Financial Rules Newlyweds Must Follow
Couples getting married are so full of hope, excitement but must remember that the number one cause for divorce in this country is finances. That being said, there are five different financial items that newlyweds need to discuss when they get married: 1. financial debts, 2. financial goals, 3. opening accounts, 4. making a budget, 5. deciding who is going to act as accountant for the family.
The first thing that any newlywed couple or couple about to get married needs to do is to understand what they will be bringing to the table financially. So they need to value what they have together in total assets which includes investments, bank accounts, cars, electronics, properties, and anything else that will fetch a price. This will give the couple a good idea of where they are starting out financially together.
Discussing the automobiles they currently own, one should also look at how long they expect to hang onto that automobile, and how they plan to purchase a replacement when the time comes? This is part of their financial planning, and does need to be included as an important expenditure.
Now, they need to look at guaranteed income, such as their salary, or perhaps an annuity of some sort. This also should include interest paid to them on investments and the like.
Next, one needs to look at debt. This covers everything that the couple owes on. Mortgages, rents, credit card payments, student loans, anything that requires a steady payment, even car insurance, home insurance, life and disability insurance and the like needs to be carefully assessed by the couple. For some reason many newly married couples forget credit card payments that need to be made. This is usually because they carry such a high balance that they've put it out of their minds so as not to "worry" about it.
The home's equity, if they own a home, is of tremendous significance as well. First, they need a place to live, but secondly having equity in a home is one of the easiest ways to eventually accumulate wealth. Have the couple find out what their home's actual fair market value is. With the advancements in what is located on the Web, they can look over what similar homes were sold for, themselves. Equity is the difference between fair market value and what remains to be paid in mortgages and such. They must be sure to look at equity loans too when arriving at the home's equity.
The couple also needs to find a financial consultant who can help them achieve their financial goals. Opening up a bank account together is the first step in joining lives together. The couple should be sure to open a joint account that specifies "or" not "and"; otherwise they will both have to be present anytime one wants to get money out of the bank.
Retirement accounts need to be changed too, so that the newly acquired spouse is now the beneficiary. If the couple does not have life insurance or disability insurance, they should be counseled as to the importance of acquiring some at this juncture.
Retirement packages should also be considered if they have none. For instance, most newlyweds should look into a 401k for retirement.
The first thing that any newlywed couple or couple about to get married needs to do is to understand what they will be bringing to the table financially. So they need to value what they have together in total assets which includes investments, bank accounts, cars, electronics, properties, and anything else that will fetch a price. This will give the couple a good idea of where they are starting out financially together.
Discussing the automobiles they currently own, one should also look at how long they expect to hang onto that automobile, and how they plan to purchase a replacement when the time comes? This is part of their financial planning, and does need to be included as an important expenditure.
Now, they need to look at guaranteed income, such as their salary, or perhaps an annuity of some sort. This also should include interest paid to them on investments and the like.
Next, one needs to look at debt. This covers everything that the couple owes on. Mortgages, rents, credit card payments, student loans, anything that requires a steady payment, even car insurance, home insurance, life and disability insurance and the like needs to be carefully assessed by the couple. For some reason many newly married couples forget credit card payments that need to be made. This is usually because they carry such a high balance that they've put it out of their minds so as not to "worry" about it.
The home's equity, if they own a home, is of tremendous significance as well. First, they need a place to live, but secondly having equity in a home is one of the easiest ways to eventually accumulate wealth. Have the couple find out what their home's actual fair market value is. With the advancements in what is located on the Web, they can look over what similar homes were sold for, themselves. Equity is the difference between fair market value and what remains to be paid in mortgages and such. They must be sure to look at equity loans too when arriving at the home's equity.
The couple also needs to find a financial consultant who can help them achieve their financial goals. Opening up a bank account together is the first step in joining lives together. The couple should be sure to open a joint account that specifies "or" not "and"; otherwise they will both have to be present anytime one wants to get money out of the bank.
Retirement accounts need to be changed too, so that the newly acquired spouse is now the beneficiary. If the couple does not have life insurance or disability insurance, they should be counseled as to the importance of acquiring some at this juncture.
Retirement packages should also be considered if they have none. For instance, most newlyweds should look into a 401k for retirement.
About the Author:
Dorthy Weatherbush didn't have TheKnot.com to help her plan for and get ready for marriage. With the help of TheKnot.com couples now have lots of resources to not only help them plan for a wedding, but for marriage, kids, and the couple's first house.