Finance is a challenging subject of discussion for many new couples. The reasons may be one or many, such as fear of judgment, different beliefs, and varying priorities. However, discussing money matters is key to starting a marriage right. You should be able to discuss finances openly with the person you intend to marry and with whom you wish to spend the rest of your life. And although honesty is generally important in a marriage, it is even more crucial when it comes to money.
Talk about finances, even if it is difficult for you, and you will be able to avoid many conflicts and misunderstandings down the road. Planning and managing finances together will strengthen your relationship and allow you to work more effectively toward shared goals.
You don’t need sharp financial acumen to start planning for your future together; you just have to begin and learn along the way. Here are some tips to help you get started:
Conduct a Financial Checkup
To plan well, you need a clear picture of your current financial situation. Knowledge of your current financial status will help you gauge how much you can realistically spend on your wedding. Remember that you’ll need to set aside some money for immediate after-marriage expenses, a honeymoon and a contingency fund.
Examine your savings, income, and debts. This assessment will offer you insights into how much you can expect to save in the remaining months. Based on such insights, you and your partner can plan a wedding that fits into your means and does not push you into debt.
Set Goals
You need a vision, not just for your wedding, but also for your future together. Setting goals from the start will provide you both with purpose and motivation. Each step toward your goals will feel like an achievement and keep you going. Whether you wish to have a fairytale wedding in a magnificent setting such as an opulent ballroom, or a honeymoon in an exotic locale, you can do it all with goal-oriented financial planning.
Set individual and shared goals for the short and long term. If you intend to start a family soon, set your financial goals keeping the associated expenses in mind. Make sure that one of your long-term goals is adequate retirement investment. Clear goals will give you direction, help you prioritize and make it easier to work toward financial stability.
Determine Your Contributions
Your logical next step after setting goals is to determine how you’re both going to contribute toward your shared goals, including the wedding. Be open about how much and toward what you’re willing to contribute. This will help set realistic expectations and ensure that you’re both on the same page regarding financial commitments.
Make collaborative decisions regarding the expenses of the wedding and newly married life. Understanding and working with the financial boundaries of both in mind will prevent resentment, clashes, and stress. If any of your family members are contributing toward wedding expenses, include that aspect in the discussion.
Prioritize, Allocate, and Cut Costs
List all the expenses related to your wedding and newly married life, and prioritize them based on their importance. While allocating financial resources, ensure that essential priorities are covered before any other discretionary expenses. Also, remember to prioritize savings when creating your budget.
With strategic moves, you may be able to cut costs related to the wedding. For instance, picking an affordable venue in a location that has mild weather almost all year round, such as Southern California, will allow you greater date flexibility. Flexibility related to the date helps avail of specials and discounts on wedding-related services, thereby allowing for significant cost savings.
Use Technological Solutions
Take advantage of technological advancements to enhance your budgeting experience. Technological innovations have simplified the budgeting process and enabled real-time tracking of expenses. You and your partner can access and manage your finances via secure apps. Use apps such as Mint, GoodBudget, YNAB (You Need a Budget) and WeddingWire to create the wedding budget and monitor expenses. YNAB is useful for managing household budgets as well. You can automate savings with the Qapital app, and even collaborate on shared goals through the DreamTeam feature. Apps like Stash and Acorns will help you invest small amounts, while others such as Personal Capital and Betterment are useful for long-term financial planning. Whatever your needs, there’s likely an app around that will prove useful; you just need to look for it and harness its power.
Wrapping Up
Budgeting well for your wedding and future is essential for creating a stable foundation for your marriage. You can choose to manage your finances through separate accounts, a joint account, or even a combination of those; however, it is important to communicate with each other before making any decision that is likely to involve significant expenditure. Learning to budget and manage your finances together will go a long way toward ensuring a happy and successful marriage.