![]() ![]() To consider in this case, such as setting up a trust for the children or using transfer-on-death provisions. You may have children from a previous relationship and want to make special allowances for them.įor example, when marrying for the second time, one partner may want to ensure his or her grown children inherit life insurance proceeds left by a deceased previous spouse. You may have wide disparities in your debts and assets. You and your partner likely have ingrained money habits that could be quite similar or hugely different. Money issues can be especially complex for older couples who are getting married. ![]() You don’t have to view and manage money in the same way, but it’s important to understand and feel comfortable with your differences. If you’re not on common ground on money management, you’ll have unstable ground in your marriage. For employer-sponsored retirement plans, it’s generally recommended that you contribute a minimum of 15% of your combined gross pay, or the maximum amount allowed by the IRS.įinancial matters are one of the top reasons for conflicts in a marriage. Every dollar saved now may provide you with several dollars you can use to maintain your dignity and lifestyle during your retirement years. If you participate in an employer-sponsored retirement plan, you’ll need to name your spouse as the beneficiary.īe sure to contribute to your employer-sponsored retirement plan and/or IRA. If you have IRAs, annuities and life insurance policies, you may want to review and update the beneficiary information. The two of you can arrive at a monthly amount to save that is affordable and sustainable. Three months of earned income is generally recommended but, the stability and dependability of yourĬombined income should be taken into account when deciding on how much is enough. If one of you is a big spender and buys on impulse, the two of you need to discuss the potential negativeĬonsequences of this behavior and arrive at a workable solution.Ĭonsider opening a savings account for an “emergency or rainy day fund”Īs a couple, one goal should be to have enough in this account to handle an unplanned event or emergency. For example, if one of you has earned income that equals 60% of household income, then that spouse would be responsible for 60% of household expenses.ĭiscuss the relationship each of you has with money If one of you has student loans or credit card debt that existed before the marriage, that spouse may feel it’s their responsibility to pay off those debts themselves.Īnother way to address finances is to pay ongoing expenses based upon income. For example, if one of you owned a home prior to the marriage, then that spouse may want to continue paying the mortgage. You may agree to assign certain payments to one or the other. You may decide to combine incomes and treat all expenses and debt obligations as one. If one of you has poor credit, you may choose to have your account in only one name. If neither of you has credit-related problems, then both of your names can be on the account. Open a joint checking account to pay for household expenses ![]() With this information you can develop a budget for handling monthly expenses and plan corrective action for any debt-related issues. It may be worthwhile to get credit scores through one of the three credit bureaus: or With this information you can objectively evaluate your finances and identify the strengths and any weaknesses in the reports, such as high amounts of debt or a history of late payments.Īll pay stubs, account statements, monthly bills and debt obligations need to be disclosed and listed. Request a free copy of your credit reports at Think of your credit report like an ongoing report card of your use, management, and payment discipline of loans, liabilities and obligations like utility bills, car loans, and credit card payments. And while a constructive conversation about household finances may not be the most romantic interaction you can have, it does contribute to the well-being of your marriage. This means that the two of you need to agree on how to combine or coordinate your new household’s accounts and debt. One way to help make your marriage work is to make the household finances work. ![]()
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