Congratulations, you’re getting married. And one of the last things people think about once they tie the knot is how to spend and save money as a couple, especially once you’ve merged your funds. That’s why we’ve created a step by step guide of what to do when it comes to merging your financials.
Choose the Right Bank
As of right now, you and your spouse may bank with different financial institutions and sometimes people can bank with more than one. But finding the right bank that fits both your needs is key when it comes to saving and merging your financials. Talk about what you’re both looking for out of a joint account and the pros and cons of who you bank with at the moment. Establish what the joint account will be used for and where the funds are coming from. Merging your money forces you to be more considerate of the funds that are constantly going in and out as it is not just your money contributing anymore. Merging financials can make things a lot simpler when you have the right bank working with you and your financial needs.
Photograph via Flickr
Communication
We’ve already touched on it and when it comes to merging your money, communication is a huge factor. Knowing about your spouse’s financial history, credit scores, any outstanding debts and credit cards, there is nothing to hide when it comes to joining funds. Not to mention with both partners having access to the account there is no room for error as everyone can see the transactions being made. Discussing savings goals and investments is another conversation that needs to be had and worked on together as one person cannot be doing all the saving and one doing all the spending. When it comes to merging your financials there are many factors included which requires the expertise of a financial advisor and knowing what your financial goals are.
Photograph via Pixabay
Lifestyle Expenses
When you get married your lifestyle habits come with it! Is your next step to buy a house? What about vacations, expensive dinners, events and the ways we like to treat ourselves such as getting our nails done or going out for a drink are only a few of the fun things that are now a part of having the conversation of setting your financial limits and goals. And your lifestyle habits include more than just money, but it’s what’s paying for those habits that you now need to share with a merged bank account. What about the serious conversations such as starting a mutual emergency fund or preparing for child education funds? There may have to be adjustments made here and there, but once you are in routine with your budget you will start to work as a couple with your money. It’s many of these financial decisions that will affect your lifestyle and any changes that need to be made.
Photograph via Pixabay
What is your advice when it comes to merging financials? We want to hear your tips in the comment section below.
