Marriage is the beginning of an entirely new phase of life and hence it is important to establish a strong financial foundation. Most of the couples delay the discussions when it comes to finances, but it’s an important decision and should not be ignored. Newly-weds will need to make financial decisions so that they can achieve their future goals. It’s imperative to communicate openly with your life partner about your financial goals and decide the proper measures to achieve those goals. Here’s a list of financial to-dos newly-weds can do:
- Set up a joint account: Since a married couple takes most of the decisions together, keeping your finances bundled is also a good option. A joint account is an easy and convenient way to share your finances.
- Plan your expenditures and savings: Discuss with your partner about how much you both plan to save and spend on a monthly basis. This will make sure you both will be on the same page with regard to your finances. If you have EMIs to pay, set up a plan and pay off the EMIs first.
- Plan for your investments together: You may have joint financial goals. Therefore, it is important to make sure your partner is aware about the risks and other details of the investments.
- Opt for Insurance: Since you have added responsibility now, make sure your insurance cover is adequate to cover all your financial needs. Taking up adequate insurance will ensure the financial well-being of your spouse. He/she will not have any financial burden in case an unfortunate event occurs.
- Plan for emergency funds: Financial emergencies could strike anytime. Make sure you have some readily available cash to cope up with such situations.
- Plan for long term investments: Opting for Long term investments like ULIP or mutual funds can help you both to achieve your goals without last minute financial stress.