Congratulations, you’ve finally mustered the courage to propose to the love of your life. But before you say “I do,” it’s wise to take a look at your financial situation. Here are some financial aspects to sort out before walking down the aisle and some helpful resources to evaluate your financial standing:
1) Know Each Other’s Financial Standings:
Many couples avoid talking about money, but this conversation is crucial. Ideally, this should be done before getting engaged, but definitely before the wedding. Discuss everything—spending habits, credit scores, and any debts. It’s essential to be transparent, as reluctance to share could be a warning sign.
2) Ensure Both Have Good Credit Scores:
Making significant financial decisions as a couple, like buying your first home, becomes challenging if either of you has poor credit. If you’re unsure about your credit scores, check free services online like Credit Karma or Credit Sesame for estimates.
3) Avoid Significant Debt:
With common sources of debt like student loans, it’s likely that one or both of you may have some debt. While it may not be possible to clear all debts, especially if one of you is still in school, it’s highly recommended to pay off as much as possible before getting married. Look into debt consolidation services (such as CreditGUARD) if needed to manage your debt. Remember, you share the responsibility for your spouse’s debt.
4) Agree on a Realistic Wedding Budget:
Your wedding and honeymoon are significant and immediate expenses. While everyone dreams of a perfect wedding, it’s important to keep it within your budget. Plan out all potential expenses carefully. Wedding Wire offers a great tool that includes often-overlooked expenses to help you manage your budget.
Your wedding should mark the beginning of a happy and loving marriage. Don’t let financial concerns overshadow your special day. Be smart and proactive about your finances.
David Moran is passionate about finance, photography, and gaming. He dedicates his spare time to his personal finance blog “Finance for Your Future” and honing his photography skills. He lives with his beloved partner and their three wonderful kids in Chicago.