Money conversation is among the uncomfortable topics for many married couples. While many couples avoid talking about financial details, some shun the discussion finding it uncomfortable. However, not being on the same page as your partner can cause a strain in the relationship. It’s important to be transparent, disclosing one’s financial obligations and habits at the earliest. Even if you manage your financial portfolios separately, you must discuss your goals and help each other in pursuing it.
Let’s look at the aspects that should be brought to the table for discussion.
What Should Be The Optimal Amount Of Coverage Under Life And Health Insurance Policies?
Both Life Insurance and Health Insurance requires adequate coverage and any insufficiency can create an irreparable dent in your financial planning, putting not just you but your family through inconvenience. This optimal coverage level should be discussed with your spouse. If you have already bought a plan, you should discuss the coverage level with your spouse and enhance it, if required. You must also educate your spouse on the claim process, as it is fruitless if not done correctly.
Whether To Take A Loan Or Not
If you or your spouse need a loan, you should discuss it with each other. Make sure you indulge in taking ‘good’ loans and avoid unsecured loans such as Personal Loans and Credit Card loans. Talk to your spouse to decide on the loan amount. Your spouse can help you assess your monthly expenditure and adjust other expenses to fit in your loan EMI on a monthly basis.
How Much And Where To Invest
If you do not discuss your investment plans and keep your spouse in the dark, your spouse would not know where to source money from in case of any contingency. If you are not around, your spouse would not be able to withdraw from your investment. You must involve your spouse while planning for any investment and deciding on the investment tools.
Your Financial Goals
Your financial conversation should also include your financial goals – individual and collective. Your spouse should know about your goals as you need two to tango. For collective goals such as buying a house or children’s education, you would need to plan well and in advance as you would need a lump sum amount.
Your Individual Responsibilities
You must work as a team and take up responsibilities you are good at. Identify each other’s strength and weaknesses and work together towards increasing financial stability. This would also reduce the burden on one person.
Sharing a stable financial bond will only increase the compatibility between you and your spouse.
(The writer is CEO, BankBazaar.com)