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4 Biggest Money Mistakes Newlyweds Make

SavvySugar
Posted on Jun 15, 2011

Newlywed Money MistakesGetting married is a huge commitment, and will affect all areas of your life, particularly your finances. It’s no question that money is a sensitive issue and that many problems couples face are cash-related. The Wall Street Journal recently highlighted some of the finance blunders newlywed couples tend to make. To avoid making these mistakes, make sure you are aware of them

Not Being Honest About Money

Financial planner Robert Walsh tells The Wall Street Journal that it’s best to have an open dialogue about money before the wedding. Once the newlyweds have a full picture of each other’s finances, serious talks about financial goals and budgeting can begin.

 

Tackling Debt Alone

Many couples focus on their individual debts and don’t tackle them together, which is a big blunder, says Walsh. Try to tackle the loan with the higher interest rate together, before moving on to the lower interest debts.

Withholding Insufficient Amount of Tax

You might want to consider consulting an accountant for a tax projection of your finances even if you’re filing separately or jointly. This way, you won’t have any unpleasant surprises such as being subjected to penalties, which may trigger arguments.

Being Ill-Prepared for Worst Case Situations

Don’t let the honeymoon phase take over the realities. Prepare for the worst so you won’t have to deal with sorting out messy finances when you’re grieving. Make sure that your partner knows the locations of important documents and keep them in the know about important decisions such as how much they need for retirement.

If you’re still hesitating about having open conversations with your spouse about money, take heed from Carol Ross Joynt’s story. Former Larry King Live producer Joynt cited trust as one of the reasons why money was never discussed. After Joynt’s husband passed away from pneumonia, she was saddled with a $3 million bill from the IRS.

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  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.

  • http://getliquid.com Max Jaffe

    Marriage financial planning is a great way to go. Lack of communication is the reason over 50% of marriages end in divorce. Lack of communicating about finances holds the majority in those cases. It’s the best opportunity to talk about things like buying a house, joint bank accounts, and deciding if living on a single income would work. However, it is imperative you discuss your day-to-day money management and a budget because this will be the foundation for your financial life.