Financial Hitch?! Not with a fast personal loan!
Getting married? Do you need help with a fast personal loan to pay for a wedding or setting up home?
So you’ve decided to tie the knot? Congratulations! You are on the threshold of a new beginning and we wish you every happiness!
Amidst all the celebrations there are lots of practical things that you now need to sort out, one of them being your joint finances! With a wedding coming up there will be lots of costs to meet. But over and above that, there are a few things you can do to ease the process of merging your finances together and to help you start off this new stage of your lives on a firm footing. Follow our Ten Tips and you will be well on your way!
1. Be honest about your current financial situation
Get to know each other’s financial situation, such as your credit score, how many credit cards you each have, and whether you manage to live within your means each month. Learn each other’s strengths and weaknesses in terms of money matters and also find out how you spend your money – including the things you tend to indulge in! This knowledge will help you to make informed decisions on how to handle your joint money after you get married.
2. Get out of Debt
Debt brings you down. When you are getting to know your partner’s financial situation you then both need to work together to get debts paid down. Debt can be damaging enough to one person, but is more of a threat when you’re married because two people are then responsible for paying the money back. So as a number one priority you need to face debt square in the face and work out a plan together on how to get and stay out of debt. This may necessitate stringent measures such as doing extra work for a while, drastically cutting back your non-essential spending, or perhaps agreeing to take out a fast personal loan to consolidate your debts. But it will be worth it. Living a debt-free life will benefit not only your finances, but your marriage.
3. Agree goals
Dare to dream! Once you know where things stand now then share your long-term financial goals with each other. Are you happy to live relatively modestly or do you want to try and get rich? Do you plan for one of you to reduce or give up work to accommodate a family or do you want to retire early? How willing are you to take risks financially, for example starting up your own business at some point – or perhaps packing your jobs in for a year to travel the world. Know what you’re aiming for and review your progress periodically to give yourself the best chance of success.
4. Set a budget
Clearing debt should be your first priority but it is also essential to set a monthly budget to help you control your spending on a regular basis. Start by reviewing your joint expenses over the last few months to determine where your money is going. Break it down into different categories (eg bills, food, clothes, entertainment etc) and be honest about how much you have been spending. You can then see if you need to bring that amount down and agree ways to do this. Setting a realistic budget is likely to take a few months to get right, but the sooner you get started, the sooner it will become a useful tool to help you. Struggling to see where you can save money? Check out our Top 10 Budget Tips for inspiration.
So many people don’t have savings these days, or any kind of emergency fund to fall back on. So why not open a savings account to start putting money aside for your financial goals and future expenses? Not forgetting the wedding of course! Your savings could also serve as an emergency fund in case something unexpected and expensive happens. Treat your savings as any other bill so that you commit to a regular sum each month. We know that saving can be hard so maybe a better way to look at it is to be smarter with your money. The first step: breaking the dreaded pay cheque cycle.
6. Agree “rules of engagement”
Having a budget is one thing but you both need to commit to sticking to it. Therefore it might be a good idea to set spending limits. Whilst you do need to keep some financial independence, you are also accountable to each other for major spending that affects the joint budget. So consult each other before purchasing major items and involve each other in all financial decisions. Just as most property and income during the marriage will belong to both of you — this also applies to debts that you may incur.
7. Keep on track
To help you stick to your budget why not have regular tracking meetings built into the diary. Sometimes we need to be formal to make things happen! You could keep a spreadsheet or book of what you are spending and can see where the difficulties lie. You can also agree if you need to vary the budget any particular month. Most importantly, how is your debt reduction coming on? For example are you managing to pay off credit cards each month, and if you have taken out a fast personal loan are you managing to keep up the repayments?
8. Joint Accounts?
Another thing to decide is whether you set up a joint bank account or keep your individual accounts after you’re married – or perhaps do both. Having a joint account can simplify your finances and makes paying household bills easier. It also means that you both have access to all your funds when needed. On the other hand some people do prefer to keep a degree of financial independence. Some couples reach a compromise solution by having a joint account for all household and other joint expenses and each paying in a set amount every month, then keeping anything left in their own personal accounts. Whatever you decide, you need to discuss this together and make a conscious decision rather than letting things drift.
9. Crossing the t’s and dotting the i’s
There are many logistical decisions to make when you get married! One of them is whether either or both of you plans to change your name. In which case you will need to do this on all your bank and credit card accounts. There are potential tax benefits too – if one of you has an income less than £11,000 and the other has an income between £11,001 and £43,000 then you can claim Marriage Allowance which enables you to transfer £1,100 of the Personal Allowance of the lower earner to the higher earner, reducing their tax by up to £220 in the tax year. You also need to investigate how the marriage may affect your will and any insurance policies you may have. For example you can name your spouse as the person who would be entitled to receive money and benefits if something happens to you.
10. Start as you mean to go on!
It’s very easy to read the above tips, nod your head at some of the ideas then do nothing about them! But do make the effort to get a grip on your joint finances as of now and you will not regret it! Make money management a priority in your new life together and this will help you to work as a strong team and work together to battle through whatever life throws your way for many years to come.