It’s crucial to get your finances in order before you immerse yourself in wedding planning. Wedding costs have been escalating gradually over the years. According to Forbes, tying the knot will cost you a whopping $33,000 in 2024, $4,000 more than what you would have paid in 2022.
Getting married is a serious decision. Beyond everything that goes into a wedding, the emotional and life impacts, merging two financial worlds makes it even more critical a decision. Here are a few left brain, financial aspects to consider before you merge, not only your lives, but your finances, too!
Check Credit Scores and Debt Before Getting Engaged
While you’re looking forward to making a lifelong commitment to your significant other, consider the financial implications first. Marriage means sharing financial responsibilities. Sometimes, this may include debt. Student loans, credit cards, car payments and more can drain monthly cash flow and impact the ability of both partners to contribute to the household’s present expenses and future goals. Discuss, open and honestly, with your potential spouse about both your debts, payment patterns and credit scores.
What’s Life Going to Look Like After the Honeymoon?
Are you going to be a two-income household? Which person will be responsible for what expenses? How will you manage the cost of running your household? Your partner's liabilities can affect your joint and personal financial goals. You may need to adjust objectives and expectations. Don’t ignore these discussions.
Get a Prenup – No, really!
There’s no better time to come up with a contingency plan for a worst-case scenario than when you’re madly in love. Why wait until you’re locked into a bitter dispute to decide who gets what? Contrary to popular belief, a prenup is not a red flag or a bad omen. It’s an incentive for you and your fiancé to discuss finances in depth, clarify expectations, and elaborate on asset and debt distribution. A prenuptial agreement safeguards your interests, while also protecting the interests of your future spouse.
Consider Getting Wedding Insurance
Weddings come with plenty of risks, from unforeseen vendor cancellations and subpar product and service delivery to guest injuries and everything in between. You’re spending an arm and a leg securing venues, decor, food, entertainment, photography, videography, and more, so having protection for your money if you don’t receive an expected product or service, is important to consider.
Get wedding liability coverage to protect against lawsuits due to property damage and injuries during your wedding. You can also get protection from cancellation or postponement insurance to cover repayment costs in case of sickness, adverse weather, death, or any situation requiring cancellation or postponement. The coverage would reimburse vendor fees for cancellations or shortcomings in service or product delivery.
Set Intermediate & Long-Term Marriage Milestones
This significant and exciting time in your life is also the perfect time to consider a financial plan. Create goals and benchmarks. For example, a goal date and down payment amount for a first home. A game plan about how much to save for retirement and when you should be financially able to retire by (even if you don’t choose to call it a career at that point). Don’t forget the ‘what ifs’ when planning for potential risks and making sure you’re properly insured and protected.
Marital Bliss Requires a Plan
While good things come to those who wait, better things await those who plan. Financial disagreements are a top contender for short-lived marriages for a reason. You can make your wedding and marriage a long-term agreement by embracing financial discipline and literacy.
Cheers to a joyful union!
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