Personal Finance Tips for Newlyweds

 

Being freshly married comes with many new adventures, but it is crucial to consider the more serious, less fun, issues too like finances. While this isn’t the most exciting thing to discuss with your partner, having these conversations early on can set the pace for a happy, stress-free marriage. Let’s look into some of the various facets of finances couples should cover after getting married.

Combine Finances

This may be something you’ve already discussed with your partner, but whether you completely combine everything or you just create a shared savings account, it is smart to take care of this as soon as possible. There are several benefits to combining your finances including things like streamlining bill payments and creating a sense of equity within your marriage. However, it’s ultimately your decision on whether or not this is the right choice for your new partnership. 

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Adjust your Insurance Plans

Insurance may not be a top priority for you, but it is just as important to at least discuss it early on. Many newlyweds will combine their insurance plans to save money. Paying for insurance separately can get costly, so it’s important to take a look at what your different options are. Most of the time one spouse's employer may have a better offering than the other, so now’s the time to look into these options and make adjustments accordingly.

Keep in mind that open enrollment for insurance typically runs from November to January at most companies, and is the period in which you can make adjustments to your enrolled benefits each year. Since marriage qualifies as a major life event, you’ll have time to make adjustments to your plan instead of rushing to meet the general open enrollment period. So be sure to make this a top priority following your wedding!

Prioritize Paying Off Debts

Paying off debts is another topic that isn’t super fun to discuss with your partner, but it’s crucial. Now that you are married your debt doesn’t just belong to you, it’s your partner’s responsibility too. A great way to tackle debt is to consolidate it and make a plan to get it paid off as soon as possible. Consolidating your debt just means you are essentially refinancing and combining it all into one at a lower interest rate. So not only will this save you money, but it also makes it much easier to pay it off sooner by making one payment toward the entire amount monthly rather than paying each lender separately.

Invest in Your Home

Real estate is something you and your spouse might consider investing in after tying the knot. This is a great way for you to not only have a place you can call home, but it is an investment where you will begin growing equity together. Be careful that you don’t jump into home ownership too quickly; you’ll want to be sure you have the money for this type of purchase and are prepared to handle all maintenance costs that come along with it. If you are not at a point where you are ready to make an investment in real estate, start by renting a place together, outlining a savings plan, and setting a timeline for when you will be ready to buy a home.

Create an Emergency Fund

Lastly, an emergency fund is a very smart thing to create as a new couple. Even if you opt-out of combining your finances completely, having a shared savings account for emergencies will allow you to be prepared in the event of, well, an emergency. Things like medical bills or home maintenance issues can occur without warning and you won’t want these to put you in a tricky situation or create more debt. Even if you’re only able to contribute a small amount, something is better than nothing and it will add up over time!

With all of that being said, you don’t need to dive into all of these things at the same time. Start by having conversations with your partner about each of these items and make decisions that are best for your marriage. Then you can begin creating a plan and attacking the items one at a time to accomplish the goals you’ve aligned for yourselves.