Just got engaged (or got married?) Congratulations! Follow these money transfers so that couples get richer together as you age together.
As a honeymooner or honeymooner, you probably get a lot of advice from everyone around you. Some of these tips can be requested, but many cannot.
Well, today you’ll get seven more tips. The good news is that it can change your financial situation. Read our top personal finance tips for honeymooners:
Share your financial situation openly
It’s important to be open and honest with your partner in all aspects of your relationship, but especially when it comes to money. If you’re just engaged and trying to figure out your wedding budget, or just got married and are saving money for your down payment, now is the time to reveal your credit history if you haven’t already.
For many, marriage means a combination of finances and financial responsibilities, so it is imperative to understand where you both are in regards to savings, debt, etc.
A great place to start is to get a complete credit report and credit rating. This will help the two of you understand the current situation and plan next steps.
Be prepared for emergencies
When it comes to emergency rescue, most Americans are completely unprepared. A 2018 study by the Financial Industry Regulatory Authority (FINRA) found that 46% of households do not have the right funds for a rainy day.
The best way to protect yourself from unforeseen expenses, such as a car overhaul, hospital stays, or periods of unemployment, is to start saving now. Most experts suggest setting aside enough money to cover at least three to six months of expenses for your entire family.
And as a bonus, if you keep your savings in a high yield savings account, you will receive interest on your savings while you grow your emergency fund.
Pay yourself first
Once your emergency fund is full, make saving for other short- and long-term goals a priority and habit. As Dave Ramsey suggests, pay yourself first by contributing to your savings before paying your discretionary spending benefit. It is just as important to save on sunny days as on rainy days!
This obviously means that you will need to create a monthly budget for yourself. It would be best if you have a lot of money left when you deduct monthly expenses from your income. Otherwise, you might consider finding ways to cut back or try our next suggested money order for couples!
Live on one income
Instead of treating each of your salaries as your own, you can treat them as “our money.” This approach will greatly simplify your finances, foster open communication about money, and help you gain momentum in your collaboration towards common goals.
When you pool all your money together, you have access to more funds, period. Some may live off one income and channel the other towards a specific financial goal. Whether you’re investing in paying off a debt, creating an emergency fund, or saving a hefty down payment for your first home, you’ll find that you can make more progress and maintain a high level of motivation as you live. it is together.
Keep working until you have children
If you don’t feel like starting a family right away, give yourself time to enjoy the benefits of DINK life. DINK stands for double income without children household and is one of the most important money moves couples can make. Using this time can be critical to your long-term financial success. When combined with living on a single person’s income, you can accumulate a significant amount of savings in the period before the baby is born.
Increase your DINK savings during this time by:
- Get a degree to get a better paying job.
- Learning a new skill that will bring you a boost or make you more competitive.
Create multiple streams of income
Many young newlyweds face student loans, car payments and even mortgages. An extra few hundred dollars a month can have a huge impact on your financial life. Having multiple sources of income is also a great way to protect yourself from unexpected expenses or job loss.
Side bumps are a fashion, and they can be a fantastic safety net if the rug is yanked out from under you. (You know, for example, due to a pandemic or something similar.)
Here are some options for earning:
Truly, having something to keep you afloat as your work situation changes is an important cash flow, whether you’re single or a couple.
It’s never too early to make plans for the end of your life. Now that you are married, it’s not just you, and you need to plan the financial future of your family.
Depending on your age and health, life insurance can be a cheap and easy way to protect your family from financial ruin in the worst case.
This may all sound a little painful, but don’t let it ruin your post-honeymoon glow. There is nothing more loving than ensuring the financial security of your loved ones.
Try These Money Moves For Couples To Build A Better Financial Future
As a woman who got ahead of you on this journey, I sincerely hope that you will heed these tips. Open communication, setting common goals, and working together on them are the keys to financial success and fun in your marriage.
Wish you all the best!
This post was originally published on the Budget Savvy Bride page.