This is a guest post by Noreen Ruth
Change is a part of every life, often unpredictable, but to be experienced for sure. As you move through the different stages of life, your focus needs to be on how to management an indeterminate amount of financial resources. Putting a financial plan in place is important, as long as you don’t expect it to be as if etched in stone. While many people may be able to give an educated guess of their total income over the course of their lifetime, unplanned events and emergencies will make that projection less than realistic. At every stage, it is important to stress the importance of repaying debt in a timely fashion and putting away some money for a rainy day.
Combining Money Matters
When you marry, along with a partner, you may inherit added debt, additional sources of income and different attitudes about finances. But by discussing shared goals, acknowledging new shared debt and working together to prepare a workable budget and repayment plan, you can be optimist about clearing the slate and getting to work forging a future together.
Creating a financial plan together requires an open mind and a willingness to sometimes agree to disagree. Begin by listing short-term and long-term goals that you hope to achieve. Share your knowledge and information so that you can better plan your financial to get better returns on income. Once you have created a financial plan, it is advisable to keep revisiting it at least once every six months, in case better market opportunities arise. Write a detailed budget that defines day-to-day expenses to help keep spending in check. If you do not have the time or the inclination to do it, hire a professional financial planner to help you.
Updating Sensitive Paperwork
Investments, 401Ks, bank accounts, insurance documents and all other important paperwork need to be updated after getting married. If the woman is taking on her husband’s surname, all documents in her maiden name need to be updated. Ensure that your spouse receives the benefits they deserve by changing the beneficiaries for all accounts that require one and be sure to write up a will, if you don’t have one.
Examining Insurance Policies
With increased responsibilities, your insurance policy may need to be upgraded to provide better coverage. Lifestyles change a great deal when we marry and need to be calculated when determining the coverage, in addition to the amount of premium you can afford to pay.
Creating an Emergency Fund
Everyone, whether married or single, needs to have an emergency fund with a minimum of six months of monthly income in liquid investments or bank savings. No one is immune to unfortunate events, like illness or lost employment, or accidents that demand immediate resources. Keep the lines of communication open. It’s the best way to achieve financial freedom and peace of mind.
About The Author: No matter what your status or level of financial success, credit and debt management skills are an integral part of successfully navigating through life. From the struggling student to the CEO of a Fortune500 company, getting ahead requires a high degree of common sense along with an ongoing willingness to learn. Noreen Ruth writes for that very purpose – to educate consumers about issues that impact their financial futures. Using government and other reputable sources, she provides clear, easy to understand news and informative finance articles on credit cards, how to apply for credit card, loans, debt relief services, etc.
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