Getting married is a milestone in anyone's life. It is a time filled with excitement as you research and plan your perfect day to celebrate your love and say I do and then dive into details of a romance-filled honeymoon! For many couples, the planning of the actual wedding and honeymoon take precedence over the boring and not as exciting planning of the future... However, just as important as the dress, the cake and the destination of that one big day, is the day-to-day realities of how you will plan, save and invest for your future.
Money can be one of the primary sources of disagreement in a relationship, and that is why before you say I do it is important that you and your partner take the time to discuss and agree on a "money plan." This includes understanding how tying the knot can impact your financial obligations and potentially affect how you structure your finances. Keep in mind, however, that finances and taxes can vary greatly depending on an individual's or a couple's specific situation. We recommend consulting a qualified professional to discuss your personal situation and get the best plan in place for you.
Here are three things to consider when it comes to how marriage and money can work together:
1. Decide on a personal spending amount and keep it separate. One of our main cashflow strategies is to separate your weekly personal spending from your other money that's used for bills, investments and savings. Transfer your weekly spending amount to your spending account and use this money to cover gifts, dining out, transport and groceries – all the day to day spending. This works for couples because you each have your own allocation of personal spending deposited into your individual bank accounts, and you each have discretion over how you spend your weekly allocation. Just try and stick to the determined amount! Then with your remaining cashflow, you can set up automatic payment of bills and investing for your goals.
2. Set your goals together. If you're wanting financial success, you both need to know what you're saving and investing for in order to stay motivated, and also to ensure you don't dip into those savings. It's so important to set those investment goals together so that you're aligned and both planning for the bigger picture. Put a plan in place together and then you'll have a much better chance of reaching your goals.
3. Update your Wills. Getting married actually cancels any previous Will that you already had in place, so make sure you visit your solicitor soon after to get another one done. If you, unfortunately, pass away before having done this, you'll be deemed to have died "intestate" (without a Will), which makes estate planning a lot more complicated and time-consuming for the remaining spouse. Also, revisit your nominated beneficiaries on your super funds. Remember that a spouse can receive a super benefit tax-free.
If you would like support to put a plan in place or review your current strategy the Schuh Group Financial Planning team offer free consultations and are happy to support you in reaching your together goals. Contact Dominique Schuh direct at email@example.com. or the Schuh Group office on 54804877.