Marriage is a transformational time for couples, as blending two lives requires compromise and compassion. Building a life with your spouse also involves combining finances, something that can become tricky. The following advice from 1st & Main Investment Advisors sums up the essentials for a successful financial future together.
Compare Renting vs. Buying
Homeownership is a dream for many young people, but it’s not the right financial fit for everyone. Whether marriage, a new job, or the travel bug has you on the move, owning a home might be more of a hassle than a perk.
Renting gives you the freedom to move more frequently, including to areas where rent is cheaper. But it can also be more affordable when maintenance costs, emergency repairs, and mortgage expenses add up on an owned property.
Discuss with your spouse what your preference is for homeownership versus renting. If you hope to buy a home one day, these early conversations can help you sketch a path toward accomplishing that goal.
Getting on the Same Financial Page
Marriage might be an emotional union, but it’s also a legal and financial one. That means spouses need to be on the same financial page, both for long-term marriage success and financial solvency.
As Marriage.com explains, healthy financial communication is vital in a marriage. Working together to assess your income, decide what (if anything) to share, and outline a budget are crucial steps in the newlywed phase.
Setting a budget and even establishing a joint bank account lets you work together toward money goals. Explore your options for both checking and savings, then set goals for each.
Experts suggest a balance of three to six months’ worth of expenses in your savings, plus a buffer of $2,000 to $3,000 in checking. Your objectives may vary, and it could take time to build up savings, but agreeing with your partner on these goals will make the process easier.
Keep the Line of Communication Open
Clear communication is paramount when talking about money — and a foundation for a healthy relationship, too. Most couples offer the advice that learning to communicate well is a requirement in marriage.
Apart from talking about money and budgeting, spouses should practice effective communication in every conversation, suggests Psych Central. Learning to listen neutrally is a great first step toward building communication to support your marriage and get through those tough financial discussions.
Preserve Future Earning Power
There’s no telling how your finances could change in the future. Yet one foolproof way to boost your long-term earning power is by going back to school.
Continuing your education by earning a bachelor of education makes higher learning accessible even while you work or raise a family. To get the most for your money, choose an online school that’s accredited and offers competitive tuition.
Then, consider your degree options carefully. A bachelor’s in education, for example, offers clinical practice for hands-on experience. Such a degree can round out your skill set and set you apart from the competition on your career path.
Financially Plan for Parenthood
If you and your spouse plan to have children, now is the time to discuss that financial challenge. Bringing kids into the world involves more monthly expenses and might change your outlook on saving for the future.
Get started with financial planning early, even before you try to have a baby. Consider college savings, life insurance for worst-case scenarios, and other parenting expenses (and necessities). Saving now could help avoid financial stress as your family grows.
Though marriage is a beautiful milestone, navigating finances together often becomes a point of disconnect for newlyweds. By keeping communication open and working toward shared goals, couples can create a strong financial foundation for their marriage and future.
1st & Main Investment Advisors have over 30 years of experience providing financial advice in Greenville, South Carolina and Edwards, Colorado. If you have any questions, let us know!
