Financial Advice for Newlyweds

Presented by JASON EAKER, CFP®
Financial Advisor with Avery & Pope Wealth Management

Editor’s note:  Whether it’s the start of a new year or a new marriage, newlyweds and established couples alike can benefit by following financial advice from those who know the most about managing money. Avery & Pope’s Jason Eaker shares tips that can take you out of the red in 2022.

 1. Be honest about what you’re bringing to the marriage.

Each individual brings different things to the marriage, including various spending habits and possibly debt. Be open with your partner about how you view money, spending and the debt that you’re bringing to the table. Have regular discussions about ways to improve bad spending habits and methods to pay down debt. Make goals that you both agree on and post them in a place where you can see them on a regular basis. Remember, honesty is extremely important in a marriage, and this includes finances.

 2. Save for an emergency.

Part of the foundation of any family financial plan is having the proper emergency fund. We typically recommend to clients that they have between three and six months’ of living expenses saved.  Put this savings in a high-interest savings account where it can be accessed easily in a time of need. If one partner were to lose a job or any other type of emergency happened, this could help keep you from having to borrow money or withdrawing from a retirement account.

3. Start saving early for retirement.

With regards to saving for retirement, one thing that you have on your side as newlyweds is time! Time can be your best friend when it comes to saving for retirement as long as you take advantage of it and start saving early. Get involved in your company’s retirement plan at an early age. Educate yourself on the plan. Ask if it includes a company match or if additional options are offered for saving.

4. Protect your family with life insurance.

Another important part of a family financial plan is protecting your assets, including your own earning potential. Are your assets and savings large enough to take care of your family in the event of your untimely death? It’s unlikely. We recommend that couples meet with a professional to evaluate their life insurance needs. Term life insurance can be very inexpensive while you’re young.

 5. Create an estate plan.

An estate plan is your way of making sure your assets are distributed the way you want them after your death – and if you have children, it’s also your and your partner’s decision about who would raise them. Without a will and the proper estate documents, your heirs could be left with some extremely difficult decisions, and some decisions could be made by the court system. These can be hard conversations to have with each other, but it’s always better to have them than to leave it to someone else
after your death.

 6. Enjoy the path you've created.

If you have completed steps one through five, you’ve created the right path to follow. Continue being smart about what you spend, keep saving, and remember to update your estate plan as life changes. Don’t let financial roadblocks derail you. Remember, life is a marathon, not a sprint. NCM

Jason Eaker is a financial advisor with Avery & Pope Wealth Management at 36 S. Court Square, 2nd Floor, Newnan, GA 30263 and can be reached at jason@averyandpope.com. Securities and advisory services are offered through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered by Avery & Pope Wealth Management or CES Insurance Agency.