One of the most important things that needs to be organized is your finances and, if you decide to merge them, how you’re going to do this in the most convenient way for both people. Everyone’s financial habits will be different, so combining your finances with your partner’s is often much easier said than done. So, if you’re newly married or due to be married soon and want more information on how to plan for your financial future together, here are some top tips to get started with!
Be honest about your financial situation
There should be no secrets between married couples, and the same goes for your finances. The first thing you should do before even thinking about merging your accounts is to have an open discussion regarding both your financial habits.
This is the time to lay it all out on the table and be honest about previous financial experience and whether or not you’re in debt. When you get married and merge finances, you’re essentially taking on each other’s assets and debts so it’s vital you both know everything there is to know about each other before getting started. It’s important to now start thinking about money as ‘ours’ as opposed to ‘mine’, and this will likely give you the motivation needed to be 100% honest if you’ve got some hidden debts to reveal.
Create a plan
As soon as you know the entirety of both sets of finances, it’s now time to start setting goals. Marriage will often involve life-changing events like saving for a house or having a baby, so it’s essential you set financial goals in order to accommodate this.
If you ever go through tough times, having a financial plan in place is likely to ease strain as it will give you something to focus on for the future. And, if you’re both experiencing debt, it’s a good idea to get this paid off before you start saving towards the goals you come up with. Take a look at Consolidated Credit Solutions and Advice to quickly get your debt under control.
Create a joint account
When you feel like you’ve got a solid plan in place, it’s now time to open a joint account together! You can either keep your current account and simply add your partner to it (or vice versa), or open a brand-new account and start fresh. If this is the route you want to go down, ensure to do your research and choose the best account option that suits you.
Whilst getting married is an extremely exciting time, it will require some serious decisions too. Merging finances is a natural progression for almost any marriage, you just need to ensure honesty and stability to make it work.
Photo: Ken Teegardin
Kara Perez is the original founder of From Frugal To Free. She is a money expert, speaker and founder of Bravely Go, a feminist financial education company. Her work has been featured on NPR, Business Insider, Forbes, and Elite Daily.