By Duffy Winters

I am very fond of Jane Austen novels since they are all really just the Cinderella story (or the plot of every dime store romance novel): A nice but poor girl who is pretty and charming meets a really wealthy guy, who you first think is a cad but is actually quite nice. Then a bunch of stuff happens and they live happily ever after in a palace with footservants and ponies. I think this has shaped my expectations of marriage -- that there should be palaces and footservants, or at least a pony.

In two weeks, my husband Dan and I will celebrate our second anniversary. And while I suspect the celebration will be missing the ponies, I am at least certain that we are taking advantage of the financial benefits of being married and are on our way to a palace. Here's how you can do it, too.

1. Exploit Your Boss (And really, can't he/she afford it?)
The first place to look for marital savings is from your employers. Closely compare benefit plans for duplication. For example, if your spouse can cover your health insurance, maybe you can opt for some of other options such as a cafeteria plan, additional vacation time, supplemental life insurance, or dental coverage. As Dan and I have changed jobs, we have flip-flopped health insurance depending on which (if any) employer had a particularly good deal for spouses.

Compare 401(k) matching. If one person's employer is more generous, then you may want to consider maxing out that person's 401(k) first before that of the less-generous employer. My friend Vicky the lawyer urges me to tell you (and surprisingly is not billing me for this advice) that if you opt for this be sure to verify that your spouse is listed as the beneficiary in case of divorce and that 401(k) contributions are included in the list of assets.

Look to see if either employer offers charitable giving, matching, or other benefits for donation. My mom and dad both work at the same company that offers an extra vacation day if you give a certain percentage of your income to United Way. They combine their giving so that one of them gets the extra day -- rather than splitting it so neither of them gets the perquisite.


2. Exploit Your Bank (Hey, they can afford it, too!)
Although there are lots of different bank account options that couples chose (a single combined account; two separate accounts; his, hers, and ours…) be sure they are linked in the bank's mind so that you qualify for lower fees or higher rates -- which usually require a minimum deposit across accounts. A quick glance at several national bank sites showed that most required a $1,000 - $5,000 minimum to relieve you of fees and to possibly provide you with interest-paying checking. (You may want to just opt for no-fee checking and put the extra level of money required for interest-paying checking into a brokerage account where you can buy stocks or at least collect interest on a cash money market account.)

Also, consider online banks, which often have lower minimums and may be more convenient for bill paying.


3. Exploit Your Insurer
Car insurers in particular want you to be married (almost as much as your parents and smug married friends want you to be married) and will discount your insurance when you get married (especially for young men.) Combining auto policies together (as well as any other insurance policies -- renters', homeowners, etc.) should get you a discount since you will become a bigger (and better) customer to them.

There are many, many types of insurance, including life insurance, disability insurance, long-term care insurance, health insurance, dental insurance, eye insurance, home insurance, mortgage insurance, and renters' insurance. Each comes with variations in premiums and deductibles and co-pays. If you haven't updated your policies since getting married or in a long time, take a look at them to see if they fit your current financial state. Some possible changes: maybe you can afford a higher deductible now and can lower your premiums, or maybe with two incomes you have less need for disability insurance.


4. Cut Your Costs (This is your money, so be cheap!)
There is an old adage that two can live as cheaply as one. This is sort of true. You can share the cable bill, the subscription to the paper, and your house, but you still need food and clothes. What you can do is take advantage of being a bigger consumer. Buy the half-gallon rather than the quart of milk, the case of wine, or the really big bag of Doritos at Costco -- a company that serves the dining needs of singles pretty poorly. (Disclosure: My investment club owns stock in Costco, so every really big can of baked beans you buy indirectly benefits me).

Sneaky way to cut costs: I have been able to slip my cotton shirts in with my husband's and avoid paying the usurious rates charged for a women's shirt versus a men's shirt at the dry cleaner.

Environmentally nice way to cut costs: If you live in/near a city, getting married may mean being able to get rid of one of your cars. Evaluate how often both of you are using a car separately. If it is infrequent, you may be better off just renting a car for those times.

A great source of helpful hints is the Living Below Your Means discussion board. Even if you NEVER read discussion boards, I think you'll like this one. Don't worry about posting, just go and skim the topic lists and see if any of the suggestions might be of interest. Recently the board had tips on saving money on books, online groceries, and water heaters.

5. Play to Your Strengths
Personal finance and investing are something that you should plan together. Identify the big goals (boat, travel, ponies, footservants...) The action part, however, may be a place where you can divide the work (and it's really only work if you'd rather be doing something else.) Who thinks following the stock market is fun? Who is more likely to use the coupons that you so neatly cut out of the Sunday paper? Who's better at remembering to pay the bills on time?

If investing and personal finance are new to both of you (and your strengths are more with bowling, juggling, and cooking spaghetti) there are many places you can turn for help to learn together. An easy place to start is with the 13 Steps to Investing Foolishly, which walks you through basic finance and investing. You can view it online or receive a free copy just for registering at the Fool. You and your spouse can also join friends and their spouses to start learning together with an investment club. So many ways to learn!


Happy Anniversary
Congratulations to all of you who are also celebrating anniversaries this month. Continue to turn to your marriage for love and comfort and financial savings. For any singles out there, many of these hints apply equally well, and as Emma Woodhouse explained, being single is fine as long you are financially prepared:

Harriet Smith:
"But still, you will be an old maid! -- and that's so dreadful!"

Emma Woodhouse:
"Never mind, Harriet, I shall not be a poor old maid; and it is poverty only which makes celibacy contemptible to a generous public! A single woman, with a very narrow income, must be a ridiculous, disagreeable old maid! -- the proper sport of boys and girls -- but a single woman, of good fortune, is always respectable, and may be as sensible and pleasant as any body else. [...]"


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