You have gone through quite a journey with your significant other just getting to the point that you’re ready to walk down the aisle. At that point, though, the real trip begins. You’ve just committed to spending the rest of your life with someone, so it’s important to set yourself up for success. One of the best ways to do this is with the following financial tips for newlyweds:
Make a Joint Budget
Getting used to coordinate with someone regarding your spending can take some getting used to, but communication about spending and saving is critical to the financial success of a marriage. Even if you decide to keep your finances separate, you will need to discuss how to handle joint expenses, and how you will contribute to savings for your future. Also make sure that you decide on the definition of a ‘big expense’ – a purchase amount that must be discussed and agreed to by both of you. Usually there isn’t a problem spending $20 or even $50, but $1,000 is definitely something that most couples would agree to discuss.
It’s also important to remember that this is not a one-time discussion. Set aside time to discuss your budget and your spending with your spouse, and do it often – the more communication that you have regarding your money, the better off you will be going forward.
Contribute to an Emergency Fund
Speaking of contributing to savings account, you should discuss how much you would like to have set aside in an emergency fund. Experts recommend having between three and six months’ worth of expenses saved for a rainy day. This should include enough to cover your housing, food, utilities, health care, and debt payments.
Balance Your Investment Allocations
Now that you’re married, you have joint financial goals. It only makes sense to take another look at your existing investments to ensure that they are contributing to those goals. You may also want to show your investment allocations to a Massachusetts financial planner. They will be able to assess your desired level of risk and make sure that your investments are balanced and working toward your marital success.
Re-evaluate Health and Dental Insurance Benefits
Once you’re married, you have many options when it comes to health and dental insurance coverage, especially if both you and your spouse’s workplaces both offer coverage options. Take a look at all of your options, considering both the coverage options and difference in pricing. Figure out what’s best for your situation, and make sure that you reassess your situation occasionally – if benefits change, you may be better off switching your coverage.
Check Your Insurance Coverage
As the Massachusetts insurance experts, your local Vargas and Vargas Insurance agent will be happy to guide you through the process of updating your insurance portfolio for married life. We can update your home or renters insurance to cover your spouse’s belongings (also ask about how to add a rider to your insurance to cover your wedding and engagement rings). You can also add your spouse to your Boston auto insurance, and set up or update your disability and life insurance policies to protect your loved one.
