Written by: James J. Burns | JJ Burns & Company
It’s May, which means we’re at the start of wedding season. Between save-the-dates, dress fittings, and early summer ceremonies, many couples are diving headfirst into one of the most memorable—and financially demanding—times of their lives.
I recently read that engaged couples put an average of 15 months, at about six hours per week, into preparing for their wedding. Which, I can tell you from experience, is much more time than many will spend on financial planning—something that could impact the rest of their lives together.
If you and your spouse, or soon-to-be spouse, don’t have a comprehensive financial plan, you’re not alone. About two-thirds (64%) of respondents to the most recent Charles Schwab Modern Wealth Survey said they don’t have a documented plan. Why? Many believe the process is too complicated or too time-consuming, or that they hadn’t yet experienced a life event that demands it.
But getting married and starting a life together is one of those life events—and a perfect opportunity to start planning your financial future. Coincidentally, the same steps couples take to ensure a flawless wedding can also be used to build long-term financial security. Here’s how:
1. Assembling Your Financial Dream Team
Just as you might hire professionals like planners, caterers, florists, and photographers to help make your wedding day a success, seeking financial guidance can also be invaluable. Consider building your financial dream team with:
- A financial advisor to help you map out your short- and long-term goals, build an investment strategy, and plan for a successful retirement;
- An accountant/tax professional who can assist you in creating a tax-efficient strategy that helps to maximize your tax benefits now and in the future; and
- An estate planner to manage generational wealth transfers and tailor solutions to your family’s needs.
2. Developing a Financial Timeline
In the same way that a detailed itinerary can keep a wedding on track, a financial timeline can help ensure you stay on target with your saving, spending, and investing goals. Your timeline could include:
- Short-term goals (1-5 years) like saving for a home, building an emergency fund, or paying down debt;
- Mid-term goals (5-10 years), such as investing and planning for your children’s education; and
- Long-term goals (10+ years) like growing your wealth for retirement and leaving a legacy for your loved ones.
3. Staying Organized and On Track
According to the bridal website The Knot, 90% of engaged couples use online tools to help them stay organized as they plan their wedding. Similarly, digital tools can also help you manage your finances more efficiently. You may want to consider:
- Setting up autopay for regular bills, such as insurance, auto, utilities, and rent or mortgage;
- Using budgeting tools to track your spending, saving and investing, as well as a credit score monitoring service; and
- Automating payroll contributions or bank transfers to eliminate the stress of deciding how much or how often to invest.
4. Communicating and Setting Expectations
Good communication with the professionals you’ve hired, your family and, most significantly, each other—can help prevent wedding day mishaps. This is also true when it comes to financial planning. Strengthen your partnership by:
- Discussing finances openly, respectfully and regularly with your significant other, and meeting with your financial team together;
- Defining your roles in financial decision-making and creating a system for shared access to financial information; and
- Setting joint goals while also maintaining individual autonomy, so both partners feel secure about their financial choices without fear of judgment or control.
5. Hoping for the Best, Planning for the Worst
The best wedding planners know how to prepare for the unexpected. You can take the same approach to your finances by putting a safety net in place so you’re ready for life’s surprises. Your risk management planning could include:
- Building an emergency fund to cover three to six months’ worth of living expenses;
- Ensuring you have adequate insurance such as health, life, homeowners, auto, etc.; and
- Creating a backup plan—with legal documents such as a will and/or trust, power of attorney, living will, etc.—in case something happens to you or your partner.
Plan Your Wealth Like Your Wedding
Financial planning isn’t as glamorous or romantic as preparing for a wedding. But it can help you follow through on the commitment you’re making to support each other—for richer, for poorer, in sickness and in health, for a lifetime.
By planning carefully, consulting knowledgeable professionals, and staying consistent, you can work together to help build lasting financial security. That’s a commitment worth celebrating—on your wedding day and beyond.
Connect with us today to start creating a financial plan that supports your hopes and dreams as a married couple.
Related: Why Insurance and Wealth Management Still Feel Like a Digital Trap