You met the Mr Right and he put a ring on it. Congratulations! Now that you know that in you are in it for the long haul, it is time to start planning for your perfect future. Merging your life with another individual requires you to merge your finances as well. And it is better to do it sooner than later.
First of all decide the best way to merge your finances. You should review all of your accounts and assets and decide if it makes sense to combine your finances or not.
If you plan to equally share financial responsibilities and manage money in a similar fashion, it may be beneficial to merge all of your accounts. If one partner already owns a home and you are living in it together, consider adding the other person to the title.
On the contrary, if you and your partner have different spending habits and perspectives on how to manage your money, it may be a good idea to keep your finances separated. You may want to slowly merge your finances over time. This way you can gradually adapt and find what works best for you as a couple.
You and your partner will also want to establish early on what each person is financially bringing to the relationship. This may be a good time to review any debt, savings, investment accounts, and other financial responsibilities outside the relationship. The more transparent you can be with your partner, the easier it will be to combine your finances.
Sit down with your spouse and determine some common money goals you can begin working toward as a couple. It is easy to only save what’s left after your bills but you should start to consider increasing your saving reserves to assist in additional costs that you will incur as a couple. Work together and determine how you can make all of your dreams come true.
Create a budget to help you achieve your desires; if you don’t know what is coming in and going out, you will not be able to put money aside for your goals. Include in your budget who will pay for certain bills and what amounts you can contribute toward savings.
You will want to review your budget with your partner throughout the year. This will help you evaluate your progress and where you may need to make adjustments.
Who are your beneficiaries on your retirement accounts and insurance policies? If you are unsure, this is a great time to review all of you beneficiaries. Most likely, you will want your spouse to be your primary beneficiary on all of you accounts.
You will need to evaluate your car insurance, disability, and life insurance policies to find the best fit for your new marital status. If you don’t already have a life insurance policy, this is a good time to consider one. A life insurance policy will help minimize the financial burden your spouse would incur if something happens to you. Consider partnering with a financial advisor or planner like the good guys at ICEA. A financial advisor can help you navigate your financial journey. They can help you address complex financial topics such as estate planning and tax strategies. Use these financial moves to get you on the right track toward an abundant future.