Married Life: 5 Things to Discuss after the Wedding

After the party is over and the thank you notes have been sent out, it is time to settle into your day-to-day life with your husband or wife. However, there are at least five important issues that you should discuss with each other in order to plan a better future.

  1. Discuss your goals. You may have done this prior to      your marriage; however, sit down with your spouse, share your plans for      the future, and don’t forget to write everything down. For example, do you      want children? Do you want to purchase a new home? Once you have      everything written down, you are ready for the next step.
  2. Plan how you are going to get      there. If you      know what you want, but don’t have a plan detailing how you are going to      get it, you have little more than a pipe dream. Make your goals specific,      and set a realistic timeline. For example, instead of saying that you want      to purchase a house someday, say that you want you buy a house three years      from now. While it may be difficult to plan for tomorrow in today’s money,      you should write down the percentage of your income that would be in your      comfort zone as far as a mortgage payment is concerned.
  3. Set up a will and power of      attorney.       You may be young and healthy now, but you never know what the future may      hold. No one likes to think about the prospect of illness or death;      unfortunately, either could happen when you least expect. Unless you would      rather have the state determine the manner in which your assets are      distributed, your best bet is to consult an attorney, who will be able to      best advise you.
  4. Discuss how you will handle your      money. Will you      combine funds, or will you keep separate accounts? Who will be responsible      for certain bills? What amount will come out of each paycheck in order to      cover monthly expenses? It is best to discuss these things early on in order to avoid any misunderstandings.
  5. Protect your income. This is last in the list, but it      is certainly not least. Life insurance is an integral part of any plan for      the future. If you should pass unexpectedly, you would want to know that      your husband or wife would be protected regarding expenses involved with      funeral and burial. Consult an insurance professional who will be able to      advise you as to what policy would suit you best and start comparing life insurance quotes to see which policy will best fit your budget.

Of course, your circumstances may differ; however, these five items are a good start for those newly married and beginning their lives together.

 

What do you have in common with a corporate banker?

Have you lost track of your finances?  Do you take out $300 on Monday and have no idea where it all went by Thursday?  Do you forget to make payments and then get charged with late fees?  Do you sometimes bounce your checks and get insufficient funds fees?  Hopefully not, but for many Americans, not tracking where money is spent, making late payments and bounce checks is a way of life.  However, it doesn’t have to be that way.

You may say, “I’m just bad with money,” but that doesn’t have to be the way it is.  In fact, you are your own corporate bank and should treat your finances as such.

Someone who specializes in corporate finance for large U.K. or U.S. institutions must make wise financial decisions for the institution.  A corporate banker analyzes the business’ cash management solutions (how much money is spent and how much money comes in during a particular period of time) and also plans for short-term and long-term investments.

Your job is to be your own corporate banker on a personal level.  You are in charge of your own finances.  How are you doing?  Would you be fired, or are you a skilled financial manager?

If your financial situation leaves much to be desired, don’t use the excuse, “I am just not good with money.”  Instead, empower yourself.  You are your own corporate banker.  How can you improve your finances?

Maybe you need to start by cutting your unnecessary expenses.  Then, perhaps you need to earn more income.  Maybe you can ask for a raise at work or work extra hours.  Maybe you need to get a side job or create a side gig doing something you enjoy.  Between cutting expenses and increasing your income, you should see your cash flow improve.

Next to tackle is debt.  If you have credit card debt, put as much money as you can on the debt.  You can save yourself hundreds of dollars a year in interest charges by paying off your debt.  In addition, each debt that you pay off increases your monthly cash flow.

After debt, you will want to set aside an emergency fund to protect you from unexpected expenses like job loss and home or auto repairs or sickness.

After all of the basics are in place, you should be able to begin to invest for your short-term and long-term goals.

Successful personal finance is not difficult.  However, what is difficult is changing your mindset.  If you can convince yourself that “I am not good with money” is a myth you are telling yourself daily and that instead you are a corporate banker in charge of your money and your life and your job is to make the best possible financial decisions for your financial situation, you will be able to begin to improve your situation.  Your attitude toward yourself and money is the most important part of personal finance.

Post by Melissa