6 Steps To Build Financial Security Before You Tie The Knot

If you and your partner took advantage of the Valentine’s Day romance and picked out matching wedding bands, there’s another important step you need to take. Talking finances with your partner may not seem like the most romantic venture, but securing your financial future will help you live confidently in the years ahead – sickness and health. Here is your financial checklist if you’re engaged.

Share Your Hiding Spots

Talk with your partner about where each of you keeps important documents – birth certificate, financial information, title or deeds – so that if something unexpected were to happen, you’re both prepared to handle the other’s assets and financial accounts.

Mesh Your Money (or at least the financial responsibilities)

Couples handle financial accounts in different ways. It’s more important to know where the money is and how to access it in the event it’s needed than to have all finances in one account – if separate checking works best for you, do it wisely. Determine one another’s spending and saving habits, work together to form a retirement plan, and decide how you’ll mesh your incomes to cover monthly expenses.

Plan For The Unexpected

You’ll need an emergency savings account. There’s never a good day to lose a job or be involved in a car crash, so having at least six months’ worth of income in a savings account will give you peace of mind that you can handle the unexpected.

Get Life Insurance

You’re just starting your lives together, so it seems unnatural to think about the end, but obtaining life insurance will ensure you’re both financially secure if ever the unimaginable occurs. Life insurance through an employer is inexpensive and a great benefit to have, but often times it is not enough. Policies through work generally cover one to two times your yearly salary, but you’ll want to plan for coverage of roughly five times your yearly salary. You want your partner to be financially stable, especially in an emotionally challenging time.

Get Disability Insurance

A survey from Life Happens reveals roughly half of American workers will be financially burdened within the first month of not being able to work – a quarter would have money problems immediately. Disability insurance allows you to receive a portion of your paycheck if you’re too sick or injured to work. Before you decide on a policy, you need to know what percentage of your salary is covered and for how long.

Leave It In A Will, Not To Chance

Work with your partner to write a will that specifies how your estate will be managed. Check your state’s requirements as some no longer accept hand-written wills unless they’ve been notarized. It’s best to have an attorney format the will and validate its authenticity. You’ll also want to develop a living will so your partner knows if you want to be kept on life support. Consider designating a power of attorney who would oversee your financial affairs if you or your partner were unable to do so.

Don’t be overwhelmed by the future of your finances. The experienced team at Texas Republic Insurance Solutions will walk you through the insurance options you want to consider to find the best-fit products for your new beginning with your partner.