Start planning for after the wedding

By Gary N. Garner

Your wedding should be a happy time, as you and your spouse-to-be plan your life together. And, as you both think about your dreams and hopes for the future, you'll realize how many of them depend on sound financial planning and strong management of your money.

As newlyweds, you can take charge of your finances from day one of your lives together. Here are a few suggestions to help you along the way:

Agree on priorities

It's quite common for spenders to marry savers. This doesn't have to be a problem; your differing perspectives on life can complement each other. But to achieve your big financial goals, such as buying a house, you'll need to set spending and saving priorities together. And you need to make these decisions as early as possible in your marriage to avoid conflicts later on.

Get the right accounts

Many newlyweds wonder whether it's smarter to have joint or separate checking and savings accounts. You'll probably find that a joint account will make it easier to track and pay household bills. On the other hand, separate accounts may be better if you or your spouse bring very different amounts of assets or debts into the marriage. Some couples have a joint account for paying regular bills and maintain smaller individual accounts for discretionary spending.

Keep each other informed

It generally makes sense for one spouse to balance the checkbook and pay the bills. However, you still need to keep each other informed. Consider setting aside time - possibly twice a month - to go over your finances. It doesn't have to be a big production; you can make it fun by having dinner or playing music. Just make sure you set a date and stick to it.

Build an emergency fund

Hold off on buying furniture or a new car until you've created an emergency fund containing at least three to six months' worth of living expenses. The best way to build your emergency fund is to authorize your bank to automatically move a designated amount of money each month from your checking account into something like a money market account, which yields more than a standard savings account.

Start investing

After you've established your emergency fund, you need to start saving and investing for your long-term goals - a house, college for your children if you plan on having some, even retirement.

If you or your spouse have a 401(k) or other tax-qualified plan where you work, put in as much as you can afford.

Your contributions will be made with pre-tax dollars, which means you will reduce your taxable income, and your money will grow tax-deferred until you withdraw it, usually at retirement, when you may be in a lower tax bracket. You may even be fortunate enough to work for a company that will match part of your contributions.

After taking full advantage of your employer's 401(k) or other tax-qualified retirement plan, what else should you invest in? You'll want a diversified portfolio containing many types of investments, but to achieve your long-term goals, you'll need to put special emphasis on stocks.

Over the long term, stocks have always trended up, and they have significantly outperformed all other types of investments (bonds, Treasury Bills, etc.). And by starting to invest when you're young, you'll have plenty of time to overcome any temporary "down" periods in the market.

Stay out of debt

As you start your married life together, you should do everything you can to avoid the "debt trap" that has caught so many Americans. A cause of debt for many people is their use of credit cards. You can avoid this problem by getting into good habits right away. Pay more than the minimum amount due each month to lower future finance charges and to pay off the balance sooner. Better yet, you may want to consider using a charge card which requires full payment of the outstanding balance every month.

Don't build your lifestyle on a "house of cards." The more cards you have, the greater the potential for debt. However, you and your spouse might each want to have one credit card in your own names, so that you can maintain individual credit ratings. And you might find that a jointly held card can be useful for household purchases.

Gary N. Garner is a personal financial advisor with American Express Financial Advisors in Jackson.