Three Financial Goals to Accomplish Before Saying “I Do”
Whether you have found the perfect life mate or not, there are three financial goals that everyone should work on before they walk down the aisle. Marriage is truly a blessing, but finances are the number one item couples argue about. To keep your marriage sailing smoothly and to give yourself a good start financially, work toward these three goals before saying, “I Do”.
1. Get Out of Debt: It is no secret that millions of people are in debt. Whether it be credit card debt, student loan debt, or a car payment, figure out how much debt you have accumulated in your time of singleness. You may think you are doing okay by making on time payments for all of your debts, but every extra payment can be a potential strain on your finances when you are married.
While you are engaged, try working extra side jobs to pay off as much extra debt as possible. If you are single or dating, this is also a good idea to do. Love should not depend on someone’s financial situation, but it is important to know your future spouse’s debt before setting a wedding date. Your future spouse should be encouraged to pay off their extra debt too.
2. Start Your Retirement Fund: Even if you are still young and in love, there is not time like now to start a retirement fund. Even if you just place $1000 in a Roth IRA, you will be off to a great start. Even better, if you have a full time job, you should take advantage of having a small percentage of your paycheck put aside to a Roth IRA. If your company matches your contributions, you can count this as free money for the future.
While this step may seem like a one that you can dismiss until after the honeymoon is over, think again. In the first years of marriage, it seems like a new expense pops up every week. The extra expenses that seem tied to being a newly wed makes it tempting not to save for the future.
3. Have a Savings Account and Emergency Fund Started: Another wise goal to accomplish before you get married is to have a savings account and emergency fund started. These should not be the same account. What has worked for me and what I personally recommend is having an emergency fund started at another bank. My husband and I bank at Chase, but I started out emergency fund account at Wells Fargo. This account is only a savings account without a checking account or debit cards attached. If we want to take money out of the account, we actually have to walk into the bank and stand in line (which is more than a hassle than it seems). This keeps us from dipping into the account unless a true emergency were to occur. For a savings account, I recommend ING Direct.
Marriage is a fun and exciting time for anyone, but it also comes with a new world of finances. These three goals will put both you and your spouse on the right financial foot before you walk down the aisle.
What is the smartest financial move you made before you got married or what do you wish you would have done before saying, “I Do”?
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Great post and great timing. I recently got engaged and all three of those things were on my list of things to do before getting hitched :)
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