Weddings are generally expensive -- that's no secret. But when you're getting married, your wedding should be only one of many financial topics that you and your betrothed should talk about and act on.
Here's a look at five topics to think hard about and to discuss with your spouse-to-be. Doing so can lead to a more harmonious marriage -- and possibly a more financially comfortable one, too.
Image source: Getty Images.
1. Start talking
First off, start talking with your future spouse about money -- in detail. For example: Share your financial goals and challenges -- such as debt, if either of you are carrying any. Share how much you earn and how you spend it.
Get on the same page, financially. For example, you might both agree to live below your means, which is a terrific, stress-reducing way to live. Start planning your joint household budget -- how much can you afford to pay for housing? For entertainment? For making progress toward goals -- such as a down payment on a home, a new car, or education for yourself or your children.
It's also good to agree to have an emergency fund, and to get out of and stay out of high-interest rate debt, such as that from credit cards.
Talk about financial matters regularly, too -- because there will always be new issues to consider. And if you're a woman succumbing to stereotypical thinking that finances are more of a realm for men, think again -- women, while often less confident, tend to get better investing results -- per a Motley Fool research report on women and investing.
2. Pay off debts
If you or your spouse-to-be does have high-interest rate debt, resolve to pay it off as soon as possible. There are different approaches to paying off debt -- find the one(s) that will work best for you, such as consolidating loans, using balance transfer cards, and/or tackling the highest-interest rate debts first.
Ideally, you might enter marriage with little to no high-interest rate debt. But if one or both of you will have some, be sure to have a plan regarding how you'll get out of it, and act on that plan.
3. Consider a prenuptial agreement
Here's an uncomfortable topic that you should at least consider: a prenuptial agreement -- or prenup, as it's sometimes called. You might not need one if you're both still young and haven't yet amassed much in the way of assets. But they can make sense for a wide range of people.
A prenup can help clarify what belongs to whom and how assets will be split, if that's ever needed. It can spell out how finances will be managed, as well, with both parties agreeing to an arrangement. If there are children coming into the marriage, a prenup can clarify what belongs to them and will stay with them, if the two of you split or even, perhaps, if one of you dies. If one of you has a lot of debt, a prenup can clarify that it's that partner's responsibility -- and this might apply to student loan debt, too.
Ideally, the prenup will never be needed, but it could prove handy if it ever is.
4. Keep costs under control when wedding planning
With the average cost of a wedding recently near $30,000, consider trying to spend considerably less than that on your nuptuals. You might do as many are doing these days -- just head off to a special location with a friend or two or just yourselves, and an officiant if you need one. (In some states, two people can pull off a wedding with just them.)
But if you're going the more standard route, do a little online research on how to save money on a wedding. You'll find gobs of ideas, such as:
- Hold the wedding during an off-peak time, such as February or a Sunday or a weeknight. You might save money holding the wedding in the afternoon, too, serving a lunch instead of a dinner.
- Consider an alternative type of venue, such as a park or a beach -- where you won't have to spend a lot of money renting it.
- Think about which expenses you can do without. You might skip the fancy invitations, for example, and perhaps print your own from a template you buy at a site such as Etsy.
- See if you can find a delightful white dress at a department store -- one that can work as a wedding dress.
- Invite fewer people.
- Have a buffet meal instead of serving everyone at their table. And buy your own alcohol if you can.
- Have a D.J. instead of a live band -- or one or two live musicians instead of a lot of them.
- You might even hire a wedding planner who can ensure that you stay within your budget.
5. Consider how you'll save and invest
As you talk about money with your intended, start thinking about how you'll save and invest money -- for your retirement and other goals. Will you favor stocks? Will you stick with simple and effective index funds?
If you want to try saving aggressively, you might aim to live off only one of your incomes, saving and investing the other's. That approach might even help you both to retire early. (If that idea really appeals to you, look into the Financial Independence, Retire Early ("FIRE") movement.)
So as your wedding approaches, start talking about money -- and perhaps take some of the other steps above, too.
