When Logan Alec and his wife got married, they brought in money from the get-go. The pair made an agreement: they would have a set amount to spend on each amount they wanted.
Whether it was $ 50 or $ 100 per month, it was the financial equivalent of a hall pass. No questions asked. No accusations were made. And there was no snooping to see what he pulled from the bank account.
This resentment, curbing judgment, and seemingly quarreling over small potato items – such as indulging in a daily coffee fix.
“No matter how tight money is – or whether you choose to have joint or separate accounts – it’s important that each of you have a certain amount of money each month that you can spend whatever you want. , “Alec, who is the founder of Money Right. “But within a reasonable range of course.”
When it comes to money and marriage, sussing about how much “allowance” each partner gets is the tip of the iceberg.
Obstacles are a major milestone, no doubt. And got a bit of nervousness with a rumble of excitement, you want to make sure you have your financial ducks in a row. This includes taking proper paperwork in the order, ending insurance, and spending plans.
For newlyweds, here are some things that are more than money:
You want to come up with a plan about dividing shared expenses.
For instance, the talk between Jarek Grochal and her husband was pre-wedding bells. He kept things very simple: he divided the rent in proportion to his income. The rest was spent on each person.
In addition to how you will share your living expenses, you will want to decide whether you will have a joint bank account or will be separate.
As the couple’s financial advisor Adam Cole, JD, points out, there is no right or wrong way to go about this. It is more about preference, and what could potentially provoke deep resentment.
And just because you do not have a joint account, does not mean that there is less communication or trust in the partnership.
Case in point: While Grochal and her husband did not have a shared bank account, they did nothing about shared savings goals.
“We discuss financially where we are financially weak, and before we buy tickets,” says Groch, who writes a blog on the market in Time to Market.
Do not be afraid to talk about money goals
Number, budget and spreadsheet are one thing. But it all boils down to how your spending plan coincides with your vision of a shared life.
“Before you go to the numbers, go to the same page first,” Cole says. “Talk about your priorities, your hopes and dreams, your worries and fears. This will make the budgeting exercise easier, as you will see how it connects directly to the goals you have shared. ”
For example: What kind of home do you want? Where do you ideally want to live? And do you want a house full of pets, or children, or both?
Both Gröchl and his partner prioritize retirement, automating contributions for their household.
“My wife knows I put 15 percent of my income into my 401 (k), can save $ X per paycheck, and invest in a separate account,” he says. “And my wife puts 10 percent of her income into her 401 (k), and puts $ X per paycheck in the house fund. Once it’s all settled, I and we spend money on whatever we want.” can do. ”
Approach budget as a team sport
When Nick Lauper and his wife were married, they kept separate accounts and a joint account for shared expenses.
A game changer? They see the management of money as a team sport. They now deposit almost all of their money together, and focus on personal profitability.
“How much of what we bring is left over after spending?” Says Lauper, the founder of the Side Hostel Nation.
It has become a fun challenge to become more profitable as a home, which we have faced from both the spending and extra income side.
Get financial check-in regularly
It is one thing to come up with a plan. But sticking to it, and making changes along the way is equally important.
To get on the same page financially, Consider setting a weekly money date. You tell Laura Coleman for family goals that you can go to goals, and there is a reasonable personal spending account for each of you.
“Your weekly funding should help you clearly define your needs, desires and expectations,” says Coleman.
This is an appropriate time to examine shared goals. “Every week, revisit your goal and see how you’re reaching it and if you’ve got a shock,” she says.
“By brainstorming, you can create multiple streams of income to reach that goal. Remember that you are a team, so decide as a team. ”
Think about getting life insurance
When you hit marriage milestones, someone else can now financially depend on you. In return, you may consider withholding a life insurance policy.
There are two main types of life insurance: term and whole. Term insurance period – 10, 20 or 30 years. It is commonly used to cover the length of a mortgage, or to ensure the financial needs of their children until they graduate from college.
Whole life insurance pays for your entire life. But this means that life insurance is generally much less expensive.
Another thing to keep in mind is that as you develop your family, you are reevaluating your policy boundaries.
And life insurance is not just for couples who are going through other significant life changes.
Another reason why you want to consider life insurance? If one partner makes too much of the other. Should a partner pass, your life insurance policy can help you maintain the same lifestyle.
“We thought life insurance was only a good idea because we wanted each person to be able to live a similar lifestyle if something happened to the other,” Groch says. “It would be terrible not only to lose my loved one, but also to worry about sudden money and bills because we were not a two-income house until now.
When you tie the knot there is a ton around your head. But fear not. Knowing when you need to consider marriage milestones, you will be able to put it in stages.
In return, you and your spouse together will be equipped to make the best money decisions for your new life.
Shop for car insurance
Getting married can potentially save you some cash on your car insurance policy. In fact, it turns out that premiums for car insurance were, on average, 11 percent cheaper for those who were married.
This is the reason that? The data suggests that single drivers had higher driver injury rates than hitchhikers.
For example, when James Lowery and his wife were married, they switched insurers, and their car insurance policy was reduced from $ 437 per month to $ 280. Pre-marriage, he was a notorious speed demon. He once received four tickets within three days.
Says Lothi, “Rethink writes in The Rate Race,” My insurance went down partly because I swapped companies, but in their eyes the marriage made me less of a risk. “I think the insurance company believed that with the stability of marriage, I would stop my fasting habits.”
Having said that marriage cannot make you a safe driver. It is more correlated with work-cause.
Whatever it is, take advantage of the fact. After getting married, reach out to your insurance carrier to get a new quote. Or you can shop for quotes from different companies.
Your insurance premium is not affected only by interruptions
There are several other reasons why your insurance premium may fall after getting married:
If you uproot a new adobe in a different area, depending on where you live, you could potentially save on your car insurance.
Add multiple drivers to a single domestic policy
If you meet together and meet on the same domestic policy, your premium will decrease the most.
Discounting various insurance policies (ie, homeowners insurance and car insurance) can give you a discount.
In some cases, you may pay more for car insurance after your bottleneck. For example, the founder of Stack Your Dollar, Martina, ended up paying $ 50 a month.
Or if you drive a different car and do not anticipate using the other too often, you can maintain your car insurance policy.
So whether you are about to get married or you are newly married, enjoy this time. But also remember to talk about shared savings goals to create the best future together.