Summer 2010 | Volume 108 | Number 656
Start Off on the Right Track
Thrivent Financial for Lutherans representative John Knoernschild shares the following guidelines for newlyweds.
Debt: Thrivent Financial recommends that your total debt payments (on credit cards, loans, etc.) add up to no more than 40% of your monthly gross income – with your mortgage accounting for less than 28% of your gross. Above that, you may have trouble getting credit or being approved for a loan. Put as much discretionary income as possible toward bringing your monthly debt payments under those percentages.
Goals: To save for a home or large purchase, set a target – perhaps a set percentage of your income – and schedule a recurring transfer from your checking account to an interest-earning savings account on paydays. You should both be saving 5% to 10% for retirement, too.
What-ifs: To the extent that you can, it's important to plan for the unexpected. Talk to your financial representative to make sure your life insurance coverage is adequate and appropriate for your needs. Update the beneficiaries on insurance contracts and retirement accounts. And make sure you have a will. If there are prior spouses or children, you'll want to hire a lawyer specializing in wills and estate planning.
For more budgeting guidance, take advantage of the "From Me to We" tools. Or see if the workshop is being offered near you.Read More