10 Financial Mistakes You Don't Want to Make as a Newlywed

When you get married, you are combining two separate lives – and that includes your finances. Unfortunately, combining finances can be one of the most difficult things about being a newlywed. 

Further complicating things? Most people do not look at financial compatibility when they start dating and so when it is time to combine finances, differences of opinions come out, tempers can flare, and there can even be the occasional shock about your partner's spending habits or debt. 

Avoid these 10 financial mistakes as a newlywed.

Not Having a Long-Term Financial Plan

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It is essential that you have a long-term financial plan. Your long-term plan should include goals for retirement, home ownership and starting a family.

Sit down and talk about these things before you get married. Discuss your financial goals, your timeline, your budget and other issues that you may face. It's also smart to create this financial plan before you get married. 

Walking in Blind

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Another common newlywed mistake is walking into your marriage blind. This means that you never had a discussion about your financial goals, your income, or your debt. 

After you get engaged, have a frank discussion where you lay it all out. This talk should cover the current amount of savings, the current amount of debt, any delinquent debts, bankruptcies other financial obligations that each person may have.

This may be a make it or break it talk when it comes to the relationship, but it is important to address before you combine finances and get married. 

Lying to Your Spouse

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People often joke about hiding the shopping bags before their spouse gets home, but it can lead to serious financial issues in a relationship.

Be sure that you are both upfront when it comes to finances and that you are totally open about your current financial situation. If something feels off when you have the money talk, you should take this as a warning sign and seek counseling before you get married.

Combining Finances Before You Are Married

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Most laws are meant to protect married couples and if you are just living together, you may run into issues down the line if you purchase a home together or take on each other’s debt, then break up.

If you are living together before you get married, you should use a household budget where you both contribute to shared expenses. This protects both of you and helps you to share expenses in a fair way. It is essential to have a plan. Additionally, wait until you are married to pay on your spouse's debt. 

Putting the Wedding or Honeymoon on a Credit Card

Learn tips to help you save on your wedding expenses.
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You do not want to start your life together by creating a lot of debt. This means that you need to pay cash for your wedding and honeymoon. Although this may mean cutting back on some of the things you want, it will be worth it to not have the payments hanging around for months or years after you are married.

By shopping for deals and planning ahead, you should still be able to create a beautiful wedding on your budget. You can also find great deals on honeymoon trips if you plan ahead. 

Refusing to Budget

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A budget is the key to being financially successful. It does not matter how much you make if you do not have a plan that helps you with spending it. If you are not willing to sit down and create a budget together, you will not be successful financially.

It is important that there is give and take when it comes to creating a budget. Each partner will have financial priorities, and those priorities may not be the same. 

And one person should not be doling out an allowance or micro-managing the budget. Instead, you need to work together to make a budget that works for your family. If this is proving difficult, attending a financial planning class can help you as you work on it.

Keeping Finances Separate

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There are a few valid reasons for keeping your finances separate after you are married. If there have been issues like gambling or severe overspending, you may need to work on building trust before combining your money. Otherwise, combining your finances and budgeting together can help you work more easily toward your financial goals. 

This means also that there are no hidden savings accounts or credit cards. You need to sit down with each other on a regular basis and make sure you are reaching your goals. If your spouse will not combine finances, they may be hiding a bigger issue.

Ignoring the Warning Signs

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Don't ignore financial warning signs, no matter how much you love your spouse. 

For example, keep an eye on issues like overspending,  unwillingness to sit down and talk about finances, or a poor credit score.

Keep in mind that people make mistakes and if your partner has been working on fixing past financial mistakes, you shouldn't hold it against them. Rather, you should continue to be vigilant. 

Not Working as a Team

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In a way, getting married means you're now a team. This applies to your finances, as well. 

Avoid overspending, hiding spending from your partner, or not working toward your shared financial goals. 

While one person may handle the daily finances and paying the bills, both of you should be in the budget meetings and discussing the spending each week. Both of you should track your spending, and keep a close eye on your savings, checking, and investment accounts.  

Ignoring Debt

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The best time to deal with your debt is when you are first married, before you have kids or the added financial stress of owning a home or your own business. You will also likely have more disposable income when you are first married, so use that money to start tackling your debt. 

Once you're debt-free, you'll have more available funds and can start working toward your next financial goal, like buying a home. 

Updated by Rachel Morgan Cautero.