Are We Going to Be Okay?

Hi Scott,

I am feeling a bit overwhelmed. My partner and I are both 30 and have a combined income of $140k. We owe $690k on our home, which is worth $860K. We also owe $350k on an investment which is worth $470k. We owe $20,000 in personal loans, own both our cars and have about $20,000 in savings. We are getting married next year at a cost of $40,000 and then want a baby. Scott, I’m nervous. I’m worried about losing my partner’s income ($50k) and feel we could be in trouble. I feel we have done okay at our age, or am I dreaming?

Mark

Mark don’t tell me about your freaking problems… tell your wife-to-be.

Seriously, that’s at the heart of every good relationship -- especially when it comes to finances -- honest communication. Tell her you’re freaked out about how you’ll pay for everything -- the marriage, the mortgage and the midgets. Then sit down together and work out how to tackle it as a team.

Understand that there is no correlation to how much you spend on your wedding and how long it lasts. I got married three years ago, and it was one of the best (and scariest) days of my life. What made it awesome was the people, the music … and the booze. We had it in our backyard, with a mate as our photographer. We spent more than we thought (everyone does), but we paid for it in cash. So should you. The best thing you could do for your marriage is to build up to three months of Mojo as a financial backstop: $40,000 should do it...

Scott