Houston, Texas (Jan. 31, 2024) – It’s February and love is in the air with Valentine’s Day around the corner. As some couples contemplate making a lifelong commitment to each other through marriage this month, Members Choice Credit Union recognizes that wedded bliss goes beyond flowers and chocolates.
“We encourage couples to discuss, plan, and communicate openly about their finances before saying ‘I do,’ to help build a solid foundation for their lives together,” said Jessica Segura, vice president of retail experience for Members Choice Credit Union. “By planning and communicating openly about finances, newlyweds can pave the way for a more secure and prosperous future.”
As couples embark on the exciting journey of married life, Segura and her team at Members Choice offer these tips:
- Setting a budget:The first step to achieving financial harmony is establishing a realistic budget. As a couple, discuss your joint financial goals and create a budget that aligns with those objectives. Creating a budget can help manage expenses, track savings, and minimize financial stress.
- Evaluating healthcare insurance coverage and pricing:Before tying the knot, couples should carefully evaluate their healthcare insurance coverage options, considering coverage, premiums, and potential out-of-pocket expenses. Reviewing and understanding the terms of your healthcare plans can help avoid surprises and ensure that both parties have the necessary coverage.
- Buying or renting a home:Talk with your partner about whether you will take out a mortgage or opt for renting. Consider the costs for both options, including down payments, mortgage rates, homeowner association fees, and maintenance expenses. Whether you buy or rent can significantly impact your long-term financial goals.
- Examining the essentials:Discuss essential expenses such as cell phone, internet plans, and utilities. Determine how these costs fit into your budget and explore ways to optimize these expenses without compromising on necessary services.
- Determining auto insurance and vehicle ownership:Review your auto insurance policies and assess how many vehicles you need as a couple. Combining policies or adjusting coverage can often result in significant cost savings. You may also determine you don’t need two cars, mainly if one of you works primarily from home.
- Establishing savings goals:Discuss with each other your savings goals and consider setting aside a specific amount of each partner’s paycheck, such as $50, to build a financial cushion. Have the money automatically withdrawn and deposited into your savings account, so it’s one less thing to do. Additionally, you may want to review your tax withholdings to ensure compliance with your financial goals.
- Creating an emergency fund:Consider adjusting your emergency fund to reflect your joint financial responsibilities. Aim to have between $2,000 and $3,000 on hand to cover any unexpected expenses that may come up. You and your partner should also work toward saving at least six months to a year’s worth of one person’s salary to have a safety net in place for unanticipated situations like job loss or medical expenses.
- Deciding on non-essential expenses:When you combine household expenses, look for ways to streamline your non-essential expenses, such as subscription plans, dining out, and impulse shopping, freeing up some more discretionary income.
- Planning for retirement:Explore retirement options such as Roth IRAs and 401K plans. Discuss the most suitable retirement strategy for your joint financial well-being and goals as a couple.
“We also recommend conducting a yearly review of your budget and finances so you can evaluate your expenses and agree as a couple to make any necessary adjustments,” said Segura. “Newlyweds also want to seek a financial advisor who can assist in refining financial strategies, identifying savings opportunities, managing debt, and aligning goals with actionable plans.”
For more financial literacy tools and resources, visit www.mccu.com.