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Newlyweds Guide to Finance and Insurance

nw-6Well you figured out what kind of flowers you needed and how to seat the guests at the reception so Great Aunt Constance doesn’t have to sit next to any of her five ex-spouses. It’s all smooth sailing from here on out, right? A nice wedding is sure to be followed by years of wedded stress-free bliss, right?

Wrong times two. While the groom was dashing beyond belief and the bride was a vision in gossamer white, that won’t answer the financial and insurance questions that need to be addressed just about the time the band leaves the reception. WiseInsuranceQuotes has the newlyweds guide to finance and insurance. It was the least that we could do since we didn’t know where they were registered.

1.) Pool Your Money: Some couples balk at this. Couples with established careers and separate savings are especially reluctant to go the joint account route. Don’t hesitate. Thomas Jensen, from Vaerdi Financial out of Portland, Oregon says this:

“The joint account forces you to communicate effectively about money! If you track your money together, and one of you is a big spendthrift, that’s going to become apparent to the other partner right away. That gives you an opportunity to confront the issue right away – before one partner spends down all his/her private resources.

Compare Insurance Rates and Save When spouses have financial weaknesses, they tend to hide them from one another. One partner doesn’t get a chance to be strong and support the other in the relationship. Maintaining two separate accounts facilitates this bad habit.”

2.) Buy Life Insurance: In your vows you promised to love, honor, and cherish until death parts you. There is no greater evidence that you took those promises seriously than to provide for the protection of the one if death separates you unexpectedly and prematurely. Speaking of taking care of your beloved…

3.) Update Your Beneficiaries: This isn’t just about insurance policies, though that is certainly an important part of the picture. Beneficiaries are on your bank accounts, health insurance and car title. It was great that your Dad cosigned for your ride, but your spouse needs to be the beneficiary if the worst kind of event occurs. But this is all a part of…

4.) Getting Organized: Each of you should know exactly where to find your key financial documents. What is a key document? Anywhere you have money that your spouse may need if you die or become incapacitated. Bank accounts, retirement accounts, brokerage account numbers, passwords, etc. Of course, your partner is likely to know all of that if you, together…

5.) Create a Spending Plan: The two of you need to come together on the ground rules for how much money each of you can spend without getting the approval of the other. In some cases, that’s going to be a pretty small amount. Every family is different, but this is an important part of creating a life together. Another part of your plan will entail the decisions that you make regarding auto insurance. High premium, low deductible? The exact opposite? Getting on the same page will save you a ton of heartache later.

It looks to us like you are off to a good start.  You read the right online financial sites anyway.  That’s definitely a sign of a highly intelligent individual.  Our congratulations are to you… and to the lucky person who snagged you.  Best wishes for a long and happy life together.