Financial Things to Address Before Getting Married
Many people do not see the need to talk about finances before getting married, but it’s important to be on the same page on this vital issue before tying the knot. Your financial status may be different and so are your plans and discussing couple’s finances early ensures that conflicts do not come up later on in the marriage. Here are some of the things you should address.
This is an important issue to agree on because as you start living together, you will have shared expenditure as well as personal needs. You may decide to bring all the finances together but have allowances to cater for individual needs while the rest of the money takes care of home expenditure and the future obligations.
Unlike two individuals whose futures are separate, the future for a married couple is an experience shared. Planning for this future as a team is imperative, especially when it comes to the financial side of such things as starting a family, buying a house, building a college fund for your children, and so forth. If there are disagreements over the details of this financial future, sort them out prior to the wedding. Many financial advisor companies specialize in assisting young couples in mapping out their personal finances in the years ahead and can serve as an honest broker in figuring out the best path forward for both partners.
You will need to agree if getting life insurance immediately is necessary and how much to put aside for the venture. Other than the life insurance premiums, you need to decide on which company to work with and the package that best suits your needs.
As much as it may seem to be many years away, the sooner you start planning for retirement as a couple, the better you will be prepared when you are finally faced with it. In fact, if you start saving for retirement early enough, you can retire early and spend more years enjoying your hard work. As you talk about retirement, agree on when you should start saving for retirement, how much you should start with and the formula you should use to determine how much should be set aside each month.
As you know, quality education requires a considerable financial planning. Every parent wants their children to have the best. Some of the things you should discuss are when to start a college fund for the children and how much to be saving. You can even address where you want your children to go to school, to help get a general idea about how much you will need for the college fund.
Love makes couples think that they will agree on everything but this is not so. You are two different people with different upbringings, attitudes, and views on finances. Yet this doesn’t mean you can’t maintain a happy marriage over the course of the rest of your lives. It just requires a bit of patience and understanding, as well as some planning.