By Jason Silverberg

As we travel through the adventure of life, we encounter many pathways to obtain our financial goals. Some avenues lead us straight to where we want to go, while others lead us astray and into valleys of despair. As we get married and start a family, we become a team and join forces. At this point, it’s critical that both partners agree on where the path will lead, as well as which route to take to get there. Here are 7 tips to use as a road map to guide newlyweds in their quest for financial success.

1. Talk about money

As men and women communicate on different wavelengths, a marriage is about bridging those gaps and coming together in mutual understanding. Just with everything else, men and women must communicate about their money, and often. Even before the marriage, it’s a good idea for each partner to disclose to the other all of their assets and debts.

As time passes, make sure that you are always talking with each other about financial habits. Paying bills is a great activity to do together, so both partners know the process. This is a great opportunity to discuss income and expense issues.

As major purchases spring up, make sure you both consult each other before buying. Come up with a minimum dollar amount that works for each of you, so that there aren’t any miscommunications. A lot of hard feelings can be created because one person made a large purchase without the others’ knowledge.

Prepare an annual financial summit once a year. It can be as formal or informal as you’d like. Just make sure that you talk globally about what each spouse would like to see happen over that year. Maybe one person wants to reduce their debts in half, while the other spouse wants to be in a position by this time next year to buy a new home.

2. Prepare a Budget

Have you ever heard of the term, “Pay Yourself First?” This is the concept of treating your savings as if it were an expense. Many people spend down their income and save whatever is leftover. Most times, there isn’t much leftover if anything at all. The true way to know that you are saving is to pay yourself first. In order to figure out how much feels right, create a budget. Simply track over 1 or 2 months, how much income comes in and the expenses that go out. Make a list and subtract the expenses from the income.

If you are really disciplined, you can make this an ongoing project to try and whittle away some of your frivolous expenses. Instead of the fancy Starbucks drinks, try brewing your own coffee. Brown bag your lunch once a week to see how that feels. Then, try doing it twice a week. You can see where this is going. Also, make sure to pay your bills on time. By staying disciplined and holding yourself accountable, you’ll stay clean with the credit bureaus and avoid the pitfalls of getting into too much debt. Sticking to a budget is one of the cornerstones to understanding your current financial position and opens your eyes to the possibilities of where you can go with your financial lives.

3. Inform the government

One of the first things that should be done as a joint unit is to inform the government of your new nuptials. Make sure if a name has been changed that the IRS has record of this and you receive a new social security card. Also, changing your driver’s license is a good idea too. Finally, make sure all of your financial accounts have the new name change recognized. Oh, and don’t forget to change your beneficiaries on your IRAs, 401(k)s, Life Insurance, and Trust accounts. Make sure you have extra copies of your marriage certificate because many financial organizations need proof to make the change.

4. Joint accounts

To keep things simple in your financial household, a joint account could be a good idea. This way, as bills become due, there is one spot where money can be drawn from. It’s a lot easier than having to two individual accounts.

5. Review your Insurances

As you both take the next step and begin your family, one of the most important aspects of your financial situation is your insurance protection. Make sure you tell your auto and home/renters insurance company that you are now married. They can put you both on the same policy and reduce some expenses. Also, make sure you evaluate each other’s health insurance plans through work. See which one provides the most coverage for the least amount of cost.

Life insurance coverage is also very important. Discuss a plan for what would happen in the event either of you die. This is not something many couples want to discuss, but it is crucial to making sure that you both have adequate protection. Contact a financial advisor to help create a strategy that fits your needs.

6. Prepare your Will

Just as you should be evaluating your life insurance needs, it is also important to prepare your will. Anytime you have a major life change, amending your will is vital to making sure that your plans are carried out. If you die without one, your state will provide an order to distribute your assets for you, but you may not like how they will do it. Also, don’t forget the Advanced Medical Directives which include your living will, power of attorney, and health care proxy, each making sure that if you cannot make medical decisions on your own, then your wishes will be carried out.

7. Consult a Financial Advisor

There are many basic factors when one forms an opinion about money. Some feel that money is a means to an end, while others believe that money makes the world go round. Some say money is the root of all evil, while others live for money. However you may feel about money, you want to make sure that you and your partner understand each other. Consulting with an unbiased third party to discuss your feelings toward finances may help you start your marriage off on the right foot. It’s a good idea to share your experiences and your goals, so that you each can guide the other throughout your journey together. A financial advisor can also act as a coach as you move closer and closer to your financial life goals. Whatever your financial personality looks like, just make sure that you and your partner are communicating, creating good financial habits, and working together towards a common goal.

Jason Silverberg is a Registered Representative of Securian Financial Services, Inc., Securities Dealer, Member FINRA/SIPC and a Registered Investment Advisor

Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender charges.

1175-2009-51578, D.O.F.U. 3-2009