Cited: Insurance.com
One of the most important things in any relationship is communication and this is even true when it concerns your financial relationship with your spouse. If you do not communicate about your finances, how can you plan for your future or your children’s future?
To organize your finances into one, it is important to have open communication with your significant other and to figure out what your net worth truly is as a married couple. To do this, list your assets in one column, and your liabilities in another. Subtract your liabilities from your assets, and the final product is your total net worth. Your net worth can give you a good look at your overall financial picture, and if in the event your results are low, you and your significant other can then develop a financial plan.
It is also important to discuss your short-term and long-term financial goals. For example, a good thing to do would be to make a list of your short-term goals like planning a family vacation and your long-term financial goals like saving for a new house or retirement. Then prioritize your goals by matter of importance, and then ask yourself these key questions:
- What can I do to accomplish these goals?
- How much will we need to save to accomplish these goals?
- Is one investment better to use towards it, rather than another?
- Will accomplishing one goal ultimately help us accomplish another?
Number Crunching
Preparing a monthly financial budget is a good idea to keep track of how much money you spend, and to see where it’s exactly going to. Be sure to include your monthly income and expenses so you can see if you’re spending within your means-list your income (salary, wages, alimony, interest and child support) and your expenses (rent, mortgage payments, groceries, student loan payments etc.). Add your expenses and then your incomes and compare the totals. The result should be that you spend less than you make, but if that’s not the case, review your expenses and see if you have anything you can cut out to make it so. Always monitor your budget and make periodic adjustments where you see fit.
Note: It may be a good idea to seek professional advice from a financial planner or research on the internet when it comes to developing financial plans and budgets. For long-term investment goals, it may make more sense to prepare an annual budget rather than a monthly one.
Merging bank accounts when you get married
There are pros/cons to keeping separate accounts and or combining your money into a joint account when you get married. Consolidating your funds into one account makes it easier to apply for a loan, manage funds, organize bookkeeping and reduce maintenance fees. A downside to consolidation is that it’s more difficult to keep track of how much money is spent and available when there are two individuals writing checks. Also, in the event you and your significant other split, you both still have access to the funds, which technically means one person could take all the money and run.
Joint credit cards
There may come a time in your marriage where you want to apply for a joint credit card, but you should note that when you do this, you are both responsible for 100% of the debt you incur. Keep that in mind before you add your name to a spouse’s credit card or before you decide to co-sign an account for your significant other.
It would make sense to assume that spouses wouldn’t be held accountable for the other’s credit card if they maintained separate cards, but in some states, this is not true. Both spouses may be held accountable for credit card debt incurred by one spouse if the debt is considered a family expense like groceries or child care. In states considered community property states, spouses may be held accountable for the other’s credit card debt if the property that underlies the debt is listed as being both of theirs.
On the road to retirement
Different retirement plans have different features and characteristics, so it is important to evaluate both plans if you each have one. You may find out that one is more beneficial than the other, offering loan provisions, investment options or matching contributions. If in the event a budget limits your ability to take advantage of two plans, review both options and determine which provides the best benefits and focus on an investment strategy towards that particular plan.
Insurances: Which one is better?
When you wed, many different options for insurance are opened up to you as a married couple, so it is important to pay attention to the different choices you may make, and see what is most beneficial to you and your spouse.
For example, your spouse’s health plan may not be as good as your own, in that it offers higher premiums, deductibles or co-payments. If that’s the case, you will need to determine if it is worth it to pick one health insurance plan over another plan, or if it is better to maintain separate health insurance coverage.
When it comes to car insurance, many companies offer discounts if more than one car is insured with them. Also, auto insurance companies may give a bigger discount for having coverage for your home or apartment, as well as car insurance, with them. Check with each of your insurance companies and see what kind of rates you can get for pooling together your policies. Compare rates before merging your car insurance together. Comparing multiple rates will ensure that you get the best rate you can afford as well as the best coverage for you and your spouse.
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My Take: This is not only good advice for newlyweds, but for old married couples as well. When you compare life insurance quotes, if can be a pain in the neck for anyone, but getting them for a family is an important task. It makes no difference if it is car insurance or whole life insurance quotes that you are looking for. When it concerns your family, you should take the time.
I also agree that communication is extremely important in a marriage. It is also extremely important to have understanding and an open mind in a marriage. After 10 years of marriage, nobody wants to contact a Pittsburgh divorce lawyer or a New Jersey divorce lawyer. Any Pittsburgh PA divorce attorney will first advise you to try to reconcile by talking to your spouse.
Communication in a marriage is even more important when it concerns children. A NY visitation lawyer will give you the same advice on talking to your spouse before proceeding to try and reconcile for the sake of the children. If you do not want a divorce, whether you have children or not, then you may need a contested divorce attorney who will give you the same advice, communicate and understand. You might want to contact collaborative lawyers who can help you communicate better.
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Other Resources
Car Finance and Pre-Approval
Although it is possible to employ car finance to find money for an already chosen vehicle, many financial experts will suggest that buyers attempt to obtain a pre-approval for their car loan so that they can come to the bargaining table at a dealership with financing already in place. By having the money on hand when the car is chosen, a buyer will possess significant leverage when dealing with a seller. Instead of spending time waiting for a dealer to suggest what level of credit a buyer is eligible for, that buyer can spend time concentrating on the car itself rather than the loan.
Whatever your reason is to get cash for car, electronics, cell phone, jewelry or house right now, or to get a loan, there are those who will listen and help. Before you get into the application process, you need to know your privacy is safe. All information you share will remain in the strictest of confidence and this application process is free. You also have the option to fill out the online information form for call. In the initial discussion, information concerning the house or land or general property you wish to sell is evaluated so a proper assessment and offer can be made.
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