5 Financial Mistakes Commonly Made by Newlyweds
For some couples, many don’t want to address the “elephant in the room”. You guessed it, money. Talking about your finances can be uncomfortable for some individuals, not to mention couples. However, it becomes a mandatory conversation when you decide to join as one. We want to share with you our 5 Financial Mistakes Commonly Made by Newlyweds so that you can, at least, begin to have a conversation about money with your new spouse.
5 Financial Mistakes Commonly Made by Newlyweds - Photographer: Jolie Images
1. Going into Debt for Your Wedding
First on our list of 5 Financial Mistakes Commonly Made by Newlyweds is going into debt for your wedding. Of course, you’ve always dreamed of this big fabulous wedding. However, many young couples have existing educational and personal debts. So, adding more debt to pay for your wedding can be stressful. We recommend creating a budget for your wedding and sticking to it. Decide together on your must-haves for your wedding and prioritize everything else. Understanding what you want and what you can afford is the key factor when it comes to making the decisions for your wedding. If it’s in your budget, hire a wedding planner. They are experienced in helping you stay within your budget.
2. Not Getting Joint Bank Accounts
We know that every couple is different and what works for some may not work for others. However, one of the 5 Financial Mistakes Commonly Made by Newlyweds is not getting a joint bank account. Creating a joint account where both of you contribute is necessary for bills and other household expenses. Besides, you will be entering into a partnership so having a joint account allows you and your partner to be on the same page.
3. Not Being Honest About Your Finances
Studies have shown that the number one reason for divorce revolves around finances. That’s right. Finances come before infidelity! It’s not fair to your partner when you are not open and honest about your finances. Whether you’re a saver or spender, in debt or sitting on a fortune, disclosing your finances to your spouse is highly recommended and is one the 5 Financial Mistakes Commonly Made by Newlyweds.
4. Not Saving for Retirement
Retirement is probably the furthest thing from your mind as a newly married couple. More than likely your mind is on vacations, buying a home, and having children. Retirement planning is comprehensive and thinking of ways to save for your retirement should begin sooner rather than later.
5. Avoiding Paying Off Pre-Existing Debt
Although some may argue, when you enter into a marriage, you may have to help your partner pay off their pre-existing debts. This may include anything from student loans to credit cards. Promising to take care of each other includes the finances. Being debt free is very important in a marriage and is beneficial to you both.
If you want to learn more about our 5 Financial Mistakes Commonly Made by Newlyweds, please contact us to speak to one of our wedding planners.