Financial Planning Before You Say I Do

There is no easy way to talk about the pink elephant in the room, expect by addressing it openly and immediately. A simple method to talking about financial goals before getting married is to ask the question outright and then begin by setting a time to really put all your cards on the table.

Questions to Ask Before Getting Married

• What is your current credit score?
• What existing financial goals do you have in place?
• Do you have any existing long-term debt?
• What are your current investments?
• What type of investments do you plan on making in the future?
• Do you plan on making any large purchases in the next 5 years?
• Do you plan to rent or own a home?
• Do you plan on having children?
• How often do you go on vacation?

You’ll notice the questions you ask at the onset will be very general questions about goals, habits, and an overall outlook of your partner’s financial health. This gives you a great idea of whether or not you share common habits or similar financial circumstances. At the initial stages of your conversations, it’s important to be brutally honest and disclose every nook and cranny of your financial state. At the same time be mindful with your responses to ensure you are fostering an open and trusting discussion free of judgment. The more forthcoming you are before marriage the better equipped you’ll be to craft plans that will steer your future in a positive direction.

Pre-Marriage Financial Planning

Before you say “yes to the dress” or suit for that matter, be sure you say yes to a spreadsheet. By actually planning out your finances together pre-marriage, you’ll also have an excellent opportunity to be financially conscious on a collective level about wedding planning. The last thing any newlywed couple needs is to face financial stressors in the early years of marriage. Instead, opt for financial transparency and ask the hard questions early on.

Most communities, banks, and even online portals have literacy training. Taking a course or running through a financial planning exercise together will solidify the importance of this topic. You may also consider meeting with a financial planner, wealth adviser or tax adviser to formalize your financial plan and also answer any questions you may have about your financial future together.

Financial Planning for Newlyweds

If you are a newlywed and didn’t have the opportunity to develop a financial plan with your partner before getting married, don’t fret. You can still easily develop a plan during your earlier years of marriage. Here is a shortlist of financial planning tasks you should take care of in the first years of marriage:

• Calculate your joint net worth.
• Compose financial statements together to get a holistic view of your finances.
• Outline your financial goals together.
• Start a joint savings account and begin contributing to your future.
• Create a shared budget, even if it’s a short-term budget, to begin with.
• Schedule appointments to meet financial advisers to get on track quickly.
• Begin discussing retirement plans and investments.

Overall, having financial discussions and planning your finances as a married couple is essential to build a strong and healthy marriage. While getting in sync and holder each other accountable is a long term process it’s definitely the road worth traveling as financial responsibility is not something that can be ignored. More importantly, the state of your financial well-being will also impact the quality of your life together.

Still, have questions about financial planning? Contact a local banker and begin preparing for a financially prosperous future together.