Are you newly engaged or at a point in your life where you’re ready to settle down? Though you’re anxious to pop the question or start planning your weddings, you don’t want to make a lifelong commitment without getting your finances intact. While this in no way means you need to be wealthy, debt-free, or a money wiz before tying the knot, it’s a proven fact that money can quickly ruin your relationship. As such, the two of you want to make sure that you’re on the same page before walking down the aisle. 

Reduce Personal Debt

From buying a house or car to taking out a business loan, the two of you likely have financial goals you’d like to accomplish. Achieving any of these goals becomes challenging when you have a pile of debt. Though you may not be able to eliminate it all, it’s only right that you develop a plan to reduce personal debts. 

Review your credit report, statements, and financial accounts. Calculate the balances. Then, assess your income to determine how long it would take for you to get them paid off (or significantly lower). You can also contact creditors and service providers to negotiate more affordable payment arrangements or settlements. 

Create an Emergency Savings

Once you’re married, you’ll be responsible for the wellbeing of two people. When unforeseen circumstances arise, you must be able to handle them. Having a nest egg that you and your partner can rely on is ideal. Open a free savings account at the bank of your choice and begin depositing extra money in it weekly, bi-weekly, or monthly. This money should only be touched in emergencies. 

Purchase Life Insurance

Everyone hopes to live a long time, but that’s not always the case. Now that you have a loved one to provide for, you want to make sure they’re cared for should you pass away. The best way to do this is to purchase a life insurance policy. If you already have a policy, look into increasing the amount to support your spouse during difficult times. Once you have a policy, you can add your partner as a beneficiary after you’ve tied the knot. 

Schedule a Money Talk

Talking about money isn’t always easy, but it’s necessary. This conversation should take place long before you walk down the aisle. Select a time where the two of you can give your undivided attention to the subject. It is essential to focus on money management, a household budget, and your future financial goals during your discussion.

Get as specific as you can with the details. Talk about who will pay the bills, how to divide the expenses, who’s responsible for health insurance, and even how much you’ll need to get the house, car, career, and lifestyle you want. It’s also important to outline savings goals, whether for emergencies, retirement, or big future investments, while keeping transparency at the forefront. Consider aligning on short- and long-term priorities, such as planning a successful corporate event that aligns with career growth or budgeting for personal milestones. Defining these details early can prevent misunderstandings and ensure everyone is aligned on the financial path ahead.

Develop systems and routines that work best for the two of you. If necessary, consult with a financial advisor for more assistance. Believe it or not, this step alone will prevent a lot of arguments. 

Start Saving for the Big Day

The final money move to make before getting married is saving for the big day. Weddings cost an average of $30,000. Unless your parents are footing the bill or have extensive savings already in place, you’ll want to set money aside to not go into debt. Determine how much you’ll need to plan your dream wedding, review your budget, and decide how much you’ll save each month. You can set up an automatic savings plan to make it easier to stay on track. 

You’d be surprised how many couples vow to be together forever only to divorce a few years later due to finances. Though nothing is foolproof, making the necessary moves before tying the knot reduces the burden and eases the stress. Not to mention, it reduces the likelihood that your marriage could end up being yet another statistic.