There’s a lot to talk about when you plan to get married. From where you will live to how to raise your children, it helps to be compatible in a number of areas. One of the most important subjects to talk about is money, though. Understanding how your potential partner feels about money, as well as creating a plan for spending, is very important.
Money is an essential part of life, and it’s one of the most important things that we all deal with every day. Your money situation can have a big impact on everything from your mood to your health, and a difficult situation can strain your marriage. Before you get married, it’s a good idea to make sure that you are on the same page financially. According to COUNTRY Financial, there are five main things to talk about before you tie the knot:
1. Spending
One of the biggest things to consider is your spending plan. Determine how much money you will make combined, and get an idea of what your joint expenses will be. Will you be able to meet your needs for housing, food, and other items? You should also talk about your spending priorities and figure out whether or not you are compatible. Do you prefer to spend on experiences or things? How will you handle large purchases? Will you divide up discretionary spending in a way that allows each of you to spend on what you want?
2. Insurance
If you plan to start a family, it makes sense to talk about insurance. You want to make sure that either of you can provide for your family in the event of a death. Figure out how much coverage you will need, what kind of policy makes sense, and what you hope to accomplish with the coverage. Perform an analysis of how much insurance your family will need, and get as much coverage as you can afford.
3. Debt
Have a frank conversation about debt. It can be embarrassing to talk about debt, and reveal what you owe, but it’s important. You need a joint plan for tackling any debt that you both have. You should also talk about credit score and understand where each of you stands in terms of credit and debt situation. Make it a point to address these issues early on — and decide how much you can handle. In some cases, it makes sense to put off a wedding until you are both on the same page.
4. Saving
Talk about what you will put aside each month. What are your short-term and long-term goals? Are the compatible? Make sure that you understand how your potential partner thinks, and be sure to put together a plan that works for both of you.
5. Retirement
Not only do you need to figure out how you will save for retirement, but you also need to talk about what retirement will look like for you. You might not be compatible if one of you wants to stay at home and maybe hit the golf course on occasion, while the other wants to travel the world.
Getting these realities out in the open early on can help you decide if you really are ready to get married, and help you create a plan that you can work on together.
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