What to Do Before Marrying: Saver vs. Spender (2024)

FAQs

What to Do Before Marrying: Saver vs. Spender? ›

Be sure to set up a budget together for bills, long-term goals, and emergencies. Having a “mad money” budget line for each partner to spend as they please can satisfy the needs of both a spender (who can splurge on a coveted item) and a saver (who can sock away their share).

Interestingly, spenders were also happier with their financial life than savers (73% and 56%, respectively). But savers might have the upper hand when it comes to managing their money — only 29% of their total annual income is used on miscellaneous purchases, while spenders are using up 38% of their income.

Try to save at least three months' worth of expenses if you can't manage six, but after you're engaged, make sure you're working your way up to six to nine months.

Effective communication and collaboration is key

Make sure to have frequent discussions about your finances and remain open-minded; try not to insist that your partner do things your way. Set goals together and make a few of your own. Make agreements—they add weight to your intentions and keep you on track.

In support of this idea, a national survey revealed that around 3 in 4 young adults agree that delaying marriage provides more time to get one's personal finances in order. This evidence is coupled with other findings like 91% of young adults believe that financial independence is a necessary prerequisite to marriage.

Savers and spenders can have successful lives together, as long as both individuals have agreed to a plan and a budget and can stick to it. If one plan does not work for the two of you, try another.

Changing your spending habits can be as simple as making a small, realistic savings plan each week or month. You don't have to go big either — setting aside just $20 or $50 a month can be a great starting goal. What's important is to get into the habit of saving even a small amount and increasing it over time.

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.

In a 2022 survey of 12,000 couples across the country, The Knot found the national average for a wedding is $30,000.

There are a number of financial benefits to marriage, ranging from lower insurance costs to higher mortgage eligibility. The marriage benefits are particularly pronounced for people who have widely different incomes.

How do I protect myself financially from my wife? ›

'Seriously consider' splitting bills by income

Couples should list all the household expenses, including fixed costs and an average for the variable costs, then split those costs according to income and deposit their allotted amounts monthly in a joint account, said Curtis.

Your business side may tell you to keep money separate but because you're in love, you may want joint accounts, says Kessler. Instead of joint accounts, he suggests each person have accounts at the same bank to make transferring money between accounts easy.

No, you don't. Any debts either spouse had before marriage remain their own responsibility, with one notable exception. If you cosign a loan for your significant other or open a joint account on a credit card before you officially tie the knot, you're both responsible for the debt after your marriage date.

At what age should you be financially stable? Financial stability is more about maintaining control over your finances rather than hitting numbers at a specific age. However, aiming to attain stability by your late 20s to early 30s can be beneficial, allowing time for savings, debt reduction and investments.

Spending on things is more enjoyable than sacrificing to save. Don't you want a good life? In order to have a good life, you have to have a certain amount of wealth.

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

While it's important to start saving money, it's also important to take the time to enjoy it. You did work hard for it, after all. Finding this balance is something people have always struggled with, and why it's important to realize that there are ways to manage your finances so that you don't have to choose.

Personal savings are not just crucial for an individual's financial well-being; at the national level, when the rate of personal savings is high, economic recovery tends to be faster.