Jennifer Little is a go-getter. But right now, even she admits that she's pushing the limits–she hopes that it's not too far, too fast. This summer she planned to get married and move into a new home. This fall she will be starting law school, while continuing to work full time as a trust administrator for J.P. Morgan Trust Co., and look after her 5-year-old son, Donovan. "I hope that all that's going on at once won't put too much pressure on our relationship," says Little of her fiancé, Richard McFarlane. She's banking on the fact that the couple has been dating for several years and living together for the last year. Perhaps the biggest challenge will be for the couple to merge financially. "I know that money issues are one of the main reasons people break up," says Little, 27. "I don't want that to happen to us." McFarlane, 36, pinpoints part of the problem. "A bad habit I have is organization with the bills," he says. "I get it, then I can't find it and completely forget to pay it until next month. Jennifer helped me with that. All bills go through her now." Little is the primary breadwinner, making more than $70,000, and McFarlane, a customer service representative for Bank of America, makes about half that. She just purchased the $244,000, three-bedroom home where the Newark, Delaware, couple will live with Donovan, who is her son from a previous relationship. One thing she won't have to worry about is the cost of the wedding. Though she and McFarlane wanted a small wedding, being the only girl in her family, Little's parents wanted to throw a big affair and forked over most of the $30,000 for the 125-person garden nuptials. But once the festivities are over, reality resumes. There's the $12,000 in credit card debt, accumulated for a variety of reasons, from purchasing company stock options and household appliances to making car repairs. Widener University law school will cost about $20,000 a year–her employer will pick up about $7,500 per year. Little gets more than $200 a month in child support from Donovan's father, but private school costs more than $600 a month. One key concern is the couple's lack of liquidity. They have about $3,000 in their savings and checking accounts. And while Little is off to a good start with her retirement–with $41,000 in her 401(k), $900 in a Roth IRA, a mutual fund with $2,500, and about $6,000 in employer stock options–McFarlane has no retirement savings. "Retirement is not something I really thought about," he says. As an aspiring musician, McFarlane says that when he was younger he didn't always have extra money to put away. In addition, Little is concerned about Donovan's care should anything happen to her. "I also want to provide for my godson, my husband, and any children Richard and I may have," says Little of her need for estate planning. The next couple of years will be a time of transition, but Little is optimistic about married life. Adds McFarlane: "We are both fully aware of our individual strengths and weaknesses. Jennifer's strength is handling money. My strength is to balance her. I am usually the one that has to pull her away from the clearance shelf and remind her what is a necessity." The Advice To help ensure that the couple gets off to a healthy financial start, Jocelyn Wright, a certified financial planner with Miles Wealth Management in Houston, analyzed their situation. Get on the same page. It is important for the couple to start planning as a family. The line of thinking should be "we vs. me," says Wright. They live together but have not fully merged assets. They have a joint account only to manage household expenses. Otherwise, they maintain individual accounts. "Jennifer says Richard is more likely to plan and prepare for today and immediate needs, whereas Jennifer is more of a long-term planner," says Wright, who is concerned that McFarlane has not enrolled in his company's 401(k) plan. "It's important that their planning is done jointly." Build cash reserves. The family is vulnerable should anything happen to Little. Wright recommends a cash reserve fund of at least $10,000. The $2,000 contest winnings should go toward building that fund. "They must monitor spending generally, and particularly over the next few months with the new house, wedding, and school," says Wright. Protect assets. Both Little and McFarlane need to assess their current life insurance coverage and satisfy any shortage, says Wright; she only has group life insurance worth $110,000, and he does not have any coverage. Given all their expenses, right now, term life insurance is the most cost-effective option for them. Wright recommends a minimum of $500,000 coverage for each. Just as important is disability insurance, especially for Little. "They should take advantage of any employer-provided group coverage. She has group coverage that would pay 50% of her current monthly income," says Wright. Also, Little should consider having wills and ancillary documents (living will, medical power of attorney, etc.) drafted and executed. Guardianship should be determined for Donovan and any future children. Wright suggests Little meet with an attorney to assess the most appropriate method for transferring assets to Donovan because he is a minor. Manage debt. Fortunately, much of Little's debt is at low, competitive rates, but she should be mindful that she could incur student loan debt of about $50,000 over the next four years. "Jennifer must keep any other additional debt low because she will have to begin repaying the student loan about six months after completing school." She should also refrain from purchasing investments on credit because the negative impact of a decline in share value will only be heightened by paying interest on the purchase. HOUSEHOLD INCOME ASSETS Gross Income $105,000 Jennifer's 401(k) Account 41,000 Roth IRA 900 Donovan's 529 Plan 6,000 Mutual Fund 2,580 Stock Options 6,000 Savings Account (Jennifer) 1,500 Savings Account (Donovan) 100 Joint Checking Account 1,000 2001 Toyota Rav4* 7,650 1993 Nissan 300zx* 4,325 Total $315,055 LIABILITIES Mortgage $242,000 Car Loan for Toyota Rav4 8,500 Credit Cards 12,000 Total $262,500 NET WORTH $52,555