There is an abundance of finance tips for newly engaged couples. Getting married involves more than sharing a house and belongings. You’ll also share income and make financial decisions together. Unfortunately, money can trigger a lot of arguments and disagreements. But finances don’t have to come in between you and your husband. If you’re recently engaged and ready to spend your life with your partner, consider seven finance tips for newly engaged couples.
1. Don’t Be Afraid to Discuss Money
Maybe money was a taboo topic in your house when growing up. Change your mindset. Of all the finance tips for newly engaged couples, it’s important that you’re open with each other. There is plenty to take into consideration. For example, how much can you afford to spend on rent? How much will you budget for groceries and entertainment? Since you can’t escape money topics, it’s best to be open with these discussions.
2. Be Honest
Money lies can tear apart your relationship once you walk down the aisle. If you’re newly engaged, be honest and upfront about your personal finances. It’s important that you and your future spouse discuss income, as well as debts. Don’t downplay a serious situation. This will catch your spouse off guard once you’re married, which can create tension in your marriage.
3. Pay off Debt
The less debt you have when you’re married, the better. Once you are engaged, develop a plan to pay off credit cards and other loans. Even if you can’t completely eliminate these balances, do whatever you can to significantly knock down balances. This will free up cash, plus improve your credit score. As a result, it becomes easier to apply for a mortgage or rent an apartment.
4. Start Saving
If you currently living at home with your parents, now is the best time to build your personal savings account. Once you’re married, all your cash will go toward living expenses. It becomes harder to save once you have a lot of financial obligations. Put aside 10% of your income.
5. Be Sensible
When shopping for wedding rings, be sensible and practical. It’s normal to want a huge rock with lots of diamonds. Does this makes financial sense? Some couples break the bank when buying a ring, or they finance their rings. Unfortunately, the ring can sometimes outlive the marriage. Don’t start a marriage in debt and don’t drain your savings account buying an expensive band.
6. Keep the Wedding Simple
Regardless of whether you or your parents are covering the cost of your wedding, try and keep the ceremony simple. The wedding is just one day. Yes, it’s your special day and everyone should have their dream wedding. But this doesn’t suggest spending money you don’t have or going overboard simply to “wow” your guests. Keep it affordable and you’ll avoid hefty bills after the ceremony.
7. Encourage Each Other
Maybe you’re good with money but your future spouse needs extra help. Some people don’t know how to manage their money properly, thus they make several financial mistakes. Rather than scold your future spouse or make him feel bad, work with him to improve his finances. For example, help him create a budget or spending plan, or help him devise a plan to pay down his debt.
Planning a wedding is an exciting time, in which you look forward to spending an eternity with your partner. But if you don’t get your finances in order before walking down the aisle, you might spend your newlywed days fighting over money. What other money tips can help newly engaged couples?