Financial Tips for Newlyweds

Financial Tips for Newlyweds encourages the merge of finances as a method of providing optimal savings and earnings. And, as a catalyst in keeping the peace between spouses.

With so much divorce in the world today, many couples are opting to keep finances separate. I believe this is a contributing factor to the breakdown of the family structure.

In getting back to the age old concepts that held our parents and grandparents together through good and bad times, a merge of the finances is essential to success.

Marriage is a merge. A merge of hearts, minds, and earthly goods. In my opinion it's either all or nothing. You are committed to making a life together or merely existing side by side in separate worlds.

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What a wonderful day, despite the impatience and in-law worries, your wedding went off without a hitch and the honeymoon time was incredible. You and your newly wed spouse are back in your shared home, the gifts are opened and put away, bills are looming and it�s back to work tomorrow.

Arguing with a spouse about money is one of the top three things to worry Americans the most when it comes to personal finances, so says a survey by NFO Research. Another survey brings out that nearly 70% of all recently divorced couples blame arguments starting over money as the largest single contributing factor to their divorce.

With a statistic like that hanging over their head, it is no wonder many newlyweds are nervous to talk about finances. Merging their individual finances into a single unit is critical for long-term success of their marriage. What are newlywed, or nearly wed, couples to do?

1. Know where you are going. As soon as you set a date to start your life together, begin sharing intimate details about each others financial life. If you find both of you hate financial planning you can decide who will do what now. It will not be any easier now than it would after your marriage, but there is less pressure to �just do it� and get it over with.

2. Share the news with the Government. Visit the Social Security website at www.ssa.gov for information on replacing your old Social Security card if you are changing your name. Also don�t forget the Department of Motor Vehicles to change your driver�s license. If you have other dealings with state or federal agencies, you will want to change their information about you as soon as possible to avoid any problems later.

3. Hang onto your marriage certificate. Before you put this little piece of paper away somewhere you �won�t forget it�, keep it handy the first year to show as proof of your nuptials. Financial representatives can not accept a picture of you cutting cake at the reception, and some airline frequent flier miles programs won�t update your information unless you have a legal document as proof.

4. Consolidate to save money and arguments. The two of you are married now, act like it financially. You do not need separate checking accounts for separate paychecks to pay for merged bills. By having one checking account you may save on bank fees. To overcome the risk of checks not being recorded, use checks with the duplicate feature and put both of you on a cash allowance. This will help prevent over-use of the check book and arguments about where the money went.

5. Make a financial date night. Choose a night early in the month after all the bills have arrived and spend some time paying the bills together. One writes out the check, the other records the payment and stuffs the envelope. Use this time to discuss finances, goals and clear the air about concerns you may have. These date nights may lead to deep discussions about personal goals, household responsibilities, or even career plans, so listening is critical.

6. Re-evaluate your insurance coverage. Changing your marital status may lower your auto insurance premiums. Employer provided health plans may be consolidated under a family plan, or is it more advantages to maintain individual plans? Do some looking around and get quotes on your health and auto insurance needs from multiple sources.

7. Other insurance considerations. Now that you have a family, do you need more life insurance? Nobody likes to think about it, but disability income and life insurance policies can greatly reduce worry and stress on a family in the event an accident or premature death occurs. The advantage to buying life insurance while you are young is the lower cost. Buying 20-year level term insurance can be a more inexpensive method of buying protection during the time your children are still living at home.

8. Will you, or will you not? If you die without a will, the passing of your assets to your heirs is determined by a judge who determines how much of your assets go to your children, your wife, your father, your uncle, and every other relative who thinks they have a claim to your estate. A quick trip to a lawyer for a small fee, or an hour with a good computer program should put your mind at ease that your family will be taken care of the way you want. Planning on estate division can raise difficult issues, but this is a vitally important thing to do for your loved ones.

9. Promises, promises. You promised love at your marriage ceremony, now make some further promises. Promise to consult each other before making major purchases, setting a price as to determine when discussion needs to occur before the purchase. It doesn�t matter if the sports car you have always dreamed about is being sold right now, if you cannot talk to your spouse about it, don�t buy it.

10. Respect each other. It is normal for you to not always agree with your spouse about money. This doesn�t mean someone has to be wrong and have their resistance worn down. Listen to their opinion and respect their right to have it. You never know, their idea may be better for your family.

Roger Sorensen is a Financial Speaker, a published Author, and editor of Money Basics � The Newsletter of Slave2Work.com. You can contact him, read articles he has written, and find his most recent book You Don�t Own Money 2nd Edition at the Slave2Work.com Bookstore.

(ARA) � For most couples, the time between getting engaged and celebrating the big day is a whirlwind filled with a myriad of details that need lots of personal attention: booking the wedding location, recruiting members of the wedding party, organizing the reception � the list goes on and on.

In all the excitement and activity, one thing that may get overlooked is discussing who is paying for everything and how it will be financed. The typical wedding costs between $20,000 and $25,000. �Most people won�t be paying for their weddings entirely with cash,� says Maxine Sweet of Experian, a company that provides consumers with products and resources to help them understand, manage, and protect their personal credit profiles.

�Whether the bride and groom are paying for the wedding themselves, or their families are picking up the tab, chances are at least some of the wedding expenses will be put on a credit card.� There may be the need to spread the expense over time, or it could simply be because of the convenience of using credit for phone orders or remote contracts.

Figuring out how to pay for the wedding gives couples an opportunity to discuss their feelings toward money in general and more specifically, how they feel about using credit. These are issues that may not have come up previously, since each individual was handling their own money. A good way for couples to start dialogue on these issues is by looking at their credit reports.

Web sites like www.Experian.com give you quick and easy access to your credit report and credit score to learn what positive and negative factors are affecting your credit. Each of you should obtain a copy of your credit report and then spend scheduled time reviewing them with your spouse-to-be.

Check pertinent information such as your name, previous and current addresses, Social Security number and account details. If you find any inconsistencies in your report, you need to report them and correct the information. Once you�ve covered these basics, review your partner�s credit report for clues on how they deal with money and credit.

For example, if your significant other has a history of late payments, that could indicate a problem managing money or that they�re overextended. Or it could simply highlight a devil-may-care attitude toward paying interest and late fees. Either way, it is important for both of you to agree on using and handling credit, because your access to new credit and to better interest rates very likely will be affected by your spouse�s credit behavior and vice versa.

You�ll also discover whether your partner prefers to pay credit card debt off in full each month or pay only the minimum fee. You�ll want to commit to staying well below the limits to demonstrate strong credit management skills. If a large portion of your income each month is already committed to paying off other debt, future lenders may wonder if you will have trouble paying back an additional loan.

You want to protect the privilege of using credit for all the benefits it brings, including monthly statements that make it easier for the two of you to monitor all your transactions every month and manage your expenses.

Before you justify using your credit cards to finance the perfect wedding, keep in mind that those pending balances could be with you for a long time. While you may not want to settle for a less expensive wedding gown, or a less exotic honeymoon trip, just remember it will be even more expensive when you tack on the interest charges that will add up before you pay it off. Have a definite plan for how and when all of it will be paid.

�If at all possible, you don�t want to begin your married life burdened by debt and arguing about money,� says Sweet.

Taking control of your spending now will also make it easier to save for your future � new furniture, a special trip for your 10th anniversary or (gulp) college tuition for your kids. And having your credit report up-to-date and in order means that when you need to apply for a car loan or a mortgage, you�ll know that your credit history is in good shape.

For more information on checking your credit report, visit www.Experian.com.
Courtesy of ARA Content

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