Congratulations! As you and your spouse go through the excitement of starting a new life together, there are a few things you might want to consider about your joint finances.
Buying a home and saving for retirement might be included in your short- and long-term plans, but there are years in between that can seem uncertain. Maybe you’ll have kids or move somewhere new. It’s completely fine if you haven't figured it all out yet. That’s why a lot of newlyweds need a plan that evolves with them over time.
It can be a lot to balance saving for things like buying a home, paying down your debt, or preparing for the cost of childcare—but two areas to start with are ensuring that you have the right protection to support your new family, and saving for the future.
You may not know that some insurance and financial products allow you to do more than one thing. Explore some options below that other newlyweds consider.
Banks always assess both of your credit scores
Know in advance how you appear as a couple on applications.
Emergency funds are more important than ever
Have at least 3 to 6 months worth of income set aside.
Balance both short- and long-term financial goals
Things can change, so it’s important that you have flexibility throughout your life.
Work together to track your combined earning and spending
A joint checking account can help organize your expenses.
Take advantage of family plans to cut costs
You’re officially a family, so consolidate your accounts and subscriptions.
Many newlyweds combine a few products to best address their financial needs.
As a married couple, you may have dual incomes and dual debt. It’s wise to protect your spouse in the event that something happens to you. A term life policy can help with short-term needs. Whole life has multiple uses, in addition to permanent insurance protection, it can help you prepare for the future.
Saving for the future
You may already have retirement funds, but it’s important to have savings that are not retirement specific as well. Mutual funds, ETFs, and other savings vehicles have a potential to generate returns from the market and grow your assets over time, while not penalizing you if you use them prior to retirement. Due to market fluctuations, each vehicle has it’s own risk and rewards. And, they can be accessible in the near term while still allowing your money to grow for your future needs.
It’s always useful to learn a little more. Take a look at these helpful links.