When planning your wedding, one important factor that many couples forget to plan is their finances. Finances can cause a lot of strain on a relationship, especially if one partner is a spender and one is a saver. The guide below walks you through a few ways that a financial planning company can help you and your future spouse start off your marriage on the right financial foot.
Determine Spending Habits
The first thing the financial planner will do is discuss your spending habits. You and your future spouse need to be upfront and honest about your habits. The planner will look through your recent purchases to determine if one person is more of the spender in the relationship than the other. There is often a deep rooted issue that causes someone to overspend and the planner may be able to help you or your spouse realize that you are spending for the wrong reasons and help you to realize that it is an emotional tie to the items that you have, rather than a true need for them.
Determine Actual Debt
Next, the planner will help you and your future spouse determine what debt you will each be bringing into the marriage. Knowing exactly how much you each owe will help you establish a game plan for how you can get out of debt completely. Seeing how much money is really owed can also serve as a great eye-opener for a true spender because it will let them see how quickly their small purchases add up to a large debt.
Determine A Reasonable Nest Egg
The planner will help you determine how much money you need to set aside each month into a separate savings account as a nest egg for emergencies. When you are first starting out, you want to pay off your debts as quickly as possible, while still making sure that you have money set aside for emergencies. The planner can help you know exactly how much money you need to set aside each month for emergencies or for a nest egg toward a house.
Establish a Reasonable Monthly Allowance
Saving nonstop is not feasible for most spenders. The planner will take the time to give you each a monthly allowance to use for frivolous purchases. It is important to realize that the amount will be quite minimal, so that debt can be paid off as quickly as possible. You want to be sure that you keep each other accountable for the money so that no one overspends during a weak moment. Taking the money out at the beginning of the month and dividing it allows both people to know exactly how much the other spends on frivolous purchases each month.
The financial planner will be able to help you and your future spouse learn what issues may occur in the future and how you can handle the issues together. Being able to establish a financial plan will eliminate the chances of you and your loved one fighting over finances in the future. To learn more, contact a financial planning firm like Duff & Associates.