Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.
As Suzi posted earlier, “Here Comes the Bride” is often followed by “Here Come the Bills.” There’s no doubt that marriage and money are inextricably linked, so this week, we offer a few financial paths to wedded bliss.
- Talk early and often about money. Talking about spending habits and priorities before you walk down the aisle is important, especially if you are financial opposites.
- Prepare for a tax bite that first year of marriage. If you’ve never heard of the “marriage penalty,” make sure you read this article on how your tax bill may go up right after you say your “I Do’s.”
- Plan monthly check-ins to make sure you’re on track. Lest you end up like financial columnist Edmund Andrews and his wife, who racked up $50,000 in debt in two years of marriage.
- Your debt becomes your spouse’s debt — and vice versa. Don’t make the mistake of thinking your spouse’s financial peccadillos are his or hers alone. If your spouse’s debt goes into collections, you could be the one holding the bag — even if you aren’t a joint cardholder.
- Divorce is even less fun in a recession. Not everyone gets a happily ever after, but the National Marriage Project reports that more unhappy couples are putting off divorce until after the recession ends.
