First, work together on a common goal. Make sure that you are on the same page. It is surprising that most divorces were not caused by misunderstanding about sex, household chores or relatives but arguments about money. So it is important that you should talk about your dreams – kids and family, trips, and house. Work on building each other’s trust.
Second, agree on a spending budget. Be sure that it is realistic. Do everything you can to stick to that budget. Maybe you would need a separate account for your savings. The old adage “Out of sight, out of mind” would help you keep your savings intact. If you need help, you can consult a financial planner. He will help you determine the amount of money you should save each month to meet your goals.
Third, invest your money. If you do not have prior experience with investing, you can seek the help of a financial advisor. He has the training and skill to help you determine the right investment for you based on your risk tolerance.
Fourth, avoid getting into debt. The debt trap can cause marital stress. If you have been trapped long before you can take off, start paying off those debts beginning with the ones with higher interest rates.
Fifth, consider insurance this early. Whether life, disability or medical insurance, they are more affordable for the younger ones. If you hire a financial planner or advisor for budgeting and investing, you might as well ask for his assistance in the best insurance coverage for you.
Lastly, plan your estate. It may look too early to talk about death, but this is very important especially if either partner own personal assets separately or has children by a former partner. You can settle potential future disputes now with a planned estate.
Financial planning for newlyweds is not only about the pre-nuptial agreement that settles “who gets what” if the marriage doesn’t work. Financial planning is all about making the marriage strong with cooperation, trust and realistic financial goals.