When you get married, you don’t only marry that person but also assume and carry at least half of your partner’s debts and obligations. The truth is that financial compatibility can make or break relationships.
As newlyweds, it’s wise to get started on laying down your finances and investment goals with your partner. Remember that as a married couple, you are both in it together, so be honest to avoid conflict. Here are some investment tips and money advice you can consider as you begin your married life.
1. Discuss financial goals
Sit down and talk about how you envision your family life to be. Talk about what you want to achieve financially and the timelines you set for yourself. It’s expected that there will be a difference between your and your partner’s goals. So, discuss which goals matter the most and which can be compromised. Meet halfway and understand each other’s motivations.
2. Lay down your assets & liabilities
This part requires you to be completely honest, especially with your debts and obligations. If you’re a breadwinner, be honest about how much you give and how much you can set aside for your own family. Debts are one of the biggest financial liabilities that could be a big burden to your financial freedom. Unless those debts are used to generate income or loans as money sources for business, try to create a plan to get rid of them right away.
3. Invest your money gifts
Money gifts are truly a blessing for newlyweds, so use them wisely. You can use them to pay off debts, so you can start debt-free in your marriage. There are so many investment options you can consider, depending on how much money gifts you got. You can diversify your investment depending on your short-term goals, long-term financial goals like a house, or even start a food business idea if you are interested. You can also invest in passive income sources or mutual funds like Pag-ibig MP2 and more.
4. Create an estate plan
Real estate is one important asset for a married couple. It’s a great investment that has low risk but high returns. However, if you don’t have continuous cash or an estate plan, paying a mortgage can be a big liability. So, be wise in investing and create a plan on where you can get the money and the timeline. Research also when is the right time to buy a property. You can also look into foreclosed properties for your family home or for an investment.
5. Make a realistic budget plan
Making a budget plan creates stability and prevents unnecessary expenses. Track down your expenses, make a budget, pay bills on time, set aside enough for investments, and create an emergency fund.
The truth is that many marital conflicts stem from money. As you begin your married life, start right by laying down the cards by discussing your investment plans and money goals. Good luck!