Getting married is a very important and exciting time in someone’s life. It brings about many lifestyle changes that all couples must adapt to, and one of the most important of these changes revolves around money. More often than not, marriage means two bank accounts becoming one, sharing funds, and preparing for the future together. Here you can learn about eight of the biggest money mistakes newlyweds tend to make so that these occurrences aren’t part of your future.
- Not knowing each other’s money history
Everyone has a different view about money, and these beliefs are often shaped by how someone was raised. Your childhood and family influences can have a great impact on how you handle your money as an adult, so it is important to discuss these thoughts with your partner. This will help you have a better idea of where each of you has been in order to plan where your future will go. For example, growing up wealthy affects one’s outlook on spending much differently than growing up in a poor household.
- Keeping money secrets
Being open and honest is important for any successful relationship, and this refers to money as well. Be honest with your partner about your financial past and present in order to avoid any conflicts or misunderstandings in the future. This means telling them about things like your past spending habits or current credit situation.
- Avoiding money talks
Nothing will ever get solved if you avoid talking about money. When any concern arises, big or small, you should discuss it as a couple no matter who is at fault or at risk. Everything from bills and credit scores to debt and retirement funds are all topics that should be shared between you and your spouse, even if you think you can handle the situation on your own. This will ensure that you are both aware of everything that is going on, and will help prevent those money secrets from existing.
- Not having a budget
Since you and your spouse will most likely be sharing money, it is necessary to create and agree upon a budget that you will follow together. You each have differing spending habits and incomes, so this is the time to merge these together and establish a plan to spend your money as a single unit.
- Not helping each other stick to the budget
A budget is worthless unless both partners are willing to put in the effort to stick to it. There are many ways to accomplish this, for example, making pacts such as checking in with each other before spending over a certain amount on a purchase. The specific tactics are up to you, but is necessary to map out a way for you both to stay committed to your budget.
- Giving one person the control
A marriage is a joint effort, and when it comes to something like money the best way to have success is to work as a team. It is better to share the responsibilities between you and your spouse to make sure you are both held accountable. Even if one person is in charge of physically paying the bills, both partners should be always be informed and involved in financial decisions.
- Failing to plan for emergencies
Although the thought of a family emergency or tragedy is not the first thing on your mind as a newly married couple, it is still necessary to evaluate your situation to make sure you are prepared. Look into creating emergency savings funds, as well as examine your insurance plans to ensure you are adequately ready if something goes wrong.
- Not planning for the future
It’s easy to get caught up in the honeymoon phase of your marriage, but one of your first tasks should be to get some things planned for your future. This includes retirement funds, savings for your future children, creating a will, and mapping any other important future spending. You will thank yourself later for doing this, and feel much more prepared as the years go by.
For more information about how to avoid these mistakes, contact Citizen’s Law Group today!