Hello Readers!
Are you the one among those who let their emotion rule their financial destiny when it comes to deal with your loved ones? Well, if you are then here are some money choices that you must avoid, in this way you can protect your finances.
Stretch Your Budget But Do not Overspend!
Planning big fat weddings, impart a good impression, but they often end you with big a ticket expense, that obviously will haunt you for years. Many go stretching their budget while spending on their wedding of that of their children.
It is advised, you can stretch your budget to a limit but don’t overspend. Do not borrow money to buy what you desire or what you cannot afford, instead save money to buy it.
Do Not Leave Your Partner Alone To Take Care Of Finances!
Even if your partner is capable of taking care of all the financial needs of your family, do not load all the financial responsibilities on them. It is important for each one to be on top of finances. Both, you and your partner must know how the money is flowing in and out. Both of you must be aware of all your investment plans, loans, and insurance. In case of an unfortunate event, it will help you both deal with it in a better way.
You can do it by getting involved jointly in financial responsibilities. Like, suppose you hate doing investing then swap it with your partner, asked them to do investments, and you can carry other financial responsibility. That way both will be trained to single-handedly manage family finances if need be.
Lend To Friends And Family Members!
It becomes too difficult to deny the request of your cousins or friends asking for a loan. Well, you should help others in need, but only for their needs and not for their desires. For instance, if the help is for a medical emergency, then you probably should lend, but not when it is for a lifestyle expense like buying a car or a gadget.
Remember don’t put your finances down while helping others, lend only to the extent you are comfortable with. In cases like medical, be mentally prepared to write-off the amount. Also, do the necessary cross-checking about the track record of the borrower.
Not Talking Goals And Budgets!
After marriage, it's time for both you and your partner to work as a team. It is possible that you both have different ways of thinking, but it is possible that while discussing you both arrive at a common vision by fixing family goals like that of retirement or a child’s education. When it comes to retirement planning, may you both have different choices, like might be your partner needs a lavish retirement while you need a simple retirement? So basically, while planning your retirement, it will be necessary to consider both of your requirements. It is therefore important that you both should talk about your financial goals and arrive at a mutual consensus.
For any kind of query regarding financial planning you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).