Are you and your significant other or new spouse making the big step to move in together? While you may be overcome with joy, excited to plan a housewarming party and deciding how you will design your new bedroom together, it is important that you think of the financial implications of your big move. Gathered are 5 helpful tips to guide you through the process of merging your finances:
- Budget - You must first sit down and determine the cash flow of your new household. You will want to identify how much money is coming in and how much money is going out. Next, make a list of all monthly bills and insurance payments. Once you have identified all the important financial aspects, you can start making a budget.
- Joint Bank Account - You do not have to give up your individual bank account just yet, but you should have a joint bank account where all of your household budget expenses go in and out from.
- Credit Reports - Each year, both you and your new roommate must conduct a credit report. Set a date each year where you do this together and fix any discrepancies. This will allow you to help each other boost your credit score if needed.
- Emergency Fund - You must have an emergency fund to prepare for a rainy day.
- Tech Bookkeeping - Now that you have successfully merged your finances, it is important that you are both diligent in keeping track of your spending. Consider taking advantage of one of the many smartphone applications where you can sync to each other's apps and track your joint spending.
With locations in both Banning and Beaumont, California, the insurance experts at Little & Sons Insurance Services can guide you in all of your California homeowners' insurance endeavors.
Contact us today and allow us to help you merge yours and your new spouse's lives together financially.
