Finances - Top Tips for Newlyweds

Ok, now you're married, Congratulations!  Now it's time to really work on your finances to ensure a most prosperous future for the both of you.

1. From the beginning, try to save 15 - 20% of your income. By combining households, you should reduce your expenses significantly, allowing you to save a pretty penny each month. You should save to build your cash reserves, in your 401k plans and in a mutual fund.


2. Rather than simply keeping two checkbooks like before you were married, pool your money into one checkbook and one savings account or money market.


3. Change all of the beneficiaries on life insurance plans, retirement and other plans at work, and IRAs to your new spouse.


4. Decide how debts accumulated by each individual prior to the marriage (i.e. student loans) will be handled. Try to pay off as much as possible if there are two incomes.


5. Work together on budgeting and tracking expenditures.  Many marriages end in divorce due to non-communication about finances.  Start off on the right foot and include each other in discussions.


6. Review and discuss your approaches to handling money -- have your eye on the latest pair of Jimmy Choo's? Does hubby have his eye on the latest stock to purchase? Create some ground rules on handling any differences.


7. If both incomes are needed to pay expenses, be sure to have adequate life insurance.

8. Be sure to let each other know where important documents are kept, and keep them in a safe and secure location.

9. Consolidate your credit cards to avoid having double the number of credit cards.  Keep only what you need, and those that will benefit you the most - i.e. frequent flyer miles, cash back.

10. Make a list of upcoming purchases together and prioritize them. You should decide jointly how to spend your money now.  Remember to compromise.  You may not have enough funds this month to put a down payment on a major purchase, but with savvy savings, and keeping the lines of communication open, will put you both on the path of reaching your goal.

~ photo courtesy of Tonesha Housen