When you get married, you are merging two separate lives – and that includes your finances. Unfortunately, the issue of pooling money can be one of the toughest challenges newlywed couples face.
01. Lack of a Long-Term Financial Plan
It’s essential to have a long-term financial plan. This plan should include goals for retirement, homeownership, and starting a family (if you plan to do so).
02. Entering Marriage Without Knowledge
A common mistake for newlywed couples is entering marriage without discussing your financial goals, income, and debts.
03. Lying to Your Partner
People often joke about hiding shopping bags before their partner comes home, but this can lead to serious financial problems in the relationship.
04. Merging Finances Before Marriage
Most laws are designed to protect married couples, and if you’re just living together, you may face problems in the future if you buy a home together or take on each other’s debts and then split up. It’s best to wait until after marriage to fully merge your finances.
05. Paying for the Wedding or Honeymoon with Credit Cards
You don’t want to start your life together by accumulating a lot of debt. This means you should pay for the wedding and honeymoon in cash. While this may mean cutting back on some things you want, it will be worth it to avoid payments lingering for months or years after marriage.
06. Refusing to Set a Budget
A budget is key to financial success. It doesn’t matter how much you earn if you don’t have a plan to help you spend it. If you’re not willing to sit down and create a budget together, you won’t be financially successful.
07. Keeping Money Separate
There are valid reasons to keep your money separate after marriage. If there are issues like gambling or extreme overspending, you may need to work on building trust before merging your finances. Generally, combining finances and creating a joint budget can help you work more easily towards your financial goals.
08. Ignoring Warning Signs
Don’t ignore financial warning signs, no matter how much you love your partner. For example, pay attention to issues like overspending, unwillingness to sit down and talk about money, or poor credit history. Remember that people make mistakes, and if your partner is working on fixing past financial missteps, you shouldn’t hold that against them. Instead, you should remain vigilant and proactive.
09. Not Working as a Team
In a way, marriage means you are now one team. This applies to your finances as well. Avoid overspending, hiding expenses from your partner, or not working towards your joint financial goals. While one person may handle the day-to-day finances and pay the bills, both of you should be involved in budgeting meetings and discussing spending each week. Each of you should track your spending and monitor your savings, checking, and investment accounts. Neither partner should be surprised by what is happening financially.
10. Ignoring Debt
The best time to deal with debt is when you are newly married, before you have children or the additional financial stress of homeownership or your own business. You are likely to have more disposable income in the early years of your marriage, so use that money to start tackling your debts. Once you are debt-free, you will have more funds available and can start working towards your next financial goal, like buying a home. Ignoring debt early on will make achieving those dreams harder.
Source:
https://www.thebalancemoney.com/newlywed-financial-mistakes-4053749
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