Money Management 101 for Newlyweds

For many couples, making the decisions that will affect each other's lives begins the day they return home from their honeymoon; but it should really begin before they even say "I do."

Financial planning might not seem like an exciting part of planning your lives together, but if you start now, you will have a lot more fun and excitement in the years to come. Taking the necessary steps for a sound financial future is not as complicated as you may anticipate. Here are some tips from SBLI USA Mutual Life Insurance Company, Inc.:

1) Come up with a Budget: You probably already have your own budget, but now you are planning income and expenses for two. It's your joint decision as a couple whether to combine finances and it's something you should decide upon at the outset. If you combine your income and expenses, you will need to combine your budgets as well. Make sure to take into account housing, food, utilities and transportation, as well as student loans, credit card balances, car payments, taxes and if it applies, alimony and child support.

For further tips on creating a sustainable budget read "Become Your Own Financial Advisor: Tips on Planning a Budget and Sticking to It": courtesy of SBLI USA Mutual Life Insurance Company, Inc.

2) Set up Bank Accounts: If you decide to open joint accounts, consider creating both a joint checking and a joint savings account. It's important to keep saving even after the big day. Saving first and spending what remains will help you to build wealth and live within your means throughout your life together.

3) Create a Plan for the Future: Take time to create a written financial plan with clear goals. The plan should include specific and realistic steps to achieve your dreams, including buying a home, starting a family, taking vacations and retirement. Some key steps include maximizing your 401(k) contributions, setting up an emergency fund, paying off consumer debt and saving at least 10 percent of your take-home pay.

Using financial planning software, such as Quicken, can help with keeping track of your expenses and investments. Decide what your tax filing status will be for the year. Make sure you consider the difference between married filing separate versus joint filing, based upon your particular circumstances. Consult your tax advisor if you are unsure.

4) Purchase Life Insurance: There is a common misconception that couples only need life insurance once they have children. This is not the case. Once you get married your spouse automatically becomes your dependant. Forty-eight million Americans either don't own life insurance and believe they should, or own life insurance and believe they need more, according to a study conducted by LIMRA International.

This is a great time to make the change! Purchasing life insurance will give you the peace of mind of knowing your loved ones will have money to help maintain their standard of living should anything happen to you. To access a variety of financial information tools and to learn more about life insurance please visit www.sbliusa.com, or click here to obtain a free, no obligation term life insurance quote.

5) Double check your beneficiaries: As a new husband or wife you should be sure to also check the beneficiaries on all of your other accounts in addition to life insurance, including 401(k)s, IRAs, money market accounts, and CDs. You may want to have a discussion about who will be beneficiary on which accounts, so that each of you feels adequately protected.

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