Wedding Today, Together Forever- Plan for Life in any Economy
Wedding Today, Together Forever- Plan for Life in any Economy
Planning for a wedding can be tough, especially when money is tight. But as you make your way through the mile-long checklist of things for the big day, have you thought about life after the wedding? Whether this is your first or second wedding, your dream wedding or a spontaneous ceremony, the financial implications of sharing a lifetime with another person last long after the “I do’s.” To ensure happiness and financial security in any economy, be sure to consider your financial future today.
Taking the necessary steps to a sound financial future is not as complicated as you might think. Here are some things to discuss as a couple:
1) Come up with a Budget
You may have your own budget, but now you are planning income and expenses for two. If you combine your income and expenses, you will need to combine your budgets as well. Try working with a Financial Advisor who can help you combine your budgets, save you money, and save a lot of family stress.
“From satisfying the in-laws to creating the dinner menu, the engagement process encompasses all of the things we deal with everyday as a couple. Coming up with a budget for the wedding is something that should be given thorough attention. It’s the first step of a progression of merging your finances that should not be neglected.” Matt Kelley, Owner- Momentum Personal Finance Coaching, Durango, CO.
2) Begin an Emergency Fund
An emergency fund helps ensure that you and your partner are secure should something happen, such as a job loss or serious health issue. You should agree on how much you want to save for a “rainy day.” It’s a smart idea to save between 5 and 10 percent of your salary in a joint savings account. To avoid the temptation to spend your savings, consider having the money automatically transferred from your checking accounts. Aim to save 3 to 6 months of living expenses.
3) Purchase Life Insurance
According to a study conducted by LIMRA International 48 million Americans either, don’t own life insurance and believe they should, or own life insurance and believe they need more. Purchasing life insurance will give you the peace of mind of knowing your loved ones will have money to help maintain their standard of living should anything happen to you.
“Purchasing life insurance is a way to protect your family. Getting married and beginning a life together with someone is a special endeavor. If anything were to happen to you or your loved one, Life Insurance can provide your family with the financial means to continue on even in your absence.” Holly Hagan, State Farm Insurance, Durango, CO.
4) Create a Plan for the Future
Take the time to create a written financial plan with clear goals. The plan should include specific and realistic steps to achieve your dreams, including buying a home, starting a family, taking vacations and retirement. Decide what additional investments you’d like to make apart from your regular savings such as maximizing your 401(k) or IRA contributions.
“Money problems contribute to the majority of divorces, if we can decide early on what our priorities are and have those reflected in our budgets it makes being married a lot more enjoyable.” Matt Kelley, Owner- Momentum Personal Finance Coaching, Durango, CO.
5) Pay Down Debt
Credit card debt is the number one obstacle to a secure financial future, and knowing both of your credit scores is essential. You’re allowed one free credit check annually with each of the major credit bureaus: Experian, TransUnion and Equifax. Order reports and go through and correct any inaccuracies. This will help you both get a loan at a lower rate when it comes time to borrow money for a house, car or other major purchase.
Getting married is an opportunity to get a fresh start on your financial well being. These types of wealth-building efforts are extremely beneficial, and create a solid foundation to a long, happy and fulfilling marriage.
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