It's the season of love, but before couples take the next step in their relationships, they should discuss their personal finances. Salisbury Bank reminds customers that taking this important step is not only a marriage of hearts but also a marriage of finances.
"It's no secret that people can become blinded by love, but if you stick to a plan, your financial situation doesn't have to be impaired," said Michael Dixon, Executive Vice President.
An important component of any romantic relationship is a solid financial footing. Salisbury Bank suggests that all couples discuss the following:
- Be mine, or yours? Will you and your spouse-to-be keep finances separated or combine them? Consider individual money styles and find a system that works for you.
- Love's Cost. Calculate costs and discuss how bills will be paid. Both may contribute to bill payments, but who will physically write the checks to pay the bills, monitor the investments and take care of the taxes. Consider setting a date every month to review and discuss finances.
- Sharing Credit. It's important that spouses are aware of the others' credit situation. Marrying a person with bad credit will not drag down your stellar record. However, your other half's credit will be factored in when applying for joint financing. Knowing ahead of time will help you to plan more strategically.
- Cupid's Arrow. Couples should develop a plan to shoot down existing debt, starting with the balances that carry the highest interest rates. Whether or not the pair works as a team or alone, debt must be tackled.
- Sweet Savings. Saving as a couple fosters teamwork and is essential in times of financial hardship. Decide how much you want to save as a couple and do it automatically from your paychecks.
Salisbury Bank is a full-service community bank headquartered in Lakeville, Connecticut and presently operates full service branches in Canaan, Lakeville, Salisbury and Sharon, Connecticut, South Egremont and Sheffield, Massachusetts as well as Dover Plains and Millerton New York. The Bank has been serving families and businesses for over 160 years and offers a full range of consumer and business banking products and services as well as trust and investment services.