Beyond the Honeymoon

Andy Hammond's picture
Written By
Andy Hammond
Date
October 5, 2012
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"I pronounce you husband and wife. You may now combine your balance sheets.” So maybe that isn’t exactly how the saying goes. However it should be the case. If you’re newly married, congratulations on your new marriage and committing the rest of your lives to one another. This is a time of excitement, adjustment and growth in the most special bond that humans ever create. After the honeymoon is over and the real world starts, one topic that seems to get neglected is the new family’s financial plan. Sadly, very few couples have open lines of communication regarding spending and savings habits. Financial issues are the number one reason that marriages do not survive. Starting out your marriage with these helpful tips can lead to a long, happy and fruitful life as husband and wife. Even if you’re not newlyweds, it’s never too late to start implementing these financial action plans for your marriage. I have had the opportunity to work with many young families as they begin their marriages and one of the most valuable services that I’ve been able to offer is to help identify their financial objectives, rank them in order of priority, and establish a systematic means of ensuring that they are accomplished. I would appreciate the opportunity to work with the two of you on your financial goals as well. Life isn’t always a fairy tale, however if you set the right financial habits early, there is a good chance you will live financially happily ever after…

 

1. Come clean about income, assets and ALL liabilities including credit scores. Honesty is the best policy.
 
 
2. Build an accountable budget. Set a mutually agreed upon amount of money to spend per month.
 
 
3. Pay yourselves first. Saving at least 20% of your income can make sure the family has money available.
 
 
4. Pay all bills out of one account so both of you can make sure the big items are being paid on time.
 
 
5. Buy portable life and disability insurance. Make sure you are both taken care of if bad things happen.
 
 
6. Devise a debt repayment strategy. Start with your highest interest rate and snowball your payments.
 
 
7. Build an emergency fund. Have three months income saved aside for emergencies.
 
 
8. Start your financial planning process with this question:“If you were going to sit down three years from today, what needs to happen personally, professionally and financially for you to feel happy about your progress?”
 
 
9. Start thinking about setting up a will – Meet with an attorney to draft wills and trusts.
 
 
10. Meet with a financial professional consistently – to hold your family accountable to your goals.

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