- For many reasons, getting married is a huge life transition.
- Combining incomes and budgets is a major part of that transition.
- Make sure you communicate with your future spouse about your spending strategy – and avoid the stress that can come from keeping money a taboo subject!
Name that event: a formal setting, two people in love, shoving cake into each other’s faces. It’s a wedding, of course, and it’s a big life transition. Two of everything become one: households, mindsets, and monies.
Combining all of these can take some adjustment, especially if you’re not on the same page as your partner. Does money burn a hole in your pocket, causing you to spend it as soon as you earn it? Or do you save money for a rainy day? What about your future spouse – do you know how they handle money and are you of the same mindset when it comes to money matters?
If you hold differing mindsets, you’ll want to discuss this and come to some agreement about your budgets – otherwise, you’ll likely face some real problems down the road. One-third of all GenX and Millennial divorces are because of money. So don’t stick your head in the sand on this topic!
To get started, complete this spending strategy worksheet. Examine your current spending, income, and expenses, and have your future spouse do the same. Then complete the Future Income section together. You may find some surprises, and it’s good to learn these before you begin your marriage.
Keeping open communication about money is important. It’s not always an easy topic for people – in fact, it’s a big taboo for many, with 44% of Americans stating in a recent study that they do not talk about their income and retirement accounts. But we know that avoiding money conversations can lead to big problems, so make sure you face it with your future spouse. And enjoy your big day – and the cake! Until next time, enjoy.
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. He has over 30 years of experience and is the author of Changing the Conversation, Wealth of Everything and co-author of The Business Battlefield. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
Learn more about TransformingWealth™ , our proprietary approach designed to get your arms around the big picture, so you can make informed financial decisions. Ask Gary about Coyle’s TransformingWealth Preview Meeting and schedule a complimentary consultation and start living the Good Life Managed Well™.
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