Marital Finances: A summary of "I Now Pronounce You, In Debt"

I saw this article on Yahoo! that I wanted to share with you. It's called "I Now Pronounce You, In Debt".  I though it was pretty informational, talking about things you should know about finances when you get married and some advice to help reduce the shock of the financial burden you might not be expecting.

Here's the main topics the article discusses about marital finances.

1. Talk about money early.  Nobody truly wants their marriage to be based around money, but it is something that has to be discussed.  Make sure you and your spouse know each others expectations, hopes, and plans with finances.  Make sure you discuss current debts as it will greatly play in to how you work finances in the future.

2. Don't Go into Debt For a Wedding.  A wedding is a happy, blissful, enjoyable, and scary day.  It is the day where two become one.  It could also be a day where a couple drops $15,000 to celebrate for just a few hours.  Its great if you can afford that all in cash, but be careful.  Don't go into debt for your wedding.  There are plenty of inexpensive replacements for expensive wedding services.  The Budget Savy Bride is a great place to look for planning your wedding. I know my wife used it to get some ideas for our wedding.

3. Make a plan.  A plan can be as simple as saying your going to pay an extra $50 per month towards a loan to pay off debt. It can also get complicated and include percentages and widgets.  Just as long as you have a plan, you should be good.  Along with a plan, write down a realistic budget so you know where all of your money will be going.  Every dollar should have a name to it.  Make sure your budget is within your means.

4.  The unexected will happen.  Plan for a rainy day. Have an emergency fund.  This article suggests $1,500 for renters and $3,000 for homeowners in an urban area.  I agree with Dave Ramsey on this topic.  I'd go for $1,000 until you pay off your debt, then 3 to 6 months worth of expenses.  $1,000 might sound small for an emergency fund for some people.  It did for me and my wife. We increased ours to $2,000 and now we are paying off debt.

This article also includes a section for advice from married couples. I would also suggest reading that section.



Source: http://news.yahoo.com/now-pronounce-debt-120500539.html, I Now Pronounce You, In Debt, U.S. News, Erin Lowry