Personal Financial Tips for Newly Weds

One of the most common problems that couples face has something to do with finances. Couples normally struggle to make ends meet and to cover the seemingly endless everyday expenses. Though many couples recognize the financial strains they are facing, only a very few make it out and achieves financial security and independence later on in life.

For newlywed couples, finances could either make or break you. Almost all newlyweds enter the married life happy but only a very few find lasting happiness in their union. Though many are saying that money is not enough to buy happiness, well at least it is also significant enough to make life a lot more worth living. If you don’t believe it, try living in poverty.

So what do the financially successful couples have that the others don’t? More often than not, dealing with finances successfully starts with a very well tailored and executed financial plan. Despite the looming financial setbacks that a lot of couples are facing, it’s so ironic that only a very few are planning their finances. So if you’re starting out in a new chapter of your lives, you might find these tips useful to build a solid financial foundation to achieve financial security.

1.) Know your financial status now. How much are you earning in a month as a couple? How many sources of income do you have? What are the bills that both of you are currently paying and would be paying in the next months? These are just some of the things that you and your spouse should talk about. Knowing your financial status right now is the key in determining what step to take next.

2.) Make short term and long term goals. Goals are essential in financial planning because it will give more meaning to your income and savings. Do you want to save for your childrens’ educational plan as early as now? For your retirement plan? Do you want to save a good sum for a business or investment opportunity later on? After knowing where you stand financially, knowing where to go is the next big step. Your financial journey won’t mean anything if you don’t know where you’re going in the first place.

3.) Commit to live a frugal lifestyle. Marriage is a one way street and if you break it, there is no turning back. As early as you are in your married life, make things straight by living only with the essentials. Cut off unnecessary spending that you have while you’re still single. Cut parties and nightlife out. Set your priorities straight like giving your spouse and future family a very good life, a financially secure and worry free life.

4.) Invest in knowledge. Apparently, many couples try to make a financial plan but fail to incorporate the essential ingredients of a good and efficient financial plan. An efficient financial plan is a step by step process in building up your financial foundation and it doesn’t happen by luck. Exert some effort and maybe invest some money in knowledge. Drawing out a financial plan is not enough because a wrong financial plan will always yield wrong results. Read books, attend seminars, etc. These activities will enrich your knowledge.

5.) Build the right financial foundation. Financial foundation could be likened to a house. A house needs the right architecture and engineering for it to work, financial foundation works the same way. Building the right financial foundation a step by step process that starts by covering your income generating capacity. Health care and insurance plans addresses such need. Increasing cash flow and eliminating debt comes in next. You can never move forward financially if you still have debt. And lastly, investments and protection for your investments. Investments are intended for long term and could be left to your heirs.

Building the right financial foundation starts with planning. If done right, it will pay great rewards but if it won’t work, find something that will. Nothing could reward you better financially than a good financial plan. Forget luck and fate, they will never work.