Marriage is one of the most celebrated events in a person’s life. You shop for new clothes, jewellery, new furniture for the house, and so much more. Spending is given free rein. Exciting isn’t it? But once all the fervour settles down, you’ll have to take hold of your finances.
Additional Reading: How Married Couples Divvy Up Their Expenses
So, to ensure that financial stability is the least of your worries, we have identified a few steps newly married couples can take to set their finances in order. The not so new couples can follow these steps too for better financial planning. Let’s start:
- Talk It Out
Communication is key to a healthy relationship. The more a couple discusses the nitty-gritty of their lives, the less likely are the chances of trouble brewing. If there is a problem then nip it in the bud by talking about it out on the onset.
Once you are done with the honeymoon phase, sit down to talk about your finances. Your debts, savings, future plans etc. Ideally, you should have this talk before the wedding. Learning about a huge debt after the wedding can land a hard blow to the trust pillar of your marriage. If the two of you are completely honest with each other about your financial standing, you’ll not only be able to plan your future better but also your wedding expenses. This discussion would also be a good exercise in learning about the financial habits of your partner. Identify the spendthrift!
Additional Reading: #PlayYourPart: How To Budget, Save, And Cut Costs On Your Wedding
- How Will You Pool Your Funds Together?
We are not asking you to merge accounts, although there is no harm in doing that. Once you move in together, both of you will need to contribute towards the household expenses. There is no single rule or solution to the problem. It all depends on your individual financial habits and needs. You can choose to keep your accounts separate or open a new account where the two of you make equal contributions. It’s entirely up to the two of you, how you decide to go about it.
Additional Reading: Investments As A Couple
- Look Into The Future – Set Goals
The next step is to set financial goals. Just pooling your money together won’t lead you anywhere. If you wish to grow your wealth then you must focus on making smart investments. Also if you plan on having children then you need to be all the moe careful with your finances. From diapers to schooling – everything costs a tidy sum.
Besides you regular expenses, you must also be prepared for emergencies. One way to beat emergencies is to plan ahead. Set up an Emergency Fund and also think about your Retirement Fund. Don’t set very ambitious goals. Set goals that you can meet without having the need to pinch pennies for your regular expenses. This is important for a happy financial future.
Additional Reading: Seven Financial Goals Every Couple Must Set
- Work As A Team
No matter who wears the pants in your relationship, work as a team. Do not take decisions independently assuming that it’ll all work out fine for the both of you. You might have found an amazing investment scheme, but discuss the details with your partner before you make a go ahead for it. Your other half might have something more lucrative in mind. Discussion is a good way to avoid financial pratfalls. Work together for successful investments.
Additional Reading: Financial Blunders Couples Make
- What About Insurance?
We have enumerated a list of things you must do to keep your bank balance rosy, but what about your health emergencies? How will you prepare for it? In India most people consider insurance as an investment and get it only for tax benefits. Or worse, they rely on company provided cover. But, it’s absolutely essential to get a comprehensive Health Insurance plan for both you and your partner. When you buy insurance early and while you’re young, you will be able to reap benefits from your policy and pay a relatively lower premium. So, it’s a win-win. By doing this you’ll be able to spot pitfalls way ahead of time and prepare for it.
Bonus Read: 4 Must-Have Insurance Plans For The Happy Couple
Well, now that was easy. If you are preparing for your wedding or just got married, these tips will help you see your finances in new light. Start a happy married life with happy bank accounts.