With the excitement of marriage and starting a new life, newlyweds normally don’t think about finances. However, this is usually one of the leading causes of divorces and should be a priority even before getting married. Adjusting from personal to family finances can be difficult regardless of your financial stability. Therefore, newlyweds need to come up with a suitable budget for their new life together. Here are some tips for budgeting as newlyweds.
Set up a retirement account immediately
It’s never too early to plan for your retirement. The earlier you start, the more you’ll retire with enough security. Additionally, when you do it with your spouse, you end up having a bigger retirement fund. A good goal to aim for is to set aside 10% to 15% of your income for retirement each month, starting in your 20s. Besides, people are retiring as early as their 40s. Therefore, the sooner you start, the earlier you can retire and enjoy your marriage. Five Ways To Save For Your Retirement Without Straining Your Pocket
Consolidate Your Sources Of Income
Most young people have multiple sources of income. When you get married, it’s important to find out every revenue stream so as to identify how much you earn as a couple every month. This helps you create a budget based on your income. Write it all down and consolidate them. In this case, there’s nothing too small as even the smallest revenue stream could go a long way.
Insurance could save you a lot of expenses that would have cost you a pretty penny such as medical costs and education. Additionally, you can get an affordable plan as a couple. This is something you should consider as newlyweds. You should also include things like life insurance contributions on your budget so as to secure the future of your kids in case anything happens to you.
Things change along the way and new responsibilities pop up. Therefore, you should revise your plans after a few months. Start by addressing the existing items and if you’re having problems with them, find solutions. For instance, if a joint account isn’t working, instead of closing it, each of you can maintain separate accounts but still keep the joint one.
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