Start talking about finances immediately
The first step toward effective financial planning is to talk with each other about finances. There are many things that can be talked about, and acknowledging the importance of money should be put on the table. If you are marrying early in life, there may be financial challenges like student debt, the cost of the wedding or honeymoon, credit card debt, and career planning. Putting off talking about money issues can be a recipe for future disaster.
Get a Joint Bank Account
You can keep your accounts separate, but it's probably a better idea to establish a joint banking account for shared household expenses. This will also help you build a joint savings strategy and begin working toward financial security in the future. This joint account will also help you with estate planning, as you can easily designate that the money is this account will pass to your spouse in the case of death.
Discuss credit cards
Each spouse probably has some kind of credit debt that they accrued before getting married. You should look at these cards shortly after the wedding to look at the terms of each credit card. If you have multiple cards, examine the ones that have the best terms (travel points, cash back, annual fees), and consolidate the balance to the card(s) with the best offers/APR. Close other cards once you have paid off the balance, but do it carefully. Canceling cards can hurt your credit score so do some research on this before closing any accounts.
Talk about your lifestyles and rein in your spending if needed
Sometimes when people get married, they need to also merge their lifestyles as well as their finances. If a couple had income discrepancies before the marriage, there may need to be some compromises in lifestyle. Luxury meals, vacations, and expensive hobbies need to be considered and your spending habits may need to change. Set a joint budget and stick to it. As part of the budget, consider earmarking income for savings and investments.
Look at your new tax situation
Early after the wedding, you should adjust the withholding allowances you claim on your W-4 form. Your employer can then calculate and adjust the amount of income tax to withhold from your paycheck. If your spouse isn’t working, for instance, you can add an allowance. Visit the Internal Revenue Service to figure out how many allowances you’re due. If both of you are working, add up all of the allowances you’re entitled to, then divide the total between you and your spouse. Use the W-4 instructions to make sure you are not over or under withholding.
Bogetto & Associates can help you with your post wedding financial planning!
As newlyweds, you probably have your hands full with a great deal going on in your life. If we can help you with ideas and advice on how to plan for your financial future as a couple, give us a call. Our experienced financial advisor team will listen to you and provide you with your options toward achieving your financial goals. Congratulations on your wedding and we wish you a long future together!
Sources:
https://www.washingtonpost.com/news/get-there/wp/2014/09/23/for-richer-or-poorer-a-financial-plan-for-newlyweds/
http://www.bankrate.com/finance/smart-spending/tips-merging-finances-newlyweds-1.aspx
https://www.washingtonpost.com/news/get-there/wp/2014/09/23/for-richer-or-poorer-a-financial-plan-for-newlyweds/
http://www.bankrate.com/finance/smart-spending/tips-merging-finances-newlyweds-1.aspx
Financial Health...For Now & Tomorrow
Contact us Today
Website - www.bogettoandassociates.com
Telephone - 314-858-1602
Email - peter@bogettoandassociates.com
10805 Sunset Office Drive, Ste. 202
St Louis, MO 63127
Follow Us
Securities offered through First Heartland Capital, Inc. Member FINRA/SIPC
Bogetto Financial is not affiliated with First Heartland Capital, Inc.
Bogetto & Associates does not provide legal or tax advice. These topics are discussed in conjunction with your CPA, Tax Advisor and Attorney.
No comments:
Post a Comment