HomeBlog PostsMoney and Marriage: 6 Financial Tips To Know Before You Tie The Knot
Money and Marriage: 6 Financial Tips To Know Before You Tie The Knot
Posted On May 12, 2021
Money and marriage. Many thoughts come to mind. According to Psychology Today, Money problems are often listed as one of the top reasons many couples end up divorced.
Differences in how to live, spend, and save can cause massive financial stress for engaged couples.
Here are 6 no-nonsense money tips you and your “honey” should make to ensure many years of marital bliss
1. Purchase Term Life Insurance
Life Insurance is a huge one! If you or your spouse passes, will they be able to maintain a similar quality of life? What about if you have a mortgage, kids? Then, it will be even more critical.
I have a 20-year term policy from Ladder. This online insurer has a fantastic feature that allows you to increase or decrease your coverage amount without having to leave your couch.
When you’re trying to balance money and marriage, it’s often difficult to accurately estimate your insurance needs with precision.
The Laddering feature was the number one selling point for me.
2. Update your beneficiaries
Updating your beneficiaries is probably the last thing people think of but, in my opinion, one of the most important and the easiest. Having up-to-date beneficiaries will make it much more straightforward to access financial accounts if you or your spouse passes.
You don’t want any assets stuck in probate. You will be concerned with much more pressing matters.
3. Have sufficient Long-Term Disability Insurance
Long-Term Disability Insurance is often over-looked.
25% of Americans will experience a disability at some point in their careers before retirement, according to the 2018 Social Security Administration
While many employers offer LTD; however, but it is often inadequate and not portable. That’s why I often suggest purchasing private long-term disability insurance from Breeze. This company is a one-of-a-kind firm where you don’t have to talk to a pushy insurance agent.
If you or your spouse cannot work for some time, will you be able to pay your bills without a significant financial burden? Having suitable types of insurance is one of the essential money moves you can make.
4. Combine your Checking and Savings Accounts
I’m sure some people will disagree with me on this one. However, having a combined checking and savings account will make managing your finances MUCH simpler.
You will BOTH know how you and where you and your spouse are spending money. Where you can cut costs, increase savings, etc. Simplicity is critical, in my view. We only use Chase Checking andChase Credit Cards.
If you have disagreements as a couple about how to spend, save, invest, or even combine finances in general, then there may be a more significant issue at hand. Money may simply be the medium for these disagreements.
5. Open up about any debt you may have
Whether it is credit card debt, student loans, auto loans, or personal loans, discuss it with your spouse. They will likely be upset about it if you did not previously disclose it. However, it is essential to come clean and move forward together.
6. Discuss your finance goals with your spouse (get on the same page)
Discussing your financial goals seems obvious but is often overlooked. As a soon-to-be-married couple, where will you spend, save, and invest your money together?
What are your money and marriage goals as a couple?
It is crucial you and your spouse discuss these money points in detail so you can ensure your financial future as a newly married couple is as simple as possible.
Discussing these 6 points before marriage helped my spouse and I get on the same page before we tied the knot.
Far too often, I hear about couples who make ill-informed or poorly planned financial decisions, which could have been easily avoided with little communication and planning.
What money moves did you and your spouse make before getting married? Comment below and let the RWPF audience know!
Founder and author of realworldpersonalfinance.com [RWPF]. A blog dedicated to personal finance for millennials that want its readers to know they can be perfectly imperfect. Over the past 10 years, his net worth went from -$108,000 to $365,000, mainly through debt reduction, living below his means, and navigating the corporate world. There have been mistakes along the way, and he is still learning too. He's here to offer honest opinions and real insight that's based on his own personal experiences.