Marriage is a new chapter for newly wedded couples, that opens a new door to their lives. Marriage is the fusion of two hearts, two lives, two families, that try their best to adjust with each other and live together peacefully. Marriage works on the principles of trust, faith, and respect for each other all bound together by the power of pure love.
Well, marriage is a blissful event that fills the couple’s life with joy and happiness, but marriage does bring something more and that is new changes in the couple’s financial situation and with it, a new set of financial responsibilities.
Both spouses must live together, and for that, they need to plan their finances and responsibilities together. They must set their married life on the right path and discuss with their spouses how the finances must be managed.
Basically, there are many financial things like their monthly expenses, family expenses, savings, investment, insurance and more, that needs to be discussed between newly married couples, discussing their financial planning helps them to carry their expenses in a good manner, together and let them enjoy their married life happily.
Here we are giving some tips to start off financial planning between newly married couples:
Communication is always must between new couples to avoid misunderstanding, without discussing, its difficult to understand each other’s expenses, goals, and choice. Thus, it’s always best to communicate your goals and choices with your spouse. It's crucial to discuss what you want from your life, what is your scope after marriage like if you want to study further or you want to change your career, discussing these things between couples helps them to set their expenses and finances accordingly so that everything goes in a good flow. They should also discuss their sources of income and how much they earn, spend and save.
Consolidate All Assets and Liabilities
Create a list of all your expenses, savings, investments, insurance and most importantly your debts if any that you have before your marriage, and let it get into the knowledge of your spouse. It is important to discuss your savings, your investments in a different asset class that you did before your marriage, on your behalf. Also, if you have any kind of loans like personal loans or credit card loans, debt on you, inform about to your life-partner. Once you discuss your assets and liabilities, after that discuss all the sources of income, other than salary, plan your expenses, and start paying off your debt to complete them as soon as possible. Also, discuss with each other how to plan your investment and in which asset class, to secure your goals.
Whether it is a small goal like buying a car or a big goal like buying a house, discuss each goal of your life with your spouse. Prepare a list of your goals, discuss it with your better-half, and categorize them into short-term goals and long-term goals, and invest for them accordingly. Like you can invest in your short-term goals, in Debt funds, and for your long-term goals, you can invest in Equity funds.
Start with The Necessities
An emergency fund is an essential requirement of your financial planning like you need food and water to survive, your financial planning needs an emergency corpus to remain in a good position. Thus, it is important to first build an emergency corpus and then move on to other goals. An emergency fund helps your financial planning to stay in position in times of uncertainties and reduces a lot of costs for us. The second essential requirement of your financial planning is health insurance. Insurance will help in times of emergency and helps in covering medical expenses. Also, at least one of the partners should have life insurance, it gives cover to your family after you.
Build A Financial Plan and Work Towards It
You are aware of the basic things to be discovered with your spouse, now it time to plan your finance. Before that, one thing that is much important to know is each other’s goals. It’s not necessary that both the spouses have the same goals, they may be different, like a vacation, owning a car or any piece of jewelry can be individual goals. There are also couple goals like retirement planning, owning a house, being debt-free and more. Thus, the financial planning should be in a way that both the individual and couple financial goals are met. Prioritizing the goals and investing in a mutual fund for the same, will work in a better way.
Getting married is a beautiful turn of events in one’s life but it sure does bring some responsibilities with it, better plan.
Most importantly, consult a financial planner or advisor, and discuss your goals with them. They will help you select the best way to invest in your goals as per your requirement.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(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 to future returns).