Some Financial Tips for the Newly Weds

So you have just tied the knot and might still be basking in the excitement of your special day. But once your honeymoon is over, it's time to sit down and find out what each other's more substantive financial goals might be. Because one of the most critical changes you encounter after getting married is the financial reality. Single income can convert to double, but so can the debts; buying assets may become easier, but insurance liability could increase; your spending or saving habits could be a disastrous mismatch, but your long-term goals may be the same.

While it's not easy to find a snug financial match, it's not impossible to home in on feasible solutions either. These can work for or against you depending on how you deal with them. You not only need to harmonize the different financial ideologies and habits that you bring into a new relationship, but also streamline your individual finances in a way that you can work towards the combined goals. . Here we take a look at some of the important things newly-weds need to consider while preparing a financial plan:

1. Reveal your cards

My money, your money; everybody is possessive about his or her money. But as a couple, this equation changes.  It’s important to talk about your finances; preferably even before you get married. So be it your income or expenses, savings or debts, liabilities or assets, proclivities or aversions, habits or cravings, lay them all on the table. List out your outstanding debts like car loans or credit card bills and assets like jewellery, real estate or stock investments. Talk about your attitude towards money, your values, what you plan to do with it after marriage. While you should retain your individual bank accounts (this is especially necessary from the point of view of convenience in paying tax if both the partners are working), you need to open a new joint bank account with an initial deposit equivalent to the wedding receipts in it.

2. Managing Household expenses

  

Both the partners need to work and to arrive at any conclusion, the newly weds should take into account all the things impacting their life, as there are lots of things and issues which determine this factor. Another important thing to do is to make a list of household expenses (regular as well as one-time) that you expect to incur. You are just beginning to share your life with your partner. So it is advisable to add a bit extra to the initial estimates.

3. Frame a budget, fix the goals

If, after the revelations and discussions, you have not already set your goals, it would be the next logical step. Frame your short- and long-term goals in accordance with your priorities and earning capacities. So whether you plan to buy furniture, car or houses, establish a time frame. It is imperative to describe each long-term goal in financial terms in black and white and they should be reviewed atleast once a year. You should also discuss the financial implications of having a child, savings required for his/her education and marriage, vacations and, of course, your retirement. It's never too early to start planning and saving for such goals because the compounding effect of investments works in your favor.

4. Risk Management

After marriage one needs to review one's coverage to take adequate life cover in a bid to protect one's spouse and family from the risk of premature death. If the spouse is working, then her income earning capacity also needs to be protected and if she is a housewife, she needs to be given adequate protection which could safely tide her over any financial crisis that might occur in the absence of the breadwinner.

As the person matures and gets married, he/she needs to take an adequate life cover to protect his/her spouse and family from the risk of premature death of the breadwinner. At this time some critical illness cover is also required, so as to cover one against any mishappening which may lead to non-performance of job for some time. Medical treatment is getting more and more expensive thanks to the scary inflation. Your health is your most important asset. Buy health insurance when you don’t need it so that you can have it when there is a need.

When it comes to the matters of money, investments and your dreams and goals, two people may not have the same opinion. At times like these, it is best to visit a certified financial planner and recognize the best tools to invest your resources that will help you realize your dreams. Your certified financial planner can give you unbiased opinions and tools, which will work to fulfill your dreams. All the best. Stay Blessed!!