Newly Married? Financial Planning is Important!
Theoretically, Financial Planning is the planning and management of your funds and connecting it with your dreams. But when it comes practically, very few people actually plan their income and expenses to target your goals.
Marriage is the Institution of Togetherness where two people come together and plan their lives in each and every perspective. Starting with the courtship period, planning between the two starts for Honeymoon, Family Planning, etc. But Majority couples deny for Financial Planning. When crossed with the Courtship, the time comes to come out of the fantasy land and look forward to the most important planning and that is all about FINANCIAL PLANNING.
The financial decisions were limited to self up to now, but henceforth, when you are married, it extends to the life of two. Your single decision now also has its impact on your partner. So it is very crucial to start your financial planning from the very beginning and start tracking your expenses and sorting them.
Monetarily to set a strong base, there is the certain list of things to be done:
1. Plan your goals mutually-
Generally, before marriage, the individual has its own goals, plans, and dreams to be taken care of. But now when you are married you need to put down yours as well as your partner’s goals. So the very important step is to write down your current financial position. Your individual financial status is when consolidated with your spouse, that becomes your mutual financial position to be considered. Start it with sharing every financial status including property’s, Debt, Loans, EMI’s, Bill Outstandings, etc. Exchanging talk about Money with your partner will give you lot many to share your life and varied opinions with each other. And this is how you will start exploring each other’s life more beautifully. Thus it is crucial that you talk about finances.
Now, you can revisit your goals and you will find that some of your goals have become your joint goals and may be possible that some of them may vanish.
2. Write down your goals-
Thus after writing your goals with your partner, you will find that going for Europe tour is not only your wife’s goal but it yours as well. So it comes to your joint goals list.
Basically, you should know what your partner is planning and dreaming after 10 to 15 years from now. And thus working it together to achieve your dream goals
will make you more satisfying and happier. But to make it more perfect, you both mutually should have clarity of the time and goal you are planning. So writing and preparing the blueprint of your goals is parallel important to your planning.
Because the risk may end with the dissatisfaction of both incomplete goals if one is planning for Car and another is dreaming of Europe Tour.
3. Analyse your Budget-
Now since you are clear with goals, plan your budget accordingly keeping in perspective your monthly savings and expenditures. Initially, since you both will be from different families, your lifestyle, spendings on eating and entertainment may vary from each other but mutually you will create a habbit. After marriage, spendings increase in terms of shopping since you both will have different perspectives to prioritize expenses.
So the best suggestion for such complication is plan your budget for each expenditure mutually where you can spend without any regret.
4. Plan your purchases-
After marriage, every partner dreams to provide a comfortable and luxurious life to your spouse and infact your spouse expects the same. So in curiosity, we spend initially without even thinking the impact of such decisions.
But before such spending like property purchase, or car it is necessary to think and plan considering the opinions of your partner as well. Consider the current outflow of expenses and EMI’s.
So do not go with decisions taken emotionally, meet your advisor and plan them accordingly.
5. Emergency Funds-
Apart from your goals and accordingly made investments, also keep aside your emergency fund or you can invest in Liquid funds where there are no exit charges.
An emergency fund is the basic corpus you save for any upcoming emergencies, but now since you are no more single, you should keep aside a bigger portion in the Emergency Fund. Such funds can be utilized when you have career gap or your wife is planning for the baby or taking a gap for raising kids. So to avoid such a burden at the time, such funds are necessary to be stored.
6. Plan Insurance-
Considering Emergencies, also think about Insurance Cover. Responsibilities keeps increasing as you are married so the risk of life has much more impact on your loved ones which you cannot even think about. So to cover your family from such unexpected risk, it is necessary that you cover Insurance.
The most important part after marriage is to update your documents, nominations, or add new Beneficiaries. Because majority insurance cases are unclaimed with the insurance companies due to the unknown existence of the policies.
Also talking about medical issues, which has no bar to arise may burden you. So plan your Health Insurance as well. With your growing responsibilities, also your dependant parent’s age grows, so it is crucial to have an adequate Insurance Cover.
Marriage is the Relationship strongly based on the Trust and Togetherness. So when Trust is affected it affects lot many untouched parts. So always be open and honest with your spouse because when some unsaid facts are uncovered it affects your relationship in a very severe impact. Because when PM declared Demonetization, lot many ladies were uncovered with thousands and lakhs rupees. Marriage is a Relationship of Trust so by overspending or saving your money privately not only influences your financial status but also affects your Relationship.
So be honest and genuine to each other. Because its a beautiful realtion where money should be the backbone. Money is not everything in Institution of Marriage but is an important element to be happily forever. Meet your advisors timely and don’t forget to plan your goals accordingly.