Regardless of whether you’ve found your perfect partner for life, there are three financial objectives you should strive to achieve before saying your wedding vows. Although marriage is undoubtedly gratifying, financial issues often become a major source of conflicts among couples. To ensure your marital journey stays harmonious and financially stable, make achieving these three objectives a priority before uttering the words, “I Do.”
1. CLEAR YOUR DEBTS:
No one is strangers to debts; from credit card bills to student loans, car loans, and more, most people have some form of debt. Assess the magnitude of your financial obligations accumulated during your single life. Consistently servicing debts doesn’t necessarily mean you’re in a great financial position as even minor extra payments can burden finances post marriage. Hence, during your engagement period, consider taking up part-time jobs to eliminate as much debt as possible.
A loving relationship should not hinge on financial stability, yet it’s crucial to understand the depth of your prospective spouse’s debts before planning a wedding. Encourage your partner likewise to clear their outstanding debts.
2. INITIATE A RETIREMENT PLAN:
Love may make you feel eternally young, but it’s never too early to start thinking about retirement. Kick-start with an initial deposit of $1,000 in a Roth IRA for a solid beginning. If you’re already employed full-time, consider having a small part of your salary diverted to a 401(K). If your company provides a matching contribution, it’s like an additional perk for your retirement. New financial obligations often surface in the early years of marriage, making it tempting to defer future savings. However, a better move is to start building your nest egg now.
3. LAUNCH A SAVINGS ACCOUNT AND AN EMERGENCY FUND:
Another prudent objective is to establish a savings account and an emergency fund before tying the knot. Having these two funds in separate accounts is beneficial. My suggestion is to open your emergency fund account in a different bank than normal transactions. For instance, my husband and I bank with Chase, but our emergency fund is with Wells Fargo. This account does not have attached checking or debit services, making it somewhat challenging to withdraw money, preventing impulsive use of funds unless an absolute emergency arises. Capital One 360 is recommended for savings accounts as it provides the flexibility of opening numerous accounts aligned with your multiple objectives.
Undeniably, marriage brings joy and novelty, but it also ushers in new financial management responsibilities. Striving towards these three goals can build financial security for both you and your spouse before you exchange your vows. Now, what’s the wisest financial decision you made before your wedding, or what do you wish you had done before saying, “I Do”?
