Most wedding checklists don’t include things to consider after the honeymoon, such as merging your money with your new spouse’s and setting up a household. But laying the groundwork before you marry may prevent future conflicts.
Money Matters
Many money management experts will say keeping separate personal accounts and opening a joint account for household expenses is best, particularly if you’re a dual-earning couple. You may want to list both names using “and” on your joint account to indicate that you’re both equally authorized users.
Setting up a system for paying bills and creating a budget detailing your monthly incomes and expenses will help you identify financial priorities, such as saving for your first home.
The Home Front
Before discussing paint colors, talk about the increased responsibility of homeownership, which will demand time, money and energy.
The first question you ask should be this: Can I afford to buy a home?
You’ll need to determine how much you’re able to pay every month for a mortgage. In general, lenders require that your monthly housing payment be no more than 28 percent to 33 percent of your gross monthly income. Lenders also require you to make a down payment of 5 percent to 20 percent of the value of the home. Most mortgage loans require an established credit history.
Insurance is necessary to protect your newly purchased home and your belongings. Home insurance can cover several types of damage, including fire, theft, structural collapse and more. What type and amount of coverage depends on the value of your property and what you’re able to afford. Premiums vary based on coverage types, company rates, the value of your home and its contents and your deductible.
Combine Your Household Goods
Suddenly, you and your spouse are the proud owners of two of everything and not sure what to do. Before chunking all of the things from his bachelor pad, review these tips:
- Go through each house together. Identify which items are duplicates. If you can use two of something — televisions, stereos — keep both.
- Try not to become too attached to something. If you’ve been using your parents’ sofa from 1971 and your spouse’s is only two years old, be realistic as to which one to keep.
- Tag the things you aren’t keeping and put them in a yard sale. What doesn’t sell can be donated to an organization such as Goodwill or the Salvation Army.
Source: Bank of America Insurance Services Inc.
