5 Financial Considerations for Newlyweds

1. From the start, save 15-20 percent of your income. Because you are combining households, you should cut your expenses a lot, which should allow you to save. You should save so you can build your cash reserves in your 401k plans and in a mutual fund.
2. Change all beneficiaries on life insurance plans, retirement, other plans at work and IRAs to your new spouse.
3. Figure out how debts accrued by each individual before the marriage (i.e. student loans) will be handled.
4. Talk about your approaches to handling money: Is one of you a spender and the other a saver? Create a few ground rules on dealing with any differences.
5. Create a list of future purchases and prioritize them. You should decide -- together-- how to spend your money. 

For five more tips, check out Top 10 Financial Considerations for Newlyweds.

How to talk about finances with your spouse

It can be really hard for couples to speak honestly about finances because many of them have big differences when it comes to money. Everybody has his/her own view, and everybody thinks the way they manage money is the correct way. Here's how to get on the same financial page as your spouse:

• Plan to talk about it. This is one part of your lives that you and your spouse have to agree on. If not, there could be a financial disaster in your future.
• Create a list of your individual financial priorities and compare them. For instance, you may feel that purchasing a great pair of shoes every season is important, but is it more important than saving money for a house? Talk about things like this with your spouse. Don't hold back, and don't keep secrets. If you have to have some gray area, settle on a number; for instance, "I get $150 a month to use however I want."
• Concentrate on the similarities between both of your financial goals and outline how you can accomplish those things.
• Use a financial planner. Utilizing a neutral third party can really even out the process. And you don't have to schedule appointments regularly; just spot check every once in a while, especially as your goals change.
• Keep in mind that it's very common in marriage for one individual to manage all the money and the other to play a more passive role. As long as you both are comfortable with this, there's nothing wrong with it. However, you don't want one person taking control of everything while the other endures it in silence.
  

By keeping these tips in mind, you're sure to have a bright financial future!

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