Financial planning should really be a couple’s priority as soon as they come home from their honeymoon. Marriage does not only change a couple’s financial situation but as well as their outlook on all things money-related.
There will be new financial considerations to attend to such as buying property like a new house, planning for children, spending habits, saving and investments and more. It is very important for newly married couples to be on the same page so as not to make their marriage suffer when financial matters get out of hand.
Here are five effective tips on financial planning that newly married couples can use:
You cannot just assume that your spouse will take care of everything or that s/he will assist you on your existing loan (the one that you got while you were still single). It is important to sit down and discuss where you are in your finances currently. The discussion should include your collective and individual debt, spending habits and goals. And even if you just got married, discuss future goals, no matter how big they may be.
Now take time to discuss in detail the different financial aspects such as how do you plan on splitting or taking care of the payables, how do you plan to build your savings or even your vacation plans. Next, discuss about your habits and which ones will benefit the marriage and which ones need to be modified. Remember that it is important to negotiate rather than impose.
Now that you know where you are financially and what your goals are, it’s important to create your budget to help both of you achieve your identified goals. Check to see if you can work out on your budget and if both of you are willing to help each other out. Discussing a budget is a good practice so both of you will be on the same page when it comes to managing your finances.
Consider unexpected occurrences and make sure you plan for them. If you have extra money after you’ve set your budget, make sure to set some aside, the amount is entirely up to you for as long a you have something that can help you in those unexpected moments. It’s also a good time to consider health and life insurance cover.
The best time to plan for your retirement is always now. Don’t wait until you’re 25 years into your marriage before you can discuss your retirement plans with your spouse; a financial advisor can be very helpful in discussing these matters.
If you don’t have the budget to work with a financial advisor yet, you can always conduct research or learn more about retirement planning for the future.
Annapurna Investment & Financial Services | Create Your Wealth… Transform Your Life | Financial Planner | Yogesh Nerkar ( BE Mech )