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Financial Planning

Part of the magic of newly married life is the period of discovery, when each couple finds out more about each other. But it is also a time when a couple has to make decisions about their financial future together.

Sharing Your Finances

Married life is not simply about living under the same roof and having children, it is also about sharing finances. We spend most of our lives earning money, spending it, calculating and thinking about it, which is why finances are a very important aspect of marriage. The happiest couples are the ones that learn how to save and economise with money and income, but also those who trust each other. It is therefore crucial that the newlyweds start planning their financial future as soon as possible.

Organising Your Wedding

The first big financial test for young couples can be organising their wedding. While some of them may be lucky enough to have all the expenses covered by their parents, couples who decide to contribute will get to practice sharing and organising their finances which can be very helpful for their future life together.

The first task is to set the budget. The amount of money you will allocate for your wedding will depend on your savings, staying within those limits and avoid overspending (this might be a challenge for some). You should be realistic and practical about your budget. You can have an amazing wedding with virtually any budget if you make a good plan and save strategically on things that aren't necessary. However, if you want to have a glamorous wedding and you can’t cover all the expenses, borrowing money could be an option for you. Should you decide to take credit from the bank, make sure that you carefully analyse the conditions of paying the money back and decide whether they are acceptable for you.

Don’t Forget the Insurance!

One of the best things about weddings is a fabulous range of gifts for the newlyweds! Most of your friends and family will try to pick something practical which will help you to start your your new life together as husband and wife. Some of them may even give you very valuable presents, so it is a good idea to insure them, together with your engagement and wedding rings.

Buying a Home and Living Together

Once you get back from your romantic honeymoon, you should start building foundations of your married life and buying a home together is usually the first step. It is a huge milestone in your life so you should make mature decisions. Again, you should be very realistic when it comes to such an important choice like deciding what kind of property to purchase. Make sure that you are able to afford to pay your mortgage and don’t forget that you must insure the building, as well as all your belongings in it. If both partners have incomes and are sharing the costs, it is a good idea to split the costs of insurance too.

Your incomes should be insured as well, but before you decide to purchase a new insurance, check whether this is already covered for you first. Many people already have income insurance provided through their superannuation at work.

Finally, with the act of marriage you have committed yourself to your partner for life, so making a will by which you will transfer your belongings after your death is a very mature and practical thing to do.

Managing finances on a daily basis might turn out to be a daunting task for many at the very beginning of their married life, but once you establish some kind of a routine and get used to living with each other, it will become much easier. Your marriage will be happier if it is based on sharing and trust, but a good relationship also depends on your abilities to plan and organise.