Financial Essentials For Newly Weds!

By | December 23, 2016

Financial Essentials For Newly Weds!

Marriage is certainly one of the most exciting events of anyone’s life and it brings about a whole world of changes to one’s lifestyle. However, apart from the social and personal implications of marriage, there is also a whole new world of financial responsibilities for both the partners who have to now plan for their combined future as a family. It is an established fact that money plays an important role in any marriage and therefore deserves adequate attention right from the beginning. The first thing that couples should do after marriage is to check out their financial appetites, preferences and compatibility, so that a common road map can be chalked out for their joint future.

Financial Musts

There are certain legal processes which have serious implications on one’s financial status and hence this must be taken up soon after tying the knot.

  • Change of Name: In many Indian families, the brides have to change either their first or last name as per the groom’s family. This needs to be updated in your financial records.
  • Change of Address: Since one is likely to move out after marriage, all banks and financial institutions that you are dealing with must be appraised of your new address.
  • Change of Nominee: One needs to change the nominee at various places such as bank accounts, securities, insurance policies and other investment arenas, if need be.
  • Change of Will: In case there is an existing will then the details of inheritance Will have to be changed or else a new will has to be created if required.
  • If you plan to keep your finances separate, then there is no harm in retaining your maiden name. However, it must be consistent throughout.

Talk About Finances

Ideally, you must start talking about your finances with your would-be spouse before your marriage, but it’s okay if you haven’t. But, don’t forget to discuss it as soon as you are done with all the post-wedding functions. We know it is a rather touchy topic, but you need to talk it out. It is important that you both are aware of where you stand financially as a couple and what each of you expect from the other when it comes to finances. It is also a good idea to disclose how much debt you are carrying (be it Credit Cards, Education Loan or any other loan).

Another important topic to be discussed is bank accounts. First and foremost, you should be open about the accounts that you hold. Next, you need to figure whether you want to maintain all those accounts or set up a joint account. If you’re not comfortable with the idea of a joint account, you can maintain your individual accounts. Or you can have both.

Why is a joint account a good idea? It becomes easier to manage your finances when everything is in the same place. Adding to this, it brings about transparency and helps to build trust in your marriage. Think about it.

Additional Reading: 13 Smart Tricks To Save On Your Wedding

Chalk Out a Family Budget

A completely new approach to financial planning has to be adopted keeping in view the new responsibilities and roles. Both the partners have to sit down and chalk out a road map by defining the exact earning potential, essential expenditures and then setting goals accordingly. The financial aptitudes of both the partners have to be considered in order to work out a middle path with balanced risks in the investment. The responsibility of monitoring of earnings, expenses and investments has to be divided between the partners, so that a tight control is maintained. In case either has an outstanding loan, the repayment from combined funds has to be planned so as to pay it off at the earliest and start afresh. Some long term as well as costly financial goals, such as vacations abroad and purchase of a home or car, will necessitate careful planning and disciplined implementation right from the beginning to be realised in time. The goals must be realistic and should cater to a few unseen circumstances that may crop en route.

Have an Emergency Corpus Ready

The very nature of life is unpredictable. There may be several unforeseen contingencies requiring money such as sudden loss of job, health problems, car repairs or home renovations. One may even have to cater to health problems of the parents of either of the partners at a short notice. While prior to marriage the need for emergency funds was limited to one’s own needs only, post marriage it is different. Thus, an emergency fund that is approximately half a year of expected family expenses must be kept aside within easy and quick access.

Additional Reading: An Emergency Fund To Rescue Your Investments

Clear the Debts

Yes, you heard us right! A debt-free life is not only financially healthy, it is healthy for your marriage also. You and your spouse may have racked up a lot of debt during your single days. But now as a family, it becomes a single responsibility to clear both your debts. You have to work together and wipe it out. Once you are done with the debts, work out a plan to keep yourselves out of debt and stick to it. Budgeting and properly planning your big purchases help to keep you out of debt.

Additional Reading: The Stack Method: An Effective And Speedy Way To Clear Your Debts

Get a Decent Insurance Cover

After marriage, the financial responsibility of both the partners doubles in order to make a new home successful. Thus both have to take adequate insurance cover depending on their income and perceived financial goals in the absence of the other. The existing cover may require to be enhanced keeping in mind the dependence of another life on your income. The couple will have to initially work out the amount that they spare for the premiums of the policy and compare it with their need for cover. Expert advice from financial planners can also be sought in this regard to get a more accurate estimate of the requirements vs. funds available.

Money Meetings

This can either be a weekly affair or a monthly one. But, it is important that you have an open discussion about your budget for the month, status of your financial goals and any other important money matters. This will help you and your spouse stay on track. In addition, such meetings help to strengthen the bond between you and your spouse, and build the level of trust in your relationship. Cool, eh?

On a more serious note, having this weekly or monthly money meeting will help you understand how you stand financially. It also helps you figure out whether all money matters for the month have been dealt with or not (like paying bills, Credit Card or loan payments, etc.).

Retirement Planning

As a couple, both of you would want to be financially secure in your old age, right? Retirement planning is something every individual must do whether they are married or not. But it’s okay if you haven’t! However, if you want to grow your retirement savings, then it is better that you start saving now to take the advantage of the effect of compounding.

Contribute as much as you can afford in your company-provided Employees’ Provident Fund (EPF) accounts. In addition, if you and your spouse put away at least Rs. 2,000 to Rs. 5,000 in a retirement fund, you’ll be able to save enough by the time you retire. Don’t forget to tweak your savings as your incomes increase. Simple, isn’t it?

Touchy Topic? Address it with Love

Don’t go harsh on each other. So, you found out that your spouse has been over-spending or lying to you about paying bills. But yelling at them doesn’t make things right. We understand that such sensitive issues can freak you out, but handling it recklessly will only damage your marriage. You wouldn’t want that, would you?

Instead of pointing a finger at your spouse, address the issue as a team. You can start by pointing out that you both have spent beyond the set budget and need to cut back on expenditure. Then, figure out ways to get back on track together. It always works, trust us!

Work as a Team

If you want to be financially secure and enjoy a happy married life, then you must work as team. Be it life decisions or money decisions, both of you should make the decision together.

On the financial forefront, it helps if both of you have the same financial goals. In this way, both of you can work together and build strategies to accomplish your goals. This helps when it comes to savings and investments too. You can work together to build your investment portfolio based on each other’s risk tolerance. Besides, working as a team helps to encourage each other, so that you both stay focussed on your goals.

In addition, by working as a team, you get to learn from each other. There may be a lot of things that your spouse is well-versed at or has more experience in. Working together allows you to share knowledge between each other.


Honesty is indeed the best policy. Especially when you are in a relationship, you are supposed to be honest with your spouse. This applies to money matters as well. So, if you have messed up your monthly budget, made an impulse purchase or lost some money by gambling, it is important that you let your spouse know about it. Lying about money matters with your spouse can have adverse effects on your marriage, leading to divorce too. If you want your marriage to last for a lifetime, then you have to be open and honest.

Also, you need to learn to trust your spouse with money. If you keep them away from responsibilities or keep an eye on how they handle money, it’s going to make them feel devalued. And this is not good for your marriage.

Don’t Forget Your Vows

When you got married, you exchanged vows to be with each other for richer or for poorer. Life isn’t easy and you are going to face difficult times. But money shouldn’t ever be a reason for any issue between you and your spouse. Cool, eh?

The financial success of a family depends on equal effort and team work from both the partners that would ensure financial stability and success over a long period of time. The couple has to invariably learn how to spend smartly and save a decent sum of money so as to achieve financial freedom and security at the earliest.

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