By Sumayya Davenhill
Every union has elements of “yours, mine, ours"… And that will certainly apply to your finances.
Before you tie the knot, it’s worth figuring out just how similar or different your money styles are, as well as your money plans for the future.
Beyond establishing how much income (and debt) each of you will bring into the relationship, assessing your financial outlook as a couple upfront can make a big difference to setting realistic expectations and reaching goals in your marriage.
Here are some crucial long-term factors to consider:
Setting your own #CoupleGoals
You’ll be familiar with the phrase #CoupleGoals on social media; from going on exciting adventures together to realising a dream, such as getting married in an exotic location or buying your first home.
All these goals, however, usually take financial commitment to turn them into reality. Setting goals as a couple can be a combination of daily, monthly or annual milestones, as well as longer-term achievements you’d like to reach together.
If you’re both working, you’ll need to decide if you’re going to combine your money or have two separate budgets. Ensure you have an honest discussion about your plans as individuals and as a couple, and decide which goals you can start working towards.
Deciding to start a family
A common decision couples make is whether to have children. If you decide to go ahead, you’ll need to consider the costs of pregnancy, childbirth, early childhood and of course education.
The reality is that you may need to start saving now if you want to send your child (or children) to a particular school. Then there’s also tertiary education expenses to consider. As a parent, you’ll be covering your child’s (varying) education costs for at least 13 to 16 years.
Looking ahead to retirement
Getting married is something we generally go into with a long-term mindset. The same can be said for retirement investing.
Marriages (and savings) that will last into your golden years are based on long-term commitment; be that contributing enough to your retirement plan or being a good partner to your spouse.
Retirement should fall under your discussion about long-term goals, but ultimately you and your spouse are each responsible for your own retirement, though you may share the load in your later years.
Establish what your combined retirement savings are, and how to get both of you heading in the right direction.
Going the distance
Goals, such as having children or retiring, may seem very far in the future – especially when all you want to do is plan a wedding – but the sooner you and your partner get on the same page regarding your short, medium and especially long-term goals, the better.
This will also mean you have more time to invest towards reaching these goals together.
Life tends to happen while we’re busy making other plans, as the saying goes. So, while you’re busy making choices about your big day, it’s also worthwhile speaking to a financial adviser to help you create a plan suitable to your unique needs.
Sumayya Davenhill is head of marketing at M&G Investments
*The views expressed here are not necessarily those of IOL or of title sites.
IOL Business