Financial Planning
for Newlyweds
P
lanning for your own future has unique
challenges, so when you combine your
plans as a newly married couple you
can certainly expect an entirely new set of
challenges. Combining finances with another
individual has the potential to pose numerous
areas of disagreement, as many married couples
can attest, so proper financial planning and
communication is essential. Preferably, in depth
discussions regarding specifics of each spouse’s
financial situation entering the marriage have
occurred prior to the “big day”, as honesty and
transparency is of paramount importance to a
successful marriage.
It is also important to try and align your
views regarding money to the best of your
abilities. Each of you have developed financial
habits based upon your own experiences, and
without communication it will become painfully
apparent that some of your views and habits
are not the same as your partner’s. Part of this
alignment involves creating short-term and long-
term financial goals together, and discussing
timelines associated with accomplishing these
goals, such as purchasing a home, starting a
family, and career plans. It is also very important
to begin referring to your finances at this point
as “our money” and not “my money”, as trust is
established by not only combining your lives
together emotionally, but financially as well.
Once you make the commitment to begin
your lives together on the same financial page,
you can begin to accomplish your goals with
specific actions. One of the first things you will
want to do is to establish a monthly budget for
running your new household. Use spreadsheets
to distinguish inflexible bills such as rent,
insurance, and loans from flexible expenses
such as savings, food and entertainment. This
is also a good time to designate a bill payer, as
having one person control the output of money
streamlines confusion. This does not relieve the
other spouse from being involved in the family’s
finances though, as both spouses need to be
keenly involved in the family’s financial decisions.
This is a great time to establish goals within
the budget, such as saving for a home, what
percentage of your income you would like to set
aside for retirement planning (a good target is
15%), existing debt repayment, or how much of
an emergency fund to establish.
Other specific tasks might include; filling out
a new W-4 Form at work, updating your driver’s
license and Social Security information, using
this “life changing event” to analyze which
benefit package makes the most financial sense
regarding health insurance options, changing
beneficiaries on existing accounts, and what
types of insurance(life/disability) needs have
been initiated with this new and exciting path.
Furthermore, to strengthen and to do your
best to ensure a successful marriage, commit
yourselves to having a sacrificial attitude
by placing your spouse’s needs, wants and
desires ahead of your own. With this type of
commitment, most of your goals and aspirations
will be much easier to accomplish.
“Your Financial Success is Our Passion”
Mark Reagan
State of Georgia Registered Investment Advisor
770.658.9440
[email protected]
www.reaganfinancialplanning.com
PLEASE CONTACT MARK FOR MORE INFORMATION, AND TO ALSO INQUIRE ABOUT OUR ONE-HOUR COMPLIMENTARY
CONSULTATION AND A 1 YEAR COMPLIMENTARY SUBSCRIPTION TO “KIPLINGER’S PERSONAL FINANCE” MAGAZINE.
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