Many people tend to carry their financial problems into their future marriages once they decide to tie the knot. Surely one of the most difficult or stressful conversations to have with your significant other is about your financial stability. After graduating college or obtaining a degree, there is a good chance that you might in debt for educational loans and expenses. Other past debts and expenses can also be a factor in your future budget together.
In order to have financial stability in your marriage, here are some of the conversations that need to be at the top of your list for discussion. In some cases, there may be important financial issues that you and your soon-to-be spouse will have to discuss before going any further with your relationship.
Pay Off Debt
Talking to your future spouse about your debts together is the start to achieving financial stability. Some people may have debts they need to pay back by certain due dates. You and your future spouse should sit down and talk about the debt you both might have and find a strategy to pay it off. A marriage represents a partnership and finding a way to pay off past debt should always be a priority. Being able to have a debt-free marriage can lead to lower stress levels for some couples, and an increase in romance!
Get in the Budgeting Habit
Finding a good opportunity to discuss finances is always the hardest part. Before getting married, you and your future spouse should have a serious talk about budgeting. Sit down with your future spouse and create a budget that both of you can follow. Cutting back on certain non-critical expenses is always a good way to start on your budgeting plan.
Spending less and saving more is a good overall strategy to keep a marriage healthy and financially stable. Making a budget together will be more effective than trying to produce a budget plan on your own, and trying to get your partner to follow it. Both you and your future spouse must learn how to budget wisely and follow a financial plan for financial success.
Plan for Savings and Retirement
Other financial planning topics you will have to discuss with your future spouse: savings and retirement. Will you be willing to start a joint savings account together, or will you keep them separate? These are some of the questions that need to be brought to the table. Some couples approach this specific topic differently; some like to start a savings account together right away, while other couples like to keep their accounts separate. Having a savings account is a good way to think about future expenses, such as investing in a home or your future child’s college education.
What Are Your Other Savings Goals?
Many couples open a savings account early in their marriage to cover any expenses that their future child might require. Consider opening up a savings account together to invest in your future retirement fund. Retirement funding is good to talk about now, especially since you are planning to spend the rest of your together. Retirement funds and savings should be evaluated when conjoining accounts and pursuing a financial partnership with your future spouse. Decide on how much to save each month towards these goals. Experts recommend saving 20% of your gross income towards retirement, depending on your ages.
Talk About Each Other’s Financial Goals
Learning each other’s financial goals is a good way to start discussing important financial issues with your future spouse. Although this conversation can be awkward, choosing a day when there won’t be any distractions or make a date of it to go someplace relaxing to talk about it. Financial stability doesn’t have to be an awkward or intense subject to talk about. At the end of the day, you and your future spouse want what is best for each other, and discussing these concerns and issues is part of a healthy marriage.