- February 9, 2022
So, you’re engaged to be married. Congratulations!
You’re probably in good company considering that last year, social media exploded with romantic proposal videos and photos of engagement rings captioned “I said YES!” This was especially true during the 2021 holiday season. The Wedding Report estimates 2.5 million weddings in the US in 2022, the most the country has seen since 1984!
Love is definitely in the air. But before you set a wedding date, choose a color scheme, and the plethora of tasks for your special day, here are 5 Financial Tips to consider with your partner before you say “I Do!”
Discuss Your Debt, Financial Obligations and Budget
This may not be the most comfortable discussion to have with your fiancé, but when it comes to your future life together, it is definitely an important one. Having debt and financial obligations is normal. The purpose of the discussion is to lay all your cards on the table so that together you can create a realistic and strategic plan to manage existing debt and minimize any future debt. This may mean that you combine your incomes to help tackle each other’s debt. Remember that unmanaged debt and other financial issues can put a serious strain on your relationship. So create a plan now so that you can have a good start toward a happier marriage.
Confirm How Household Expenses and Bank Accounts Will Be Shared
There is no one-size-fits-all here. Some couples function well with separate bank accounts with expenses split. Others may prefer to have one bank account from which all the household expenses are paid. Another option is the One for You, One for Me, and One for Us approach. This is where there are individual accounts used for personal spending and a shared account for joint savings and investments. This way, you can split expenses while having a dedicated account for creating and managing your household’s wealth.
Discuss Your Financial Goals
You’re both your own person, so your long-term goals may differ. Plans to build a home, have children, and when you will retire can affect how you save, spend, and invest your money now. Although some of these goals may seem a long way ahead, discuss them with your partner before your nuptials so that you’re both on the same page later on.
Discover You and Your Partner’s Financial Persona
Don’t assume that your partner has the same financial understanding as you. You may have been raised in a home where money was discussed, properly managed and invested. Your partner may not have or vice versa. Therefore, you may have mismatched financial personalities. Determine if your soon-to-be spouse is a saver or a spender. Where do you fall? Is he or she an impulse buyer or a savvy shopper? Which one are you? These details can help you identify bad habits, address them, and moderate them.
Consult a Qualified Financial Advisor
Just as you would seek marriage counsel before the wedding, consult a financial advisor before marrying finances. A qualified financial advisor will listen to you both, evaluate your net worth, consider your short and long terms goals and give sound advice and suggestions about your finances. At RF, we have knowledgeable experts to help you map out a strategic plan for your money and guide you as you invest for the future.
Don’t be misled, all couples argue about money. However, the sooner you discuss and address these matters, the sooner you can address any financial missteps and get back on track. Make a plan to manage a lifetime of happiness, together… for richer!
If you need help with developing your post-wedding financial plan, contact us at invest@rfgroup.com to connect with a Financial Advisor today!