Establish A Financial Plan With Your Future Spouse Before Getting Married With The Help Of A Financial Advisor
Finances are often an area that many couples fight about after marriage because they do not agree on how the money should be spent or saved. If you plan to get married in the near future, it is best to meet with a financial planning advisor with your future spouse so that a plan can be put into place as to how money will be spent or saved after you are married. The guide below walks you through a few things that you will discuss with the advisor to ensure that the plan suits your needs and lifestyle nicely.
Establish A Budget for Everything
The first thing you and the advisor need to discuss is what your yearly income is and what your everyday costs to run your household are. He or she needs to know how much money you spend on average each month for your direct bills and for your groceries, gas, and any odds and ends. This will allow him or her to help you establish a budget for what items you really need to pay each month and which items you may be splurging on each month. Many people do not realize how much money they waste on going out to dinner each month until they account for every dollar they spend.
Determine How Much Needs to be Saved
Let the advisor know what your future plans are. If you plan to buy a home, a car, or simply want to prepare for a family, he or she needs to know about it. They will be able to help you learn how to save for an emergency fund in case anything unexpected happens and then help you start saving toward the item you want to get. Your emergency fund should be large enough to cover your monthly costs of your home for a few months. This ensures that if you or your future spouse are out of work for a long period of time, the bills can still get paid.
Determine If You Will Have a Joint Account, Separate Accounts, or Both
Finally, you need to establish if you are going to combine your money in a joint account, keep separate accounts, or have a joint account along with your individual accounts. Many couples find that having only a joint account leads to fights because one person spends more than the other person on a regular basis. Having a joint account where a majority of the money goes and each maintaining a small separate account where money that can be used guiltfree from time to time may be the best option for your future family. The advisor can help you determine how much money needs to go into each account to make things as easy as they can be.
Once you have a plan established, the chances of fighting over finances will be greatly decreased. Knowing what to expect, having a plan, and sticking to the plan will take one less stress away and ensure that you and your future spouse are ready for any financial circumstance that arrives during your marriage.