You have found your true love and you are going to be heading down the aisle. Ah, love is so beautiful! You know what’s not beautiful? Fighting over finances. Here are 10 tips for managing money as a couple, whether you are about to be married, cohabitating, or already wed.
Know Each Other’s Financial Situation
You are in love and want to keep things light. However, if you are going to be married, you should have a serious talk about your finances. It is good to know how much debt someone has and what they like to spend their money on. Go ahead, talk about your finances! It won’t hurt!
Know Your Partner’s Debt Situation
Making sure you know your partner’s debt situation is a good idea before you get married. You can see what type of debt they have and whether they can pay off some of it before the wedding. If they have terrible debt, make sure you don’t combine your accounts until some of it is paid off. It will be good for one person to have a good credit score.
Save Your Money
Saving money for the big day is always a good idea. You will want to have the wedding of your dreams and the only way to do that is to save. You should also be putting aside money for the future, whether it be for your honeymoon or a downpayment on a house.
Create a Budget
You should work together to decide what your budget will be. You should go over how much income you both will have and the cost of expenses each month. You also should go over what money you will have left and what you can save it for. Going over the budget together will save you a lot of headaches in the future.
Decide Who Manages What Finances
It is good to know who is going to manage what in terms of finances. One of you could be in charge of the day-to-day bills and the other could be in charge of investing and saving. This is something you should decide on before you get married so you know who is doing what.
Should You Combine Your Accounts?
After you are married, it is a good thing to have a conversation about whether or not to combine your accounts. You can either decide to keep your accounts separate or to open a joint account where you can both access your money. This is a personal decision and one that is important to talk about.
Make Them Your Beneficiary
It is important to update your beneficiaries once you are married. This means your spouse can have access to money and benefits if something happens to you. No one wants anything to happen to you, but if it does, they can take money from your 401(k) or your life insurance. This will help them out in the future, but let’s hope you have many happy years together before they need this.
Look at Your Withholdings
After marriage, you will need to decide whether or not you are going to file your taxes together or separately. It is important to talk about this decision together and with your tax preparer. You will then need to look at your W-4s and decide if you need to adjust your withholdings. This could save you some stress during tax time if you decide it beforehand.
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Talk About Your Finances
It might feel wrong or impolite to talk about your finances, but that is something you definitely should do. You should go over how everything is going at least once a month so there are no surprises down the road. It is also a good idea to talk about your financial goals and make sure you are aligned and keeping up with them.
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Let Your Bank Know if You Change Your Name
If you change your name, you need to let your bank know. Different banks have different processes, so make sure you know what yours requires when your name changes. They might require you to come in with proof of marriage and a government I.D. Just make sure you have all the necessary paperwork to show off your new name!
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