Abney Associates Ameriprise Financial Advisor: Merging your money when you marry

Good Essays
Getting married is exciting, but it brings many challenges. One such challenge that you and your spouse will have to face is how to merge your finances. Planning carefully and communicating clearly are important, because the financial decisions that you make now can have a lasting impact on your future.

DISCUSS YOUR FINANCIAL GOALS
The first step in mapping out your financial future together is to discuss your financial goals. Start by making a list of your short-term goals (e.g., paying off wedding debt, new car, vacation) and long-term goals (e.g., having children, your children's college education, retirement). Then, determine which goals are most important to you. Once you've identified the goals that are a priority, you can focus your energy on achieving them.

PREPARE A BUDGET
Next, you should prepare a budget that lists all of your income and expenses over a certain time period (e.g., monthly, annually). You can designate one spouse to be in charge of managing the budget, or you can take turns keeping records and paying the bills. If both you and your spouse are going to be involved, make sure that you develop a record-keeping system that both of you understand. And remember to keep your records in a joint filing system so that both of you can easily locate important documents.

Begin by listing your sources of income (e.g., salaries and wages, interest, dividends). Then, list your expenses (it may be helpful to review several months of entries in your checkbook and credit card bills). Add them up and compare the two totals. Hopefully, you get a positive number, meaning that you spend less than you earn. If not, review your expenses and see where you can cut down on your spending.

BANK ACCOUNTS--SEPARATE OR JOINT?
At some point, you and your spouse will have to decide whether to combine your bank accounts or keep them separate. Maintaining a joint account does have advantages, such as easier record keeping and lower maintenance fees. However,

You May Also Find These Documents Helpful

  • Better Essays

    The task of managing your budget according to your earnings is a decision and responsibility that is ultimately yours. The first step to take when budgeting is to acknowledge your debt problem and stop finding justifications for it. The problem can be excessively stressful and it is recommended to seek assistance through friends, family, or even better from an organization that guides people through debt reduction. A non-profit organization, such as the National Foundation for Credit Counseling, will probably be the best option. To start getting a handle of the problem, one must establish a number of how much is owed (msn, 2009).…

    • 890 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The first step in creating your own personal financial plan is to evaluate your current financial situation. How much is your income? What are your sources of income? How much are you spending and what are you spending it on? To be able to create a successful financial plan, you must first look at your financial situation as a whole. Remember to be truthful to yourself in evaluating your financial situation as you are doing this for your own benefit, there’s no use in hiding or sugarcoating your expenses.…

    • 2114 Words
    • 9 Pages
    Better Essays
  • Good Essays

    The first step to developing a budget is to track expenses for at least a month using a checkbook ledger or even a sticky note. Be sure to record every purchase no matter how small, including ATM fees. The number one rule of setting a budget is to not cut all the fun out of your life. Inevitably, budgets that have no room for entertainment are doomed to fail. Instead, learn to moderate. It's not about cutting out everything that is enjoyable in life though.…

    • 534 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    2 important things financial planning skills can help you do is one, it can help you create budgets.…

    • 1088 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Creating a Budget

    • 281 Words
    • 1 Page

    Creating a budget is also known as creating a spending plan. It may not be the most entertaining use of your time, but from personal experience it is a must do for anyone who has an income. Have you ever cashed your paycheck and a few weeks later wondering where all the money went? Budgeting and tracking all of your expenditures will graphically illustrate exactly what you are spending your wealth on.…

    • 281 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Making a plan is on of the first things that can help your eat right on a budget. Before going to a grocery store you should create a list of everything that you need and sum up of approximate price of what everything will cost. You should do this prior to receiving your pay check so you can not only budget your food but other things like paying bills. Something else that would help out a lot is cutting out all of your junk food that you used to eat. Next you should look for sales and coupons that you can use to help save money. Buy food in bulk such as family pack you get more for less money. If you are the type that like to eat out you can still save money buy getting specials and drink water instead of soft drinks it healthy and cheap.…

    • 446 Words
    • 2 Pages
    Good Essays
  • Better Essays

    If a person traveled back in time and observed a couple, he might see a women sitting at home cooking a large meal for her ten children and husband to arrive home to. In today’s era, both parents in a relationship are working. This economic change leads to both partners feeling financially independent and stabile. When marriage arises, generally both partners’ income is combined. Between two people, two incomes, they become even more financially stable, as opposed to one income each. If two were to divorce, then situations may become sticky financially because each partner pays for a lawyer, and every possession becomes divided in half. Marriage comes with good financial perks such as, couples receive more tax benefits filling jointly, two incomes as opposed to one, and split bills. But with good comes bad, like the money spent on the wedding, first home, or in some cases divorce…

    • 1208 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Personal finance is the study of personal and family resources considered important in achieving financial success. It involves how people spend, save, protect, and invest their financial resources. It includes budgeting, tax management, cash management , use of credit cards, borrowing, major expenditures, risk management, investments, retirement planning, and estate planning.…

    • 416 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Why to Budget

    • 317 Words
    • 2 Pages

    The article titled, “The Beauty of Budgeting” was written by the staff at Investopedia. It describes how making a personal budget is a great idea when struggling to live within your means. This article is targeting the majority of Americans who do not know how or are unwilling to follow a personal budget. They explain step by step how easy it can be to get your finances in order. They go into depth about starting with looking at your bills and separating fixed and variable costs, then move to showing how you can increase your income or decrease your expenses, and then explain how easy it can be to make keep it balanced on your own.…

    • 317 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Financial Planning

    • 695 Words
    • 3 Pages

    Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development?…

    • 695 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Domestic Partner Benefits

    • 2084 Words
    • 9 Pages

    Are jointly financially responsible for basic living expenses and any other expenses of maintaining a household. Domestic partners need not contribute equally as long as they agree that both are responsible for the cost. If requested, both would be able to provide at least three of the following as verification of their joint responsibility…

    • 2084 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The idea of setting up a budget can be overwhelming but we can simplify it by breaking the task down into a few easy steps. Before you can really accomplish setting up a budget you will need to: track all your expenditures, classify your expenses, pick out a budget worksheet, and decide on a goal for your budget. Creating a budget will lay out a road map for your finances – the more time you spend setting up your budget the less you will be spending worrying about your financial future. So let’s get started!…

    • 865 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Text Questions 6

    • 317 Words
    • 1 Page

    5. Create a monthly budget for yourself using the steps discussed in the unit. If you don't wish to discuss your financial situation, you can create a budget based on an average individual your age.…

    • 317 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Personal Finance Paper

    • 491 Words
    • 2 Pages

    To design a budget for earnings, spending, saving and investing a financial plan is a necessity. To create a financial plan for earnings, spending, saving and investing you must first understand these things separately, how they all work together and affect each other and that they are a necessity to laying a solid foundation for your family’s future. First, a detailed budget is needed for a clear picture to see how much money you have, what you spend your money on, how much you’re spending and the amount left over. A budget allows you to make sure your money is going where it should.…

    • 491 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    FOBE320 Case Study

    • 1147 Words
    • 5 Pages

    • For the budgeting mechanism, it is significant to record their accurate financial account and keep the data up to date during the budgeting process. In this process, it is also necessary to analyze their financial structure, for example, their take home income, their financial expense, bills expense and living expense. The asset and liability part in the budget helps them to understand their financial position. Budgeting is a good control tool, as long as they use this tool efficiently, it will make them manage their fiance easier and contribute to meet their financial goals.…

    • 1147 Words
    • 5 Pages
    Satisfactory Essays

Related Topics