Financial planning for newlyweds: top 6 tips

NNatalie August 31, 2023 11:52 AM

Getting married is a milestone that comes with a lot of joy—and a new set of responsibilities. One of the most significant changes is how you handle finances. Here are the top 6 financial planning tips for newlyweds to get you started on a secure and prosperous financial journey.

Start with a conversation about finances

Discussing money matters may not be the most romantic conversation for a newlywed couple, but it's necessary. Be open about your income, debts, and credit scores. Discuss your financial goals and fears. This conversation will be the foundation of your financial planning.

Create a budget

Budgeting is the backbone of any financial planning. Use apps or spreadsheets to track your income and expenses. The goal here is to understand your cash flow and make sure you're spending less than you're earning. Always aim to save a portion of your income.

Plan for retirement

It's never too early to start retirement planning. Consider contributing to a 401(k) if your employer offers one. If not, look into opening an Individual Retirement Account (IRA). The earlier you start, the more time your money has to grow.

Manage your debts

If either of you is bringing debt into the marriage, it's crucial to have a plan for managing it. Understand your debt-to-income (DTI) ratio and make a plan to pay down debts as quickly as possible. Remember, your joint credit score will play a crucial role in your future financial endeavors.

Get the right insurance

Ensure you have the right insurance policies in place. This includes health, car, homeowners, and life insurance. It's also a good idea to review your beneficiaries. If something were to happen to one of you, you'd want to make sure your spouse is taken care of.

Consider a financial advisor

A financial advisor can be a valuable asset to your financial planning. They can provide professional advice and guidance on everything from saving and investing to tax and estate planning.

Tips Summary
Discuss Finances Start by having an open conversation about your finances.
Budgeting Create and follow a budget. Track income and expenses.
Retirement Planning Start saving for retirement as early as possible.
Debt Management Understand your debt-to-income ratio and manage your debts.
Insurance Make sure you have all necessary insurance policies.
Hire a Financial Advisor Consider working with a financial advisor for professional guidance.

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