In contrast to the excitement of planning a wedding, planning for your financial future as newlyweds can seem daunting. Nevertheless, this is an important process to embrace.

Prioritizing the planning of your financial future can help you and your partner feel more organized, better prepared for unexpected emergencies, and confident in the pursuit of your financial goals. By avoiding common mistakes and developing a holistic plan with a trusted professional, you and your partner will realize that your dreams may be more attainable than you think.

Creating a Plan for Success

Avoiding the “money talk” is one of the biggest mistakes a newlywed couple can make. While it may feel awkward, it is important to confront this discomfort by understanding your partner’s financial goals and spending habits to develop a money management approach that works for both of you.

First, make a plan for your bank accounts and managing your finances—for example, should you have joint or separate accounts? There is no “right” way to manage accounts as a married couple, but you should be on the same page as to whether you want joint accounts, individual accounts or a mix of both. In this instance, the only “right” way is to agree upon what makes you both comfortable.

As life partners, you will likely be making large purchases together, such as a new home or vehicle. Many newlyweds fail to establish a minimum threshold for what constitutes a big purchase and what does not. Not every purchase requires a conversation, but expensive ones that impact your family’s financial future should. Determining what this threshold is for you and your partner can spare you future disagreements and financial woes.

Next, create a budget. Start by totaling your income and tracking all of your expected expenses. Then, subtract your total expenses from your monthly income and make adjustments as needed. If your income and expenses are equal, identify areas where you can cut back to develop a savings plan in case of emergencies. Throughout your marriage, you and your partner will encounter several unexpected and expensive surprises. The last thing you want is to feel unprepared when these instances arise, so be proactive to avoid future complications.

Automatic contributions to your employer 401(k) make saving effortless by removing the temptation to spend before the money reaches your account. If you find yourself overspending, make adjustments as soon as possible to get back on track. For example:

• Make a budget and a shopping list for necessities—and stick to it.
• Keep cash on hand so you’re not making frequent impulse purchases with a credit card. This will help limit your spending ability by ensuring you don't spend more than what you've already allotted for the week.
• Spend only what you can afford. Take an honest look at your income and how much you can feasibly afford to spend each month.
• Organize expenses into categories and track them, which provides a clear picture of your monthly expenses and analyzes how much goes to necessities and how much goes to luxuries.

Budgeting is not an absolute necessity but is a worthwhile exercise, especially if you struggle with overspending and/or a lack of saving. Luckily, there are many apps available that make creating a budget very easy, and most banks offer free budgeting functionality through their online portals.

Lastly, there are many “housekeeping” tasks that every newlywed couple should complete, such as updating your beneficiaries (e.g., life insurance, will, 401(k), checking/savings accounts), discussing the adjustment of your tax filing status (married individuals can file jointly or separately, so agree upon which makes the most sense for you), notifying the IRS of any name changes and adjusting your tax withholding by completing new Forms W-4 that accurately reflect your combined income.

Seeking Professional Guidance

Many newlyweds feel like they have either too little income or too much debt to make a financial plan and invest in their future. This makes young couples reluctant to share their financial state with trusted professionals due to the misconception that all planners have a “minimum” and will only work with wealthy clients. This could not be further from the truth.

Financial planning and investing do not have to include large sums of money; start small, build a solid foundation and increase your commitment when your situation allows it. Additionally, never think that you are too busy or do not have enough time to prioritize this process; any effort to do so is time well spent as it will benefit your family’s financial security. If children enter the picture, your financial situation may experience some strain, so starting off on the right foot beforehand can help create a buffer for managing it.

A trusted financial advisor can help you and your partner design a strategy that increases the likelihood of achieving your dreams. Discuss your goals as a couple, agree upon what will make you both feel comfortable and adequately prepared, and never be afraid to ask for help from a professional who can provide you with solutions that are uniquely tailored to meet your needs.

To learn more about Busey’s Wealth Management holistic services that are tailored to your goals, visit busey.com/wealth-management.

This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.