Thursday, May 3, 2007

When Two Become One: Organizing Finances Once You Get Married

They say communication is one of the most important things to have in a relationship. This is true, not only for things that concern your personal lives, but also for your financial lives as well.

To organize your finances into one, it is important to have open communication with your significant other and to figure out what your net worth truly is as a married couple. To do this, list your assets in one column, and your liabilities in another. Subtract your liabilities from your assets, and the final product is your total net worth. Your net worth can give you a good look at your overall financial picture, and if in the event your results are low, you and your significant other can then develop a financial plan.

It is also important to discuss your short-term and long-term financial goals. For example, a good thing to do would be to make a list of your short-term goals (like planning a family vacation) and your long-term financial goals (like saving for a new house or retirement). Then prioritize your goals by matter of importance, and then ask yourself these key questions:
  • What can I do to accomplish these goals?
  • How much will we need to save to accomplish these goals?
  • Is one investment better to use towards it, rather than another?
  • Will accomplishing one goal ultimately help us accomplish another?

Number crunching

Preparing a monthly financial budget is a good idea to keep track of how much money you spend, and to see where it's exactly going to. Be sure to include your monthly income and expenses so you can see if you're spending within your means-list your income (salary, wages, alimony, interest and child support) and your expenses (rent, mortgage payments, groceries, student loan payments etc.). Add your expenses and then your incomes and compare the totals. The result should be that you spend less than you make, but if that's not the case, review your expenses and see if you have anything you can cut out to make it so. Always monitor your budget and make periodic adjustments where you see fit.

Note: It may be a good idea to seek professional advice from a financial planner or research on the internet when it comes to developing financial plans and budgets. For long-term investment goals, it may make more sense to prepare an annual budget rather than a monthly one.

Merging bank accounts when you get married

There are pros/cons to keeping separate accounts and or combining your money into a joint account when you get married. Consolidating your funds into one account makes it easier to apply for a loan, manage funds, organize bookkeeping and reduce maintenance fees. A downside to consolidation is that it's more difficult to keep track of how much money is spent and available when there are two individuals writing checks. Also, in the event you and your significant other split, you both still have access to the funds, which technically means one person could take all the money and run.

Joint credit cards

There may come a time in your marriage where you want to apply for a joint credit card, but you should note that when you do this, you are both responsible for 100% of the debt you incur. Keep that in mind before you add your name to a spouse's credit card or before you decide to co-sign an account for your significant other.

It would make sense to assume that spouses wouldn't be held accountable for the other's credit card if they maintained separate cards, but in some states, this is not true. Both spouses may be held accountable for credit card debt incurred by one spouse if the debt is considered a family expense (like groceries or child care). In states considered community property states, spouses may be held accountable for the other's credit card debt if the property that underlies the debt is listed as being both of theirs.

On the road to retirement

Different retirement plans have different features and characteristics, so it is important to evaluate both plans if you each have one. You may find out that one is more beneficial than the other, offering loan provisions, investment options or matching contributions. If in the event a budget limits your ability to take advantage of two plans, review both options and determine which provides the best benefits and focus on an investment strategy towards that particular plan.

Insurances: Which one is better?

When you wed, many different options for insurance are opened up to you as a married couple, so it is important to pay attention to the different choices you may make, and see what is most beneficial to you and your spouse.

For example, your spouse's health plan may not be as good as your own, in that it offers higher premiums, deductibles or co-payments. If that's the case, you will need to determine if it is worth it to pick one health insurance plan over another plan, or if it is better to maintain separate health insurance coverage.

When it comes to car insurance, many companies offer discounts if more than one car is insured with them. Also, auto insurance companies may give a bigger discount for having coverage for your home or apartment, as well as car insurance, with them. Check with each of your insurance companies and see what kind of rates you can get for pooling together your policies.

If you have recently married and are interested in merging your car insurance together, log on to Here you will be able to evaluate multiple rates from best-in-class car insurance providers-helping you find the best car insurance coverage for you and your spouse.



Blogger ninest123 Ninest said...

ninest123 09.29
louis vuitton outlet, cheap jordans, tory burch outlet, chanel handbags, prada outlet, michael kors outlet, michael kors outlet online, cheap oakley sunglasses, tiffany jewelry, nike outlet, ralph lauren outlet, uggs on sale, nike air max, christian louboutin, louboutin uk, nike free, uggs outlet, kate spade, oakley sunglasses, ray ban sunglasses, ralph lauren polo, oakley sunglasses, michael kors, replica watches, longchamp outlet, gucci handbags, prada handbags, replica watches, burberry factory outlet, uggs on sale, longchamp bags, uggs on sale, christian louboutin, ray ban sunglasses, louis vuitton, oakley sunglasses, louboutin shoes, ray ban sunglasses, louis vuitton outlet online, michael kors outlet store, nike air max, uggs outlet, michael kors outlet online, louis vuitton outlet, longchamp outlet, tiffany jewelry, burberry outlet, oakley sunglasses

September 28, 2015 at 6:43:00 PM PDT  
Blogger ninest123 Ninest said...

sac guess pas cher, michael kors outlet online, coach purses, coach outlet, true religion outlet, north face pas cher, north face uk, hermes pas cher, michael kors, louboutin pas cher, jordan pas cher, nike free, vans pas cher, kate spade outlet, longchamp pas cher, nike air max uk, nike roshe uk, michael kors uk, nike air max, nike tn pas cher, nike roshe run pas cher, burberry pas cher, ralph lauren pas cher, true religion outlet, timberland pas cher, michael kors, lululemon outlet, new balance, coach outlet store online, longchamp soldes, nike free pas cher, vanessa bruno pas cher, nike air max uk, nike air force, hogan sito ufficiale, lunette oakley pas cher, polo ralph lauren uk, polo lacoste pas cher, true religion outlet, abercrombie and fitch, mulberry uk, nike blazer pas cher, abercrombie and fitch UK, nike air max pas cher, true religion jeans, hollister uk, converse, coach outlet, lunette ray ban pas cher

September 28, 2015 at 6:46:00 PM PDT  
Blogger ninest123 Ninest said...

new balance shoes, insanity workout, softball bats, north face outlet, vans scarpe, abercrombie, nike air huarache, valentino shoes, hermes handbags, beats by dre, iphone cases, mont blanc, p90x workout, north face outlet, nike air max, hollister, mcm handbags, converse shoes outlet, polo ralph lauren, celine handbags, nike trainers uk, ghd hair, reebok outlet, gucci, salvatore ferragamo, nike roshe run, nfl jerseys, babyliss pro, ray ban, soccer shoes, jimmy choo outlet, converse, instyler ionic styler, lululemon outlet, bottega veneta, wedding dresses, mac cosmetics, vans outlet, nike air max, timberland boots, oakley, chi flat iron, asics running shoes, soccer jerseys, hollister clothing, herve leger, giuseppe zanotti, longchamp uk, abercrombie and fitch, louboutin, michael kors handbags

September 28, 2015 at 6:53:00 PM PDT  
Blogger ninest123 Ninest said...

lancel, moncler outlet, louis vuitton, moncler, montre pas cher, moncler, louis vuitton, sac louis vuitton, toms shoes, moncler, canada goose jackets, thomas sabo uk, louis vuitton uk, michael kors handbags, ugg,ugg australia,ugg italia, bottes ugg pas cher, michael kors outlet, barbour, moncler, ugg uk, ugg pas cher, sac louis vuitton, marc jacobs, pandora jewelry, wedding dresses uk, supra shoes, canada goose uk, doke & gabbana, canada goose outlet, canada goose pas cher, swarovski uk, barbour jackets uk, swarovski jewelry, moncler pas cher, juicy couture outlet, coach outlet, moncler uk, replica watches, michael kors outlet online, ugg,uggs,uggs canada, pandora uk, links of london uk, moncler jackets, canada goose outlet, hollister, pandora charms, juicy couture outlet, canada goose, canada goose, pandora jewelry, canada goose jackets
ninest123 09.29

September 28, 2015 at 6:58:00 PM PDT  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home