by Katerina Nikolas

Created on: September 09, 2010

There is nothing which bodes so ill for an engaged couple than the sheer folly of putting the engagement ring on credit. If a ring is an unaffordable luxury but it still goes on the credit card, then it indicates you are not yet financially responsible for married life and the future handling of your finances. The best advice is to live within your means and limit your borrowing to a future mortgage. Borrowing money to fritter away on non essentials leads to the

credit card trap.

Throughout marriage you are going to have financial decisions to make and if you plan on having a home together, and possible children, then you need to make mature decisions. Although it is the American way to hold a large expensive wedding which costs on average $28,000, consider if this is really a good use of that money.

It would be far more prudent to have a simple ceremony without any fuss and money frittered, and use the average $28,000 towards a down payment on a home. A wedding is just one day in your life but a home can be for life. A solid marriage has nothing to do with the wedding day but many people fail to plan beyond their wedding day.

Before you purchase your dream home be sure to save up at least a 20% down payment. Fully educate yourselves about mortgages prior to taking on the biggest financial responsibility you are ever likely to make and acquaint yourselves with all the options. Remember that there are far more expenses involved in running a household than just paying for the bricks and mortar.

It is an excellent idea if you can both agree to save towards an emergency fund to ensure that you don’t run into debt caused by unforeseen circumstances. Get into the habit of saving a minimum of 10% of your joint wages to build up a fund towards the future and a time when those little extra feet may come along. Learning how to budget and save money is crucial.

Good financial practice is to have one joint checking account for the general running costs of your home, then an additional checking account each. This prevents arguments ensuing when he buys himself some new executive toy and she splurges on that must have divine outfit. Although you should have joint accountability over the big financial decisions you are each entitled to your own splurge money and should not need to justify it to the other.

Be totally upfront about any debt you bring with you and prioritize paying it off before you come one. Be honest with each other about any bad credit history as this can be damaging to any future joint applications for mortgage or loans. Make a commitment to only use credit cards for their rewards and not as a way to finance your day to day living.

It is important to ensure you are financially compatible as a spendthrift married to a saver can create problems. However the worst match of all is two complete spendthrifts coupled together who aid and abet one another into debt. If you hope for a happy marriage then give due attention to your finances first, as arguments and stress over money are often cited as one of the major causes of divorce.

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