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Money in a New MarriageBy: LCR Telecommunications, LLC

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What’s next with money?

Congrats!

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BankingThe account options.

+Separate Accounts

Some couples choose to keep completely separate accounts once married.

Splitting bills directly down the middle or each paying for different parts of the monthly budget.

Positives: Clearly set accounts with no fighting about frivolous accounts that may be different priorities for each other.

Negatives: Each adult may make a different salary and cause difficulty with having enough money to pay their bills.

+Joint Accounts

All money goes into one account and is combined for all expenses. Both couples save, spend on bills and personal expenses.

Positives: Both have shared control of the money. There is no fuss of who makes what and all money is shared for bills.

Negatives: Both have equal control over money can mean agreeing on what the money will be spent on. That can take great compromise and communication skills.

+Separate but Together

Take 90% (or other agreed upon amount) of each check and have it automatically deposited into the joint account.

The remaining 10% is for personal expenses.

Positives: Each person can feel as if they are contributing to the household expenses and yet retain some independence.

Negatives: Separating what counts as personal versus what counts as joint can be difficult. Some people may consider a date as a joint expense, but if it was only one person’s idea or favorite place, then who does the expense go to?

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Budgeting

+Mortgage or Rent

Mortgage: This should be the first expense considered when making your budget. It is usually your largest payment and the budget should be set up around it. And don’t forget to budget for these extra fees: Property taxes Homeowner association fees Unscheduled home improvements

Rent: If you’re renting, put aside some money each payday for a down payment on the house. FHA loans are a good option for first time buyers and

usually require a smaller down payment (3%).

+Food

Keep track of your spending on your groceries, eating out at restaurants and even that latte you pick up every morning. At the end of the month, look for spending patterns on

discretionary items that can be cut back.

The food budget quickly adds up with over 1,000 meals eaten per year per person. Keep in mind that while we try to make every meal ourselves, many don’t. Food items are various and extensive while also being

expensive. Make sure you shop what is on sale and stock up. Check to see if your favorite grocery store has a loyalty card

or digital coupons for extra savings.

+Utilities

Electricity / Gas: These utilities are deregulated in many states. Shop around for a lower cost provider with the same service benefits. Try to use fans in the summer instead of air conditioning to

keep your bill down and layer up in the winter with some blankets. Also, invest in sealing your windows and doors.

If you have the option in your apartment, get the garden level for better insulation.

Water: Consider changing your showerhead to save water and money on your bill.

Renters: Different apartments have different utilities included in rent, so ask before signing your lease.

+Technology Needs

Cellular Phone: Do you need the latest fancy smartphone? Or can you get by on a pay as you go model? Look at the cost for each and determine if it’s worth it over the life of the contract.

Internet: Evaluate what your needs are before deciding on which service to buy. Gaming, email and social networks all require different amounts of bandwidth.

Cable: Forget the bundling! Make sure you are getting the best rate; don’t just do what lasts for three months and read the fine print.

Home Phone: Getting a landline is an important safety feature for every household. It’s budget friendly and offers privacy and fast response for emergency vehicles.

+Debt

Credit Cards: Keep a card for emergencies and pay off the rest. Pay an extra amount each month toward your highest rate to

accelerate the process. Be careful not to close them as this could shorten your credit

history and impact your credit score. Remember that any credit you open in your joint names will

remain your joint responsibility. While any debt brought into the marriage separately is your separate liability, it will definitely impact your monthly expenses.

Student Loans: Continue to pay off any student loans and resist taking a deferment unless absolutely necessary. If either of you are planning to go back to school, make sure you

discuss the cost and impact on your household budget first. It may or may not make sense depending on the long-term benefit.

+Frivolous Items

As noted, there are usually many places we spend our discretionary income on. But now that you’re a couple, these expenses add up quickly when multiplied by two. Consider an allowance or saving plan for these types of purchases:

Vacations

Clothes

New Appliances

Furniture

These items should only be purchased if there is room in the budget after all necessities have been purchased.

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Saving Money

+A Savings Account

A savings account is an important part of adulthood as a backup expense account.

As careful as we may plan, we can never know what is next – whether your car breaks down, you have a medical emergency or get laid off from your job.

This is money that should be allocated toward true emergencies, not unplanned spending opportunities. Sit down together and decide want constitutes an emergency and where you may be at risk as a couple.

Having a savings account gives you a sense of power over life’s unexpected events.

+How much do I save?

Many say $100 dollars per month minimum; others say 10% of each check should be set aside for savings only, not to be touched unless there is an emergency.

How much do you spend per month? Times that by six, and that will last you six months of unemployment. Many suggest to have 6-12 months of expense money in your savings as a back up plan.

Save what feels comfortable so you are not feeling deprived. This can lead to unnecessary “raiding” of the savings account.

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