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How To Plan For Financial Success With Your Spouse

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How To Plan For Financial Success With Your Spouse

When just starting out, new couples live life pretty much in the moment.

But the sooner couples start planning for the future, the better chance they will have of seeing their financial hopes and dreams become realities. As daunting as that task may seem, couples that start the financial planning process early soon realize that they have a lot more advantages than they did when they were single.

If you’re a new couple looking for ways to better manage your money, here are 7 financial steps you can take to help cement your financial future.

1. Set Clear Financial Goals – In order to build a solid financial future, the best first step for couples to take is to set clear financial goals. This means couples need to be willing to sit down and openly talk about money as well as future long and short-term financial expectations.

By having these kinds of conversations, couples are better able to define shared financial goals and plan accordingly.

MarriageSuccess (1)

2. Start A Budget – For many new couples, the word “budget” has a negative connotation; it sounds restrictive and limiting, and can lead to arguments. As a result, many put off in-depth financial planning until much later.

Budgets can be very freeing, in that they help couples save money that they can leverage to achieve both short and long-term financial objectives.

This can create serious problems.

In reality, budgets can be very freeing, in that they help couples save money that they can leverage to achieve both short and long-term financial objectives.

Failure to address each other’s incomes and spending habits early on, and to institute some budgetary guidelines to properly manage money, can result in couples getting into financial trouble fast.

3. Establish Joint Bank Accounts – Many people prefer keeping individual savings accounts after they are married. That’s fine as long as they also establish joint savings accounts to handle the bulk of their funds.

Joint accounts save money, as they typically charge lower fees than single accounts.

Another advantage of joint accounts is that they help couples to pool their resources and put their shared financial goals into action, and the sooner they take that step, the better.

Spouses with documents for bank at home

4. Consolidate Insurance Policies – New couples typically bring their own health and car insurance policies into the relationship, and for many, it may seem easier to just keep paying the same premiums to the same insurance companies—just like they did when they were single.

However, couples where those who transfer their insurance policy across to the same company their partner is using can often save substantially on premiums for car and health insurance through multi-policy discounts.

Life insurance can be a very inexpensive way to protect a loved one from the potentially devastating financial impact of the death of a spouse.

5. Consider Other Kinds Of Insurance – While health and car insurance are the two main policies new couples are generally most concerned with at first, the realization that there is now someone else to consider makes it important for couples to look into other types of insurance as well.

Life insurance can be a very inexpensive way to protect a loved one from the potentially devastating financial impact of the death of a spouse.

For couples buying a home, taking out home and contents insurance can save money and provide peace of mind should a theft or disaster occur.

Asian Couple using Tablet device at home on sofa.

6. Build an Emergency Cash Reserve – Caught up in the excitement of their new adventure together, many couples fail to build a cash reserve to tide them over in the event of a job loss, illness, or other unforeseen emergency.

While it takes discipline to create an emergency cash reserve, having at least a three-month cash cushion provides financial security and peace of mind for couples who face unexpected financial challenges.

Starting a new life together is an exciting time for couples, but it should also be a time for re-evaluation and preparation.

7. Shop Around For Insurance – New couples looking for insurance to best serve their joint lifestyle need to shop around to make sure they get the right cover at the best price.

Additionally, as time passes, couples should make it a point to re-evaluate their insurance policies and make changes if needed to ensure that they maintain appropriate cover at competitive rates.

Starting a new life together is an exciting time for couples, but it should also be a time for re-evaluation and preparation. By taking these and other important financial steps early on, couples can look forward to enjoying a long and prosperous financial future together.

If you liked this article, you will probably be interested in our other article called Get Rich Slow – How To Pay Off Your Mortgage Early.

Disclaimer: The information in this blog is general in nature and does not take into account of your personal circumstances. Please seek professional advice before acting on any of the information mentioned above.