Many young couples find themselves in a situation where they have good jobs and bring in a reasonable income. They’ll spend time together creating plans to buy a home, get married, pay off student loans, have a couple of kids, see all the travel hotspot destinations, and save for retirement.
Unfortunately, many of those same people struggle each month to deal with high debt levels and have little to no savings. The result is that many of those big financial dreams end up on the backburner as pressure to keep up with bills and payments becomes overwhelming.
Rather than let your big plans fall by the wayside, there are some things you can do to plot a much brighter financial future together.
Know Your Starting Point
Sit down and discuss your financial starting point. It’s important to know how much income is coming into the household and what your estimated bills and living expenses are each month. You also need to be honest about any debts you incurred as a student.
Prioritize Your Goals
List down the order in which you want to aim at achieving your goals. For example, you might decide paying off student debts is the first priority, followed by saving to pay for a wedding and then building those savings back up again for a deposit to purchase a home.
Create a Realistic Plan
If one or both of you have outstanding student debts, credit cards or personal loans to pay off, create a realistic plan that will allow you to start reducing them. Rolling some of those debts into a consolidation loan could help reduce the interest you pay on your outstanding balances and potentially reduce your monthly payments at the same time.
When your debts are under control, work out how much you can comfortably afford to put aside each week into your savings plan. Ideally, you should have separate savings account to deposit your money into that pays interest on your balances to help it grow.
Review Plans Regularly
Take time to review your financial plans and goals together regularly throughout the year. If you receive a tax refund or a bonus at work, discuss it together and work out the best option for it.
If you’re still repaying debt, you might want to put a lump sum payment towards it. Alternatively, if you’re building savings, you might want to put the amount towards increasing your balance.
There are also those times when your financial situation can change without warning. An accident or injury could result in unexpected medical bills. Your car might break down or the fridge might stop working. Either of you could lose your jobs. Whenever your financial situation changes, discuss your options and review your plans accordingly.
Building a brighter future together begins with creating plans that suit your individual goals as a couple. When you’re both aiming to achieve the same results, you have a greatly improved chance of being successful.