The Metro Luxe Events Candice Vallone, Financial Tips To Newlyweds Column will be a post I share from time to time.
First and foremost, pick a time to sit down together to discuss the following financial matters:
- Make a list of each spouse’s financial resources; investment portfolios, including any IRA’s and 401k accounts, checking and savings accounts, assets and all property owned.
- Next, make a list of each spouse’s Debt: Credit cards, Auto payments, personal expenses etc…
- Obtain a copy of each of your credit reports and review your credit history. Thanks to a 2004 federal law, everyone is entitled to one free credit report from each of the main credit reporting agencies: Equifax, Experian and TransUnion. You can obtain all 3 reports through a centralized source such as annualcreditreport.com.
If you haven’t already purchased a home together, before searching the real estate market you will need to clear up any discrepancies on your respective credit reports. You will also need all cleared before meeting with your lender to seek credit approval.
Now that you’ve obtained your credit reports and have listed all of your Income and Expenses as well as Assets and Liabilities, you can now begin to develop a plan that you both can manage and accommodate.
Set up a Budget or Spending Plan:
In most marriages there is always a ‘spender’ and a ‘saver’. For a stress free marriage, you will need to devise a budget or spending plan that both partners find acceptable and that they can maintain. At this point, you can also decide who will be handling and maintaining the finances or if the responsibilities will be shared equally.
- Draw up a plan that accounts for all of your monthly earnings and expenses and then discuss your short term and long term goals. If one of those goals is to purchase a home, you will need an honest and fair assumption of what you can and cannot afford. If another is to pay down debt, you will need to discuss and compromise on what areas you need to cut back on to accomplish this goal.
Financial discussions are not easy and are often touchy subject matters; however, if you come together with all the facts and have a plan and an open mind, things can go smoothly.
Look for more Metro Luxe Events Candice Vallone's Financial Tips in our upcoming posts!
**Image taken from collegescholarships.org