Talking about fun things, like where you want to live and what you’ll name your future kids, is great before marriage. But you should never avoid talking about how you’ll combine finances as a married couple. Far beyond joint or separate bank accounts, this financial discussion should cover everything money-related in your relationship.
You Need to Know Your Future Spouse’s Financial Situation
Student loans, credit card debt, savings, and investments are all important numbers to get out on the table. When you combine your finances, you need to know how much debt, investment, and savings you’ll have as a couple and how both of your current incomes could affect those numbers. Will you have one combined account for payments and bills and then separate personal accounts for savings? These are all important decisions to make together and establish to stay organized and avoid frustrations.
You Must Share Your Money Philosophy
Are you a big spender or a big saver? Do you live to make money, or are you ambivalent about the zeroes on your paycheck? Know your partner’s philosophy, and understand how the two of you will fit together. This is especially essential if you are opposites about money in any way.
You Should Create a Household Budget
How much are you willing to spend on car payments, mortgages, food, and streaming services? If you have drastically different ideas about the household budget, it can cause tension between spouses so it’s better to discuss preferences before things get rocky. Create this plan before you tie the knot to eliminate miscommunication.
You Can Start Setting Financial Goals
Many married couples are able to save more money on living expenses than single people living alone. This will help you achieve financial goals, both individually and as a couple. Talk about the goals you have personally and the goals you see for your future married life.
Before you get married, ensure you have a solid prenuptial agreement. Hopefully, you won’t need it, but it never hurts to be prepared and to protect your own finances. Contact the Figueroa Law Group to start the prenuptial process.