Financial Tips for Newly Weds
Newly weds have a lot to work through after the big day. Perhaps the most important of these their now shared finances. Financial decision making varies from one person to the next and this is no different in a marriage. Learning to compromise and come up with a financial plan that both parties can agree to is invaluable. Money management can actually be a rewarding way to bond with your loved one. By employing some of these tactics, the path to merging your finances will hopefully be successful.
Open and Frequent Communication
The best course of action is to have open communication before marriage. If is never too late to get to know your partner’s spending habits, financial status, and future goals. Working out the details of how your finances will be shared is also crucial. Delegating tasks as well as discussing budgets is crucial. This may be a lengthy and potentially frustrating conversation, but it is one that needs to be had.
Build An Emergency Fund
Building an emergency fund for your new marriage is also recommended. This is especially important if you are going to do things that most newly weds do such as buy a new home, start a family, travel. It is recommended to save at least three months of your household expenses in the event of an emergency. Not only is this a great source of extra security but it can alleviate the stress that emergency can put on a relationship.
Create A Budget
In order to create a budget, you must first have a general idea of what your joint and individual expenses will be. It is best to have at least three months of history to review in order to determine patterns in spending. A budget is not just for expenses but should also consider savings and goals. The best part about a budget is that it is a work in progress and can be tweaked.
Team Work
The most important thing to remember is that teamwork is key. There should be a level of compromise as well as constant communication. Learning each other’s strengths and weaknesses is perhaps the most important piece of this.
Save For Your Goals & Retirement
Whether you’re married or not, you need to make sure you are set financially for the long haul. This means you need to save for retirement now. Opening up a joint RRSP contribution, and a joint Tax Free Savings Account would be the ideal two ways to go. This way you’re saving for the long-haul, and you have the option to save for your investments/short term, while having the ability to take the money out without penalty from your TFSA.
Final Thoughts
Although finances are probably not the most exciting part of marriage, they are probably one of the most impactful. Money can be a major strain on any relationship so it is important to iron out the details as soon as possible. As is the case with most things in life, preparation is key.
These are all great tips. Definitely talk about financial issues if any arise!
These are great tips! Most people get so caught up in planning the big day that they forget to pay attention to what their financial future will look like.
It’s extremely important and the earlier you start planning the less time and energy you waste on it down the road.
Very true, I know my wife and I didn’t really pay attention to what our financial future looked like. We are struggling to get through it all now after 2 quick kids as well. I can finally see light at the end of the tunnel!!!
Just the post I was looking for! I also caught your other post about how you and your wife “split”, which was pretty interesting. How is that going? The Mr. and I talk about money frequently (once-ish a week for the last two years), but never in a way that feels productive… like, we talk about what we should ideally do, but struggle to agree on actions.
Anyway, I thought your point about honest and open communication has been the most critical to our relationship so far. Since he is entering the marriage with debt, and I’ve had money to play around with for a while (investing), I feel uncomfortable not knowing how much debt he has and he’s uncomfortable when I tell him I invested in stocks instead of a high interest savings account (… p.s. I already have an emergency fund large enough for two). Once we started sharing more details with each other, it felt like a door was opened and now we’re finally able to move onto our next step: agreeing on a budget.
Thanks again for the post 🙂
Awesome to see you back around GB. As far as splitting our accounts it is working out great, we seem to have a lot more disposable income, all our bills are caught up as well. It has curbed my wifes spending, and we are actually starting to build a little savings. Overall it feels great!!!
Thanks for the great tips, i agree putting together a common fund is very important. These funds can be used to purchase furniture, or other household stuff. That way u can keep your personal savings separate