Moving On To The Next Step Of Your Relationship: Getting Financially Ready For Engagement
Many people get excited at the announcement that their buddy is getting engaged. Some even flash their 2.5-carat diamond ring to show off that they are truly ready for the next step.
However, no ring can determine whether one is ready for life during and after an engagement, especially on the financial side. In most cases, engagements can even spark many arguments that lead to the downfall of relationships. Proper money management will help us eliminate some financial problems from our worries, so we compiled a couple of things we need to consider if we truly want to get financially ready for our engagement.
Engagement and Finances
Engagements are a colossal event. And this phase will become the real testing stage of any relationship. It all makes sense if we think about it since the next big thing that will happen after we get engaged will be our married life – paying bills such as credit cards, utilities, and other stuff.
As a relationship counselor, financial advisors are there to help us get things right and to straighten up our finances. However, we can work something out if we play our cards right, and here’s how we can do it.
Establishing Emergency Funds
To most people, emergency funds are myths, but those who have established emergency funds can attest to its usefulness in tight financial situations. What exactly does it have to do with our engagement? The answer is simple, financial security.
We have to remember that an engagement will be the start of many expenses that will come along our way. Emergency funds will give us that extra layer of security when we are in a pinch. So start saving up a couple of dollars every month for your emergency fund before you even think about getting engaged.
The recommended amount for any emergency fund is six to nine months’ worth of our expenses. That may sound a lot, but the longer our emergency fund is, the longer our breathing room will be. Once we’ve established it, we are one step cleared for proper money management before our engagement.
Know Your Expenses, Spending Habits and Learn To Invest
Knowing where we are with our spending habits and our monthly expenses will give us a quick reality check on what we can expect with life after we get engaged. The best way to do this is to jot down all the expenses we have in a month and compare it with our income.
If we see that we can work on a couple of things like our credit card bills, we should do it and allocate the savings we got from it. Turn that thing into a habit, and financial stability will be just a piece of cake for us.
Another way to get a positive mark on our finances is by making smart and timely investments. Learn how bonds work as an ideal piece of added passive income. Play around the stock market and maneuver your portfolio in the right direction. You’ll be surprised by the potential outcome after doing these simple things. On top of that, after all the engagement and wedding we would take in our path, we will be ready in the biggest stage of them all, and we will be well-versed with a couple of passive income that would help our family’s finances by a long shot.
Other tips can help many folks out there that are considering going into the engagement stage, but those things can sometimes be overwhelming. That’s why we just compiled a couple, yet useful tricks that would help us gear up everything while we are packing for our engagement party.