Have “The Talk”
Ideally, you will want to have a candid money conversation with your future spouse before you two tie the knot, to discuss what will eventually be your shared finances. Even if you’re already married, though, you should make a point to have this talk with your spouse, and perhaps even make it an annual check-in of sorts.
Having “the talk” with your significant other is a great opportunity to confirm that you are both on the same page when it comes to key concerns, future plans, and financial priorities. It also gives everyone an opportunity to be completely honest about where they stand.
You can use this conversation to cover things like:
- Whether or not you want to have children (and when), and how you’ll pay for those expenses
- Any existing debt that either of you have, such as student loans or credit card balances
- Your spending habits… this means the good, the bad, and the ugly
- What a healthy financial situation looks like for you (think earnings, savings rates, household budgets, investment portfolios, and even retirement accounts)
- Spending plans and worthwhile expenses, such as buying a home, budgeting for frequent vacations, or always driving a newer car
- Retirement plans, including when and where you plan to retire and how much you think you’ll need to save before you do
It’s also wise to both see where you stand credit-wise. While your spouse’s credit score won’t directly impact yours, it’s important to know where both of you stand. That way, you can plan for credit-based purchases, like buying a new home with a joint mortgage loan.
You can use a platform like Credit Sesame to check both your credit score and history for free. Credit Sesame will also allow you to monitor your progress over time as well as get alerts to any credit report changes.
Protect Your Loved One(s)
Every family unit looks a little bit different from the next. But no matter who relies on you — whether it be your spouse, your children, aging parents, or a family member with special needs — it’s important to protect those loved ones now and after you’re gone.
The first thing you and your spouse should both do is make and/or update your will. This document helps ensure that those you leave behind know your last wishes; it may need to change over time with shifts in your assets, obligations, and family structure.
Next, you should consider buying life insurance coverage to financially protect those you love. The proceeds from a life insurance policy can be used to replace your lost income for your family if you were to pass away, or cover debt such as the mortgage on your home. You can also use life insurance to pay for things like your children’s education, or even support charitable causes that are important to you.
If you’re not sure where to begin in your life insurance search, Bestow is the perfect place to start. Through Bestow, you can apply for term life insurance coverage ranging from $50,000 to $1 million, with premiums as low as $16 a month. In just seconds, you can get your quote, and if you’re approved, you can buy your policy 100% online without a medical exam.
The last thing you may want to consider, when it comes to planning for the worst, is building a life binder. This can be as simple or complex as you want, but is essentially a binder that spells out everything your family would need to know if you were gone or incapacitated.
You may want to include things like copies of all life insurance policies and annuities, information on bank accounts and investment portfolios, deeds for your property, and information on safety deposit boxes. It can even be helpful to add the login information for your online accounts.
Keep this binder tucked away in a safe place, of course, but make sure that your spouse knows where to find it in case of an emergency.
Assign Financial Roles
Every successful marriage involves roles. One cooks while the other does dishes. One takes out the trash while the other grocery shops. In your home, you might also consider splitting up financial chores such as paying bills, transferring money into savings, or tracking monthly spending.
One task — even for those who don’t particularly enjoy finances — could be simply finding new ways to save money throughout the year. That might mean calling up your cable and cell phone providers to ask about discounts, or signing up for new gas and grocery rewards programs.
It’s also smart to evaluate your insurance policies regularly so you always have the coverage you need at the best possible price.
Companies like Gabi can help you do this in minutes. Simply upload a copy of your existing policy or link your home and/or auto coverage through the Gabi platform. You’ll then be matched with offers to potentially buy comparable coverage from other carriers for less.
Automate and Simplify
If your household is anything like mine, you have more than enough to do each day. By simplifying your finances and then automating everything you can, you can free up tons of time and energy.
Automating might mean:
- Setting up bill-pay for monthly bills
- Directing a portion of your paycheck into a 401(k)
- Scheduling auto-drafts into your savings account
There are many ways to simplify your personal finances, as well. For example, you could use a personal loan to consolidate multiple credit card balances or student loans. This could not only lower your interest rate but also means that you only have one monthly payment to worry about.
If you’re looking to refinance your mortgage, consolidate credit card debt, take out a personal loan, or refinance your student loans, Credible is worth a look. This aggregator platform helps match borrowers with competitive loan offers from vetted lenders in less than 2 minutes.
Build a Budget
One of the best things that you and your spouse can do for your financial situation — regardless of how much you make or where you stand today — is to build a solid budget.
Some couples enjoy (or need) a budget that accounts for every dollar spent. Others simply want a budget that dictates certain categories, to both prevent overspending and help reach household goals.
No matter what you and your partner’s idea of a budget might be, sit down and talk candidly about it. Discuss shared goals, develop a plan, and decide who will track spending each month. Be sure to factor in some wiggle room for things like date nights, a travel fund, or some guilt-free spending money each month.
If you find that your budget is feeling tight, find ways to either earn more, spend less, or reduce monthly expenses. That might mean starting up a side hustle in your free time, or refinancing your car to lower the monthly payment (an auto loan through RateGenius is a great place to start, helping you snag a lower-interest loan with the repayment terms you need).
Save for a Rainy Day
It doesn’t matter how long you’ve been married or where you and your spouse are in life: you’re going to encounter some bumps in the road at some point. Planning for these early on can help make them as bearable as possible.
We already talked about you and your spouse automating savings each month. Decide how much you’ll save, where you’ll save it, and how it will get into that account regularly. (Will it automatically deposit into savings? Will one of you log in monthly to initiate a transfer?)
You’ll want to ensure that your household has a healthy emergency fund established, to help cover unexpected expenses like medical bills or a sudden car repair. Keep this money in a readily-accessible and safe place, such as a high-yield savings account.
Start with the goal of tucking away $1,000 in emergency savings. Once you and your spouse have done that successfully, work toward saving between three and six months’ worth of household expenses. This larger safety net can protect you in case of a more serious illness, job loss, or other large expense.
For longer-term savings, you can utilize a more lucrative savings vehicle — such as a CD. This will allow your money to earn more in interest but can make it difficult to access right away.
Work Toward Retirement
Emergencies and unexpected events aren’t the only things you should be saving for; your retirement plans also need to be considered.
Create a plan with your spouse as early as possible, which includes talking about your retirement goals. At what age do you want to retire? Does retirement mean never working again or might you come back on as a part-time consultant? These are important questions when creating a plan.
You’ll also need to know what the ideal retirement looks like for each of you. If you want to travel the world in style after your careers end, your retirement savings will need to be large enough to support that lifestyle. If your plans include working a few hours a week at the local hobby shop and playing with your grandkids, however, you might not need as much in savings.
Build a plan, then work toward it. Max out workplace and tax-advantaged retirement plans, if you can, and take full advantage of any employer match that’s offered. Create additional income streams over the years. And also be sure to contribute to a spousal IRA if one of you doesn’t work.
Start Investing for the Future
When it comes investing, time is one of the most important variables for success. The sooner you start saving and investing, the greater chance your returns have to grow… so be sure to sit down with your spouse as early as possible to make a plan.
Many folks delay investing because it seems complex or just for the wealthy. The truth is, you can get started anytime: with platforms like Stash, you can invest as little as $5 and own a share of Apple stock!
Stash allows for fractional share investing, which is an easy way to get started in the market no matter how much (or how little) you have to invest. Contributions can be automated, too, giving you a hands-free way to grow your portfolio.
If you have specific investment interests, you might lean toward a platform like Masterworks, instead. There, you can easily build a portfolio based on fine art, investing in pieces by artists like Picasso and Andy Warhol. Not only can you get started with just a few dollars, but your investment portfolio will continue to grow as these timeless pieces appreciate in value.
There are so many investment options available today, many of which make it easy to get started with literal pocket change. And the sooner you and your spouse begin investing for the future, the bigger the advantage you give to your portfolio.
Marriage and Money
It’s a well-known fact that money is a point of contention in many marriages… but this doesn’t have to be the case for you and your spouse. Luckily, there are many ways that you two can work together to nip these issues in the bud and better plan for the future.
The best way to avoid money conflicts is to prepare for them in advance. By following these eight steps, you will not only ensure that you and your significant other are on the same page, but also help you set your family up for financial success for many years to come.
Managing your own money successfully can be a challenge, whether it’s keeping yourself on budget or making the right choices to support your long-term plans. Add another person to that mix, though, and managing finances gets even trickier.
Whether you have been married for years, are a newlywed, or are just thinking about marriage with your significant other, money is both a shared interest and potential pitfall. As such, it should be a frequent topic of conversation in your home if you want to avoid conflict and better your chances of financial success.
Here are the top eight things that we think every spouse should be doing today, if they want to ensure a healthy financial situation for their family.
Have “The Talk”
Ideally, you will want to have a candid money conversation with your future spouse before you two tie the knot, to discuss what will eventually be your shared finances. Even if you’re already married, though, you should make a point to have this talk with your spouse, and perhaps even make it an annual check-in of sorts.
Having “the talk” with your significant other is a great opportunity to confirm that you are both on the same page when it comes to key concerns, future plans, and financial priorities. It also gives everyone an opportunity to be completely honest about where they stand.
You can use this conversation to cover things like:
It’s also wise to both see where you stand credit-wise. While your spouse’s credit score won’t directly impact yours, it’s important to know where both of you stand. That way, you can plan for credit-based purchases, like buying a new home with a joint mortgage loan.
You can use a platform like Credit Sesame to check both your credit score and history for free. Credit Sesame will also allow you to monitor your progress over time as well as get alerts to any credit report changes.
Protect Your Loved One(s)
Every family unit looks a little bit different from the next. But no matter who relies on you — whether it be your spouse, your children, aging parents, or a family member with special needs — it’s important to protect those loved ones now and after you’re gone.
The first thing you and your spouse should both do is make and/or update your will. This document helps ensure that those you leave behind know your last wishes; it may need to change over time with shifts in your assets, obligations, and family structure.
Next, you should consider buying life insurance coverage to financially protect those you love. The proceeds from a life insurance policy can be used to replace your lost income for your family if you were to pass away, or cover debt such as the mortgage on your home. You can also use life insurance to pay for things like your children’s education, or even support charitable causes that are important to you.
If you’re not sure where to begin in your life insurance search, Bestow is the perfect place to start. Through Bestow, you can apply for term life insurance coverage ranging from $50,000 to $1 million, with premiums as low as $16 a month. In just seconds, you can get your quote, and if you’re approved, you can buy your policy 100% online without a medical exam.
The last thing you may want to consider, when it comes to planning for the worst, is building a life binder. This can be as simple or complex as you want, but is essentially a binder that spells out everything your family would need to know if you were gone or incapacitated.
You may want to include things like copies of all life insurance policies and annuities, information on bank accounts and investment portfolios, deeds for your property, and information on safety deposit boxes. It can even be helpful to add the login information for your online accounts.
Keep this binder tucked away in a safe place, of course, but make sure that your spouse knows where to find it in case of an emergency.
Assign Financial Roles
Every successful marriage involves roles. One cooks while the other does dishes. One takes out the trash while the other grocery shops. In your home, you might also consider splitting up financial chores such as paying bills, transferring money into savings, or tracking monthly spending.
One task — even for those who don’t particularly enjoy finances — could be simply finding new ways to save money throughout the year. That might mean calling up your cable and cell phone providers to ask about discounts, or signing up for new gas and grocery rewards programs.
It’s also smart to evaluate your insurance policies regularly so you always have the coverage you need at the best possible price.
Companies like Gabi can help you do this in minutes. Simply upload a copy of your existing policy or link your home and/or auto coverage through the Gabi platform. You’ll then be matched with offers to potentially buy comparable coverage from other carriers for less.
Automate and Simplify
If your household is anything like mine, you have more than enough to do each day. By simplifying your finances and then automating everything you can, you can free up tons of time and energy.
Automating might mean:
There are many ways to simplify your personal finances, as well. For example, you could use a personal loan to consolidate multiple credit card balances or student loans. This could not only lower your interest rate but also means that you only have one monthly payment to worry about.
If you’re looking to refinance your mortgage, consolidate credit card debt, take out a personal loan, or refinance your student loans, Credible is worth a look. This aggregator platform helps match borrowers with competitive loan offers from vetted lenders in less than 2 minutes.
Build a Budget
One of the best things that you and your spouse can do for your financial situation — regardless of how much you make or where you stand today — is to build a solid budget.
Some couples enjoy (or need) a budget that accounts for every dollar spent. Others simply want a budget that dictates certain categories, to both prevent overspending and help reach household goals.
No matter what you and your partner’s idea of a budget might be, sit down and talk candidly about it. Discuss shared goals, develop a plan, and decide who will track spending each month. Be sure to factor in some wiggle room for things like date nights, a travel fund, or some guilt-free spending money each month.
If you find that your budget is feeling tight, find ways to either earn more, spend less, or reduce monthly expenses. That might mean starting up a side hustle in your free time, or refinancing your car to lower the monthly payment (an auto loan through RateGenius is a great place to start, helping you snag a lower-interest loan with the repayment terms you need).
Save for a Rainy Day
It doesn’t matter how long you’ve been married or where you and your spouse are in life: you’re going to encounter some bumps in the road at some point. Planning for these early on can help make them as bearable as possible.
We already talked about you and your spouse automating savings each month. Decide how much you’ll save, where you’ll save it, and how it will get into that account regularly. (Will it automatically deposit into savings? Will one of you log in monthly to initiate a transfer?)
You’ll want to ensure that your household has a healthy emergency fund established, to help cover unexpected expenses like medical bills or a sudden car repair. Keep this money in a readily-accessible and safe place, such as a high-yield savings account.
Start with the goal of tucking away $1,000 in emergency savings. Once you and your spouse have done that successfully, work toward saving between three and six months’ worth of household expenses. This larger safety net can protect you in case of a more serious illness, job loss, or other large expense.
For longer-term savings, you can utilize a more lucrative savings vehicle — such as a CD. This will allow your money to earn more in interest but can make it difficult to access right away.
Work Toward Retirement
Emergencies and unexpected events aren’t the only things you should be saving for; your retirement plans also need to be considered.
Create a plan with your spouse as early as possible, which includes talking about your retirement goals. At what age do you want to retire? Does retirement mean never working again or might you come back on as a part-time consultant? These are important questions when creating a plan.
You’ll also need to know what the ideal retirement looks like for each of you. If you want to travel the world in style after your careers end, your retirement savings will need to be large enough to support that lifestyle. If your plans include working a few hours a week at the local hobby shop and playing with your grandkids, however, you might not need as much in savings.
Build a plan, then work toward it. Max out workplace and tax-advantaged retirement plans, if you can, and take full advantage of any employer match that’s offered. Create additional income streams over the years. And also be sure to contribute to a spousal IRA if one of you doesn’t work.
Start Investing for the Future
When it comes investing, time is one of the most important variables for success. The sooner you start saving and investing, the greater chance your returns have to grow… so be sure to sit down with your spouse as early as possible to make a plan.
Many folks delay investing because it seems complex or just for the wealthy. The truth is, you can get started anytime: with platforms like Stash, you can invest as little as $5 and own a share of Apple stock!
Stash allows for fractional share investing, which is an easy way to get started in the market no matter how much (or how little) you have to invest. Contributions can be automated, too, giving you a hands-free way to grow your portfolio.
If you have specific investment interests, you might lean toward a platform like Masterworks, instead. There, you can easily build a portfolio based on fine art, investing in pieces by artists like Picasso and Andy Warhol. Not only can you get started with just a few dollars, but your investment portfolio will continue to grow as these timeless pieces appreciate in value.
There are so many investment options available today, many of which make it easy to get started with literal pocket change. And the sooner you and your spouse begin investing for the future, the bigger the advantage you give to your portfolio.
Marriage and Money
It’s a well-known fact that money is a point of contention in many marriages… but this doesn’t have to be the case for you and your spouse. Luckily, there are many ways that you two can work together to nip these issues in the bud and better plan for the future.
The best way to avoid money conflicts is to prepare for them in advance. By following these eight steps, you will not only ensure that you and your significant other are on the same page, but also help you set your family up for financial success for many years to come.