4 Ways to be Financially Stable for Marriage by Sasha Jacob
Marriage is a great conversation starter, especially among the millennials. It raises interesting views and opinions. Tying the knot may not be as easy as you think, especially if you are from the new generation. It has never been the only option for some couples as a percentage of them choose not be married at all while others want a stable financial future before finally saying "I do."
Sasha Jacob, the CEO of Jacob Capital Management Inc., has some tips to share on how to gain that financial stability before marriage. Being a financial advisor himself, Sasha Jacob says that consulting a financial advisor should be one of the couple's priorities to ensure a secure financial future.
Money problems have become one of the leading cause of arguments and divorce for couples. That is why creating a financial plan, sitting down with financial advisors, and engaging in meaningful money talks will surely save the couple from making wrong decisions in the future.
Sasha Jacob gives four critical financial decisions to make before marriage
1. Assess your financial situation as individuals and as a couple
Taking this first step means that both of you should share your financial story. This financial wellness assessment needs to include important information regarding your current financial situations. For starters, create a net worth statement and review your recent expenses. Later, create a spending plan so you can start projecting where your money should go in the future.
In your financial wellness assessment, you should also discuss and observe one another's attitudes and confidence about money matters. Opt with sitting down with your financial advisor. Share your thoughts and insights and be proactive in creating a financial plan.
2. Create a plan to reduce debts
Eliminating credit card or student loan debt can be a tough job. You don't necessarily have to eliminate your debt, you just have to work on minimizing them and start paying them off. However, it is highly recommended to create a comprehensive plan to do so as quickly as possible before the wedding bells ring. As a result of delayed debt payments, interests could pile up and could potentially double the payments. Bringing the burden of debts into marriage is simply a bad idea. That is why it is critical that the couple should spend some time in understanding each other's current debt obligations. However, instead of simply identifying the source of the problem, the two should focus on establishing a debt reduction plan as quickly as possible.
3. Make some time for a regular assessment
A recent survey shows that approximately 70% of adults have negative thoughts and feelings about discussing money with their partners, even for those in long-term relationships. Exposing your financial circumstances prior to marriage requires a good amount of faithful and honest communication.
This can be discussed with or without a financial advisor. However, if the assessment did not seem to help, letting a financial advisor like Sasha Jacob join in is simply much better. You may also go beyond the assessment and take a look at your credit reports together. This process is not made or suggested so you can dwell on each other's past although it does reflect the past. Try to look at is as a guide for your future financial decisions as a couple.
4. Make that regular money talks less boring and judgmental
Making money talks regular will definitely help you keep track of all your finances. It will also help you boost your trust for one another and decreases the chances of making your partner your biggest financial enemy. You can start by listing down things you might want to discuss. For instance, keeping each other updated with significant expenses means that you two trust each other. Also, respect your partner. If he reveals a large cut on his finances, don't jump into conclusions and simply ask for an explanation.
You also need to share your insights on whether or not you think some expenses are necessary. Voicing out your opinion may not be easy, but speaking out is the only way to get some problems resolved.
Lastly, make sure that you finally decide how your finances should be managed as a couple. Sasha Jacob suggests to get things straight before committing yourselves into marriage. Of course, it all becomes easier with the help of a financial advisor like Sasha Jacob Capital Management Inc. In reality, money does affects every relationship. And by not taking it seriously, you could potentially hurt your marriage. With your future lifelong partner, the process is actually easy contrary to one might think.