Must Have Finances for Newlyweds
Your new married life doesn’t just mean the merging of two households, but also the merging of two financial backgrounds. Although you may have already been living with your spouse and sharing finances, now that you are married there are a few finances that are very important to have as a married couple. Getting your finances on track at an early stage of your marriage will not only prevent disagreements down the road but will also prevent financial trouble that can tear apart the best of marriages. Here are five must have finances to ensure the well-being of the money component of your household.
Savings Account For Paying Bills
As a newlywed couple you now have shared bills that need to be taken care of. That is why opening a savings account specifically for paying those bills is a crucial step in getting your finances in order. Both you and your spouse’s paychecks should be deposited into this savings account, along with any other means of income. This account should be used to pay your utility, car, housing, school tuition, insurance, as well as any other bills that you and your spouse have every month.
Savings Account For Daily Spending
The money left over in your savings account used to pay the bills should supply this account. It is up to your discretion whether you want to use the same bank as your other savings account or not. This account should be used for daily necessities and wants such as entertainment, groceries, household items, dining out, etc. Having two separate accounts will have a very positive benefit on your new family’s finances, as it will allow you to know exactly how much money you can safely spend.
Now that you are married, there is no room for taking risks. That is why it is crucial for you and your spouse to have an emergency fund. Try to find an account that will pay a little interest and is not extremely easy to access. This fund should be used to cover your unexpected medical bills, sudden car emergencies that require repair, and in the case that you or your spouse becomes unemployed.
Now that you are married it’s time to think about both you and your spouse’s retirement plans. The government supports superannuation arrangements, and if you and/or your spouse are employed, then there is a minimum amount that is required anyway. The amount of your income that is required to be put aside for retirement (9% in Australia) is usually not enough, and so it is recommended that you put aside any additional funds that you can into your superannuation.
Even as a young married couple it is important to provide security for your family, which is why it is crucial to have some sort of life insurance policy. As newlyweds if you don’t have children yet a cheaper term life insurance policy will work well. A term policy will provide you benefits for a certain period of time, and as your marriage progresses you may decide to get a more extensive policy.
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