Financial Advice for Newlyweds

Just how important are money management and finances in marriage and family affairs? The American Bar Association has indicated that 89 percent of all divorces can be traced to quarrels and accusations over money. Some professional counselors indicate that four out of five families are strapped with serious money problems.

As a Financial Planner, I would suggest that most of the tragedies which befall us financially are not necessarily the result of lack of money, but instead of mismanagement of personal finances. Listed below are five tried and true principles that every newlywed couple should seriously consider in their quest to achieve lasting financial happiness:

  1. Learn to manage money before it manages you: A couple engaged would be wise to ask each other, “Can she manage money? Does he know how to live within his means?” These are more important questions than, “Can he earn a lot of money?” Financial peace of mind is not determined by how much we make, but is dependent upon how much we spend.
  2. Learn self-discipline and self-restraint: Learn to live within your means. Be careful of impulsive shopping. Thinking about and working together when making purchases can be more important than courses in accounting. In addition, young couples should recognize they cannot immediately maintain the same life-style as their parents who have been at it for many years.
  3. Make a budget: Every couple must have a predetermined understanding of how much money will be available each month and the amount to be spent in each category of the family budget. In addition, a budget helps you plan and evaluate your expenditures, especially when spending habits might be secretly out of control.
  4. Always save a minimum of 10% of any sized paycheck: A penny saved is a penny earned. Get into the habit of automatically saving 10% of your income. Most financial institutions can automate this program so you don’t have to remember.
  5. Involve yourself in an insurance program: It is very important for couples to have adequate medical, automobile, homeowners, and life insurance. In the event a couple is without one of these critical insurance plans and an accident takes place, the estimated costs could be insurmountable for many years to come. Get insured!

These principles are not meant to be all-inclusive but merely the beginning steps to finding financial peace of mind. For more information, sit down with a Financial Advisor to learn how you can begin your marriage on the right track to financial independence.

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