First of all, congratulations! Tying the knot isn’t just a significant milestone in your life, but it’s also the start of a brand new, exhilarating adventure – married life!
Whether you’re still basking in the bliss of your honeymoon or you’ve just cut the wedding cake, this is the perfect time to sit down with your spouse and talk about an essential, but often overlooked, aspect of marital bliss – financial planning.
“But why now?” you might ask. “We’ve just exchanged our vows! Can’t it wait?” True, budget discussions may not be as enchanting as gazing at a stunning Cape Town sunset or sipping a fine Stellenbosch wine, but trust us, future you will be grateful.
Here’s a simple, beginner-friendly guide to help you start your financial journey on the right footing.
1. Open the Conversation
This might sound a tad obvious, but you’d be surprised how many couples avoid talking about money. Be frank and upfront about your financial situations, existing debts, income, savings, and your individual attitudes towards spending and saving. It’s a bit like a financial date, without the dinner and wine, unless you fancy it, of course!
2. Set Shared Goals
Now that you’re a team, it’s time to think about your combined goals. Fancy a romantic trip to the Kruger National Park? Dreaming of a house in Johannesburg? Or perhaps, saving for a rainy day is more your style. Set both short-term and long-term goals and don’t forget to be specific.
3. Create a Joint Budget
You’ve opened the conversation and set your goals. Now, it’s time to create a budget. This isn’t a “one-size-fits-all” situation. Some couples prefer a completely joint budget, while others maintain individual accounts and contribute to a joint account for shared expenses. Whatever you choose, ensure it’s fair and you’re both comfortable with the setup.
4. Manage Your Debt
If either of you brings debt to the table, it’s time to tackle it head-on. The quicker you clear it, the quicker you can focus on achieving your financial goals.
5. Start an Emergency Fund
An emergency fund is a financial buffer that could help you in unexpected situations like a job loss or a medical emergency. Aim to save around three to six months’ worth of living expenses, and remember, every little bit helps.
6. Consider Insurance
No one likes to dwell on the worst-case scenarios, but it’s better to be safe than sorry. Make sure you have the right insurance coverages – life, disability, and medical, to name a few.
7. Plan for Retirement
Yes, retirement might seem a long way off, especially if you’re just starting your journey together, but the sooner you start, the better. Look into retirement annuity funds or your employer’s pension or provident fund to ensure a comfortable future.
8. Seek Professional Advice
Lastly, don’t hesitate to seek help from a professional financial planner. They can provide tailored advice to meet your unique needs and guide you through South Africa’s specific financial environment.
So, there you have it! Financial planning might not be the most glamorous part of newlywed life, but it’s undoubtedly one of the most crucial. It allows you to focus on what truly matters – building a beautiful life together. Remember, as the Zulu saying goes, “Ukuphanda kube mnandi” (Saving is sweet).
Start your financial journey right, and make that sweetness last a lifetime!
