While it's exciting and joyous to get married, there's a lot of adjustment for newlyweds to contend with. In addition to getting used to living with one another and combining your belongings, combining your finances can be a bit overwhelming. Fortunately, Lifetime Retirement Partners has some tips newlyweds should consider when thinking about planning for the present and into the future.
Creating a Budget
Money issues can be one of the sorest subjects for married couples. In an effort to avoid arguments and to start off on the right foot, Clever Girl Finance suggests sitting down together and planning a budget is an ideal first step. Determining net incomes, overall expenses and a plan for savings can give you a blueprint for your future together. And it can help lay the foundation for major investments like purchasing your first home.
Get a Handle on Your Debt
This can be a sensitive topic for some couples, but having a plan of action for any lingering debt is crucial. If one or both of you have student loans or credit card debt that needs to be paid off, this should be a primary goal when creating your budget. There are plenty of great methods for paying down debt, and the satisfaction of removing that burden can be an incredible relief.
Obtaining a Home Loan
Buying your first home together is a truly exciting milestone. And once you understand what you can easily afford together and what you can put toward a down payment, you can then start your search for a home loan. This can be a tricky proposition since there are so many mortgage types to choose from. For first-time homebuyers, an FHA loan can be an excellent choice. If you apply for FHA funding, you will have more flexible options for your down payment, credit scores, and interest rates, and an FHA loan can be the perfect first-time home loan. You’ll get bonus points as a buyer if you obtain pre-approval before you start down the house hunting path.
Invest in the Future
Some say that saving for retirement is the most important financial goal people can have. Once you’re retired, you’ll want to continue your standard of living for years to come, let alone go on those vacations and cruises you’ve put on your bucket list. Reach out to Lifetime Retirement Partners to see how you can shape your future today.
Going back to school to increase your earning power is another wise investment. If you’ve considered pursuing a degree in information technology, now’s the time to do so with an online degree in IT. According to the U.S. Department of Labor, the median annual wage for computer and information technology occupations was $91,250 in May 2020, which was higher than the median annual wage for all occupations of $41,950.
Combined auto insurance and health insurance can be a great way to save money if it works for your situation. For example, a new auto policy can actually yield a lower premium overall if you can get a multi-car discount. And when it comes to health insurance, because marriage is a life-changing event, you could be eligible to join the other's health insurance. If neither of you have a policy through your employer, consider purchasing a combined policy through Total Benefit Solutions to save money and to ensure you both have enough coverage.
Buying Life Insurance
While life insurance isn't the most uplifting topic, it's a serious one that deserves attention. Especially if you plan to have children. Life insurance provides a safety net for the surviving spouse, and it can assist with funeral expenses, debt and lost income. The general rule of thumb is to purchase a policy that is 10 times your annual salary, and this should be adjusted as your income level increases. Also, by obtaining life insurance policies when you're younger and healthier, you can expect lower premiums.
After the honeymoon is over and you’ve written all your thank you notes, it’s time to focus on laying the foundation for your financial future. By directly assessing your finances head-on, you can be a stronger couple and you can map out a plan for the years to come.
Retirement Planning is a critical component of a strong financial foundation. To get the best plan for your lifestyle needs, turn to Lifetime Retirement Partners. Connect with us at 800-971-2989.
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