With the excitement of marriage and starting a new life, newlyweds normally don’t think about finances. However, this is usually one of the leading causes of divorces and should be a priority even before getting married. Adjusting from personal to family finances can be difficult regardless of your financial stability. Therefore, newlyweds need to come up with a suitable budget for their new life together. Here are some tips for budgeting as newlyweds.
- Set up a retirement account immediately
It’s never too early to plan for your retirement. The earlier you start, the more you’ll retire with enough security. Additionally, when you do it with your spouse, you end up having a bigger retirement fund. A good goal to aim for is to set aside 10% to 15% of your income for retirement each month, starting in your 20s. Besides, people are retiring as early as their 40s. Therefore, the sooner you start, the earlier you can retire and enjoy your marriage. Five Ways To Save For Your Retirement Without Straining Your Pocket
- Consolidate Your Sources Of Income
Most young people have multiple sources of income. When you get married, it’s important to find out every revenue stream so as to identify how much you earn as a couple every month. This helps you create a budget based on your income. Write it all down and consolidate them. In this case, there’s nothing too small as even the smallest revenue stream could go a long way.
- Discuss Your Priorities
It’s likely that you have different priorities when it comes to finances. Talk about them openly with your significant other. Remember that there are no good or bad priorities. Focus on the most important issues like children, housing, holidays, and philanthropy. The main objective as newlyweds is to have similar priorities or compromise so as to budget for them. Financial Discussions Couples Should Have Before They Get Married
- Evaluate Your Insurance
Insurance could save you a lot of expenses that would have cost you a pretty penny such as medical costs and education. Additionally, you can get an affordable plan as a couple. This is something you should consider as newlyweds. You should also include things like life insurance contributions on your budget so as to secure the future of your kids in case anything happens to you.
- Create An Emergency Fund
Whether you’re married or not, it’s important to have an emergency fund in case of a rainy day. However, newlyweds have more to lose if things don’t go well. Create a savings account specifically for emergency funds and try to save for six months in household expenses so as to ensure a more stable future. Finances: The Importance Of An Emergency Fund
- Settle Your Debts
From education to car loans, many newlyweds start their new life with loans. This can put a strain on the relationship and your finances. Be honest about your loans and plan to settle them as soon as possible. If they can, ask your spouse for help in settling them but remember that your personal loan is your own responsibility. Finances: Borrowing In Joy But Payback In Sorrow – Why You Need To Work On Clearing Your Debts
- Re-evaluate You Plans Often
Things change along the way and new responsibilities pop up. Therefore, you should revise your plans after a few months. Start by addressing the existing items and if you’re having problems with them, find solutions. For instance, if a joint account isn’t working, instead of closing it, each of you can maintain separate accounts but still keep the joint one.