While money ranks as one of the main reasons couples fight, you don’t have to be one of them. By having honest, upfront conversations about your finances and how you can join forces, you can enrich your relationship as well as your bank accounts. Here are just a few of our top tips regarding financial planning for newlyweds.

 

Align Your Financial Goals

Think of talking about your financial priorities and dreams as creating a roadmap for a successful joint financial journey. Share your exciting goals, whether it's traveling, buying a home, advancing your education, starting a family, learning new things, or even launching a business. Your joint plan will cover everything from managing risks, making smart investments and planning for retirement, organising your estate and taxes, handling personal finances, setting up a budget, and even strategising for any business ventures.

 

Discuss Any Debt

Differing approaches to debt can lead to disaster. If you have any, be sure to tell your spouse and agree on a way to tackle it, be it together or apart. Ideally, you should be able to save money while chipping away at your debt but if you can’t do both, make getting rid of your debt a priority. Also, remember that the type of marriage contract you’ve agreed to dictates how your debt is handled. As an example, if you’re married in community of property, any debts – even those incurred before you got married – becomes a part of your joint estate. This means that the money you bring to the table can be used by creditors to pay off a debt you didn’t create.

Solidify And Save

Take a look at your reoccurring debits. Are there any you can consolidate? As an example, it makes sense to belong to the same medical aid where one spouse is the principle member and the other is the financial dependent. How you decide to split the cost of this will be up to you, but belonging to one medical aid scheme is typically less costly than each having your own. The same goes for your insurance. Many car insurance companies, for example, will give you a discount on your premium if you add a second car to your policy, including MiWay.

Consider Life Insurance

Many people think they only need life insurance if they have children. Thing is, when you get married, you take on the responsibility of also taking care of your partner, in sickness and in health. While your partner might be the breadwinner for now, we never know what could await further down the line, and having a life insurance policy can help create a financial safety net. While joint life insurance policies do exist, it’s more common for both partners to have their own life insurance policy and list each other as beneficiaries. As a newlywed, you won’t like to think this way, but it’s a better option, just in case you ever get divorced. Also, if you’re not the breadwinner but plan on having children, don’t underestimate the importance of having your own life insurance policy. Should you pass away, could your surviving spouse afford to pay someone else for all the childcare you provided while they’re working? While you’re thinking about it, why not get a quick quote from MiWayLife? It’ll take less than a minute!

Update Your Wills

If you’re doing something as important as getting married, you should also have a will. Most South Africans don’t and the ramifications can negatively affect their families, particularly their spouse. If you do have a will – well done! Now’s the time to prioritise updating any beneficiaries, the most obvious addition being your new spouse. Also, don’t let the first time they see your will be the moment it emerges from a vault in the wake of your passing. Go through your wills together so that everything is made clear and you can have any important discussions while they’re still around.

By openly sharing your aspirations and collaborating on your financial plan, you're setting yourselves up for a rewarding journey of achieving your dreams together.

Did you know:

You can apply for a will online with MiWayLife here. You can now also take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.