Financial planning is not just recommended until your big day, but you will also have to ensure it does not get in the way of your marriage later on. Marriage and money do not seem to go well together, and hence most marriages fail. What is mine and what is yours, and how debt obligations are to be discharged, are important factors that you need to decide, so money does not become the ground for the breakup of your marriage.
You might be excited about your marriage, but there are certain things you have to do before tying the knot. Most of the time, couples detest bringing up the subject of money, and after some time, when they suffer consequences of each other’s financial actions, they start arguing, and a heated argument often turns into an acrimonious fight, and eventually, the couple parts ways.
Ways to plan finances for your marriage
Here are the ways to plan finances for your marriage:
1. Plan a budget for your wedding
First off, you need to plan a budget for your wedding. You will have to determine how much money you are about to spend on your wedding. This depends on how grand you want to be. For instance, if you call only witnesses and your family members but no guests, your wedding budget will be exiguous.
However, on the other hand, if you try to celebrate a grand wedding, you will certainly have to be prepared to spend a lot of money. Catering and decoration will cost you an arm and a leg.
You and your fiancé will have to sit together and discuss how much money you both want to spend. First off, you should have clarity about how much money you are disposed to spend on your wedding. The next step is to determine the cost of the wedding. It includes:
- Catering
- Wedding destination
- Decoration
You cannot accept the first quote. You will have to research and compare prices between wedding destinations and catering. It is crucial that you know how many guests you are inviting and accordingly book the venue. The more the number of people, the more your wedding will cost you. The decoration and catering expenditure will automatically rise.
Make sure that you are able to meet all your expenses from the budget size you have. If not, you will have to be ruthless to cut back on invitations. You cannot ruin your budget in order to impress people.
2. Seek financial help
Of course, you will have to fine-tune your budget for the wedding, but what if you still do not have enough money to cover the cost of the wedding? Of course, you will have to seek financial support. The best way to seek financial help is from your parents. They would certainly be willing to contribute to your marriage. Their help will be regarded as a blessing. Given that they are not so financially strong, you will have to rely on loans for bad credit with instant approval in Ireland.
These small loans will help you bridge the gap. Borrowing is not a bad idea as long as you can repay the debt. Before you make your decision, make sure you both have agreed upon the terms and conditions. You both should not be suffering from repaying the debt.
3. Be open about your finances
All excitement of being married disappears into thin air as soon as money starts getting in the way of happiness. Just because you have married now, it does not mean that you do not need to discuss money. Experts recommend that money talk be necessary right from the first day of marriage.
You both should have an open conversation about money. How much debt do you have, and how are you going to settle it? Bear in mind that at some point in time, you will take out a mortgage, and your spouse might be a co-applicant. If one of you has a poor credit rating, you will certainly face difficulty getting a mortgage at a lower interest rate.
If you do not want to quarrel about finances, you should follow the following tips:
- Before marriage, you should honestly discuss your debt obligations. Make sure that you both have a reliable strategy to discharge your debts.
- After marriage, you should open a joint account to which you should contribute a fixed sum of money every month. This joint account should be used to pay shared expenses such as energy bills, groceries, and so forth.
- The contribution you make to your savings account should be based on your income. 1:1 contribution is not feasible when there is huge gap in income.
You should always try to be honest and smart with spending money. Couples do not tell the truth about their spending, and therefore, the rift creates between them, which is the most common reason for the breakdown of marriages.
4. Set expectations together
When it comes to money and relationships, you both should decide that you are on the same page. It means both of you should be working towards the same expectations. Make sure that your efforts are in the direction of set objectives. There will be chances of conflicts if you find reality different.
As a couple, you both need to set clear expectations and work in order to achieve those goals. For instance, if you have decided to save money for the down payment of your house, make sure that you both are stashing away money as agreed every month. There should be transparency and honesty.
If you somehow fail to contribute your share, you should tell your spouse a genuine reason for that. For instance, if you have lost your job, you might find it hard to contribute to your savings, but do not forget to make it up to it as soon as you find a new job.
5. Consult a financial planner
It is not easy to have full control over your money after marriage. You both have different lifestyles, so it can be challenging to set common goals and achieve them. Here comes the role of a financial planner.
They would be able to develop a personalised plan that suits both of you. Neither you nor your spouse will have any complications in meeting set goals, even if you both have different lifestyles.
The bottom line
Planning finances for your marriage does not have to be complicated. You should carefully discuss money before marriage with your fiancé. It is vital that you both understand each other’s financial condition. Knowing it before will help you decide how to tackle your finances with your spouse. This will reduce the chances of conflicts.
