First comes love, then comes marriage, then… comes a slew of financial decisions unrelated to dresses, cakes or rings. After saying “I do,” newlyweds also need to avow a 
commitment to their united financial future, and follow these four steps to ensure healthy finances for married life.
Step 1: Talk
Talking sounds pretty obvious, since presumably, spouses communicate on a daily basis. But open, honest communication about topics, such as debt and spending habits, is essential for financial (and marital) stability. Findings from a 2012 Kansas State University study show financial disagreements are some of the strongest predictors of divorce compared to other marital disagreements. Spending and saving awareness between a couple can help avoid arguments, even financial resentment, in the future. Create a system to determine purchases that are made as a couple and individual, and how much discretionary income each partner has. Communicate frequently. Review and discuss income, expenses, savings, net worth, and credit scores annually.
Step 2: Budget
Following an in-depth financial discussion, create a budget that outlines costs for housing, utilities, food, transportation, insurance, health care, debt repayment, and discretionary spending. Online resources, such as the Economic Policy Institute’s Budget Calculator (www.epi.org/resources/budget), and mobile apps, such as Mint.com’s app (www.mint.com), offer helpful tools for planning budgets and tracking actual spending.
Step 3: Fund
Fund your budget by merging finances, combining bank accounts, consolidating credit cards, or determining which income (or how much of an income) is dedicated to certain expenditures. For example, couples decide to merge their incomes for shared expenses (such as rent and food), but keep separate accounts for discretionary spending, which provides partners with financial independence. Couples can decide to use one income to fund the monthly budget, and the other income to pay off debt or save for a future joint expense, such as a down payment on a house.
Saving on individual line items can also boost budgets. Look for creative money-saving options, such as utilizing services from www.internetserviceproviders.com to combine technology services and create bundled deals. Savings on monthly phone or Internet providers can offset other monthly expenses and help fund a savings accounts. Budgeting strategies naturally foster thoughtful, healthy spending and investment habits, which also fosters a happy relationship.
Step 4: Plan
Experts advocate the resistance of overlooking savings and retirement investments in order to fund more immediate monthly line items. Experts suggest newlyweds meet their budgets while creating a joint nest egg — live on one salary and put the other one into savings. Couples can plan for future expenses, such as changing jobs, going back to school or raising kids. A healthy savings account can also help a couple survive a financial emergency without a seismic lifestyle shock. A savings account can serve as an emergency fund to cover living expenses for at least three months. Planning for the future should also include contributing 10 percent (or an affordable number) of each paycheck into a retirement account.
Do you have savings tips for newlyweds? Share them in the comments.
