You and your fiancé set the day for your wedding. You have almost a year until the event takes place. Before tying the knot it’s important to resolve any issues you or your future spouse may have regarding finances.
Get Rid of Debt
Before you get married, you want to sit down with your significant other to go over your individual financial situations. Starting a life together with large amounts of debt is a sure way to put a strain on your new marriage, so you want to try to get that out of the way. It’s critical to pay down as much debt as possible.
If you have a lot of credit card debt, you can choose to start with the one that has the highest balance or the one with the highest interest rate. Once you pay that one off, move onto the next one. If your credit card balances exceed a few thousand each, consider applying for a consolidation loan through a company like Gulf Street Advisors. You’ll have only one payment each month to worry about, and might even get a lower payment and interest rate.
Improve Your Credit Score
When it’s just you, your credit score only affects you. However, once married, your credit score now also affects your spouse. It can prevent you from qualifying for a home or cause you extra money in required security deposits.
Before you tie the knot, get a free copy of your credit report and look first, for any discrepancies. If your score is fair or poor, start to work to improve it. Paying down credit cards to below 30% of the available credit and paying bills on time from now on, are positive steps to take. If you have excellent credit and your fiancé’s is poor, you can improve their score faster by adding them onto one of your credit cards as a user.
If one of you has problems managing money, it’s best to let the other one control the bills and make decisions regarding your finances. Not everyone is good with money. Use your strength to build wealth and financial stability. Show your partner how to make better decisions and work together to improve wasteful spending.
The Household Budget
Some people go through an entire lifetime without a budget. They simply wing it. When a bill comes in, they pay it. The problem occurs when you receive too many bills at once or a large bill annually like property and school taxes.
Without a budget in place, you don’t have money in the account to cover these necessary payments. You begin a downward spiral and find yourself caught in the paycheck to paycheck way of life. Ahead of the marriage, make a combined list of all your expenses. Then deduct the total from your combined net income. The money you have leftover you can divide into small amounts and allocate funds to a savings account for vacations, an emergency fund, and retirement.
Understanding Wants and Needs
Everyone has things they desire. Perhaps, you like to play video games online and want a new gaming system. Or, maybe your spouse loves their car and wants to add new wheels to enhance the look. These are things you would like to have.
The needs, however, are things such as a roof over your head, food and gas in the car. They are necessary. Learning the difference and the importance of covering the needs ahead of the wants will paint a bright financial future. For the wants, you can have them, but it will take time to gain them. There are two people now to consider. Start a savings account for the big-ticket items and take turns with the purchases.
A Life Together
Disclosing any financial shortfalls ahead of the big day is essential. You don’t want to start a life together with one hiding enormous amounts of debt. It’s only a matter of time before the truth surfaces. Instead, get everything out in the open now, while you have time to make improvements. Speak to a professional at a company like Gulf Street Advisors to set yourself and your significant other on the path to financial freedom and a happy marriage.
Marriage is a sacred union between two people. Start your life together open and honest regarding your finances. Most people encounter difficulties in their lives. If you address it now, you’ll improve your current state and start your married life happily. So if you have any debt you’d like to get rid of, reach out to Gulf Street Advisors today.