Being a couple in today’s world is a lot different than it used to be just a few decades ago. People are waiting longer to both get married and have children, and are a lot more invested in securing their professional and financial lives before tying the knot than ever before.
That’s encouraging, but being in charge of your finances doesn’t end when marriage begins. Sharing bank accounts and splitting the bills is all good, but you’ve worked hard to be where you are and you want to be prepared for whatever may be ahead. You should wish for the best, but planning for other possibilities is always wise.
Here are a few tips to consider before tying your assets together to make sure that, for better or for worse, you’ll always be financially secure down the line.
Get Educated
Connect with a financial advisor, mentor or coach, or take financial planning courses to help you understand all the different aspects of money management. Even if you have a pretty good handle on these matters already, you can always learn something new.
The more knowledgeable you are with things like budgeting, investing, taxes and estate planning, the better off you’ll be in the long run.
Establish an Emergency Fund
Be prepared for any curveballs life may throw your way. Don’t rely on only your credit card to help you out. Instead, set aside savings that could cover you for three to six months should any unexpected or emergency situations arise.
Open a Retirement Account
It’s never too early. Make use of your company’s 401k plan or your own IRA to start planning for retirement. The earlier you get started the more you’ll have compounded by the time you’re ready to leave the workforce.
Talk About Debt
Debt is a personal and sensitive topic, but a highly important one to discuss. Make sure you are aware of your partner’s debt and vice-versa. Have an open conversation about what it means to each of you and how you plan to move forward.
Talk Some More
Beyond debt discussions, talk to your partner about how you plan to take care of other money matters together. Your spending and saving habits, and plans for the future should be all out on the table, discussed and sorted through before you tie the knot. A financial advisor can also be helpful in this situation.
Before you plan a lifetime with your partner, have a good plan in place for your financial life as well. Practicing these tips before saying “I do” can help you step into the future better prepared for whatever lies ahead.