Five Tips for Merging Finances after Getting Married
Monday, April 14, 2014, 1:00 AM | Leave Comment
Marriage is a wonderful thing that sees two people merge into one unit that will spend the rest of their days together. However, it is important to consider how you will merge your finances before merging the rest of your life with your significant other.
What are some things to keep in mind before merging your finances with another person?
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Open a Joint Account
The first step is to open a joint banking account that you both have access to and will contribute to. You can open a bank account at any credit union or bank. Those who are looking to open such an account can talk to the folks such as those at Primeway Federal Credit in Houston TX.
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Decide Which Funds Stay Separate
Which funds are going to stay separate and be used for personal use? With a joint account, there is a risk that one person drains the account without the knowledge of the other person. Therefore, it is good that each person can keep some of their money in the event that this happens.
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Decide How Much Each Person Contributes
How much is each person going to contribute to a joint account? It is important that this is decided as far in advance as possible to avoid a fight later. If one party makes more money than the other, it is reasonable to assume that the person who makes more will contribute more.
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Decide How Much Gets Saved
You won’t be able to retire unless a retirement account is started and contributed to on a regular basis. Make sure that you discuss with your partner how much of your pay is going to go toward your golden years.
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Who Gets Say Over Joint Funds?
What happens if one person dies or is incapable of making decisions due to an accident or illness? Will the other person automatically get to decide how the joint fund is used or will it be placed in a trust? While there are pros and cons of each choice, it is always a good idea to decide that while both parties still can.
Marriage is all about compromise and learning how to work together. To avoid a potentially big fight, it is a good idea to solve potential financial issues before you get married to ensure that all you have to worry about on your wedding day is having fun and celebrating with friends and family.
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