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Financial Advice All Newlyweds Need To Hear

Financial Advice All Newlyweds Need To Hear
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There is a lot of advice that is often given out to newlyweds. It’s often things along the lines of how to keep each other happy and how to ensure that your love lasts further down the line. Unfortunately, though, most of the advice that is handed around isn’t always that useful. Do you remember the last time you heard someone give some newlyweds any financial advice? No, didn’t think so! There isn’t a lot of financial advice given out to newlyweds, probably because most people think that it isn’t their place to tell others how to handle their money. But this is often the main advice that new married couples need. After all, switching from managing your own money to now needing to manage it along with someone else is a huge change to undergo!

So, with all of that in mind, I thought it would be useful to offer up some very useful advice to all the newlyweds out there. Need to get your whole finances in order now that you’re newly married? These tips will help you with that!

Get A Prenup

Not married yet? Well, if not, it’s a good idea to get a prenup organized before you do. I know that you might not think you and your partner will ever split up, but you really have no way of seeing what the future has in store for you. Getting a prenup is just a way to ensure that going through a divorce won’t leave you worse off financially. It also means that you don’t end up with any debt that your partner had before they met you. Sometimes, even the couple’s debt is equally shared out during a divorce which really isn’t fair. So, don’t ignore signing a prenup because it’s not that romantic – it’s a very practical contract to have so that you can come out of a divorce in one piece financially speaking.

Get Some Life Insurance

First of all, it’s a good idea to get a life insurance policy for the each of you. Even though this may seem quite expensive right now, it will actually be protecting the both of you in the event that one of you were to unexpectedly die in the future. It’s much better to be in that situation with some life insurance to fall back on as it can replace your partner’s income which can help you stay afloat after their death. The earlier you start paying into a life insurance policy, the more you will amass over the years. So, even though the premiums might seem quite expensive right now, it really is worth taking a look at comparison websites to find the best possible life insurance policy for you and your new spouse.

Pool Your Debts

If the two of you have your own debts from before you were married, it’s now a good time to pool everything together. There are various ways you can each take responsibility for all of this debt, but the best thing to do is to consolidate it all into one large loan. That way, you also only have to take care of one monthly payment rather than lots of little ones. If you aren’t so clued up about debt consolidation, you can learn at this page. There’s plenty of information on everything that you need to know about getting on top of your debts together as a couple!

Be Open And Honest About Goals

Ideally, you need to have a serious chat about your finances before you get married. Once you are wed, it’s time to chat about your goals and targets for the coming years and for further in the future. It’s really important that you are both on the same page when it comes to your financial goals. You should also make sure that you are both aware of your current financial situation and how much money you have in total. It’s really important that neither of you lies to the other about how much money you have. This will only come out eventually further down the line and will cause some major arguments and you may no longer be able to trust one another because of it.

Joint Or Separate Accounts?

Traditionally, married couples have always had a joint account for the two of them. However, over the past few years, a lot of newlyweds have chosen to stick with their own accounts. Some have decided to keep their own separate accounts but open a joint account as well, as that makes it easier to pay bills. They then just need to transfer their half of each bill into the joint account so that the money is there ready to pay any bills and invoices. Once you are married, you will need to decide how you want to look after your money. Joint or separate accounts? This is one very important discussion to have with your partner!

Start Saving For Retirement

Even if you are only in your early twenties when you get married, it’s not too early to start planning for your retirement. In fact, the sooner you start saving for your retirement, the better. There are various ways you can start saving. The easiest is to pay into your employer’s pension plan. Of course, you will only have this option if you are in full-time employment. If you are self-employed, then you will only be able to have a private pension. There are quite a few self-employed individuals who choose to forgo a pension altogether because it is cheaper for them now as they have less outgoings. However, this is really bad in the long run as you won’t have a pension for when you retire. But there are some other ways you can prepare. For instance, you might want to invest in property rather than a pension. But, as with any type of investment, it’s always best to have a few different investments for your retirement. After all, diversifying is always key!

Prepare To Support The Other

You never know what you are both going to run into in life, so it’s important that you make sure that you will be able to support one another if ever needed. For instance, it’s a good idea to budget using just one of your incomes. That way, if you ever lose one of your incomes, you won’t be in too much trouble. It’s also a good idea to start to both save into an emergency fund. You will then be able to build up a pot of money that you can dip into if you are ever faced with an emergency. This could be if you need to pay an unexpected medical bill or if your home is ever damaged and needs some expensive repairs. Setting up these methods to support yourselves and each other means that you don’t have to risk going through some financial hardship no matter what happens.

Don’t Buy A House That’s Too Big

If you don’t already live together, you will no doubt be moving in together once you are married. You might be tempted to buy as big a house as possible with your budget. Many new couples believe its best to get a large house if they are planning on having kids as it will save them having to move into a larger house at a later date when they do start having babies. However, that’s not a good financial strategy for the here and now. Ideally, you shouldn’t overstretch your budget for a property – just look for a home that is just big enough for the two of you instead.

Understand Your Tax Situation

Once you are married, your tax situation will change. That’s because you’ll have gone from being single to being married. So, you now need to find out your tax status so that you fully understand your situation. You might even have to start filing your taxes together, so it’s important that you bring your partner up to speed on your joint tax status too. If you can file either jointly or separately, it’s a good idea to see which will be financially beneficial to you. In some cases, even though married couples can file separately, they might incur a small financial fee for doing so. The best way to figure out what your new tax situation really is to speak to an accountant or financial advisor. You will, of course, be able to also do your own research online but it might be better off for you to speak to an expert just so you don’t end up confusing yourself and getting things wrong!

As you can see, there is certainly a lot that you now need to organize along with your new spouse. It’s really important that you do sort all this out sooner rather than later. Otherwise, you might incur some fines or fees for passing important deadlines. It’s a good idea to discuss this all with an accountant, though, as they can keep you and your new spouse on track!

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