MONEY MATTERS 101: A NEWLYWED COUPLE'S GUIDE TO YOUR ...
MONEY MATTERS 101: A NEWLYWED COUPLE’S GUIDE TO YOUR DOMESTIC FINANCIAL BLISS
Congratulations on your recent engagement! This is truly a blissful time for both of you, as it is a time to rejoice and celebrate the news of your upcoming wedding! I cannot be happier for you as a couple, for your mutual love, respect, and courage to enter into this wonderful institution called marriage. Your engagement shows just how ready you are to live a life together, to share both happiness and sorrow, the good and the bad in between, together as one. Marriage is certainly an amazing experience one has the opportunity to undergo, with the right partner, of course. There are many, many issues out there a married couple can face, like money for instance; but with the right tools and strategies to guide you and your partner, marriage can be an enjoyable breeze that you can go through in your life. Today, love is rarely the only basis why a marriage is considered successful. Other factors come in, and topping off that list is money. Money can be one of the greatest factors that determine a successful marriage. Often, money, or the lack thereof, is and can be the source of stress for most marriages, resulting in the relationship floundering and ultimately having troubles.
However, and fear not! With proper communication and financial planning, couples can start off their marriage financially sound and stable, and carry on without any hitch, if sensible tips and strategies are followed, which I will share with you. This mini-‐book will serve as a guide you and your partner can read and follow to achieve domestic financial bliss.
CHAPTER ONE: THE MONEY TALK
People often shy away from this subject, and more often than not, newly engaged couples are busy arranging their wedding to even find the time to sit and have a conversation about money. But I will stress this, having a serious conversation about money is important for newly engaged couples. You and your partner should talk about your dreams and goals, and how you will handle your finances once you start your married life. Lay all your cards on the table. Have a frank and open financial conversation, and disclose all your assets and debts before your wedding. Clear and open communication, especially regarding finances, is very vital to determine the success of your union. The first thing you should do is to analyze your money compatibility. Understand each other’s money management style, discuss pros and cons, combine and create an approach that would work best for you as a couple. How does your fiancé spend his money? Is he a conservative spender? Are you? Its certainly a good thing if both of you are conservative spenders. Most financial issues would be easily solved if both of you have the same perspective when it comes to spending and saving money. But, not all couples are that lucky.. and so, the best way is to sit down with your partner and have the money talk, like how you’re going to handle your money after the wedding, debts you have incurred and how you’re going to pay for it, how to save, where to put your money in, budgeting, and all the little financial details a marriage will entail. I will stress this again, having that discussion is an essential step to establishing success in your undertaking of a successful marriage. Avoiding this conversation will only guarantee a lot of misunderstandings, headaches, and the inevitable arguments in the future. Get it over with now, while you’re just on the verge of starting. Having the talk will clear the air out and put you both in the same mind to travel the fast track to domestic financial bliss.
CHAPTER TWO: TALK ABOUT MONEY WITHOUT KILLING EACH OTHER It’s a widely known fact that money is one of the main causes of marital strife, if not the number one! Many couples are hesitant to talk about their finances, and their reluctance will lead to the start of problems. You see, when one partner is reluctant to talk about money, maybe because talking about money evokes feelings of discomfort, resentment, or inadequacy, these feelings will make the partner start off on a negative vibe. Meanwhile, the other partner will also feel all sorts of negative vibes, like frustration and resentment because of the other’s reluctance to talk. Therefore, both parties will pick up on each other’s negative-‐ness and a fight is bound to ensue. But how do you talk to your partner without wanting to kill each other? The best way to talk about money is to do everything as a team. From experience, one cause of fights is one partner spending far too much than what the other considers to be enough. To resolve this, it’s a good idea to create a budget together, compromise, and agree to follow what you both put down on your agreed budget. Each partner has an input in the creation of your budget, and that will make both feel part of the team, and not create resentment that the other has control over the budget. Do everything together when it comes to your finances. Create your budget together, do the bills together, review your finances together. Doing everything together will make you both accountable, not just the other. By doing everything together in the finance department, you will avoid the pitfalls of misunderstandings and miscommunication when it comes to your budgeting. Lastly, talk to each other in a calm manner. Money is a serious issue, and it can only get worse when raised voices and accusations come into the discussion. Nothing will get solved with anger and recriminations. Always remember that your money conversations are there to ensure that your future as a married couple is as stable as you can make it to be.
CHAPTER THREE: PRE-‐WEDDING MONEY CONVERSATION
Getting engaged is so wonderful that it is so hard not to get caught up in the moment, but that is exactly what you should not do! This is a time to get realistic and practical, and it is essential that you both sit down and have a talk about your wedding expenses. It is important that you set a realistic budget for your wedding, whether you decide to pay for it mutually or not. An understanding about your wedding budget should be reached, like how much you are both willing to pay for the details you want in your wedding, who is paying for the flowers, food, and so on. List down all that you have agreed upon, and most of all, be reasonable in setting your budget. Doing so will avoid unnecessary spending, debts, and most of all, unnecessary fights along the way. Be sure to express what you expect and what really matters to each of you on your special day. Do you want a big, fabulous dress? Magnificent rings? An awesome and wonderful honeymoon? Or a gorgeous ceremony and reception? It would certainly be great if you can afford it all, but if not, its ideal and essential to discuss what part of the wedding is important to you, and what part you’re willing to compromise on to save some money. Remember that weddings are precious moments and are a once in a lifetime event, you don’t want to look back on it and regret anything you did or didn’t do.
CHAPTER FOUR: AFTER THE WEDDING
Congratulations on making it through the wedding fever! Now it’s time to settle down, and straighten out your finances. This is the start of the adjustment period, and in this period you should figure out how your finances are going to work together. Money conversations at this stage should be about how you are going to merge your money, who will pay for the bills and debts, and such other financial issues. Traditionally, newly married couples create joint accounts for household items, bills, savings and emergency funds, and separate accounts for your own personal spending. Separate accounts for personal use are ideal and can eliminate a lot of arguments and fights with one partner getting mad at the other over unnecessary purchases. It is essential that you both sit down and have a look through your resources at least once a month for you to both have a clear view of your financial situation. This will also make sure that both of you are sticking to your agreed budget and that you’re both working in the same direction with regards to your financial goals.
CHAPTER FIVE: ENSURE DOMESTIC FINANCIAL BLISS WITH THIS E-‐BOOK Marriage is an enjoyable institution, and it is meant to be enjoyed! -‐ Especially in the first few years of your married life. One way to ensure this is to open your communication lines and talk about the serious issues like money early on. Financial success in your marriage is achieved through cooperating with each other in reaching your goals, guaranteeing fewer arguments and fights about money and finances. Also, following the advice given in this book is a sure-‐fire way of steering clear of problems and misunderstandings that might beset your union in its early stages, thereby assuring the success of your marriage.
CHAPTER SIX: A NEWLYWED COUPLE’S 1ST YEAR FINANCIAL CHECKLIST Below is a financial checklist a couple should undertake to follow during the first year of their marriage. √ Create a budget. -‐ Make a list of all expenses and income coming in, allocate funds to go with what (i.e bills, savings, groceries). √ Pay off your debts. -‐ Debts incurred during your wedding preparations, etc. should be settled. Come up with a payment scheme if need be. √ Designate financial responsibilities. -‐ Who pays for what? An ideal solution would be to open a joint account so that all financial responsibilities as a married couple would be met. √ Update wills and insurance. -‐ Update all your important documents like your will, your beneficiary listed on your insurance, bank accounts, or the changing of your surname. √ Start an emergency fund. -‐ Faithfully place a percentage of your earnings into an emergency fund, so that you can be prepared for anything. √ Set financial goals. -‐ Have a discussion about that you both want out of life, i.e a new house, the number of children you will have, your retirement plans to determine the steps your have to take in order to achieve them. √ Personal Budgeting Specialist. -‐ Seek the help of a personal budgeting specialist who specializes in working with newlyweds to help you with your financial needs.
Congratulations on your recent engagement! This is truly a blissful time for both of you, as it is a time to rejoice and celebrate the news of your upcoming wedding! I cannot be happier for you as a couple, for your mutual love, respect, and courage to enter into this wonderful institution called marriage. Your engagement shows just how ready you are to live a life together, to share both happiness and sorrow, the good and the bad in between, together as one. Marriage is certainly an amazing experience one has the opportunity to undergo, with the right partner, of course. There are many, many issues out there a married couple can face, like money for instance; but with the right tools and strategies to guide you and your partner, marriage can be an enjoyable breeze that you can go through in your life. Today, love is rarely the only basis why a marriage is considered successful. Other factors come in, and topping off that list is money. Money can be one of the greatest factors that determine a successful marriage. Often, money, or the lack thereof, is and can be the source of stress for most marriages, resulting in the relationship floundering and ultimately having troubles.
However, and fear not! With proper communication and financial planning, couples can start off their marriage financially sound and stable, and carry on without any hitch, if sensible tips and strategies are followed, which I will share with you. This mini-‐book will serve as a guide you and your partner can read and follow to achieve domestic financial bliss.
CHAPTER ONE: THE MONEY TALK
People often shy away from this subject, and more often than not, newly engaged couples are busy arranging their wedding to even find the time to sit and have a conversation about money. But I will stress this, having a serious conversation about money is important for newly engaged couples. You and your partner should talk about your dreams and goals, and how you will handle your finances once you start your married life. Lay all your cards on the table. Have a frank and open financial conversation, and disclose all your assets and debts before your wedding. Clear and open communication, especially regarding finances, is very vital to determine the success of your union. The first thing you should do is to analyze your money compatibility. Understand each other’s money management style, discuss pros and cons, combine and create an approach that would work best for you as a couple. How does your fiancé spend his money? Is he a conservative spender? Are you? Its certainly a good thing if both of you are conservative spenders. Most financial issues would be easily solved if both of you have the same perspective when it comes to spending and saving money. But, not all couples are that lucky.. and so, the best way is to sit down with your partner and have the money talk, like how you’re going to handle your money after the wedding, debts you have incurred and how you’re going to pay for it, how to save, where to put your money in, budgeting, and all the little financial details a marriage will entail. I will stress this again, having that discussion is an essential step to establishing success in your undertaking of a successful marriage. Avoiding this conversation will only guarantee a lot of misunderstandings, headaches, and the inevitable arguments in the future. Get it over with now, while you’re just on the verge of starting. Having the talk will clear the air out and put you both in the same mind to travel the fast track to domestic financial bliss.
CHAPTER TWO: TALK ABOUT MONEY WITHOUT KILLING EACH OTHER It’s a widely known fact that money is one of the main causes of marital strife, if not the number one! Many couples are hesitant to talk about their finances, and their reluctance will lead to the start of problems. You see, when one partner is reluctant to talk about money, maybe because talking about money evokes feelings of discomfort, resentment, or inadequacy, these feelings will make the partner start off on a negative vibe. Meanwhile, the other partner will also feel all sorts of negative vibes, like frustration and resentment because of the other’s reluctance to talk. Therefore, both parties will pick up on each other’s negative-‐ness and a fight is bound to ensue. But how do you talk to your partner without wanting to kill each other? The best way to talk about money is to do everything as a team. From experience, one cause of fights is one partner spending far too much than what the other considers to be enough. To resolve this, it’s a good idea to create a budget together, compromise, and agree to follow what you both put down on your agreed budget. Each partner has an input in the creation of your budget, and that will make both feel part of the team, and not create resentment that the other has control over the budget. Do everything together when it comes to your finances. Create your budget together, do the bills together, review your finances together. Doing everything together will make you both accountable, not just the other. By doing everything together in the finance department, you will avoid the pitfalls of misunderstandings and miscommunication when it comes to your budgeting. Lastly, talk to each other in a calm manner. Money is a serious issue, and it can only get worse when raised voices and accusations come into the discussion. Nothing will get solved with anger and recriminations. Always remember that your money conversations are there to ensure that your future as a married couple is as stable as you can make it to be.
CHAPTER THREE: PRE-‐WEDDING MONEY CONVERSATION
Getting engaged is so wonderful that it is so hard not to get caught up in the moment, but that is exactly what you should not do! This is a time to get realistic and practical, and it is essential that you both sit down and have a talk about your wedding expenses. It is important that you set a realistic budget for your wedding, whether you decide to pay for it mutually or not. An understanding about your wedding budget should be reached, like how much you are both willing to pay for the details you want in your wedding, who is paying for the flowers, food, and so on. List down all that you have agreed upon, and most of all, be reasonable in setting your budget. Doing so will avoid unnecessary spending, debts, and most of all, unnecessary fights along the way. Be sure to express what you expect and what really matters to each of you on your special day. Do you want a big, fabulous dress? Magnificent rings? An awesome and wonderful honeymoon? Or a gorgeous ceremony and reception? It would certainly be great if you can afford it all, but if not, its ideal and essential to discuss what part of the wedding is important to you, and what part you’re willing to compromise on to save some money. Remember that weddings are precious moments and are a once in a lifetime event, you don’t want to look back on it and regret anything you did or didn’t do.
CHAPTER FOUR: AFTER THE WEDDING
Congratulations on making it through the wedding fever! Now it’s time to settle down, and straighten out your finances. This is the start of the adjustment period, and in this period you should figure out how your finances are going to work together. Money conversations at this stage should be about how you are going to merge your money, who will pay for the bills and debts, and such other financial issues. Traditionally, newly married couples create joint accounts for household items, bills, savings and emergency funds, and separate accounts for your own personal spending. Separate accounts for personal use are ideal and can eliminate a lot of arguments and fights with one partner getting mad at the other over unnecessary purchases. It is essential that you both sit down and have a look through your resources at least once a month for you to both have a clear view of your financial situation. This will also make sure that both of you are sticking to your agreed budget and that you’re both working in the same direction with regards to your financial goals.
CHAPTER FIVE: ENSURE DOMESTIC FINANCIAL BLISS WITH THIS E-‐BOOK Marriage is an enjoyable institution, and it is meant to be enjoyed! -‐ Especially in the first few years of your married life. One way to ensure this is to open your communication lines and talk about the serious issues like money early on. Financial success in your marriage is achieved through cooperating with each other in reaching your goals, guaranteeing fewer arguments and fights about money and finances. Also, following the advice given in this book is a sure-‐fire way of steering clear of problems and misunderstandings that might beset your union in its early stages, thereby assuring the success of your marriage.
CHAPTER SIX: A NEWLYWED COUPLE’S 1ST YEAR FINANCIAL CHECKLIST Below is a financial checklist a couple should undertake to follow during the first year of their marriage. √ Create a budget. -‐ Make a list of all expenses and income coming in, allocate funds to go with what (i.e bills, savings, groceries). √ Pay off your debts. -‐ Debts incurred during your wedding preparations, etc. should be settled. Come up with a payment scheme if need be. √ Designate financial responsibilities. -‐ Who pays for what? An ideal solution would be to open a joint account so that all financial responsibilities as a married couple would be met. √ Update wills and insurance. -‐ Update all your important documents like your will, your beneficiary listed on your insurance, bank accounts, or the changing of your surname. √ Start an emergency fund. -‐ Faithfully place a percentage of your earnings into an emergency fund, so that you can be prepared for anything. √ Set financial goals. -‐ Have a discussion about that you both want out of life, i.e a new house, the number of children you will have, your retirement plans to determine the steps your have to take in order to achieve them. √ Personal Budgeting Specialist. -‐ Seek the help of a personal budgeting specialist who specializes in working with newlyweds to help you with your financial needs.
