Wealth Building Tips For Newly Married Couples
Marriage is an opportunity to build a wonderful life and legacy with the person you love. It's also an opportunity to build wealth, but accomplishing this goal takes some serious planning, and it involves more than making a budget and saving. Learn about some of the things newly married couples should do to get on the right track.
Put Everything on the Table
Before you can make a budget or develop a savings plan, you need to know what you're working with. In order to do so, both parties need to be forthcoming about what they have in terms of earnings or investments and what expenses they have. Ideally, this conversation is one you should have had before you were married, but if not, you need to have it as soon as you return from your honeymoon.
Sit down and talk about your financial goals. One person might view retirement as a time to travel the world and purchase all the luxuries they weren't able to in their younger years. The other person might be more interested in downsizing and living a simpler life. In order to create a plan, you both have to be on the same page. When you have this conversation, be prepared to compromise, but agree not to walk away from the table until you have a plan you both agree on so that you know what your financial plans need to look like.
Agree to a Share Pact
Committing to any type of long-term financial plan takes commitment, but it also takes honesty. You and your spouse should agree to a share pact to ensure everyone is on the same page. A share pact simply means that each spouse must contact the other spouse if they want to remove money from a certain account or make a purchase over a certain amount. As a part of the share pact, if the other spouse doesn't agree, the person can't make the purchase or withdraw the funds.
Set Up a Meeting Schedule
You want to set up your plans at the start of your marriage, but you don't want to live by this plan forever. Set up a schedule by which you and your spouse will revisit your plan and make any updates. You can set up these meetings monthly or quarterly, or you can base them off of life events, such as when either of you gets a promotion. Whatever option you choose, this type of consistency keeps your plan on target with your current financial status.
For more money management tips, contact financial services for assistance.