The Scary Numbers

Living frugally now means getting the good stuff later. But what stuff? You two have to sit down and have a serious conversation about how each of you views your finances. What are your individual goals? What are your goals as a couple? Lay it down on paper. How much do you make? How much do you spend? How much do you need to get where you want to go? Whatever you do, don’t avoid planning your finances.

But above all - important conversation shouldn’t just be about goals. It’s time to come clean to each other about everything–student loans, credit card debt, various secret oversea accounts, everything. It is time for total disclosure. You don’t want one spouse to secretly have bad credit when it comes time to apply for a mortgage - surprise, you’re denied! It all has to be on the table now, so it can be handled accordingly.

Joint checking accounts make perfect sense when it comes to shared expenses such as utility bills, grocery bills, and mortgage bills. They also help each of you to better understand your new “family” financial situation. Make sure that you spend a little time together each week going over the expenses and consolidating the income and outgo for the account. In order to succeed financially as a couple you need to work together to understand your goals and limitations. Also, remember to include in your budget some “mad money” every month for each of you. This is money that is yours to spend on whatever you want without worrying about going over budget (and without having to check with your spouse first).

Newlywed couples have a lifetime ahead of them - a lifetime full of fun, happiness, babies, college tuitions, retirement, medical bills, and possibly nursing home stays. Now is the time to start planning for those future expenses by setting up a special fund for emergency cash reserves in the event of the unexpected. It’s time to set up a savings fund for your future children’s college education.

And even though it seems a long way off, it’s time to start saving for retirement. Whether a 401(k), mutual funds, IRA’s, or special investments, young couples can start saving now so that 40 years from now they can be relaxing on the beach, reminiscing over a wonderful four decades together, and planning for the fun to come.

© 2005 DebtGuru.com®. Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.debtguru.com