Weddings are pricey affairs and we all know that. But that doesn’t give us a reason to be reckless about our funds and go extravagant. Believe it or not, financial compatibility is as important as having compatibility in bed. You may find it a bit weird, but the truth is “love flies from the window when the poverty knocks at the door”. So, it becomes crucial to see the financial compatibility before you start dating each other.
Moreover, it is important that two people who are planning to get hitched should have correct knowledge about finances and their management. Mismanagement can cost you your relationship and mental peace! Not everybody can handle the pressure that comes with financial crunch. Hence, it is important that you put your bullock before the cart and not the cart before your bullock!
Here in this post we are sharing with you 12 common financial mistakes that most newlywed couples do, and which they should avoid while they plan to start their HAPPY MARRIED LIFE……
MISTAKE NO 1. Not making the wedding budget
Having a wedding budget is very important, it does not at all mean that you have to restrict yourself from buying things or planning your wedding the way you always wanted to. In fact, making a budget in the first place will always help you have control over your wedding expenses and you would be able to track your expenses, which is not possible without a wedding budget. Not having a wedding budget can take a toll on your pocket that will disturb you later after the wedding.
MISTAKE NO 2. Not sticking to the wedding budget religiously
We understand that your wedding is a once in a lifetime affair and you want to have an open hand. But in the process, people spend money on things which are not necessary or are unavoidable. Wedding shopping gives you an adrenaline rush, especially to brides. And they keep on shopping things without thinking much, which affects their budget. It is crucial that you stick to your wedding budget.
MISTAKE NO 3. Not making long-term financial plans
Couples who keep waiting for the good time to make long term plans for their future often regret later or end up having broken marriages. You know love should always make you responsible and more careful about the future. When I say this, it doesn’t mean that you have to be fearful about your future. But, it is essential that you make a long-term financial plan, which includes your retirement goals, home ownership and starting a family. If you will not do it now, then when will you do it? It is crucial and the first step to move ahead as a wedded couple.
So, it’s better that you two sit together and talk about these things before your marriage. Discuss your financial goals, your wedding budget, your timeline, and other issues that you may have. Make sure that you create your financial plan before you marry. Because after marriage it will be a bit late!
MISTAKE NO 4. Wedding on a Credit Card
Using a credit card on your wedding or putting your entire wedding or honeymoon on a credit card simply means a lot of debt. I am sure you know that credit cards cost you heavy interests. Of course, it is not wise to start your new life with a lot of debt. All your time after the wedding will go in paying your debts only and it will create anger, frustration, and compatibility issues later, thereby affecting your relationship.
So, it is better to spend cash on your wedding and if money is a constraint then go for an intimate or low key wedding celebration. Having an intimate wedding will at least let you two have a debt-free start after the wedding, which is way too better than a start with lots of debt and ruining your relationship.
Moreover, instead of using a credit card for your honeymoon bookings, you can either delay your honeymoon or you may even choose a place that is less explored and yes, less expensive. Remember that your honeymoon is about you two and not about the place or location. Besides, stick to your budget, plan beforehand, see deals on wedding vendors and on honeymoon trips etc. so that you can avoid going into debt.
MISTAKE NO 5. Being reckless about money matters
There are some couples who are literally reckless about money matters. They don’t really care about their future and they believe in living king size today. Well, this is not the right way to start your married life. You have to be careful about your funds. We live in the time where things can change anytime, you cannot simply have notions that everything will be perfect tomorrow as well. Most of us are working in private organizations and things can go bad anytime. Hence, it is crucial that you have a habit of saving money and not going extravagant always.
MISTAKE NO 6. Not discussing financial goals before wedding
As said in the point before this, we live in a fragile world, and we have to be careful about our earnings and spending. You cannot simply walk into a marriage without having future goals or without discussing your financial goals or your income, or without knowing each other’s debt. There is no problem in discussing all these things before your wedding.
Believe you me, marrying a person in huge debt is as good as digging your own grave. So, instead of regretting tomorrow it’s better to act smart today. Sit down with your partner and discuss everything with him/her. Talk about current savings, debts other financial obligations that he has. This may however, either make your relationship or break it, but it is important to discuss all these beforehand, later will be too late!
MISTAKE NO 7. Being untruthful to your partner
Being untruthful on financial matters with your partner can be really scary later. It is not some joke, it is about your life as well. Because if you tend to hide things from your partner, or you are untruthful to your partner on financial matters today, trust whatever you are trying to hide today will come face to face tomorrow. Then the whole situation will go beyond control.
If any of you is not open about financial matters or is ignorant about it, then it’s a clear sign that it is going to take a toll on your relationship tomorrow.
MISTAKE NO 8. Being extravagant
Some people are really extravagant, they just buy things for the sake of buying. If any of you has such a habit then be careful now. When you start to date a person be sure to look at his/her spending habits. Because some habits do not change so easily and this is one amongst them. If you think your partner can be counseled about his/her spending habits, then you should surely give it a try. Being extravagant is not a good habit, in fact it’s a trap that causes huge problems.
MISTAKE NO 9. Combining finances before marriage
Of course, nobody even in the wildest of dreams think that they may break up tomorrow. But you never know what is going to happen tomorrow. So, it is wise not to combine finances before your marriage. There are couples who start living together before their marriage and start procuring things for tomorrow or take on each other’s debt, then later for any reason if they break up all their money will go into toss. It is not wise. Instead, it is better to have a budget and contribute your expenses if you two are living together. Break ups are not easy to handle, at least you will not have another reason to cry for!
MISTAKE NO 10. Not planning wedding with partner
When you plan to marry a person, automatically you become a team. Having or planning your things separately for your wedding makes no sense. Instead, you should plan with your partner. This will help you save a lot of money at your wedding, avoid overspending. Whereas, hiding spending from your partner will lead to unnecessary expenses.
MISTAKE NO 11. Not planning things beforehand
Weddings may seem a dreamy affair, but reality is absolutely different from the dream world. And it is good to realize the facts and figures before the wedding itself. Especially when it is about finances, because to start and lead a good life you will need finances. So it is crucial that you plan this beforehand, two of you should track your spending, and keep a close eye on your savings, checking, and investment accounts. Not planning all these things can lead to problems, what’s the point!
MISTAKE NO 12. Not settling your debts before marriage
You cannot simply avoid or ignore your debts. And if you think that you will settle them after your wedding, then you are mistaken. As wedding will bring other pressures on you and you will have other issues to deal with. It’s always good to start a debt-free life. Once you are debt-free, you would be able to enjoy your life in a better way and you will have more funds and you will be at ease to work towards your financial goals.
To pan out…
So, these are the 12 financial mistakes that every newlywed couple should avoid. Avoiding these mistakes can help you have a great start and lead a happy life after your marriage. Being ignorant about finances is not a wise idea, because eventually bad financial habits ruin a lot of things, which include your peace of mind, relationship, family life etc. Therefore, it is crucial that you two are vigilant about your finances and spending habits as well. So, spend wisely and intelligently, and have plans for a better future! ENJOY!