The folks at LendingClub posted a very sober article on financial mistakes that newlyweds often make. Essentially it boils down to:
1) Avoiding money talk: not talking about money to have both on the same page regarding planning and saving money, and more importantly: debt.
2) Keeping finance separate: both sides want to keep their financial life totally separately, forgetting that marriage is a partnership. Since if the couple is already skiping step 1 (not talking about their monies), then naturally each will want to keep his or her own money to themselves. However, “combining finances and discussing money issues is important for a strong marriage.” I totally in agreement here.
However, I’d advocate each would pool their major money together, but still have a small personal separate account for discretional spending, e.g. gifts, money for the in-laws, etc., without touching the main shared checking account. This way it would be more flexible and less financial friction between the couple since both can have their own spending budget to dip into when needed. The key is to be upfront about the savings so that everyone is on the same page. And automatic withdrawal service would work wonder in this case.
3) Get in too much debt. ”Many newlyweds enter marriage with individual debts, as well as debt resulting from a lavish wedding.” This is one thing Marrily is great at: keeping track at your wedding expenses, so you know how much you have spent so far, keeping a close watch on your financial budget.
4) Not establish an emergency fund: If you have read “The Richest Man in Babylon”, you would know how 10% saving a month could do wonders. Having a joined emergency fund a surprise peace of mind that you will find.
Happy saving and planning your wedding!