So, you’ve made a number of resolutions for this year. Good for you. We hope you have been able to stick by these resolutions so far. If you haven’t, you still have time because we’re only in the second month of the year.
But, making resolutions for yourself alone isn’t enough. If you’re in a relationship, it becomes imperative to set some goals together. While we’d want for you both to join a gym or make enough time to spend with each other this year as opposed to the year before, we’d also like to suggest setting financial goals.
It’s important that both you and your partner are on the same page when it comes to setting these goals. And that’s only because you don’t want to be starving and eating soup for dinner in an attempt to increase the money in your Savings Account while your partner happily swipes their Credit Card at high-end gourmet restaurants. That’ll defeat the whole purpose, right?
Therefore, you must make it your motto to set common goals, and more importantly, work towards them. So, without further ado, let’s take you through seven financial goals every couple must set and work towards.
Goal 1 – Saying “I Do” To Investing
It may be a good idea to get the word ‘invest’ engraved on your engagement ring, for it should be a constant reminder to you and your partner to invest and do it often. You wish money would simply multiply when you save but the truth is, it doesn’t. Neither, as the saying goes, does it grow on trees. And that’s why you need to get things moving by taking matters into your own hands, with a little help from your partner.
While there are plenty of different investment options available for everyone, it will make sense to identify your goals and then begin accordingly. For instance, if you both want to buy a car three years from now, you can consider investing in Equity Mutual Funds through a Systematic Investment Plan (SIP). This way you don’t have to worry about arranging for a down payment and can skip a Car Loan.
Additional Reading: Investments As A Couple
Goal 2 – Finding A House “To Love And To Cherish”
Do you remember all those fairy tales that ended with a ‘happily ever after’? Well, where do you think those two lovebirds went at the end of the story? They went home! Yes, having a house of your own should be on your priority list. Buying a house these days has got a little bit easier what with the recent interest rate cuts on Home Loans, you’ll hopefully be able to make your dream a reality.
These days you can easily get a Home Loan. All you need is enough money for the down payment and the rest can be sorted through a Home Loan. Your partner can be a co-applicant too. Did you know that your Home Loan has major tax benefits too? You can read all about them here – Don’t Forget About These Home Loan Tax Benefits
Goal 3 – Saving Together For “In Sickness And In Health”
Life is uncertain and in the absence of a warranty on most things, including your health/life, it becomes necessary that you build an emergency fund. An emergency fund is something that most people ignore or devalue but is by far, one of the most important things in life.
Getting a Joint Life cover maybe a good way to save money and also be considered as a pay-out option in case of emergencies. A Joint Life Policy covers two individuals, so it makes perfect sense to get this for yourself and your spouse. In an unfortunate event if one of you passes away, the other becomes the beneficiary. However, do note that these policies pay out only once.
Additional Reading: Your Guide To Joint Life Insurance
Goal 4 – Staying Together “In Good Times And In Bad”
Getting into debt is easy. Being careless with Credit Cards or skipping EMIs on those Loans can effortlessly put anyone in a vicious circle of debt. And getting out of it might seem like a distant dream. The smartest thing to do is to stay on top of all your outstanding payments and to try and repay it without missing the deadline. Because when you do miss a deadline, you’ll end up paying additional interest on these payments.
If you’re looking to reduce debt, a great way would be to get an add-on Credit Card for your partner as opposed to getting two individual cards. Banks these days offer add-on cards at zero cost and this way you both can ensure that you aren’t overspending.
Additional Reading: How To Repay Your Debt Using The Snowball Method
Goal 5 – To “Have And To Hold” A Savings Bank Account
A couple that saves together, stays together. It doesn’t help when couples consider their savings theirs alone. The same goes for debt. So, starting a joint bank account will only further motivate both parties to own up towards both savings as well as debt.
Goal 6 – Not Waiting Until “Death Do Us Apart” To Retire
No one wants to toil and slog until they get feeble. Besides, what’s the point of living if you’re only going to spend your time counting days? Therefore, plan an early retirement along with your partner. Retirement planning will work differently depending upon whether or not your spouse is employed.
It’s easy to overestimate retirement planning if you both are working, and underestimate it in case of a single-income household. But, if you and your partner are employed, investing in NPS will be a good idea. For the other couples, you’ll have to make some smart financial moves taking your partner into consideration as well.
Additional Reading: Pay-Out Options For Retirement Savings
Goal 7 – To Travel Together “From This Day Forward”
“The world is a book and those who do not travel read only one page”. Well, that must sum it up for you, because travelling together with your partner should be done when you’re young and strong. Don’t wait up until retirement to go places together.
Additional Reading: Travel Insurance Plans For Globetrotters
That said, setting realistic and reasonable goals is important. Speaking of reasonable things, have you looked at our interest rates on loans yet? They’re as reasonable as reasonable can be.