Marriage paves the way for important milestones in our lives like buying a house, raising kids, traveling- the list goes on. However, these milestones are all tied to money which makes it all the more important to discuss the financial logistics. Tough as it is to talk about money, how you save and spend now could have a big impact on whether you both reach your financial goals later.
Here are 5 money talks you need to have with your partner before your wedding:
1. Your Spending Habits
Every person has different approaches to money and as a couple, you will have different spending habits. One of the first things to do as a couple is to come up with a personal spending plan that works for both of you. By choosing to spend your money consciously, you can start your marriage off on the right foot by strengthening both of your savings.
2. Annual Income
Ifthis subject was rationally avoided while dating, it is now essential to share what you make. Many couples don’t even know how much their significant other makes until after marriage. Your income will determine how much you can save, what luxuries you can afford and serves as the basis for your financial goals later.
Now that you have an idea of each other’s earnings, you can start discussing how much of a budget you can set for the wedding and whether you prefer to split the expenses or commit to merge and spend it from a single pot. Lay out your priorities and decide how much of your funds should go to each item.
4. Set Clear Financial Goals
Discuss with each other short-term as well as long-term financial goals that you wish to achieve and map out a plan that can help you reach your shared financial goals. By starting to plan early, you have plenty of time to get your finances in order and achieve your goals.
5. Discuss Ways You Can Save More
If your budget is falling short or you want to keep some extra cash for the wedding, discuss with your partner how you can try and save more. Whether it’s compromising on your wedding favors, opting for a reasonably priced wedding dress, or cutting on your insignificant splurges, just talking about it can help you learn how to start honestly communicating and compromising together.
Money is a touchy subject and we suggest tackling this talk little by little, day by day. Find a quiet, personal place to discuss in order to foster more openness and honesty. Start by acknowledging to your partner that it is a difficult topic to discuss but getting through this hard topic will build a stronger foundation for your relationship and your future.