We all know that marital fights often revolve around money and kids, but I didn't realize how much of an issue this was until my friend, Jackie Weitzberg of Guide My Finances, quoted the stats.So I invited Jackie to guest blog on this topic. Below is her advice on waiting to wed, as it relates to financial planning. Learn more about her at http://www.guidemyfinances.com/.
"When the topic of marriage and finance comes up, we are often told that problems relating to finance are the leading cause of divorce. In a study conducted in 2003 by the US census bureau, 93% of recently divorced couples sited finances were the primary or secondary reason for conflict in their marriage. With the recent decline in the stock market, and financial troubles on the rise, this is becoming even more of an issue for couples of all ages.
Now aware of these statistics, what can we do to prevent ourselves from becoming one of these casualties? The answer: You have to build a strong financial foundation before jumping into marriage. One of the keys to success: Wait until your late 20s or early 30s to take the plunge!
In order to get your finances in order, I recommend following a few simple steps.
1.) Build Up An Emergency Savings Account – In past years, you may have heard that you should have about three to six months fixed expenses in your savings account. The need for this account has grown significantly over the last year. Moving forward, I recommend having six to nine months worth of fixed expenses in a money market, savings, or liquid account. A great place to set this account up is www.orangeaccount.com
2.) Get Rid of Your Credit Card Debt – When you get married, your spouse could be ultimately responsible for your credit card debt. This can put quite a bit of stress on your marriage. In order to avoid this, make a point to pay off your credit card debt prior to the big day. If you cannot afford to pay down your debt, you also cannot afford a wedding, mortgage or babies.
3.) Develop a list of Financial Goals- While most couples don’t think about it, it is very important to sit down with a significant other to determine what your joint as well as individual goals are. You may find that you have the same goals, or that you are heading in two completely different financial directions. Which ever category you fit into, understanding each other’s priorities prior to marriage will help you avoid later confrontation.
4.) Ask Questions – How much can your significant other contribute on a monthly basis to bills? Are you going to keep savings and investments separate, or merge them? How much debt/savings do they have? If this seems like an uncomfortable conversation, wait until you are comfortable talking about it before getting married. Without resolving simple questions like these, a far more uncomfortable conversation will likely arise in the future!
Discussing your finances with your partner is one of the single most important steps you should take before marriage. In addition, you should be aware that your finances can change in an instant, especially without proper planning. Simple steps like these can give you the assurance that you are not only emotionally ready for marriage, but you are financially ready too."
For more financial tips like these, visit www.guidemyfinances.com/blog.
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