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Getting married is a nice experience. We found relief in being in wedlock finally after long years of courtship. While engaged we spend a nice time. We generally take new responsibilities. Engagement is a temporary phase of life that ends in marriage. We talk about lists, planning and preparations – but we often neglect money matters apart from the wedding budget. According to researches, money can be the key cause of all conflicts that often bring about divorce. Talking about money has become a taboo thing; we avoid talking about money with another individual, especially if you have kept money matters confidential for many years.

Here are top 3 money mistakes that newlyweds often make and you should avoid it by all means as a newlywed.

  1. Ignoring to update important documents and plans – As you start a new job and enroll for different benefits offered by your employer, you need to assign beneficiaries to plans like 401(k) as well as group life insurance. While married, you should review beneficiary designations. You should review insurance policies and see whether you have to just add your spouse to the plan or review the entire coverage. Compare individual plans with one of you enrolling the other’s plan. You may save money by being on the same insurance plan. You should consider cost, monthly premiums, co-insurance, deductibles and co-pays while evaluating the plans. You should also review estate planning documents as you get married. You should disclose even if you have properties in Delhi.
  2. Not being organized – We often overlook getting organized. If you don’t make the habit of getting organized and talking about it, you will be ending up with unwanted stress and confusion that may lead to conflict. Avoid being scrappy with your personal finance. Sit down quietly with your spouse and make a list of all online checking accounts, savings accounts, etc. that both of you have. Talk about your strategies about joining those accounts – whether you want to join, combine, leave separate or just close. Decide which account will be used for regular expenses, where to deposit your emergency savings, other savings and investments. Credit can also be the part of your conversation. Let each other know about your credit history and FICO score. Have a plan for a better credit.
  3. Avoiding money matters - As we have already discussed, money rather finance is the leading cause of conflict and eventually amongst couples. Start talking about money from the beginning. It’s like a new habit. Here is how to start talking about money with your spouse.
  • Share your finance history and the lessons you’ve learnt as a child
  • Present finance issues making you stressed
  • Your financial target
  • Your plan with your finance
  • Expectations for your present lifestyle
  • Your spending habit

Being united and stable in financial matters with your spouse is a process. It’s a continuous process. You shouldn’t expect any overnight result out of it. Give some time to each other and everything will be sorted out in due course.