Money Management Tips for Couples
Understand the financial commitments that come with a relationship
Across the country there are thousands of smitten couples saying "I do" to a lifetime of love and dedication. Are these brides and grooms aware that they could also be saying "I do" to hefty mortgage payments and debt problems?
Consider following these money management tips:
Talk about it.
Openly discussing your finances with your significant other is the best way to prevent future disagreements. Share articles like this one that discuss money management tips for couples. Talk about your spending habits, your savings and your financial goals so that you will both be on the same page. Develop a plan for managing your money after the wedding. Will you open joint accounts? How much do you want to save each month? Work together to create a money management strategy that fits your needs.
Planning the wedding of your dreams can sometimes lead to debt problems. Talk with your fiancé about how much you can afford to spend without breaking the bank. Be proactive about cutting back your budget: debt prevention now could mean fewer debt elimination worries later.
Understanding your sweetheart's credit history report could help you avoid unpleasant surprises. Your fiancé's credit score and credit reports could have a dramatic impact on your rates for co-signed loans and joint accounts in the future. If there are past credit problems, work together on debt elimination. Starting your new life together could be a lot smoother with good credit.
Don't worry, your credit reports won't automatically merge together when you get married. A record appears on both your credit reports if you open a joint account, become an authorized user or co-sign on a loan. Combining your finances this way can be a great way to get a lower interest rate on a major purchase. However, any negative reporting associated with the account could mean double damage.
If you are planning on buying a home together, give yourselves at least six months to save up a down payment and reduce your debt-to-income ratio. A few months of paying down debt could help you save thousands on your mortgage.
Talk honestly about your financial concerns and work together to get through the hard times. Your relationship is far more valuable than anything money can buy.
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