How best to combine finances with your fiancé.
Wedding bells might be ringing, but the jingle of combining your funds into one account might not sound nearly as pleasant. Couples face a lot of money issues when they get together. Luckily, many of these can be avoided by addressing issues head on with open communication. To merge your finances with your fiancé with ease, read on.
Talk About It
Money can be a big issue among couples, but not many recognize it. For newlyweds, the first step is to acknowledge the importance of the money issue and bring it to the table. It also helps to begin your financial management by setting up financial goals for one year, five years, and ten years so that you’re both on the same page.
Tell each other where your key financial information is located. Discuss checking and savings accounts, mortgages, insurance, birth certificates, jewelry, and car information so that you both know exactly what to do in any unforeseen situation.
While your chemistry may be on fire as a couple, it’s important that your finances mesh well together, too. You can avoid unnecessary arguments and confusion down the road by determining if the bills will fall onto one person’s shoulders, or you’ll both bear the brunt by opening a joint checking account. There is no one correct way for every couple – the key to success is open communication.
Establish a Joint Account
It can be hard for newlyweds to merge finances, but it’s almost always a good idea to open a joint account. The couple can add a specific amount of funds into the joint account to cover bills such as the car payments, childcare, utilities, mortgage, and more. Having a shared account forces you to have communication and share responsibility.
Secure Life Insurance
If you have someone who depends on you financially, you need life insurance. You may have life insurance through your work, but note that it’s often not enough coverage. Getting an individual policy while you’re young and healthy helps to protect your finances, loved ones, and you get to enjoy lower premiums.
Before you walk down the aisle, talk to a professional about how to get your insurance policies together. Once you’re both insured, you can enjoy married life with the peace of mind that you’re protected!