’s one step at a time. You don’t have to be perfect in all those considerations. So, are you financially ready to get married?