Getting married? According to a debt relief service company, 83% of couples are arguing, often about money related issues. Making family finance work is a way for newlyweds to help their newly married life.Both parties should agree on how to coordinate family accounts and debt through constructive dialogue.
Although this is not the most romantic topic, it will help a happier marriage.
Here are some important tips:
- Request a free copy of your Credit History Report from Equifax Australia (previously Veda)
This information tells you about the use, management and payment history of your debt and past credit applications. You can then objectively analyze the strengths and weaknesses in the report, including high debt or discipline regarding timely payments, so you know where each other are at financially.
- List all income and expenses. Use all payroll, account statements, monthly bills and debt obligations to disclose all finances to each other. You can then develop a monthly spending plan to process monthly expenses and develop a debt prevention and/or elimination plan. Track your combined expenses for 1-3 months and see where you really spend money, because, if you don’t know what you spend, you can’t put a financial plan in place.
- Discuss the relationship between each of you and money. Are you one of the savers or a consumer? Discuss potential consequences and agree on a viable solution.
- Open a joint bank account to cover household expenses. Pay all marriage-related bills, including housing, food, essential clothing, vacation, transportation, cell phones, and more from a joint bank account. Consider automating your home bill payment and setting up different joint accounts for each of your savings goals. This strategy combines all income and treats all costs and liabilities as one.
Alternatively, decide who will pay what.
Alternative 1: Assign some payments to one of them. This may depend on who has a loan obligation before marriage.
Alternative 2: Pay a continuing expense based on the percentage of revenue paid.
- Opening a savings account for “Emergencies / Rainy Day Fund”. An unexpected emergency occurred. As a couple, you should have a goal of how much is enough to deal with unexpected expenses or emergencies. In addition, the recommendation is to set aside a few months of income to prepare for unplanned future income losses. Determine a monthly budget that is affordable for you and sustainable.
- Update your beneficiaries: Check all superannuation funds and insurances policies to update beneficiary nomination information.
- Take care of your future now. Contribute to your employer-sponsored superannuation fund.Most financial experts suggest that you increase your contributions to 15% of your income, that is 9.5% from your employer and 5.5% from you. In doing so, you take care of your future retirement income and also reduce the amount of tax you pay each year.
The first year of marriage usually includes many lifestyle adjustments. Setting goals and planning saves are best practices to help you achieve your financial hopes and dreams. Developing a spending plan can show your sense of control and willingness to the future. Discussing and agreeing on financial adjustments should make your financial life smoother. Financial planning takes time, patience and discipline
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Disclaimer: This information provided is general in nature. It is based on the knowledge and experiences of the author and not intended to be taken as financial advice. It does not take into account the objectives, financial situation or needs of you or any other particular person. You need to consider your financial situation and needs before making any decisions based on the information. You may have to modify the information and do further research, for it to suit your personal financial situation. Therefore, before acting on the information, it is recommended that you consider its appropriateness to your circumstances or consult a financial adviser, tax advisers or legal professional to assist you in doing this.