Talking about money may not me the most romantic thing to do for newlyweds, but it is important for marital bliss.
If you think managing your own money is challenging, then incorporating your spouse’s finances can be doubly so. Start talking about finance early and give it time i.e, don’t expect to be an expert right away. The following five tips will help you start on your way to good financial habits and a strong base for your marital life.
Talk About Your Finances –
Take stock. If you can, take stock before you tie the knot. Talk about accounts, debt, investment and insurance – especially debt if one of the partners is carrying a lot of undisclosed debt. Make sure each person has a good understanding of where you stand financially as a couple and the expectations that the other holds.
Build an Emergency Fund –
If you don’t have 6 months of expenses in a checking account, consider making this a top priority. Aim to save about 6 months’ or more worth of your household expenses in case the emergency is that you have no income. Make it a priority as it brings financial security and protects your relationship in case disaster strikes.
Write Down Goals –
A goal is a dream with a deadline. For example, do you plan to retire at a certain age? Buy a bigger apartment in 5 years? Start planning for kids? Etc. Write down your goals and review them periodically. If you have surplus income, start investing towards those goals right away. We provide an easy interface to plan and invest for all your goals. You’ll have a much better chance at success if you do.
Invest for Retirement –
Whether you’re married or not, you need to make sure you are set financially for the long haul. This means you need to save for retirement now. Even investing Rs 5,000 in a month will help you over the long term. Because of compounding interest, time is just as important as money when it comes to growing your retirement fund, so don’t delay. Start small, but start right away.
Plan for Tax –
It’s said often and it is true – death and taxes are the only two things that are certain. Thankfully you can plan for your taxes and pay only what you must. Take advantage of Tax schemes when you invest – especially 80/C under the tax code.
At the end of the day, keep it simple. Plan for your future together and spend and save in the right proportion.
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