If you want to accomplish your money goals with your partner, fight less, or simply don’t want to struggle to pay for your children's education or fall into debt while having dependants, here’s some good news.
In this article, you’ll discover seven outrageous ways to manage your finances before marriage to ensure a comfortable and enjoyable married life.
1. Start the Tough Money Conversation
It can get uncomfortable getting the money conversation started. However, money conversations are healthy as they lay the groundwork for a happy marriage. So start having money talks with your partner early because even if you don’t have a joint account, your partner’s money behavior will affect you.
Here are conversations you can have.
- How do our attitudes towards money differ?
- Should we have a joint account when we get married?
- How will we split financial responsibilities?
- Are our finances protected in case something happens?
- What kind of debt do you have?
- How much do we each have saved?
If you’re uncomfortable talking with your partner about money, that’s okay. Here are nine tips to help the conversation go smoothly.
- Choose the right time and place: You want to minimise interruptions.
- Acknowledge the discomfort.
- Set the meeting in advance.
- Be honest and transparent. It’s not the time to hide anything.
- Don’t try to solve every issue at once.
- Take note of moments that bring heated exchange as they indicate dipper issues.
- Listen to your partner and consider their perspective.
- Come up with a plan of how you’ll achieve your goals.
- Make it a habit.
Read Also: 7 Taboo Money Topics We Should Openly Be Discussing.
2. Start Saving for Future Expenses
Start saving even before your big day to prepare for the ballooning expenses that come with marriage. Your expenses could double. As such, you can easily fall into debt.
Don’t worry, though. Here are four saving tips to help you start saving for those expenses.
- Create a budget: A budget will help you identify areas to cut back. It also gives you a clear picture of your financial situation.
- Prioritise your savings goals: Determine what future expenses you want like big purchases, your child’s education, or retirement.
- Set aside money in a savings account: Consider setting up automatic transfers from your checking account to your savings account to make it easier. However, make sure your savings are earning interest.
- Track your progress: Tracking your progress will help you stay on track and adjust your budget as needed.
How much should each of you save? A general rule of thumb is to have the equivalent of your annual salary before getting married.
But if you talk about money frequently, you’ll know how much to save for future goals.
Read Also: 5 Reasons Why You Should Start Saving Early.
3. Budget Together for Your Big Day
When planning your big day, you'll need to involve your partner. This will ensure you start your new life on the right foot.
Budgeting can be challenging and time-consuming. Luckily, here are some tips to guide you.
- Determine your total budget. How much money do you have to spend?
- Create a list of expenses: Your expenses include the cost of the venue, catering, photography, and videography, etc. In addition, include a contingency fund to cater to unexpected costs.
- Prioritise your spending: Determine which of your expenses are more important to you and your partner and allocate your budget accordingly.
- Set a timeline: Reduce last-minute decisions that could affect your budget by setting deadlines for making decisions and paying for expenses.
- Review and update your budget regularly: This will ensure you stay on track and avoid any financial surprises.
Read Also: The Ulitmate Personal Budgeting Guide.
4. Open an Education Saving Account.
Do you want the best education for your child? Do you want to pay for your kid’s education without struggling? Do you want your children to go through education even if you’re not around?
If you answered yes to any of these questions, create an education savings account for your kids before they start coming. It will ensure you have money available for your children’s education when they need it.
If you’re wondering how to open an education saving account, here are steps to follow.
- Research your options: There are many types of education savings accounts available, so research your options and choose the one that best fits your needs and goals.
- Determine your savings goals: Consider your child's age and how much time you have before they need money for their education expenses.
- Compare fees and investment options: Choose the one that offers the lowest fees and suits your goals.
- Open the account: This typically involves filling out an application and making an initial deposit.
- Contribute regularly: Consider setting up automatic transfers from your checking account to your education savings account to make saving easier.
After setting up an account, remember to review and update it regularly to ensure it still meets your needs and goals.
Read Also: What is the Best Way to Invest For Your Child’s Education?
5. Increase Your Streams of Income
Starting a family requires a stable foundation. You can achieve this by increasing your sources of income.
Here are some ideas on how to increase your sources of income:
- Take on additional work: If you have the time, consider taking on more work. It could be freelance work, part-time jobs, or starting a side hustle.
- Invest in the stock market: This can provide you with passive income. Research different options and consider consulting a financial advisor to make informed decisions.
- Rent out a room: If you have extra space, consider rating out a room to a tenant or Airbnb. This way, you can easily sort your bills.
Read Also: 6 Passive Income Streams That Will Make You Rich.
6. Get Insured
Getting insured before walking down the aisle can protect your financial future. You’ll live happily covered in case of an eventuality.
Here are some tips for getting insured before getting married.
- Research your options: There are multiple insurance covers, so research your options and choose the cover that fits both of you. Consider your age, health, and lifestyle when comparing insurance options.
- Compare quotes: Once you know the type of cover you need, compare quotes from different insurers. This way, you’ll find the most suitable and affordable option.
- Discuss with your partner. Before selecting your insurance coverage, discuss your insurance needs with your partner. Make sure you’re on the same page.
- Purchase the insurance: Next, purchase one that’s right for both of you. As a caution, always read and understand the fine print.
- Review and update it regularly. As time moves, your needs may change. Review and update your cover regularly to ensure it aligns with your needs and goals. When reviewing your policy, you can:
- Increase or decrease your coverage
- Switch to a different insurer
- Make other changes
Overall, getting insurance before marriage will protect your future. With careful planning and research, you can find the right coverage to meet your need and give you peace of mind.
7. Plan for Your New Home
Where will you live once you get married? It’s important to know this early on. So decide on a budget, location, and the type of house you want.
Here are three tips to help you plan for your new home;
- Discuss your budget and financial goals with your partner. This will help you determine how much you can afford to spend on a home.
- Determine your must-haves. Make a list of the features and amenities that are most important to you and your partner, and prioritize them. This will narrow down your options and help avoid getting overwhelmed by all the choices.
- Research different neighborhoods and locations. Consider factors like proximity to work and public transportation, quality of schools, and the local crime rate.
That’s it. All the best as you start the next phase of your life. As with retirement, emergency funds, and investing you need to start planning for your married life this early. Otherwise, you won’t enjoy your marriage because of constant money quarrels.