Money Tips for Newlyweds: Building a Strong Financial Future Together
As you start this new chapter together, whether this is your first or second marriage, it’s essential to establish a strong financial foundation that can help you achieve your shared goals. Financial planning for newlyweds isn’t just about merging bank accounts or budgeting—it’s about creating a roadmap for your future together, one that reflects both your immediate needs and long-term aspirations. Let’s dive into essential steps to help you build a secure financial future together, empowering you to embrace every opportunity that comes your way.
1. Start with Open Financial Conversations
The first step in successful financial planning is open communication. Many couples have different backgrounds, habits, and beliefs about money, which can lead to misunderstandings if not addressed. By discussing finances openly, you’ll build trust and set the stage for a solid financial partnership. For my clients who are open to exploring financial mindset shifts, I strongly recommend reading The Psychology of Money by Morgan Housel—it's an eye-opener that can help couples understand how emotions and perspectives shape financial decisions.
Discuss Your Financial Goals: Begin by talking openly about both short- and long-term goals, such as buying a home, starting a family, or building a retirement fund. When you understand each other’s priorities, it’s easier to create a unified plan.
Review Your Current Finances: Take time to go over your income, expenses, debts, assets, and credit scores. This gives each of you a clear picture of where you stand financially and helps identify any immediate areas for improvement.
Establish a Safe Space for Financial Discussions: Set a regular time—perhaps once a month—to review finances together. During this time, aim to create an environment where both of you feel heard and valued, making financial discussions productive and stress-free.
2. Combine Your Financial Resources Strategically
Every couple is unique, and financial decisions should reflect that individuality. In my work with clients, I always stress that there’s no one-size-fits-all approach—what matters most is finding a system that supports your relationship and financial goals. I often encourage couples to combine their finances where possible, but we carefully assess and discuss each option to determine what truly works best for their specific needs.
Decide How You Want to Combine (or Keep Separate) Your Finances: There are multiple ways to handle finances as a couple, from fully joint accounts to entirely separate accounts, or a hybrid approach. We evaluate the pros and cons of each to ensure you both feel comfortable with the arrangement.
Joint Accounts for Shared Expenses: Many couples appreciate the simplicity of a joint account for shared expenses like rent, groceries, and utilities. This setup fosters transparency and makes managing household finances easier.
Separate Accounts for Individual Spending: Keeping individual accounts alongside a joint account can offer flexibility, allowing each person to maintain independence for personal purchases while still contributing to shared expenses.
Create a “Fun Fund” Together: I often suggest setting aside a small monthly “fun fund” for shared leisure activities, like date nights or weekend getaways. This simple practice helps couples enjoy life’s little moments without financial stress, fostering a positive connection to your financial journey together.
3. Establish a Budget and Financial Goals Together
Budgeting as a couple is essential for managing your day-to-day finances while keeping larger goals in mind. In my experience, there’s often one person who naturally takes the lead on budgeting—and that’s perfectly fine. However, it’s important to designate a regular time to review and adjust your budget together. This ensures that both partners stay engaged, with no one checking out or abandoning the financial plan. I find this is where the accountability provided by a financial planner can be incredibly valuable, helping couples stay on track and make adjustments as needed.
Track Expenses: Use budgeting tools or apps to keep tabs on your spending and hold each other accountable. I recommend apps like Mint or YNAB (You Need a Budget), which make it easy to monitor expenses and stay within your limits.
Set Shared Financial Goals: Establish both short-term goals (e.g., saving for a vacation) and long-term goals (e.g., buying a home or planning for retirement). Writing down these goals and revisiting them regularly can help keep both partners motivated and aligned.
Review and Adjust Regularly: Life changes, and so will your budget. Set a recurring schedule—perhaps monthly or quarterly—to sit down together and review your finances. Adjust as needed based on any new expenses, income changes, or shifting goals. This regular check-in strengthens financial teamwork and keeps your budget responsive to your evolving needs.
4. Prioritize Debt Repayment Together
Effective debt management is essential for long-term financial security, and it’s often a topic couples face early on in their journey together. Working together on a debt repayment strategy builds teamwork and strengthens your financial foundation. In my work with clients, I emphasize the importance of transparency and collaboration when tackling debt.
Consolidate and Prioritize Debts: Review your debts together to create a clear plan. Consider debt consolidation if it could lower your interest rates and simplify payments—just ensure you fully understand any associated fees or trade-offs. I often advise prioritizing high-interest debts first, as this can reduce overall interest costs, though some couples prefer tackling smaller balances first for a motivational boost. A financial planner can help you assess which strategy will work best for your specific situation.
Avoid New Debts Where Possible: While focusing on debt repayment, try to minimize new debts or large purchases. When clients feel tempted to take on new loans, I suggest they revisit their financial goals to weigh the immediate desire against the longer-term benefit of reducing debt.
Celebrate Milestones: Recognizing progress can be a powerful motivator. I encourage couples to celebrate key repayment milestones, such as paying off a credit card or hitting a significant debt reduction target. These small celebrations reinforce teamwork and make the journey to financial stability more rewarding.
5. Build an Emergency Fund Together
An emergency fund is a critical financial buffer that can protect you from unexpected expenses or income disruptions, like medical bills, car repairs, or job loss. I always stress to my clients that building this fund early on is one of the smartest steps toward financial security. Here are some tailored tips to help you get started and stay committed to growing your emergency fund:
Determine Your Target Amount: As a general guideline, aim for three to six months’ worth of essential living expenses. However, if you’re in a career with variable income or higher financial obligations, you might consider a larger buffer. A financial planner can help you assess your unique situation and set a target that aligns with your needs.
Set Up a Separate, High-Yield Savings Account: I advise clients to place their emergency fund in a high-yield savings account, which can offer a higher interest rate than a standard savings account. This keeps the money easily accessible if you need it but reduces the temptation to dip into it for non-emergencies. Some clients prefer online savings accounts that offer higher rates and are less tempting to withdraw from impulsively.
Automate Your Contributions: Setting up automatic transfers from your checking account to your emergency fund is one of the most effective ways to build it consistently. Even small, regular contributions add up over time. I often recommend starting with an amount that doesn’t feel overwhelming, such as $25 or $50 a week, and gradually increasing it as your budget allows.
Round Up Purchases to Boost Savings: If you’re comfortable with digital tools, consider using a “round-up” savings app that rounds up your purchases to the nearest dollar and deposits the extra amount into your emergency fund. This can be an effortless way to contribute extra money without adjusting your budget significantly.
Treat It Like a Monthly Bill: To prioritize your emergency fund, think of your monthly contributions as a fixed bill—just like your rent or utility payments. This mindset shift can help make saving feel like a non-negotiable part of your budget.
6. Create or Update Your Insurance Plans
One of the most important conversations I have with my clients involves reviewing and updating insurance plans. I know it’s not always the most exciting topic, but having the right coverage can make all the difference in protecting your family and future together. Let’s walk through a few key areas to consider:
Health Insurance: If you haven’t already, look at both of your health insurance options. Sometimes it’s more cost-effective to join one partner’s plan, but in other cases, keeping separate plans provides better coverage based on your unique health needs. We’ll weigh out the costs and benefits to find what makes the most sense for you both.
Life Insurance: If you rely on each other financially or are planning to start a family, I recommend discussing life insurance options. Life insurance provides a safety net for your partner and any future children, helping to cover expenses and maintain stability in case the unexpected happens. I find it helpful to consider policies that align with your long-term goals and any major plans on the horizon.
Disability Insurance: This is one type of insurance that often goes overlooked, but I can’t emphasize enough how valuable it can be. Disability insurance protects your income if you’re unable to work due to illness or injury. Many of my clients are surprised to learn that disabilities are more common than we think, and a policy like this can be a real lifesaver. We’ll discuss how much coverage you need to feel secure if life throws a curveball.
7. Define Your Investment Strategy as a Couple
When I work with couples on their financial planning, defining a shared investment strategy is one of the most rewarding steps. Investing together isn’t just about growing wealth; it’s about building a future that reflects both your dreams and values. Here’s how I approach this with my clients:
Set Mutual Investment Goals: I always encourage couples to sit down and talk about what they want their investments to achieve. For some, it’s building a comfortable retirement fund; for others, it’s saving for a dream home or future children’s education. Let’s discuss these goals openly so we can design a strategy that feels purposeful and exciting to both of you.
Understand Each Other’s Risk Tolerance: It’s normal for each partner to have a different comfort level with risk, so this is an important conversation. I help clients identify their individual and joint risk tolerance by looking at factors like age, financial obligations, and personal comfort. Finding common ground here allows you both to feel confident and secure with your investment approach.
Consider Working with a Financial Planner: If you’re just getting started or want a customized plan, that’s where I come in. I can help guide you through the options, answer your questions, and make adjustments as life changes. Having a structured investment plan can make a big difference in feeling secure and on track—and it’s so much easier when you have someone on your team to keep you accountable.
8. Plan for Major Life Milestones
Marriage is often just the beginning of other significant milestones, such as purchasing a home, having children, or even starting a business. Each of these events comes with unique financial implications.
Home buying: If purchasing a home is in your near future, start planning early by saving for a down payment and improving your credit scores.
Family planning: Discuss the costs of starting a family, including healthcare, education savings, and potential career adjustments.
Retirement planning: It’s never too early to start saving for retirement. Consider contributing to retirement accounts like a 401(k), IRA, or Roth IRA.
9. Consider Estate Planning
I often have clients who think estate planning is only for high-net-worth couples or those with complex family situations, but that’s simply not the case. Everyone, even young couples, can benefit from having a basic estate plan—it’s a vital step toward long-term financial security and peace of mind.
Create a Will: A will isn’t just for later in life. It ensures that your assets are distributed according to your wishes, which can provide comfort and clarity for both of you.
Establish Powers of Attorney: I recommend that couples consider appointing each other as healthcare and financial powers of attorney. This means that if anything unexpected happens, you’ll each be empowered to make important decisions on behalf of the other.
Review Beneficiaries: Take time to update beneficiary designations on accounts like insurance policies, retirement plans, and bank accounts. It’s a small but essential step to ensure your assets go to the right people if something were to happen.
10. Work with a Financial Planner for Long-Term Success
Navigating finances as a newlywed couple—whether it’s your first marriage or a second—can feel overwhelming. In my experience, seeking professional guidance can not only streamline the process but also provide a sense of relief, knowing you have someone dedicated to your success. I believe as a financial planner, my role is to empower couples with personalized strategies, clear insights, and steady support, so you can reach your goals with confidence and avoid costly missteps.
Gain Objective Advice: My goal is to provide unbiased guidance that respects both of your perspectives, helping you create a balanced financial plan that truly works for you as a couple.
Stay on Track: Regular check-ins are essential, and accountability with a financial planner is key as life changes. Together, we can adapt your plan as new milestones and challenges arise, so you always feel supported.
Navigate Complex Financial Decisions: Whether you’re making investment choices, setting up an estate plan, or dealing with tax strategies, I’ll be there to help you make informed decisions. Financial planning isn’t just about numbers; it’s about building a future that aligns with your values and dreams.
We understand the importance of creating a financial plan tailored to your unique needs as a couple.
Reach out today to start building a financial future that supports your dreams together!
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Julie Jenkins is an investment adviser representative of Redesign Wealth Planning. The firm is a registered investment adviser and only conducts business in jurisdictions where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.
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