financial focus
Submitted By Patrick Meskell

Discuss Finances Before Wedding – and After Honeymoon

It's June—a popular month for weddings. If you’re planning on getting married this month, you’ve got a lot of things to think about: guests, flowers, honeymoon, etc. However, there’s one factor you won’t want to overlook: how you will handle finances as a couple. It may not be as much fun to talk about as the food you will have at your reception, but as your marriage progresses, it will be far more important.

In fact, financial troubles are often cited as one of the leading causes of divorce. And, as you go through life, you’ll find that you can’t prevent every type of financial woe, such as a job loss, an unexpected medical bill, and so on. But there’s a lot you can control—if you work together.

Before the wedding: Open the books

Before you get married, you should already know your fiancée’s temperament, likes and dislikes and favorite activities. But do you know how much money he or she makes? How about debt? How large are his or her debt payments each month? What amount of savings will your future spouse bring into the marriage?

It may feel strange to talk about these issues before you “tie the knot.” But it will be a valuable conversation. Try to conduct it when you both have plenty of time, and aren’t stressed out over wedding plans or other issues. And don’t keep any secrets: Bring out all sources of income, all debts, all savings and investments — everything you both will bring into the marriage. Once you’re married, neither one of you should be surprised at what the other owns or owes.

After the wedding: Chart your course

Early in your marriage, you’ll want to make some long-lasting financial decisions. Here are two to consider:

• Joint or separate checking? Should you maintain a joint checking account, two separate accounts, or a joint account plus individual accounts? There's really no one right answer for everyone. You might want to use a joint checkbook to pay for the mortgage, utilities, car payment and other major expenses that you incur together, while keeping individual accounts to pay for personal expenses or purchases. However, if you do keep a joint account, you should both agree on what it’s to be used for, and how much you will each contribute to it.

• What are your investment goals? — Talk about those goals for which you’ll want to invest, such as a house or a specific retirement lifestyle. If you have children, you may to save for college. In any case, once you know what you’re saving for, you’ll be able to establish appropriate investment strategies, possibly with the help of a financial professional. Keep in mind that you and your spouse may have different tendencies — that is, you might favor aggressive investments, while your spouse may be more conservative. You’ll need to reach some common ground if you’re going to invest in a way that will satisfy both of you.

Communication is key

Ultimately, the biggest factor behind your financial success as a couple isn’t how much you make or how cleverly you manage your money —it’s how well you communicate. If you’re always on the same page, your story will likely have a happy ending.

Patrick Meskell is the Edward Jones Investment Representative for Ramona. He can be reached at 1425 Main Street, (760) 787-1113.