A Financial Planning Checklist for Couples Getting Married
Embarking on the journey of marriage is not just a celebration of love but also a merger of lives …and finances. Establishing a strong financial foundation is essential for building a secure future together.
The blog post “Three Essential Financial Considerations when you Tie the Knot” is a starting place for couples getting ready to get hitched. This checklist is a follow-up and is crafted to help couples navigate the more intricate landscape of financial planning, ensuring that they are well-prepared to tackle both short-term and long-term financial goals.
Identify Your Values:
Reflect on your individual and shared financial values.
Discuss the role of money in your lives and relationships.
Align your financial decisions with your shared values.
Discuss Short-Term and Long-Term Financial Goals:
Outline short-term goals such as creating an emergency fund or saving for a vacation.
Discuss long-term goals like buying a house, starting a business, or saving for retirement.
Prioritize goals and develop a clear plan to achieve them together.
Do a Credit Check:
Obtain credit reports for both partners from reliable credit bureaus.
Review credit reports for any errors or discrepancies.
Discuss strategies to improve credit scores if necessary.
Start a Budget:
Track your combined income and expenses.
Categorize expenses into essential and discretionary spending.
Set realistic spending limits for each category and stick to the budget.
Discuss How to Split the Bills:
Decide on a fair and equitable way to divide shared expenses.
Explore various methods, such as proportional income contribution or splitting costs equally.
Regularly reassess the arrangement to ensure it remains fair and sustainable.
Set Up a Will and Get Life Insurance:
Consult with a legal professional to draft a comprehensive Will.
Consider appointing guardians if you plan to have children.
Research and acquire life insurance policies to protect each other financially.
If Needed: Come Up with a Debt Payoff Plan:
Identify all outstanding debts and their respective interest rates.
Prioritize high-interest debts for quicker repayment.
Explore debt consolidation or negotiation strategies if necessary.
Navigating the intricacies of financial planning as a couple requires open communication, mutual respect, and a shared vision for the future. And, as we mentioned in the previous blog, your relationship as a couple will grow and change over time. By following this comprehensive checklist, couples can lay a strong financial foundation, ensuring a secure and prosperous journey together as they step into marriage.
