Family, engagement, and finances are big stuff that we need to deal with, and they are not just simple things we should take lightly.
Almost all ladies out there dream of that big diamond ring around their fingers as a sign of their engagement. Things will also get excited from there on, so we have to brace ourselves. After all the parties and the congratulations, we get, one question remains. Are we financially ready for our future?
Just like all other problems we all face, our soon-to-be spouse also deals with investments, expenses, and other financial stuff. However, not knowing how our other half manages their money is a crucial thing and might end up in a big fight along the way. We don’t want that to happen and that’s why we put up this guide to help those in need.
We are sure that most of us will not go into a serious engagement if we are not confident about our future. But there are people out there that still experienced financial issues even if they were well-prepared. These pointers will help us minimize those cracks along the way, so make sure we take note of some important notes from this one.
Establishing Emergency Funds
There’s a massive part of the population that don’t save up for any emergency funds. In some cases, people don’t know what they were at all.
Emergency funds are savings made explicitly for those crucial days. Most of the time, financial advisors suggest that we should save at least three to six months’ worth of expenses and always keep it handy. After all, we never know what our future holds.
Almost 70 percent of the population recorded less than $1,000 as their emergency savings fund, and 34 percent of Americans had nothing saved up at all.
Engagement is a step towards family life and we don’t want our family to suffer in case we decided to quit our job on the fly. We have to take note that married life means a ripple of expenses coming in our way and engagement is only the begging of it.
Learn Our Monthly Expenses
We don’t need to know our monthly expenditures by heart, we just need to see the range that we need to pay for us to allocate an appropriate amount of money. It doesn’t matter if it is payment for our loans or mortgages. We just need to get to our spending habits and minimize the money on things we don’t need.
We all understand that creating a budget scheme might be daunting, but this will save our skin from bankruptcy if we execute it well. Think of it as a training ground during the main battle. The main front is our family life and engagement is our boot camp, so enhance our money management skills during this phase and it will be a huge help in our future.
Start Early For Our Retirement
Young adults that go into engagement need to have a solid understanding of how we should spend our time during our working years and even after retirement. We know it may still be too early for those but the sooner we put up investments for our future, the better.
In a recent study, experts found out that people in their 20s have around $16,000 of investment for their retirement plan. It sounds a lot, but we can do better than that. Most people don’t realize that there are drastic changes in their lifestyle and how they look at things financially after they tied the knot, and retirement plans might go at the bottom of the list of our priorities when that time comes.
We don’t want to spend our retirement with petty cash on hand, so we better work on it now.
We Have To Be Open For Discussions About Our Future Plans Especially With Finances
Money is a huge deal for married couples and most of the time, it is one of the main reasons why their marriages end up in a divorce lawyer’s office. To avoid this predicament, newly-engaged couples must be comfortable discussing things, especially with money with one another.
We should be transparent with all the things with our soon-to-be spouse. Though this may sound like a marriage counseling session, it works well for our finances, especially for those new couples.
Don’t be like the majority of couples that only discuss investments, debts, and loans after they tied the knot. It is better to know what we are dealing with so we can work it out before it is too late. We don’t want to be part of someone that has a huge debt hole under their name, right?
It will not only have diverse effects on our finances but it may ruin our relationship altogether. It also works with investments, such as if we are planning to buy a car or something major. Discuss it with each other and be open to opinions.