Merging your Money at the Altar

It’s  not unusual for couples to spend more than $20,000 on their wedding. Unfortunately, the debt load can be overwhelming when the honeymoon is over. To ensure financial and marital bliss long after the wedding day, here are four tips to consider:

1. Practise financial fidelity. Spend time figuring out your combined financial picture. Talk about spending habits and determine your shared savings and debt. “Make paying off your wedding debt a priority so that it doesn’t linger for years,” says Liz Lunney, senior vice president, Fiduciary Trust Company of Canada.

2. Get professional advice. A financial advisor can help you and your spouse determine your goals and build a long-term plan. It’s important to review assets, liabilities, investments and retirement savings (check out www.fiduciarytrust.ca for information on financial planning). “Financial compromises will have to be made to ensure you will be able to pay for expenses and save for your future,” adds Liz.

3. Merge expenses and save for a rainy day. Will you open a joint bank account? Who will pay the bills? Should you combine your investments? Address these questions immediately. Emergency savings can provide security if unforeseen expenses such as unemployment or health problems occur. Maximize your savings with a tax-free savings account. Investors can contribute up to $5,000 annually and gains are tax-free.

4. Review your plan. Life events will change your goals and spending habits. If you are buying a house or having children, you will need to revise your budget, cover insurance needs, contribute more to savings and ensure that your plan still meets your goals.

Source: www.newscanada.com.